News Column

DGAP-News: Firstextile AG recorded business recovery in Q2 2014

August 26, 2014

DGAP-News: Firstextile AG / Key word(s): Half Year Results Firstextile AG recorded business recovery in Q2 2014 27.08.2014 / 07:31 --------------------------------------------------------------------- Firstextile AG recorded business recovery in Q2 2014 - Revenue rose by 81.4% quarter-on-quarter to EUR 59.6 mn in Q2 2014; overall revenue in H1 2014 with EUR 92.5 mn still below the previous year - Earnings before interest and tax (EBIT) at EUR 17.4 mn in H1 2014; EBIT margin at 18.8% - Management confirms guidance for the full year 2014 Frankfurt, 27 August 2014 - Firstextile AG (FT8) has published today its financial figures for the first six months and the second quarter of 2014, reporting an improved business development in the second quarter of 2014. Even though this marked recovery could not fully compensate the weak start into the current financial year, the management is very confident for the full year's development and confirms its 2014 guidance. During the second quarter of 2014, Firstextile achieved revenue totalling EUR 59.6 million after EUR 58.7 million in the same period of 2013. Thereby, Firstextile managed to stop the yoy drop in revenue of the first quarter of 2014, which was mainly attributable to the strong revenue decline in the Uniforms segment. Despite the significant revenue improvement of 81.4% quarter-on-quarter, the revenue increase in the second quarter of 2014 was not sufficient compensate the drop of the first three months of 2014. Overall revenue in the first half year of 2014 was at EUR 92.5 million (H1 2013: EUR 106.4 million). In addition, the company's gross profit amounted to EUR 28.6 million compared to EUR 33.2 million in the previous year's period, resulting in a gross profit margin of 30.9% (H1 2013: 31.2%). Firstextile's earnings before interest and tax (EBIT) amounted to EUR 17.4 million representing a decline of 23.9% year-on-year (H1 2013: EUR 22.9 million) and corresponding to an EBIT margin of 18.8% (H1 2013: 21.5%). Net profit decreased by 24.9% from EUR 18.1 million in the first six months of 2013 to EUR 13.6 million in the same period of 2014. Fred Yang, founder and CEO of Firstextile, comments the results: "The first half year of 2014 was mainly characterized by the divergent development in our Uniforms segment. Already during the weak first quarter of 2014, we recognized a very positive order intake in this segment which is reflected in Q2 2014: segmental revenue is 22.0% above the previous year. Furthermore we successfully signed the framework agreement with China Mobile, one of the largest mobile telecommunications companies in China. Thereby we gain the opportunity to supply uniforms to this Chinese telecom giant with nearly 600,000 employees and due expect further positive momentum in the second half year of 2014." Richard Cao, CFO, adds: "As of today, we are pre-approved supplier for 20 government institutions and large state-owned enterprises, e.g. the Chinese Military (PLA), China Security Association, China Railway and now also China Mobile. We are convinced that this is an excellent basis for sustainable and profitable business development and therefore confirm our guidance 2014." Firstextile's revenue in the Fabrics segment amounted to EUR 35.1 million in Q2 2014 and was at the same level like in the same period in the previous year (Q2 2013: EUR 35.1 million). Bearing in mind the extraordinary development in Q1 2013 which was far ahead of plan, revenue of EUR 61.9 million in the first half year of 2014 is in line with management expectations even though it is 6.8% below revenue in the same period of the previous year (H1 2013: EUR 66.5 million). Gross profit also decreased to EUR 16.4 million (H1 2013: EUR 19.4 million), reflecting a gross profit margin of 26.5% in the first half year of 2014 (H1 2013: 29.2%). After a weak first quarter of 2014, revenue in the Uniforms segment showed a strong recovery in the second quarter of 2014 and amounted to EUR 19.9 million (Q2 2013: EUR 16.3 million). However, due to the delay of new bulk orders and the corresponding extraordinary development in the first three months of 2014, total revenue in the Uniforms segment for the first half of 2014 amounted to EUR 20.3 million after EUR 28.9 million in the first six months of 2013. Since revenue in the Uniforms segment generally depends on relatively few large orders, in general a fluctuation in revenue quarter-on-quarter in this segment is not exceptional. Despite the revenue decrease, the segmental gross profit increased by 3.3% yoy to EUR 6.0 million (H1 2013: EUR 5.8 million). Overall the gross profit margin rose up to 29.4% compared to 19.9% in the same reporting period of the previous year. In the Branded Products segment, revenue in the first half year of 2014 amounted to EUR 10.2 million (H1 2013: EUR 10.9 million) and therefore was slightly below the revenue in the previous year's reporting period. The lower revenue level in the comparison yoy is mainly due to the extraordinary high revenue level in the second quarter of 2013. However, overall revenue development in the first half year of 2014 is within management expectations for the fiscal year 2014. Gross profit in this segment amounted to EUR 6.2 million (H1 2013: EUR 8.1 million); the gross profit margin still remained on a very high level of 60.3% in the first half year of 2014 (H1 2013: 73.7%). As of today, the complete 2014 half year report can be downloaded from the company's website at www.firstextile.de, within the "Investor Relations" area. Company profile Firstextile is one of the leading manufacturers of high-end yarn-dyed fabrics in the Chinese market. It also markets fabrics and shirts specifically designed for uniforms used by Chinese government institutions and enterprises, as well as its own branded men's wear for the Chinese premium market segment. The company operates modern production facilities in Jiangyin near Shanghai, China, which is one of the main centres of the Chinese textile industry, and it focuses particularly on high product-quality. Net proceeds from the successful completion of the IPO in November 2012, will primarily be used to double annual production capacity from the current 36 million metres to 72 million metres by the end of 2014. --------------------------------------------------------------------- 27.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Firstextile AG Lyoner Str. 14 60528 Frankfurt am Main Germany Phone: +49 (0) 69 6655 4416 Fax: +49 (0) 69 6655 4418 E-mail: ir@firstextile.de Internet: www.firstextile.de ISIN: DE000A1PG8V8 WKN: A1PG8V Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, DÜsseldorf, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 284049 27.08.2014


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: DGAP Corporate News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters