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IC Companys experiences substantial pressure on gross margin

19 Aug '11

4 min read

Outlook for 2011/12
The Group is expected to generate growth in both revenue and earnings for the financial year 2011/12. The expectations are based on the expansion of the Group's controlled distribution as well as same-store growth. The expansion of controlled distribution is based on the opening of new stores, primarily within the franchise segment, as well as the full year effect from store openings during the year 2010/11.

Since the outlook for the financial year 2011/12 was announced on 11 May 2011, a number of economic indicators have worsened significantly which gives rise to an increased revenue uncertainty.

In light of these facts, the Management expects the consolidated revenue for the financial year 2011/12 to attain a level of DKK 4.1-4.3 billion (previously announced outlook of DKK 4.3-4.4 billion).

However, the Group's new structure is expected to lead to improved transparency, adaptability and resource prioritising.

Based on this, the Management expects the consolidated operating profit for the financial year 2011/12 to attain a level of DKK 360-410 million (previously announced outlook of DKK 400-450 million).

Investments for the financial year 2011/12 are expected to attain a level of DKK 90-120 million primarily for an expansion of the distribution and sales promoting improvements of the IT platform.

IC Companys A/S

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