Corporate | 30 April 2015 08:56
DGAP-News: Feike AG / Key word(s): Final Results
2015-04-30 / 08:56
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Feike AG reports successful expansion according to its growth strategy
* Increase in revenues by 14.0% to 123.3 million Euros (2013: 108.2 million
Euros)
* Rise in EBIT of 10.5% to 32.1 million Euros (2013: 29.0 million Euros)
* Cash position increased by 33.2 million Euros to 74.0 million Euros as at
31 December 2014
Berlin, 29 April 2015 - For the financial year 2014 Feike AG, the German
holding company of the second largest manufacturer of children's footwear
in China*, reports the successful listing on the Frankfurt Stock Exchange
and the expansion of its business in accordance with the growth strategy.
During the reporting period the number of retail outlets increased to a
total of 2,393 as at 31 December 2014 - a plus of 120 retail outlets
compared to 31 December 2013. The number of units of children's footwear
and apparel sold was thus increased by 11.1% to about 14.7 million units.
While all of Feike AG's children's footwear brands recorded double-digit
revenue growth rates during the reporting period, its apparel products even
grew at more than 25.0%. Furthermore, Feike AG was able to increase the
general price range across its products by about 1.1%, whereby the gross
profit margin was improved.
Due to the expansion, Feike AG achieved growth in all relevant financial
figures and maintained its high level of profitability. In this context,
revenues increased to 123.3 million Euros, thereby exceeding last year's
revenues by 14.0% (2013: 108.2 million Euros). The gross profit amounted to
39.0 million Euros, representing an increase of 18.2% compared to the
previous year (2013: 33.0 million Euros). The operating profit (EBIT)
reached about 31.9 million Euros corresponding to an increase of 10.5%
(2013: 29.0 million Euros). The EBIT margin remained relatively stable at
26.0% compared to last year's EBIT margin of 26.8%. Without the
non-recurring IPO expenses, the EBIT margin would have
increased to 27.0%, however.
The group's equity increased from 45.1 million Euros as at 31 December 2013
by 68.9% to 76.2 million Euros as at 31 December 2014. The increase was
mainly attributable to the strong profit after tax. This positive business
development led to a substantial rise in the group's cash position, which
increased from 40.8 million Euros as at 31 December 2013 to 74.0 million
Euros as at 31 December 2014.
Compared to the financial year 2013, Feike AG has increased its research
and development spending by about 17%. In 2014, Feike AG has designed and
developed 4,028 product design samples, of which 1,473 were eventually used
for mass production. In 2015, it is planned to invest even more into Feike
AG's existing design and development capacities as it is expected that
competition from larger players in the children's footwear and apparel
market will increase.
Jiafa Li, CEO of Feike AG: "We are very satisfied with the business
development and the market position we have achieved in 2014. The same
applies to the increased efforts in our research and development
activities. We are confident that both will ensure our competitiveness in
the future despite an expected rise in competition in our market".
In 2015, Feike plans to further expand its distribution and sales network
by increasing the number of retail outlets to approximately 2,500.
Regarding its financial figures, Feike is expecting relatively stable gross
and net profit margins and double-digit growth in revenue in 2015. The
growth of revenue in 2015 is forecast based on the assumption of the RMB
appreciating against the Euro. Measured in RMB, the growth of revenue in
2015 is expected to be in the range of 4% to 6%.
*By retail sales volume in 2012 according to the "Report on Children's
Apparel and Footwear Markets in China" prepared by the Smart Cube. (the
"Smart Cube Report")
About Feike AG
Feike AG is the second largest manufacturer of children's footwear in
China, according to a market study*. The company sells its wide range of
products comprising children's shoes and clothing under three well-known
brands - "Feike", "Atongmu" and "Lanmao". The sales network currently
includes 2,393 retail outlets in 27 provinces of China. As at 31 December
2014, Feike Group had 1,082 full-time employees as compared to 1,084
full-time employees of the corresponding period in 2013. Feike AG's shares
are traded on the Frankfurt Stock Exchange under the ticker symbol FKE and
ISIN DE000A1YCNB3.
The annual report of Feike AG for the financial year 2014 will be available
on the corporate website under:
http://www.feike-ag.com/investor-relations/publications.html
For further Information, please contact:
Kirchhoff Consult AG
Andreas Friedemann
Tel: +49(0) 40 609 186 50
E-Mail: andreas.friedemann@kirchhoff.de
Website: http://www.feike-ag.com
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Feike AG's current views and expectations and the assumptions
underlying them about future events. Forward-looking statements are
naturally subject to many risks and uncertainties. If any of such risks and
uncertainties materialise or if the assumptions underlying any of Feike's
forward-looking statements are proving to be incorrect, Feike AG's actual
results may be materially different from those expressed or implied by such
forward-looking statements. Feike AG does not assume any obligation to
update these forward-looking statements. Any forward-looking statement
therefore only refers to the date on which it is made.
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Language: English
Company: Feike AG
Friedrichstraße 90
10117 Berlin
Germany
Phone: +49 (0) 30 20253604
Fax: +49 (0)30 20253333
E-mail: feike@kirchhoff.de
Internet: www.feike-ag.de
ISIN: DE000A1YCNB3
WKN: A1YCNB
Listed: Regulated Market in Frankfurt (General Standard);
Regulated Unofficial Market in Dusseldorf
End of News DGAP News-Service
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