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Firstextile AG publishes final figures for 2012 and positive outlook for 2013
- 36.3% increase in revenue to EUR 179.5 m and 35.9% increase in net profit to EUR 32.5 m
- EBIT up 36.3% to EUR 40.1 m at an EBIT margin of 22.3%
- Liquid funds of EUR 49.5 m to finance the company's further expansion strategy
- Revenues between EUR 204 m and EUR 221 m and EBIT margin between 20% and 24% expected for 2013
Firstextile AG (FT8) today published its annual report for the full financial year 2012. The company is the holding company of a leading Chinese producer of high-end yarn-dyed fabrics, provider of fabrics as well as shirts designed for uniforms and of its own branded premium men's shirts. The disclosed financial figures confirm Firstextile's strong performance in 2012 as already indicated by the preliminary figures. For 2013, the management expects continuous growth both in revenues and earnings.
In 2012, Firstextile's three business segments Fabric, Uniforms and Shirts showed strong growth, with the Uniforms segment showing the strongest growth both in absolute and relative terms. This positive development led to total revenues increasing by 36.3% to EUR 179.5 m (2011: EUR 131.7 m). The company's gross profit is up 38.5% to EUR 56.4 m corresponding to an improved gross profit margin of 31.4% (2011: EUR 40.7 m; 30.9%). According to the final figures, Firstextile's earnings before interest and taxes (EBIT) increased by 36.3% to EUR 40.1 m (2011: EUR 29.4 m) with an EBIT margin of 22.3% (2011: 22.3%). Adjusted for the non-recurring IPO costs the EBIT margin even improved to 24.0%. Net profit increased 35.9% to EUR 32.5 m (2011: EUR 23.9 m), resulting in a net profit margin of 18.1% (2011: 18.2%; 19.8% adjusted for IPO costs). The difference of EUR -1.8 m to the preliminary figures published on 28 February 2013 mainly results from reclassifying a larger portion of the IPO costs of EUR 1.2 m (EUR 3.0 m vs. previously EUR 1.8 m) to expenses in the P&L statement instead of adjusting equity directly, as well as EUR 0.6 m changes of deferred tax assets recognized on loss carried-forward of the single entity Firstextile AG. Both of these two late adjustments are non-recurring in nature and do not have an impact on the operating cash flows or adjusted EBIT of the group. Overall, earnings per share (EPS) amounted to EUR 3.17 (2011: EUR 2.39).
Fred Yang, founder and CEO of Firstextile, comments on the company's final figures: "We are very satisfied with our business performance in the financial year 2012 since we continued to grow in all three business segments. This underlines the high potential of our business strategy to focus on domestic high-growth markets for garment and textile." Fred Yang is also very confident for the current financial year: "Due to the positive business environment and the corresponding high demand for our products we intend to expand our production capacities in 2013. Our liquid funds of around EUR 50 m and the positive cash flow are an excellent basis to realize our expansion plan on schedule. Overall, we expect an increase in revenues up to an amount of between EUR 204 m and EUR 221 m for 2013. With a stable EBIT margin between 20% and 24% this growth should result in increasing earnings per share."
In 2012, Firstextile reported a positive cash flow from operating activities amounting to EUR 14.4 m (2011: EUR 25.4 m). The decrease compared to 2011 is due to an increase in inventories as well as trade and other receivables as a result of the company's strong operative growth in 2012. Besides, Firstextile AG continues to enjoy an excellent cash position together with a high equity ratio of 67.1% (2011: 49.2%).
As the German holding, Firstextile AG reports in Euro (EUR) currency, the increase in revenues and earnings is also influenced by the development of the exchange rate Euro (EUR) to Renminbi (RMB). In terms of Renminbi, Firstextile's revenues increased by 22.8% in 2012 compared to 2011 (EUR: 36.3% increase), while net profit rose by 22.5% (EUR: 35.9% increase).
As of today, the full 2012 annual report is available for download from the company's website at www.firstextile.de within the "Investor Relations" section.
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