DGAP-Adhoc: Ming Le Sports AG: Increased costs of sales

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Nov 27, 2013 at 3:00 AM

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 Â§ 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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-rel...tions.html. --------------------------------------------------------------------------- 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 --------------------------------------------------------------------------- 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, DÃ¼sseldorf End of Announcement DGAP News-Service ---------------------------------------------------------------------------

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

FLUX 3 Max Launches with Unmatched Speed and Quality

A Lightning Fast Leap in Video Generation It's all eyes on FLUX 3 Max today. You can almost hear the gasps of 'wow' in the generative media crowd. Why? Because this new weapon in the video gen arsenal, dreamed up by fal and Black Forest Labs, is slicing through the old speed limits like a blistering comet. Now, don't get me wrong. Seeds don't grow overnight, and neither...

National Showrooms Expands into Virginia with Key Buy

A New Chapter for Greenwich Kitchens I'll tell you what's catching my eye this time—National Kitchen & Bath Showrooms are making their move into Virginia by snapping up Greenwich Kitchens, a well-regarded name in the local kitchen and bath scene. Founded back in '78, Greenwich Kitchens has been a staple in the Virginia Beach and Hampton Roads areas for nearly half a...

New Chapter Recovery Garners Key Accreditations

Accreditations That Matter It's not every day a treatment facility pops its head up with credentials that weigh like a ton of bricks. New Chapter Recovery in New Jersey just snagged two heavy hitters: Joint Commission accreditation and LegitScript certification. These badges don’t just glimmer for show; they’re the market's assurance against empty promises—an...

LBT Unveils Game-Changing Cyclotron for Medical Advances

Unveiling the LB-30 Cyclotron at EANM 2026 Life in nuclear medicine never stands still, and once again, Longevous Beamtech (LBT) is stirring the pot with its brand-new LB-30 series medical cyclotron. They rolled out this high-powered beast at the 39th Annual Congress of the European Association of Nuclear Medicine (EANM 2026) in Vienna. Leaning into the 30 MeV energy...

AppLovin Faces Securities Fraud Lawsuit Amid AI Claims

Digging Into AppLovin's Legal Turmoil Well, it's another wrinkle in the markets' many lines. This time, we’ve got AppLovin Corporation facing the music with a securities fraud lawsuit. If you’ve got shares in NASDAQ:APP, you might want to perk up. Let the trial by fire begin, I say. The Lawsuit Details & Class Period Here we are, October 19, 2026, and the legal eagles...

GELITA Showcases Collagen Innovations at SupplySide 2026

Collagen Solutions Front and Center First up, a little chat about collagen might be in order. For folks not tied into the science side, it sounds like a trendy wellness potion. But here comes GELITA at SupplySide Global 2026, showing it's the real McCoy. Nestled in Booth #4565, they're laying out a spread of next-gen collagen innovations aimed at everything from wound...

Ruth E. Carter Returns Home with Celebrated Exhibition

Ruth E. Carter’s Triumphant Return When a titan of the costume design world circles back to their roots, you know it’s bound to be something special. Ruth E. Carter, who has swapped needles and threads for Oscars (twice, mind you), is making a return to Hampton University, paying homage to the very soil that sowed her artistic seeds. Ain't that a capstone of a career...

Alaska LNG Project Boosted by Strategic Positioning

Alaska LNG: Right Place, Right Time Someone bring out the confetti, because Paul Sullivan, Co-Chairman of Gastech, is celebrating Alaska LNG like it's 1999. And for good reason. If Alaska ever played its cards right, now's the moment according to the industry veteran. After Gastech 2026 wrapped its events in Bangkok last month, Sullivan laid out why the stars are aligning...

New JPA Aims to Energize Inland Empire's Water Supply

Fresh Steps in San Bernardino's Infrastructure Strategy Here's a twist for you: public agencies in San Bernardino County decided enough with the same old, same old and cooked up a new joint powers authority (JPA). They call it the San Bernardino Water and Power Authority, which sounds snappy enough for a meeting room nameplate, I reckon. Who's Steering the Ship? Leading...

Nest Health Appoints Peter Morrison for Multistate Expansion

Peter Morrison Steps Up as Chief Growth Officer You know, it's not every day you see a move as gutsy as Nest Health's recent appointment of Peter Morrison. They're shaking up the Medicaid space, aiming to redefine primary care for families with limited resources. Morrison, coming from heavyweights like UnitedHealthcare and Centene, isn't your typical pencil-pusher. He’s...