Revenue at retailer IC Companys up 6% in 2013/14
Consolidated revenue from continuing operations at Swedish clothing retailer IC Companys for fiscal year 2013/14 rose 6% to DKK 2,563 million from DKK 2,424 million in 2012/13.
IC Companys had earlier issued a sales guidance in the range of DKK 2,560 – 2,580 million.
Consolidated gross profit from continuing operations for 2013/14 totalled to DKK 1,470 million against DKK 1,371 million in the previous fiscal year.
In 2013/14, IC Companys realized a gross profit margin of 57.3% compared to 56.6% last fiscal year, which reflects an improvement of 0.7 percentage points, when compared to last financial year.
Selling expenses amounted to DKK 1,249 million in 2013/14, up 6% from DKK 1,180 million in 2012/13. Selling expenses as a percentage of sales stood at 48.7%, the same as in 2012/13.
Consolidated operating profit from continuing operations in 2013/14 rose to DKK 221 million from DKK 191 million, in the earlier year, thereby realising EBIT margin of 8.6% against 7.9% in prior fiscal year.
IC Companys reported cash flow from operating and investing activities rising by DKK 106 million to DKK 165 million in 2013/14 compared to DKK 59 million last year, which it said was primarily due to a higher operating profit as well as a lower level of investments.
Investments in continuing operations for 2013/14 fell to DKK 91 million from DKK 167 million, from a year ago period. In its guidance, IC Companys had forecasted a range of DKK 70-90 million.
At its AGM, IC Companys said it will propose and recommend dividend of DKK 3.00 per share corresponding to a total dividend of DKK 49 million for 2013/14.
In its outlook for 2014/15, IC Companys expects that its two brands - Tiger of Sweden and By Malene Birger will continue to grow on the positive development seen in 2013/14 and consequently expects revenue to be higher for 2014/15.
IC Companys also expects that all premium brands in its portfolio will improve their EBIT for the financial year 2014/15, while the non-core business is also expected to maintain its profitability.
However, IC Companys said, the consolidated operating profit for 2014/15 will be affected by selling expense costs which until recently were paid by the Mid Market division, which total to around DKK 45 million.
Considering that, IC Companys has undertaken to provide services to DK Company during a transition period of 6-12 months, these selling expenses will be reduced gradually during 2014/15 in order to not impact on the financial year 2015/16.
Provided that the consolidated results are in line with expectations, IC Companys may distribute an extraordinary dividend of around DKK 100 million during 2014/15.
Group CEO Mads Ryder said, “We have simplified the business and improved earnings. This year we see the impact from these efforts and have generated solid results. With our three premium brands we have achieved a strong foundation for continuous growth and earnings.”
Fibre2fashion News Desk - India