Corporate | 15 May 2015 08:15

Feike AG continues its expansion path and records double-digit growth in the first quarter of 2015

Feike AG / Key word(s): Quarter Results

2015-05-15 / 08:15

Financial results 3M 2015

Feike AG continues its expansion path and records
double-digit growth in the first quarter of 2015

– Increase in revenue of 29.0% to EUR 29.5 million (3M 2014: EUR 22.8 million)

– Rise in EBIT of 20.0% to EUR 7.2 million (3M 2014: EUR 6.0 million)

– Increase of the cash position by 32.6% to EUR 98.0 million (31 December 2014: EUR 74.0 million)

Berlin, 15 May 2015 – In the first three months of the financial year 2015 Feike AG, the German holding company of the second largest manufacturer of children’s footwear in China*, continued its business expansion.

Feike AG records a revenue growth of 29.0% to EUR 29.5 million (3M 2014: EUR 22.8 million). This is mainly due to the further increase of the number of its authorised retail outlets from 2,393 as at 31 December 2014 to 2,437 as at 31 March 2015. Correspondingly, the number of units of footwear and apparel sold increased by 5.1% to 3.3 million units. Thereby, the revenue from apparel products increased by 40.0% and amounts to a total of 18.7% of the group’s entire revenue (3M 2014: 17.2 %). This is in line with the company’s strategy to increase the sales volume of apparel products and further penetrate the highly fragmented children’s apparel market.

The group’s gross profit increased by 23.4% to EUR 8.8 million (3M 2014: EUR 7.1 million). The corresponding gross profit margin amounts to 29.7% (3M 2014: 31.0%). The group’s EBIT increased by 20.0% to EUR 7.2 million (3M 2014: EUR 6.0 million). This represents an EBIT margin of 24.3% (3M 2014: 26.2%). Ultimately, the net profit for the period increased by 20.6% to EUR 5.3 million (3M 2014: EUR 4.4 million).

Feike AG was able to further increase its cash position amongst others due to higher cash generated from operations and the unrealized foreign currency exchange gain. In the first three months of 2015, cash and cash equivalents increased by 32.6% to EUR 98.0 million as at 31 March 2015 (31 December 2014: EUR 74.0 million). Furthermore, the group’s equity increased by 22.4% to EUR 91.1 million as at 31 March 2015 (31 December 2014: EUR 76.2 million).

In general, there are no material changes regarding the company’s outlook for the financial year 2015 compared to the disclosures given in the annual report 2014. Therefore, Feike AG continues to plan a further expansion of its distribution and sales network by increasing the number of retail outlets to approximately 2,500 by the end of 2015. Regarding its financial figures, Feike AG is still expecting relatively stable gross and net profit margins and further double-digit growth in revenue. The growth of revenue is thereby forecasted based on the assumption of an RMB appreciation against the EUR. 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 report on the first three months of the financial year 2015 of Feike AG 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

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357873  2015-05-15