DGAP-News: Firstextile AG / Key word(s): Quarter Results Firstextile AG publishes its figures for Q1 2015 27.05.2015 / 07:59 --------------------------------------------------------------------- Firstextile AG publishes its figures for Q1 2015 - Strong revenue growth yoy in Q1 2015; EUR 47.0 mn achieved - Earnings before interest and tax (EBIT) of EUR 8.4 mn; EBIT margin at 17.8% - Positive outlook confirmed for the full year 2015 due to upcoming launch of the new production site Frankfurt, 27 May 2015 - Firstextile AG (FT8) has today published its financial figures for the first three months of 2015. Therefore the start into the current financial year is in line with the overall expectations for the full year 2015. Due to the strong performance of the Uniforms segment, Firstextile was able to over-compensate the revenue decrease in the Branded Products segment. Firstextile expects a continuing positive development due to the upcoming completion of the new production site in middle of 2015 and the capacity expansion from currently 36 million meters of fabrics to 72 million meters in the mid-term. In the first three months of 2015, the company's total revenue increased by 43.0% to EUR 47.0 million compared to EUR 32.9 million in the same period of 2014. This development in revenue is attributable especially to revenue increase in the Uniforms segment due to several bulk orders of state-owned enterprises and government institutions. As a result, the company's gross profit increased by 36.2% to EUR 14.1 million compared to EUR 10.3 million in the previous year's period, resulting in a gross profit margin of 29.9% (Q1 2014: 31.4%). Firstextile's earnings before interest and tax (EBIT) amounted to EUR 8.4 million representing an increase of 51.4% year-on-year (Q1 2014: EUR 5.5 million) and corresponding to an EBIT margin of 17.8% (Q1 2014: 16.8%). Net profit increased by 38.9% from EUR 4.4 in the first three months of 2014 to EUR 6.0 million in the same period of 2015. Regarding the results of operations, it has to be taken into account that the company's income statement development yoy presented in Euro has been inflated by 19.0% due to currency effect RMB/EUR. Fred Yang, founder and CEO of Firstextile, comments the results: "We are very confident with the positive start into the financial year 2015, reflecting the continuing high demand for our high-end fabrics. To exploit the huge opportunities in the overall very attractive Chinese market for high-end fabrics, we plan to start operations in the new production site in the middle of 2015. The installation of the machinery will be completed in the second quarter of 2015." Richard Cao, CFO, adds: "Firstextile's further growth is currently limited by our capacities which are already fully utilized. With completing the construction phase of the new production facility in the middle of 2015, we will be prepared for the high demand on our products in the long-term. Due to this and the solid economic environment we are very confident to reach our goals in 2015." Firstextile's revenue in the Fabrics segment amounted to EUR 34.2 million in Q1 2015 and was in line with the expectations for the financial year 2015. Compared to revenue of EUR 26.8 million in the first quarter of 2014 revenue increased by 27.6% in the reporting period due to the remaining high market demand on high-end fabrics in China. Gross profit also increased by 60.8% to EUR 11.5 million (Q1 2014: EUR 7.1 million). Revenue in the Uniforms segment significantly increased to EUR 12.3 million in the first quarter of 2015 (Q1 2014: EUR 0.4 million). This development is due to the fact that Firstextile has received new bulk orders in recent months. Revenue in the Uniforms segment generally depends on relatively few large orders, and therefore a fluctuation in revenue quarter-on-quarter in this segment is not exceptional. Accordingly gross profit also significantly increased to EUR 2.3 million (Q1 2014: 0.1 million). In its third business, the Branded Products segment, revenue decreased by 92.7% compared to the first quarter of 2014 and amounted to EUR 0.4 million (Q1 2014: EUR 5.6 million). The strong decrease is due to the unfavourable economic environment for the corporate gift business as an important part of this segment. In this segment, gross profit decreased by 90.8% to EUR 0.3 million (Q1 2014: EUR 3.1 million). Nevertheless, the gross profit margin still remained on a very high level of 68.5% (Q1 2014: 54.7%). As of today, the complete 2015 three-month report can be downloaded from the company's website at www.firstextile.de, within the "Investor Relations" area. Company profile Firstextile is the leading manufacturer of high-end yarn-dyed fabric in the Chinese market with a market share of approx. 9% in terms of volume in 2011. It also markets fabric and shirts specifically designed for uniforms used by Chinese government institutions and enterprises, as well as its own branded men's shirts with the brand "Firstextile" for the wholesale business. The company operates modern production facilities in Jiangyin near Shanghai, China, which is one of the main centres of the Chinese textile industry and it focuses particularly on high product quality. As the company already operates almost at its maximum capacity it plans to use the net proceeds from the successful completion of the IPO in November 2012 and further cash flows to double the current after-finishing capacity of 36 million meters to 72 million meters in order to meet future demand. At the same time, weaving capacity is intended to be expanded from short of 11 million meters to 27 million meters and dyeing capacity from 7,900 tons to 15,800 tons. --------------------------------------------------------------------- 27.05.2015 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. The DGAP 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: Firstextile AG Lyoner Str. 14 60528 Frankfurt am Main Germany Phone: +49 (0) 69 6655 4416 Fax: +49 (0) 69 6655 4418 E-mail: [email protected] Internet: www.firstextile.de ISIN: DE000A1PG8V8 WKN: A1PG8V Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 361993 27.05.2015