- Pressemitteilung BoxID 370178
FAST Casualwear: Enhanced growth rates due to strong production capabilities and expanding distribution network
Results 9 months 2012
- Revenues rise by 42.5% to EUR 83.3 million
- EBIT margin increases significantly to 24.1%
- Net profit growth of almost 50.0% to EUR 14.0 million
- Strong production and expanding distribution network
- Further increase of revenues expected for the full financial year 2012
FAST Casualwear AG, a thriving manufacturer of casual footwear and apparel in China, showed a strong performance with record sales and an outstanding profitability in the first nine months of 2012. The nine-months figures reflect a very positive business development with enhanced revenues of EUR 83.3 million and an EBIT margin amounting to 24.1%.
FAST's strong production capabilities and its steadily expanding distribution network let revenues increase by 42.5% to EUR 83.3 million in the first nine months of 2012 (9M 2011: EUR 58.5 million). Thus revenues of the first nine months already surpassed the full year revenues of 2011 in the amount of EUR 82.2 million. Measured in RMB, revenues increased by 26.3% during the reporting period. The main reasons for this enormous growth lie primarily in the increased sales of 64.9% of FAST-branded products. Among FAST's total revenues, 59.3% were achieved from the sales of FAST-branded footwear and 22.4% from the sales of FAST-branded casualwear. The average unit selling price of FAST-branded shoes grew by 35.7% to EUR 3.80 during the reporting period (9M 2011: EUR 2.80).
Despite higher raw material costs, the overall gross profit grew by approximately 83.1% to EUR 24.9 million (9M 2011: EUR 13.6 million) representing a gross profit margin of 29.9% (9M 2011: 23.3%). This positive development resulted from an increase in gross profit by 99.2% in FAST's own brand segment, adding up to EUR 23.7 million compared to EUR 11.9 million in the first nine months of 2011.
Despite higher selling and distribution expenses for advertisement and promotion of FAST products, the company remained highly profitable. EBIT improved by 76.3% to EUR 20.1 million, representing an EBIT margin of 24.1% (9M 2011: 19.5%). The increase in EBIT margin results mainly from the cessation of relatively low margin trading business and the increasing popularity of FAST-branded products in China.
Net profit for the first nine months of 2012 augmented by approximately 48.1% from EUR 9.4 million in the first nine months 2011 to EUR 14.0 million in the same period 2012, representing a net profit margin of 16.8%.
Furthermore FAST is well capitalized with an equity ratio of 64.8%, giving the company a favourable starting position for further expansion.
Within the first nine months 2012 FAST won six new distributors, and added another 31 retail sales points to its distribution network in the third quarter. As of 30 September 2012, more than 140 of the 838 retail outlets, which are run by 25 regional distributors, exclusively sell products under the FAST brand.
Further growth expected
FAST gives a positive outlook for the rest of the year 2012. According to the development of the Chinese economic growth, the company anticipates that the domestic footwear and apparels retail market will continue to grow and the consumer sentiment will further improve as well.
Given the successful introduction of the new spring collection 2013 with a strong order intake and the growing demand for FAST products, the company plans to expand its production capacity by establishing a new production facility. Furthermore, FAST will continue to develop its sales strategy and expand its sales network coverage in China.
In line with its strong production capabilities and its expanding distribution network, FAST expects a revenue growth rate for the full financial year 2012 in the range of 20.0%, measured in the local currency RMB. EBIT margin is expected to amount to at least 20.0%, including the IPO expenses.
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect FAST Casualwear's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of FAST Casualwear's forward-looking statements are proving to be incorrect, FAST Casualwear's actual results may be materially different from those expressed or implied by such forward-looking statements. FAST Casualwear does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.
FAST Casualwear AG
FAST Casualwear AG is the German holding company of FAST Group, a Chinese group of companies engaged in the design, production and sale of casualwear, consisting of footwear and apparel including accessories. It mainly designs and produces casualwear under its own brand name "FAST", targeting consumers aged between 16 and 35 primarily in the lower tier cities in China. FAST distributes its own brand products through 25 unaffiliated regional distributors, who sell the products via retail outlets operated either by themselves or by third party sub-distributors. Its distribution network consists of more than 838 retail outlets in over 100 cities throughout China. FAST also designs and produces footwear as contract manufacturer for international brand owners, mainly from Europe and the U.S. FAST's operating facilities are located in the southeast of China in Jinjiang City, Fujian Province, one of the largest footwear manufacturing hubs in China. FAST employs around 1,000 employees.
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