Firstextile AG: Strong preliminary figures after Q3 2013
- Nine months record revenue in the company's history after Q3 2013
- Strong revenue increase of 21.3% year-on-year up to EUR 153.8 mn
- Increasing earnings before interest and tax (EBIT) and strong EBIT margin of 21.4%
- Distribution network for Branded Products successfully expanded to fourteen stores
Today Firstextile AG (FT8) publishes its preliminary financial figures for the first nine months of 2013. The figures, being presented to interested investors at the German Equity Forum in Frankfurt (Main) today, document that the company maintained highly profitable while successfully expanding its business activities.
On the basis of preliminary figures, Firstextile's revenue rose significantly by 21.3% yoy to EUR 153.8 million in the first nine months of 2013 (previous year period: EUR 126.8 million). This development was attributable to the positive business performance in all three segments with outstanding growth rates in the Fabrics and Branded Products segments. Gross profit in the first nine months of 2013 increased by 20.5% to EUR 49.4 million (previous year period: EUR 41.0 million), and the gross profit margin remained strong at 32.1% in the reporting period (previous year period: 32.3%). The company's earnings before interest and tax (EBIT) increased by 4.0% to EUR 32.9 million (previous year period: EUR 31.6 million), resulting in an EBIT margin of 21.4% (previous year period: 24.9%). Net profit remained stable at EUR 26.1 million in the first nine months of 2013 representing a net profit margin of 17.0% (previous year period: EUR 26.1 million, resp. 20.6%).
Fred Yang, founder and CEO of Firstextile AG, comments on the preliminary figures: "The positive business development during the first nine months of 2013 reflects our outstanding market position and the success of our strategy. With revenue of about EUR 154 million after the first nine months of 2013, we achieved the highest revenue level after the third quarter in our company history. At the same time, we remained highly profitable; our EBIT margin is still above 21%". Richard Cao, CFO, adds: "Also for the full year of 2013, we expect record revenue between EUR 204 million and EUR 221 million and an EBIT margin of between 20% and 24%. By successfully doubling our production capacity, we see excellent chances to continue our profitable growth process."
The revenue of the Fabrics segment grew significantly by 25.7% to an amount of EUR 102.1 million in the first nine months of 2013 (previous year: EUR 81.2 million). Owing to a higher average selling price, gross profit climbed by 29.6% to EUR 28.8 million (previous year: EUR 22.3 million), lifting the segmental gross profit margin to 28.3% in the first nine months of 2013 (previous year: 27.4%). Therefore the Fabrics segment contributed 66.4% to the company's total revenue after 64.0% in the same period of the previous year.
Also the Uniforms segment slightly expanded its revenue. In the first nine months of 2013, overall revenue increased to EUR 31.3 million after EUR 30.7 million in the same period of 2012. The segment's gross profit slightly decreased to EUR 6.5 million (previous year period: EUR 6.9 million), leading to a gross profit margin of 20.9% (previous year period: 22.4%). This decrease in the first nine months of 2013 is due to a lower gross profit margin in Q1 2013 (15.2%), which was largely compensated by the very strong gross profit margin of 23.6% in Q2 and even 32.6% in Q3 2013. The quarter-on-quarter development in this segment is dependent upon large orders. The effects of certain large orders on revenue and, due to their lower margins, on gross profit - are wellbalanced in the long run. The Uniforms segment's contribution of 20.3% to total revenue (previous year period: 24.2%) slightly dropped due to the strong increase in the Fabrics' revenue.
Since re-launching the VARPUM brand in spring 2013, Firstextile's third segment Branded Products offers a large variety of high-end fashion. Besides premium men shirts, the portfolio now also includes additional fashion items such as suits, pants, sweaters and jackets. In the third quarter of 2013, Firstextile successfully expanded its distribution network in the Branded Products segment to fourteen stores in China. The segment's revenue was up by 52.5% yoy in the second quarter and by 54.8% in the third quarter of 2013. Revenue in the first nine months of 2013 increased by 37.4% to EUR 20.4 million (previous year period: EUR 14.9 million). During the first nine months of 2013, gross profit increased by 18.4% to EUR 14.0 million (previous year period: EUR 11.8 million). The gross profit margin remained on a very high level of 68.7%, even though it decreased compared to 79.7% in the same period of 2012 since the now offered traded product mixtures achieve much lower gross profit margins than the own branded premium men shirts. In sum, 13.3% of Firstextile's revenue was generated by the Branded Products segment in the first nine months of 2013 (previous year period: 11.8%).
The complete report on the final results for the first nine months of 2013 will be published on 26 November 2013 on the company's website at www.firstextile.de, within the "Investor Relations" area.
Firstextile is the leading manufacturer of high-end yarn-dyed fabrics in the Chinese market with a market share of 9% in terms of volume in 2011. It also markets fabrics and shirts specifically designed for uniforms used by Chinese government institutions and enterprises, as well as its own branded men's wear for the Chinese premium market segment. The company operates modern production facilities in Jiangyin near Shanghai, China, which is one of the main centres of the Chinese textile industry, and it focuses particularly on high product-quality. Net proceeds from the successful completion of the IPO in November 2012, will primarily be used to double annual production capacity from the current 36 million metres to 72 million metres by the mid of next year.