IC H1 revenue down 3 percent

IC Company’s consolidated revenue for the first half of 2012-13 amounted to 2,036 million

Danish krone (Rs 1,957 crores) which is 3 percent lower compared to the last financial year. Gross margin amounted to 57.9 percent, which is an improvement of 1.4 percentage points compared to last financial year. This increase is partly attributable to lower inventory write-downs as a consequence of substantially lower inventories at the end of the season and partly an improvement of the processes for collection development and sourcing which combined with the enhanced foreign currency hedging more than offset the price pressure from the sourcing countries.

The premium segment reported a growth rate of 1 percent. The brand Tiger of Sweden increased by 21 percent whereas the brand Peak Performance decreased by 8 percent. The mid market segment suffered a setback of 15 percent and the Fast Fashion segment recorded an increase of 15 percent. Operating profit amounted to 160 million danish krone (Rs 153 crores) corresponding to an increase of 10 percent. New strategic initiatives have been launched in order to support revenue growth and enhanced earnings.

The brand portfolio has been changed from eleven brands to three clearly defined business segments. Cost reductions continue to have an impact. After having adjusted for foreign currencies, non-recurring costs and the adverse development in the group’s receivables, the total consolidated costs were reduced by 4 percent. The group’s total EBIT margin thus increased by 1 percentage point compared to last financial year.

For the financial year 2012-13 the company expects consolidated revenue to be 3,700 million danish krone (Rs 3,543 crores) to 3,750 million danish krone(Rs 3,590 crores) and consolidated operating profit to be 140 million danish krone (Rs 134 crores) to 170 million danish krone (163 crores). Investments are expected to be utilised for an expansion of the distribution in the premium segment. Chief Executive Officer of IC Company Niels Mikkelsen commented: ”By setting up three business segments, and divesting the brands Jackpot and Cottonfield, we continue the path of simplifying the group in order to enhance its growth and earnings capacity.”