POWERLAND AG 
By Group revenue in Q4 2013 up 42% to EUR 44 million in comparison to Q3
2013; Q4 2013 EBIT achieved EUR 1 million after loss in Q3 2013 (EUR -1 million)
Full year 2013 revenue down 13% to EUR 166 million; adjusted EBIT down approx. 60% to EUR 14 million; Product mix improved: Luxury segment contributes 62% to Group revenue in full year 2013 (FY 2012: 59%)
Strong confidence in Powerland expressed by the Company's distribution partners
Management team back on daily operation, cautiously optimistic outlook for
2014
Frankfurt/Main, 6 March 2014 - Based on preliminary and unaudited figures, Powerland AG (ISIN DE000PLD5558 / Prime Standard), the leading Chinese manufacturer of handbags, leather goods and accessories, achieved revenue of EUR 44 million in Q4
2013, up by 42% in comparison to Q3 2013 (EUR 31 million). This strong revenue increase was mainly due to an improved contribution of Powerland's Luxury segment which doubled in Q4 2013 compared to the previous quarter. During the very strong Q4
2012, revenues achieved EUR 49.8 million. In full year 2013, revenues were negatively impacted by the 2012 audit issue as well as the weak market conditions in China. As a result, Powerland achieved revenues of EUR 166 million in full year 2013, down 13% from EUR 191 million in 2012. Over the course of 2013, Powerland successfully continued its strategy to migrate towards its high-profit-margin segment: The Luxury segment now contributes 62% of revenues to the Company, in contrast to 59% for 2012.
in EUR million Q3 2013 Q4 2013 Change (%) 2012 2013 Change (%) Revenue 31 44 42% 191 166 -13%
Luxury 16 32 101% 113 103 -8%
Casual 16 13 -18% 78 62 -20%
Luxury % 50% 71% 59% 62% Casual % 50% 29% 41% 38%
Gross profit 10 16 63% 83 60 -27%
In order to further strengthen the Company's market position in mainland China, Powerland continued to expand its distribution network in 2013 from 180 stores as of
31 December 2012 to 214 stores as of 31 December 2013. In total, 62 stores were opened in 2013 while 28 underperforming stores were closed in the same period. A net of
34 stores were added to Powerland's network in mainland China, 24 of which are distributor-operated. This demonstrates our and the Company's distributor Partner's
strong confidence in Powerland's upside potentials as well as the near-term market
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growth. Powerland's total sales area increased by 39% from 8,936 m2 as of
31 December 2012 to 12,418 m2 as of 31 December 2013.
However, due to the decrease in revenue and gross profit and flat SG&A expenses, operating earnings before interest and taxes (EBIT) decreased from EUR 35 million to approximately EUR 14 million in full year 2013 (approx. -60%) (adjusted by approx. EUR 2 million one-off expenses associated with the 2012 audit issue). Nevertheless, Powerland was able to return to its profitable growth path in Q4 2013 with an increased EBIT of EUR 1 million compared to EUR -1 million in Q3 2013 (Q4 2012: EUR 10.1 million)
As communicated on 14 February 2014, Powerland will propose its shareholders to approve the Group financial statements of Powerland AG dated 31 December 2012 during its AGM on 26 March 2014. In doing that, a roadmap for the 2012 audit issue emerges and the management team is now able to refocus on daily operations with the goal to bring the Company back on track. In 2013, the Company was actively adapting itself to the changing market environment. The Q4 2013 achievements illustrate that the Company is about to regain profitable growth momentum. The Management Board maintains a cautiously optimistic outlook about 2014.
For more information, please contact:
Investor Relations
Lyoner Strasse 14
60528 Frankfurt am Main
Germany
Phone: +49 (0) 69 66 554 - 459
Fax: +49 (0) 69 66 554 - 276
E-mail: ir@powerland.ag
Home: http://www.powerland.ag
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