Firstextile AG confirms 2013 preliminary results and publishes outlook for 2014
- Audited figures confirm: Record revenue level at EUR 200.3 mn and strong EBIT margin of 20.8% in 2013
- Net profit at EUR 32.9 mn; Earnings per share amount to EUR 2.79
- Total revenue between EUR 190 mn and EUR 210 mn and EBIT margin between 16% and 18% expected for 2014
- Significant growth momentum expected with completion of the new plant by end 2014
As scheduled Firstextile AG (FT8) publishes its final financial figures for the financial year 2013 today and thereby confirms the preliminary figures already announced two months ago. Firstextile achieved an increase of 11.6% in revenue resulting in the highest revenue level in its history. The company's improved gross profit margin and its strong EBIT margin of 20.8% underline the high profitability of its business model.
In the financial year 2013, Firstextile's revenue amounted to EUR 200.3 million compared to EUR 179.5 million in the previous year. This increase was due to higher revenue in the two segments Fabrics and Branded Products that over-compensated the decrease in the Uniforms segment resulting from the delay of few large bulk orders in the second half-year 2013. Gross profit in the financial year 2013 amounted to EUR 64.8 million (2012: EUR 56.4 million). With a year-on-year growth rate of 14.8%, Firstextile's gross profit rose even faster than revenue, lifting the company's gross profit margin to 32.3% (2012: 31.4%). Earnings before interest and tax (EBIT) increased by 3.9% to EUR 41.6 million (2012: EUR 40.1 million), corresponding to an EBIT margin of 20.8% (2012: 22.3%) and which is in line with 2013 EBIT guidance. The drop in margin is due to an increase in distribution and selling expenses as well as doubled spendings on research and development (R&D) underlining the great importance of R&D for Firstextile's business. Overall net profit amounted to EUR 32.9 million (2012: EUR 32.5 million) resulting in earnings per share of EUR 2.79.
Also for the financial year 2014 all signals point to a sustainable business developement. On the back of a stable market environment, the company consequently expects total revenue between EUR 190 million and EUR 210 million and an EBIT margin of between 16% and 18% in 2014. In a medium term, the company sees excellent growth opportunities. Fred Yang, founder and CEO of Firstextile AG: "To exploit the huge opportunities in the overall very attractive Chinese market for high-end fabrics, we started the construction of our new plant which will double our existing production capacities. Thus we expect significant growth once our new plant is completed by the end of 2014."
The full annual report for the financial year 2013 will be available at the company's website (www.firstextile.de), within the "Investor Relations" area, starting from today.
Firstextile is one of the leading manufacturers of high-end yarn-dyed fabrics in the Chinese market. 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 end of 2014.