Ecco 2012 net revenues up 13.7 percent

Danish shoe manufacturer Ecco reported net revenues

of 8,061 million Danish Kroner (Rs 7,734 crores) – an increase of 972 million Danish Kroner (Rs 928 crores) equal to a growth of 13.7 percent. It announced the highest ever profit before tax at 1,140 million Danish Kroner (Rs 1,093 crores) – a growth of 26 percent over 2011. The year’s result, after tax and minorities at 684 million Danish Kroner (Rs 654 crores) is an increase of 23.3 percent. Investments increased from 339 million Danish Kroner (Rs 324 crores) in 2011 to 594 million Danish Kroner (Rs 566 crores).

“2012 became an exceptionally good year for Ecco. More than anything this was secured by an extraordinary effort by the entire global Ecco team along with solid performance in the marketplace by many of our successful products,” says Dieter Kasprzak, Ecco’s CEO.

Strong progress in Asian and North American markets together with overall improved results from European markets helped create a very satisfactory 2012 result for Ecco. “The positive development in several markets strengthened our geographical diversification, which contributed to the improved result,” says Michael Hauge Sørensen, Chief Operating Officer.

The markets in Asia now account for 24 percent of Ecco’s revenue against 20 percent in 2011; North America grew to 19 percent in 2012 against 18 percent in 2011; and as a result EMEA (Europe, Middle East and Africa) saw its percentage of revenue reduced to 57 percent - although the region saw its performance improve.

Ecco’s accessories business, which includes belts, handbags and shoe care products, made good progress with 15 percent revenue growth. A new line of leather goods was launched utilising Ecco’s Scandinavian design capabilities and leather expertise. Ecco Leather Group, who supplies Ecco with leather, also sells to external customers. External sales in 2012 grew by 29 percent, not least to the premium leather goods industry.

“Looking ahead into 2013, market uncertainty remains high and a number of economies will most likely experience difficulties. This might have a negative impact on consumer sentiment and demand. Thus, after several years of high growth Ecco expects more moderate growth in 2013,” says Michael Hauge Sørensen.