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PRESS RELEASE: Powerland AG: Powerland continues on profitable growth track

28.02.13 06:21
Dow Jones Newswires

PRESS RELEASE: Powerland AG: Powerland continues on profitable growth track

DGAP-News: Powerland AG / Key word(s): Preliminary Results
Powerland AG: Powerland continues on profitable growth track

28.02.2013 / 07:21


Powerland continues on profitable growth track

- Group revenue up 30.0% to EUR 191.0 million in 2012

- Strong marketing activities determine base for future growth

- EBIT increase of 60.0% in Q4, full-year EBIT up 9.4% to EUR 35.3

- Expansion continues: Number of stores reaches 180 as announced

- Outlook for 2013: Sustained and dynamic growth set to continue

Frankfurt/Main, 28 February 2013 - Based on preliminary and unaudited
figures, Powerland AG (ISIN DE000PLD5558 / Prime Standard), the leading
Chinese manufacturer of handbags, leather goods and accessories, continued
on its profitable growth path in a challenging environment with increased
revenues of 30.0% to EUR 191.0 million for the financial year 2012 (FY
2011: EUR 146.9 million). During the fourth quarter of 2012 revenues rose
by 32.1% to EUR 49.8 million (Q4 2011: EUR 37.7 million). Gross profit
increased to EUR 83.1 million in full year 2012, compared to EUR 65.0
million in the previous year (+27.9%), with gross profit for the fourth
quarter in isolation up 29.6% to EUR 21.9 million (Q4 2011: EUR 16.9
million). With a 17.2% revenue growth measured in RMB terms, Powerland
achieved its organic revenue growth target for 2012.

In order to further expand its market position in the Luxury segment in
particular, Powerland has made considerable efforts and committed
significant spending to marketing activities. Therefore, sales and
marketing expenses in full year 2012 rose by EUR 14.9 million to EUR 34.5
million (FY 2011: EUR 19.6 million). Accordingly, earnings before interest
and taxes (EBIT) increased from EUR 32.2 million to EUR 35.3 million in
full year 2012 (+9.4%). EBIT for the fourth quarter of 2012 jumped 60.0%
and amounted to EUR 10.1 million compared to EUR 6.3 million in the
comparable period in 2011, whereas previous financial year's EBIT has been
adjusted for IPO expenses as communicated in previous announcements.

Powerland's revenue growth was primarily driven by the good performance of
its Luxury segment. Revenue in this segment increased by 40.7% to EUR 112.8
million for full year 2012 (FY 2011: EUR 80.2 million). Revenues in the
Casual segment increased by 17.1% to EUR 78.2 million for full year 2012
(FY 2011: EUR 66.8 million).

Strong optimism for 2013 and the years following
The expansion of the distribution network is also in line with
expectations. The number of stores increased from 164 as of 31 December
2011 to 180 as of 31 December 2012. Powerland conducted its first stringent
and rigorous nationwide review of its distribution network this year to
improve overall store standards and distribution quality in 2012.
Furthermore, Powerland continued the strategy to open more self-operated
stores and stores operated by distributors in prime locations. As at 31
December 2012, out of the total of 180 stores, 31 were self-operated stores
and 149 distributor operated stores.

The China economy is expected to continue to do well in 2013, therefore
Powerland expects another strong performance as the company is likely to
benefit from the growing middle class in China and the likely government
policies designed to increase domestic consumption in the country. New
store openings and the extensive brand-building measures will continue to
contribute positively to the growth of Powerland in 2013 and the following

Management will provide financial guidance for the current year during a
conference call scheduled on 30 April 2013 in conjunction with the release
of audited results.
For more information, please contact:

Powerland AG
Jiangbin He
Investor Relations Director
Lyoner Strasse 14
60528 Frankfurt am Main
Phone: +49 (0) 69 66 554 - 459
Fax: +49 (0) 69 66 554 - 276

End of Corporate News


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Language: English
Company: Powerland AG
Lyoner Straße 14
60528 Frankfurt am Main
Phone: +49 69 - 66554-459
Fax: +49 69 - 66554-276
ISIN: DE000PLD5558
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,

End of News DGAP News-Service
202574 28.02.2013

(END) Dow Jones Newswires

February 28, 2013 01:21 ET (06:21 GMT)