IC Companys’ revenue drops 3 percent in FY 2011/12

IC Companys in its annual result 2011/12 reported a

consolidated revenue amounting to 3,819 million Danish krone (636.2 million dollars/Rs 3,527 crores), corresponding to a reduction of 3 percent compared to 2010/11.The revenue for fourth quarter also dropped by 5 percent.

Revenue for the financial year 2011/12 amounted to 3,819 million Danish krone (636.2 million dollars/Rs 3,527 crores) compared to 3,925 million Danish krone (653.9 million dollars/Rs 3625 crores) corresponding to a setback of 3 percent compared to the last financial year. Revenue for Q4 2011/12 amounted to 680 million Danish krone (113.2 million dollars/Rs 627 crores) corresponding to a setback of 5 percent compared to Q4 2010/11.

Wholesale revenue amounted to 2,356 million Danish krone (392.5 million dollars/Rs 2176 crores) corresponding to a setback of 2 percent compared to the last financial year. Wholesale revenue for Q4 2011/12 declined by 3 percent to 337 million Danish krone compared (56.1 million dollars/Rs 311 crores) to Q4 2010/11. Retail revenue amounted to 1,464 million Danish krone (243.7 million dollars/Rs 1,351 crores) (1,531 million Danish krone/254.8 million dollars/Rs 1,412 crores) corresponding to a decline of 4 percent compared to the last financial year. Retail revenue for Q4 2011/12 decreased by 8 percent to 343 million Danish krone (57.1 million dollars/Rs 316 crores) compared to Q4 2010/11.

Gross profit amounted to 2,154 million Danish krone (358.8 million dollars/Rs 1989 crores) compared to 2,322 million Danish krone (386.8 million dollars/Rs 2,144 crores ) for the same period last year. The group thereby generated a gross margin of 56.4 percent (59.1 percent) corresponding to a decline of 2.7 percentage points compared to the last financial year. The gross profit for Q4 2011/12 improved by 0.3 percentage points to 58.4 percent.

Chief Executive Officer of IC Companys A/S Niels Mikkelsen commented, "The reported results for 2011/12 are, in spite of the challenging market conditions, both disappointing and dissatisfactory. However, the direction for the group is clear; the efforts of reducing fixed costs will be intensified, resiliency must be enhanced by improving the flexibility and variability of the costs and IC Companys must gradually be developed into a group where the majority of revenues is attributable to brands in the premium segment. Our future top priority is to ensure a continuous improvement of the group's earnings."

Based on this, the management expects the consolidated revenue for the financial year 2012/13 to be lower compared to the financial year 2011/12. However, the consolidated operating profit for the financial year 2012/13 is expected to attain the same or a higher level compared to the financial year 2011/12.

IC Companys A/S is a Danish listed group formed in 2001. It has a portfolio of 11 brands like Peak Performance, Tiger of Sweden, Jackpot, InWear, Matinique, Saint Tropez, Part Two, Cottonfield, By Malene Birger, Soaked in Luxury and Designers Remix. These brands are sold through nearly 500 retail and franchise stores, through e-commerce and via close to 10,000 distributors in more than 40 countries.