Pressemitteilung BoxID: 343781 (FAST Casualwear AG)
  • FAST Casualwear AG
  • Herrengraben 1
  • 20459 Hamburg
  • Ansprechpartner
  • Kay Baden
  • +49 (40) 609186-39

FAST Casualwear: Strong growth and improved profit margins in H1 2012

Half-year results 2012

(lifePR) (Hamburg, ) .
- Revenues increase by 38.0% to EUR 54.0 million
- EBIT margin improves to 27.8%
- New distributors support further growth

In the first six months 2012 FAST Casualwear AG, a thriving manufacturer of casual footwear and apparel in China, realized revenues of EUR 54.0 million, representing a strong increase of 38.0% compared to the first six months 2011. The gross profit of the company grew by 74.2% to EUR 16.3 million and also EBIT margin improved significantly by 8.2 percentage points to 27.8%.

FAST Casualwear looks back on a successful first half year 2012. Due to increased sales of its own brand casualwear products in both product segments casual footwear and apparel, and the further expansion of the distribution network the company could increase its revenues by 38.0% to EUR 54.0 million from EUR 39.1 million in the first six months of 2011. Measured in local currency RMB, revenues grew by 22.6% in H1 2012. The company sold a total of 9.4 million units of footwear and apparel in the first half year 2012, 14.2% more than one year ago. Measured in RMB the average unit selling price grew by 27.0% for footwear products and by 20.8% for apparel products.

As a result of the accelerated sales, gross profit went up during the reporting period by 74.2% to EUR 16.3 million (H1 2011: EUR 9.3 million), while gross profit margin increased from 23.8% in H1 2011 to 30.2% in H1 2012. EBIT even increased by 96.0% from EUR 7.4 million in H1 2011 to EUR 14.5 million in H1 2012. Also the net result for the first half year 2012 rose considerably by 69.8% from EUR 6.4 million in the first six months 2011 to EUR 10.8 million for the same period 2012, representing a net profit margin of 20.0% (H1 2011:16.2%).

Disposing of an equity of EUR 61.5 million as of 30 June 2012, representing a ratio of equity to total assets of 59.7% (31 December 2011: 67.1%), the company is well prepared for further investments and a successful future development.

In the first half of 2012 the company's distribution network has further expanded, providing widespread geographical coverage throughout China. As at 30 June 2012 FAST Casualwear had 25 distributors, an increase of six new distributors joining the Group in the first half of 2012 and an increase of 30 new sales points in the second quarter 2012.

Thereby, FAST Casualwear is currently present in 807 retail outlets, respectively, in over 100 cities throughout China. More than 100 of the retail outlets exclusively sell products under the FAST brand.

Promising outlook

On the basis of this successful development, FAST Casualwear is optimistic for the future. The Group is convinced that the domestic footwear and apparels retail market in China will continue to grow and consumer sentiment will remain positive.

FAST Casualwear is constantly striving to create high quality products featuring stylish designs in order to tap market potential and attract even more consumers. Further, the company plans to enhance the quality of its stores in order to increase the in-store traffic and the overall sales.

The Group expects an increase in revenues for the financial year 2012 due to its strong production capabilities and the expanding distribution network. More precisely, the Group is confident to maintain a similar revenue growth rate measured in RMB terms in the second half 2012 as achieved in the first half 2012. With respect to profitability the Group expects EBIT margin to amount to at least 20% for the financial year 2012 (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 807 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 more than 1,100 employees.