27.11.2013
Ming Le Sports AG DE000A1MBEG8
DGAP-Adhoc: Ming Le Sports AG: Increased costs of sales affect profit margins despite strong revenue growth
Ming Le Sports AG / Key word(s): Quarter Results
27.11.2013 08:47
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Ming Le Sports AG: Increased costs of sales affect profit margins despite
strong revenue growth
Frankfurt, 27 November 2013 - In the first nine months 2013 Ming Le Sports
AG, a rapidly growing branded sportswear company in China, was able to
increase its revenues by more than 25 per cent. At the same time profit
margins were affected by higher costs of sales resulting from the increased
outsourcing of manufacturing to other vendors due to capacity constraints.
Ming Le's revenues showed a strong year-on-year growth of 25.5 per cent to
256.6 million Euros (9M 2012: 204.5 million Euros). Measured in RMB,
revenues increased by 26.3 per cent. This positive development resulted
primarily from higher sales volumes generated from the increased number of
authorised retail outlets and increases in the average unit prices.
In the first nine months of 2013 Ming Le sold 25.1 million units of
footwear and apparels, an increase of 22.2 per cent compared to the
previous year. The average unit selling price grew by 3.3 per cent to 11.64
Euros (9M 2012: 11.27 Euros) for footwear products and by 5.0 per cent to
9.70 Euros for apparel products (9M 2012: 9.20 Euros).
Gross profit remained almost unchanged amounting to 69.8 million Euros (9M
2012: 70.0 million Euros), representing a slight decrease of 0.3 per cent.
Gross profit margin declined from 34.2 per cent in the first nine months
2012 to 27.2 per cent in the same period 2013. This slowdown is mainly
attributed to higher costs of sales incurred due to the increased
outsourcing of manufacturing to other vendors.
As a result, profits of operations (EBIT) also went down by 11.1 per cent
to 44.0 million Euros (9M 2012: 49.2 million Euros). EBIT margin fell from
24.1 per cent in 2012 to 17.1 per cent in the first 9 months 2013.
Accordingly net profit declined by 23.8 per cent from 43.1 million Euros to
32.9 million Euros in the considered period. This represents a net profit
margin of 12.8 per cent (9M 2012: 21.1 per cent).
Strong financial position
Nevertheless, Ming Le Sports remains financially well-positioned: The
company's equity increased by 21.1 per cent from 155.2 million Euros as of
December 31, 2012 to 188.0 million Euros as of September 30, 2013. Equity
ratio went up to 82.1 per cent (December 31, 2012: 81.9 per cent).
Partly revised guidance for the full year 2013
Considering the results of the first nine months 2013, Ming Le Sports stays
confident for its future business development. Due to the opening of the
new retail outlets and the increased sales orders for the Autumn/Winter
2013 collection, the management expects Ming Le's positive business
development to continue in the fourth quarter and anticipates a
year-on-year revenue growth of 25 per cent in Euro terms surpassing the 350
million Euro benchmark in 2013.
As the pressure on profit margins will continue in the fourth quarter due
to the increasing cost of sales, Ming Le has reduced the guidance on the
expected net profit margin. For the full year 2013, the company anticipates
a net profit margin between 12 and 14 per cent.
Following its expansion strategy, Ming Le plans to add 630 stores including
30 self-owned flagship stores to its existing retail network until the end
of 2013. By the end of the third quarter 2013 Ming Le had already added 457
stores to its network. As of September 30, 2013, Ming Le's network of 4,247
retail outlets covered 26 provinces across China.
The full 9-month report 2013 of Ming Le Sports AG is available on the
company website under
http://www.mingle-sportswear.com/investor-relations/publications.html.
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Information and Explaination of the Issuer to this News:
About Ming Le Sports AG
Ming Le Sports AG is a rapidly growing branded sportswear company in China
targeting 16 to 35-year-old men and women who lead an urban, vibrant and
active lifestyle. Ming Le's products include footwear, apparel, accessories
and equipment. The company strives to offer comfortable, fashionable and
affordable lifestyle and leisure sportswear. Ming Le designs its own
products and manufactures them at Ming Le's facilities or through contract
manufacturers. Ming Le markets and sells its products through a network of
26 distributors to over 4,200 retail outlets in China. At present, Ming Le
has more than 1,400 employees.
For further information, please contact:
Kirchhoff Consult AG
Anja Ben Lekhal
Tel: +49(0) 40 609 186 55
Mail: anja.benlekhal@kirchhoff.de
Or visit http://www.mingle-sportswear.com
27.11.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Ming Le Sports AG
Westhafenplatz 1
60327 Frankfurt am Main
Germany
Phone:
Fax:
E-mail:
Internet: www.mingle.cn
ISIN: DE000A1MBEG8
WKN: A1MBEG
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf
End of Announcement DGAP News-Service
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