DGAP-News: FAST Casualwear AG / Key word(s): Quarter Results FAST Casualwear AG: Prosperous start into 2014 23.05.2014 / 08:39 --------------------------------------------------------------------- Results Q1 2014 FAST Casualwear AG: Prosperous start into 2014 * Significant revenue increase by 56.7 per cent to 32.6 million Euros * EBIT growth of 66.7 per cent to 7.5 million Euros * Stable profit margins * Further positive development expected for full year 2014 Hamburg, 23 May 2014 - Recording high growth rates, FAST Casualwear AG started very successful into the financial year 2014. Revenues showed a strong increase of 56.7 per cent from 20.8 million Euros in Q1 2013 to 32.6 million Euros in the same period 2014. Measured in the local currency Renminbi revenues increased by 61.0 per cent. Main revenue growth drivers were the increased sales of FAST branded shoes and casual wear as well as higher sales in FAST's OEM and ODM business. FAST brand product segment experienced a plus of 43.2 per cent to 25.6 million Euros (Q1 2013: 17.9 million Euros) reflecting the increasing popularity and acceptance of FAST's products in China. Within this segment the shoe business was up by around 43 per cent and the casual wear business improved by about 44 per cent. In both businesses growth was driven by price and volume effects. FAST's second product segment - OEM and ODM products - increased even stronger by 139.7 per cent to 7.0 million Euros (Q1 2013: 2.9 million Euros). Gross profit grew during the reporting period by 54.5 per cent to 8.5 million Euros (Q1 2013: 5.5 million Euros). The gross profit margin amounted to 26.1 per cent (Q1 2013: 26.7 per cent) due to the fact that the cost of sales increased faster than the revenues. In line with higher gross profit, EBIT improved by 66.7 per cent to 7.5 million Euros (Q1 2013: 4.6 million Euros). This led to a slightly increased EBIT margin by 1.2 percentage points to 23.1 per cent (Q1 2013: 21.9 per cent). The net profit reached the strongest growth rate within the first quarter 2014 with a year-on-year increase of 68.8 per cent to 5.4 million Euros (Q1 2013: 3.2 million Euros). Net profit margin grew by 1.2 percentage points to 16.6 per cent (Q1 2013: 15.4 per cent). Stable financial basis In the first three months FAST's total equity went up by 3.9 per cent from 83.3 million Euros as of 31 December 2013 to 86.6 million Euros as of 31 March 2014. This represents an equity ratio of 74.3 per cent (31 December 2013: 72.2 per cent) and provides the company with a stable financial basis for future investments and development. Cash and cash equivalents slightly decreased year-on-year by 6.8 per cent to 1.6 million Euros (Q1 2013: 1.8 million Euros) due to the fact that FAST reinvested the surplus cash into operations and fixed assets. Furthermore, to raise the working capital, FAST successfully carried out a capital increase of 500,000 Euros to 12.7 million Euros in February 2014. The gross proceeds amounted to EUR 840,000.00. Distribution network exceeds the mark of 1,000 sales points Following its growth strategy, in the first quarter 2014 FAST has exceeded the mark of 1,000 sales points by increasing its distribution base to a total of 29 distributors. At the end of March 2014 FAST sold its products through 1,005 retail outlets in China. To support further growth the company strengthened its Research and Development department. Thus FAST introduced in the first three months of the year 107 new footwear styles and 31 new apparel styles for FAST branded products to its home market as well as 43 styles of casual shoes for ODM customers in Europe and the United States. In the future FAST will continue to offer a diversified product portfolio to meet the desires of different consumer groups. In order to strengthen its design capacities, FAST continued to increase the expenses for its Research & Development department within the first quarter 2014. Financial outlook for 2014 remains unchanged Despite the positive start into 2014 the company confirms its outlook for 2014 as published in the annual report 2013. Due to its strong production capabilities, the expansion of the distribution network and patented technology on raw materials for the manufacturing of shoe soles enhancing the product features of FAST's products, FAST anticipates for the full year 2014 revenues to grow in a range of 15 to 20 per cent, measured in the local currency RMB. EBIT margin is expected to grow similar to 2013 in a range between 16 and 19 per cent. The full interim report Q1 2014 will be published on 28 May 2014 and will be available under the following link: http://www.fast-casualwear.com/investor-relations /publications.html About 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 29 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 1,000 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. As of March 31, 2014 FAST employed 980 employees. For further information please visit www.fast-casualwear.com or contact Kirchhoff Consult AG Dr. Kay Baden Tel: +49 (0)40 609 186 39 E-mail: [email protected] 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. End of Corporate News --------------------------------------------------------------------- 23.05.2014 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: FAST Casualwear AG c/o Kirchhoff Consult AG, Herrengraben 1 20459 Hamburg Germany Phone: 040 60 91 86 0 Fax: 040 60 91 86 60 E-mail: [email protected] Internet: www.fast-casualwear.com ISIN: DE000A1PHFG5 WKN: A1PHFG Listed: Regulierter Markt in Frankfurt (Prime Standard) End of News DGAP News-Service --------------------------------------------------------------------- 270146 23.05.2014