20.08.2014
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DGAP-News: Haikui Seafood asserts itself against tough market conditions
DGAP-News: Haikui Seafood AG / Key word(s): Half Year Results
Haikui Seafood asserts itself against tough market conditions
20.08.2014 / 08:02
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Results H1 2014
Haikui Seafood asserts itself against tough market conditions
* Resilient profit margins despite revenue decline in H1 2014
* Full-year 2014 guidance maintained
Frankfurt am Main, August 20, 2014 - Despite the challenging business
environment, Haikui Seafood has asserted itself by delivering improved
profitability in the first half-year of 2014 while maintaining its strong
financial position.
Haikui Seafood succeeded in raising Q2 2014 revenue by 4.8 per cent to 28.3
million Euros compared to the same period last year. However, primarily due
to lower sales volume arising from keen competition and the on-going tight
supply of raw materials, revenue of Haikui Seafood decreased by 15.7 per
cent to 58.5 million Euros in the first six months of 2014 (H1 2013: 69.4
million Euros). Measured in Haikui Seafood's local currency RMB, revenue
decreased by 13.4 per cent year-on-year.
Frozen products are again the main contributor, accounting for 80.9 per
cent (H1 2013: 86.2 per cent) or 47.3 million Euros of the revenue in the
first six months of 2014. Haikui Seafood's second product segment, canned
products, accounted for the remaining 19.1 per cent of the revenue (H1
2013: 13.8 per cent). The 17.3 per cent increase in revenue from canned
products to 11.2 million Euros is mainly attributed to higher sales of
abalone products.
Nearly stable margins and improved net profit
Lower revenue and higher production costs led to a decline in gross profit
by 21.1 per cent to 10.1 million Euros (H1 2013: 12.8 million Euros). The
slight reduction of the gross profit margin from 18.4 per cent in the first
half-year of 2013 to 17.2 per cent in the first half-year of 2014 is mainly
due to the higher costs for raw materials and direct labour, which could
not be fully passed on to the market.
For the same reasons, profit from operations (EBIT) decreased by 21.9 per
cent to 7.6 million Euros (H1 2013: 9.7 million Euros). The EBIT margin
lost approximately one percentage point, decreasing to 13.0 per cent in the
first half-year of 2014 (H1 2013: 14.0 per cent).
However, net profit grew by 3.2 per cent to 6.1 million Euros (H1 2013: 5.9
million Euros) resulting in a net profit margin of 10.4 per cent, up by 1.9
percentage points compared to the corresponding previous period. This
positive development is mainly due to foreign exchange losses recognised in
the first half-year of 2013 compared to a foreign exchange gain recognised
in the first six months of 2014.
Well positioned for the future
Haikui Seafood's financial situation remains very strong: Equity has
increased to 161.8 million Euros as at June 30, 2014 (December 31, 2013:
155.4 million Euros) while the equity ratio has slightly improved to 97.6
per cent (December 31, 2013: 97.4 per cent). Furthermore, Haikui Seafood
maintains a healthy cash position of 51.2 million Euros at the end of the
reporting period (December 31, 2013: 49.8 million Euros).
Outlook for the full year 2014 maintained
Not unexpectedly, the market conditions thus far in 2014 have proven to be
challenging for many Chinese seafood processors. Keen competition for raw
materials and labour has driven up production costs while the quest to
preserve and/or gain greater market share amidst a weak, fragile and
uncertain global economy has curtailed efforts to adjust selling prices
upwards. However, the management of Haikui Seafood does not anticipate the
market conditions to further deteriorate for the remaining half of 2014.
Taking the aforesaid factors into consideration, the 9-month revenue in
2014 is expected to be broadly comparable with the same period in 2013 but
with margins anticipated to be slightly lower than H1 2014 and 9M 2013.
Despite uncertainties associated with the development of selling and raw
material prices, the management of Haikui Seafood expects a strong fourth
quarter compared to 2013 and is maintaining its full year 2014 target of
delivering a revenue growth of at least 5 to 10 per cent measured in RMB
terms with an EBIT margin in the range of 11 and 13 per cent.
With regard to the investments, Haikui Seafood recently completed the
detailed planning of its new factory in Dongshan. The construction will
start in the third quarter 2014. Completion would take about 1.5 years with
contributions from the new facility foreseen for 2016.
The full half-year report 2014 of Haikui Seafood AG is available on the
company's website under:
http://www.haikui-seafood.com/investor-relations/publications/reports/
About Haikui Seafood AG
Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range includes frozen or canned fish and seafood,
produced from a large variety of species of raw fish and seafood, including
prawn, crab, various fish species and shellfish as well as cephalopods.
Clients of Haikui Seafood are distributors in China and overseas, located
mainly in Asia, the U.S. and Europe. Haikui Seafood employs 666 permanent
employees and 836 additional temporary workers as of June 30, 2014. The
company has an annual processing capacity of more than 34,000 tonnes
(output). The processing facilities are located in the South-East of China
on Dongshan Island, Zhangzhou, Fujian Province. Haikui Seafood operates a
streamlined supply chain including self-owned processing facilities,
in-house research and product development capacities as well as warehousing
and cold storage facilities while simultaneously cooperating closely with
raw goods suppliers.
For further information please visit www.haikui-seafood.com or contact
Kirchhoff Consult AG
Anja Ben Lekhal
Phone: +49 (0)40 609 186 55
[email protected]
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Haikui Seafood'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 Haikui Seafood's
forward-looking statements are proving to be incorrect, Haikui Seafood's
actual results may be materially different from those expressed or implied
by such forward-looking statements. Haikui Seafood 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.
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20.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Haikui Seafood AG
c/o Norton Rose Fulbright, Taunustor 1
60310 Frankfurt am Main
Germany
Phone: +49 40 60 91 86 - 0
Fax: +49 40 60 91 86 - 60
E-mail: [email protected],[email protected]
Internet: www.haikui-seafood.de
ISIN: DE000A1JH3F9
WKN: A1JH3F
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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282997 20.08.2014
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