DGAP-News: VanCamel AG / Key word(s): Preliminary Results VanCamel AG: Selective, highly profitable growth is continuing 08.11.2013 / 17:11 --------------------------------------------------------------------- VanCamel AG: Selective, highly profitable growth is continuing - Group revenue rose 8.4% to EUR 119.9 million in the first nine months (9M 2012: EUR 109.8 million*) - Gross profit was EUR 40.1 million in the first nine months (9M 2012: EUR 40.5 million) - Earnings before taxes (EBT) were EUR 33.7 million in the first nine months (9M 2012: EUR 35.1 million) and the EBT margin was 28.1% (9M 2012: 30.8%) - Net profit for the first nine months was EUR 24.7 million (9M 2012: EUR 26.3 million) - The operating cash flow was EUR 29.7 million - Equity amounted to EUR 73.5 million on September 30 - Revenue of around EUR 173 million and profit of around EUR 34 million expected for FY 2013 Cologne, November 8, 2013 - VanCamel AG, the German holding company of an established Chinese fashion label, today published provisional figures for the first nine months of 2013. Revenue rose 8.4%* to EUR 119.9 million, the operating cash flow was EUR 29.7 million and the pre-tax margin was 28.1%. 'Our performance in the first nine months is in line with our expectations and confirms the positive development of the VanCamel Group. The slight drop in earnings compared with the previous year is attributable to especially positive one-off effects in 2012 in connection with the transition to IFRS prior to the IPO. In the mid-term, we assume that the EBT margin will stabilise at the past level of around 24% which should be sustainable,' says Lester Soh, CFO of VanCamel, commenting on the provisional results for the first nine months of 2013. 'Our successful stock exchange listing in Germany will help drive the continued successful development of the company in the medium to long term. The key factors for us in our stock market listing are that our share price develops positively and our first German investors have a positive experience with our shares,' adds Xiaming Ke, CEO of VanCamel. The following effect should be borne in mind when comparing the revenue and earnings figures for the present year and the prior year: Before the transition to IFRS, VanCamel made shop fittings available to its distributors free of charge, expensed the associated costs and depreciated the shop fittings over three years. That is not permitted under IFRS and all shop fittings have been written down retrospectively in the year of investment. To continue to support distributors in their ongoing investments and the cost of modernising their stores to meet VanCamel's specifications, Van Camel has introduced sales rebates. The rebate will be 8% from 2014 with subsequent stepwise increases. The rebate was 1.2% in 2012 and increased to 4.5% in 2013. Sales revenue decreases by the same amount as the increase, but the impact on operating income is lower because depreciation is no longer recognised for shop fittings. Profitable growth Compared with the prior-year period, VanCamel grew Group sales revenue in the first nine months by 5.1% to EUR 119.9 million (9M 2012: EUR 114.1 million). Excluding currency effects, sales revenue grew by 5.0%. Revenue from apparel rose 4.7% in the reporting period to EUR 83.7 million (9M 2012: EUR 79.9 million) and revenue from footwear rose 5.8% to EUR 36.2 million (9M 2012: EUR 34.2 million). The gross profit was EUR 40.1 million in the first nine months (9M 2012: EUR 40.5 million), and the gross profit margin was 33.5% (9M 2012: 35.5%). At the end of the first nine months, earnings before taxes (EBT) were EUR 33.7 million (9M 2012: EUR 35.1 million). The pre-tax margin was therefore 28.1% (9M 2012: 30.8%). After tax expense of EUR 8.9 million (9M 2012: EUR 8.7 million), the company realized a profit of EUR 24.7 million in the first nine months of 2013 (9M 2012: EUR 26.3 million) and earnings per share were EUR 1.65 (9M 2012: EUR 1.75). High operating cash flow The net cash inflow from operating activities was EUR 29.7 million in the first nine months of 2013 (9M 2012: EUR 30.6 million). The cash outflow for financing activities of EUR 16.5 million mainly comprised a dividend payment of EUR 16.6 million (9M 2012: inflow of EUR 11.7 million). The net rise in cash and cash equivalents in the reporting period was EUR 13.2 million (9M 2012: EUR 18.0 million). Cash and cash equivalents therefore increased to EUR 59.1 million as of 30 September 2013 (30 September 2012: EUR 36.5 million). VanCamel has neither current nor non-current liabilities to banks. The carrying amount of equity was EUR 73.5 million as of 30 September 2013 (31 December 2012: EUR 66.2 million). The equity ratio declined slightly to 70.7% in the reporting period (31 December 2012: 72.2%). Outlook Based on the present order situation, the Management Board expects to report revenue of around EUR 173 million at year end and a profit for the year of around EUR 34 million. It should be noted that the company generates the majority of its revenues subsequent to the two half-yearly trade shows and the trade show for the autumn/winter collection only took place in September. 'The Chinese fashion market is still developing very fast and we expect the stock market listing to help us strengthen our market position in this country. The 8% year-on-year increase in volume sales after adjustment for the one-off effect in the previous year shows that our unique design meets the needs of the growing Chinese middle class,' says VanCamel-CEO Xiaming Ke. The full interim report for the first nine months of 2013 will be published on 29 November 2013 and will be available for download from the Investor Relations/Publications section of the company's website at www.vancamel.de. * 2012 revenues adjusted to the new rebate formula to enhance comparability About VanCamel VanCamel AG is the German holding company of an established Chinese fashion label, which employs close to 200 workers in the design, marketing and distribution of own branded apparel, footwear and accessories. VanCamel products address the young, well-funded urban middle-class, particularly targeting male consumers aged between 25 and 40 primarily residing in tier 2 and tier 3 cities, aspiring after upper middle class fashion styles. The prizewinning design of VanCamel's apparel is made in-house whereas the design of the footwear is outsourced based on the conceptual ideas of VanCamel. The production of both apparel and footwear is completely outsourced to local contract manufacturers. VanCamel is an established national brand with a PRC-wide reach. More than 40 regional distributors supply VanCamel's products to more than 2,200 authorized retail outlets in 26 provinces throughout China. Since 2010, VanCamel has grown at an average annual growth rate of 21 percent. For further information about the company visit: www.vancamel.de For enquiries: VanCamel AG Lester Eng Ann Soh Member of the Management Board and CFO E-Mail: [email protected] Tel.: +86 155 5911 7996 Disclaimer: This document is no offer for the purchase of securities in the United States of America. Securities may only be sold or offered for sale with the previous registration under the U.S. Securities Act of 1933 in the actual valid version or without previous registration only pursuant to an exemption. The shares of VanCamel AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933 in the actual valid version and may not be sold or offered in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares, which are referred to, are only available to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 08.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: VanCamel AG Ferdinandstraße 25 20095 Hamburg Germany Phone: 040 689999-0 Fax: 040 689999-10 E-mail: [email protected] Internet: www.vancamel.de ISIN: DE000A1RFMM9 WKN: A1RFMM Listed: Regulierter Markt in Frankfurt (Prime Standard) End of News DGAP News-Service --------------------------------------------------------------------- 238911 08.11.2013