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IC Companys posts 57% earnings hike in H1

24 Feb '06

4 min read

Danish clothing maker IC Companys A/S has reported that revenue derived from own brands grew by 9 percent in the first half. The group posted a satisfactory operating profit increase of 57 percent. The forecasts for the full year remain unchanged.

At its meeting on 22nd February 2006, the Board of Directors of IC Companys considered and adopted the interim financial statements for the six months ended 31st December 2005.

• Revenue rose 8 percent to reach DKK 1,655 million (DKK 1,536 million). Revenue derived from own brands were up by 9 percent.

• The gross profit was DKK 959 million (58.0 percent), representing an increase of DKK 124 million (3.6 percentage points).

• Operating profit rose 57 percent to DKK 241 million (DKK 153 million) equivalent to an improvement of the EBIT margin by 4.5 percentage points from 10.0 percent to 14.5 percent.

• The earnings increase was attributable to a growing order volume, greater order efficiency, better overall sell-through figures, higher gross margins for all brands and distribution channels, better cost efficiency and lower exchange rates for the sourcing currencies.

• Performance in the distribution channels Wholesale and Retail again improved significantly.

• Net interest-bearing debt was DKK 194 million (DKK 372 million), which was DKK 178 million lower than at 31st December 2004.

Full-year forecast retained:

• For 2005/06, the revenue forecast remains unchanged in the region of DKK 3,000 million and an operating profit in the range of DKK 285 – 315 million (EBIT margin of 9.5 percent-10.5 percent) is expected.

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