At EUR 3.1 million, Group EBIT decreased by 17% as against the first quarter of 2014. EBIT margin slightly improved from 9.6% to 10.3%. Earnings before taxes amounted to EUR 2.5 million (-41%).
Net profit of Powerland Group came in significantly lower at EUR 1.9 million, representing a 44% decrease compared to Q1-2014. Based on 15 million shares, this figure is equivalent to earnings per share of EUR 0.13 (-43%).
Cash and cash equivalents went up from EUR 8.7 million at year-end 2014 to EUR 25.8 million as at 31 March 2015. While cash generated from operations was negative at EUR
-11.8 million, the increase is mainly due to higher net borrowings.
Operation-wise, the Powerland Group launched its new product series and is constantly enhancing its online and offline brand awareness. Despite the achievements, Powerland faces substantial challenges: As the Chinese economy slows down and the competition in the Luxury segment becomes increasingly intensive, Powerland has to lower down unit selling prices and offer deeper discounts for distributors; at the same time, the price war in the casual segment remains unchanged.
So far, the business performance is generally in line with the company's expectations. Consequently, Powerland maintains its conservative outlook for 2015. The company expects to generate revenues of EUR 112.0 million in the financial year 2015. Although Powerland will close down more stores and implement more cost-effective marketing campaigns so as to reduce operating expenses, Group EBIT will fall as well to
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supposedly EUR 6.0 million. Meanwhile, Powerland will continue to adopt a stringent
working capital management to ensure a healthier cash flow situation.
in EUR million | Q1 2015 | Q1 2014 | Change |
Revenue | 30.0 | 39.3 | -24% |
Luxury | 23.2 | 30.3 | -23% |
Casual | 6.8 | 9.0 | -25% |
Luxury % | 76% | 77% | |
Casual % | 24% | 23% | |
Net profit | 1.9 | 3.5 | -44% |
Gross profit | 11.4 | 14.4 | -21% |
Luxury | 10.3 | 12.6 | -19% |
Casual | 1.2 | 1.8 | -34% |
EBIT | 3.1 | 3.8 | -17% |
Luxury | 3.1 | 3.6 | -14% |
Casual | 0.01 | 0.2 | -92% |
EBIT margin | 10.3% | 9.6% | |
Luxury | 13.3% | 11.9% | |
Casual | - | 1.7% |
The full financial report for the first quarter of 2015 is now available at http://www.powerland.ag/en/investor-relations/financial-reports
For further information, please contact:
c/o GFD - Gesellschaft für Finanzkommunikation mbH Fellnerstrasse 7-9
60322 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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