IC Group H1 revenues up, sells shares in DK Company

Consolidated revenue for the first half of 2015/16 amounted to 1,446 million Danish Krona (216.8 million dollars) corresponding to an increase of 1.4 percent, or 2.3 percent measured in local currency, compared to the same period last financial year. The gross margin improved by 1.5 percentage points to 56.6 percent.

The consolidated operating profit rose by 12.3 percent. The Board of Directors expects to distribute an extraordinary dividend of 250 million Danish Krona (37.4 million dollars) during Q3 2015/16. Outlook for the financial year 2015/16 remains unchanged.

Brands contribute to H1 growth

Peak Performance generated revenue of 562 million Danish Krona (84.2 million dollars corresponding to a reduction of 4.1percent (a reduction of 4 percent measured in local currency), driven by the wholesale channel whereas the retail channel reported significant revenue growth. The revenue reduction was solely registered in the Nordic region whereas revenue from the market segment Rest of Europe rose.

Tiger of Sweden increased its revenue by 5.8 percent (7.7percent measured in local currency) to 495 million Danish Krona (74.2 million dollars). All channels reported revenue growth - in particular the retail channel. The German market reported a revenue growth rate of 38percent while the Nordic region generated revenue growth of 9percent.

Revenue for By Malene Birger rose by 11.8percent (13.2percent measured in local currency) to 180 million Danish Krona (26.9 million dollars) which was primarily attributable to a positive development in the retail channel, however, the wholesale channel also reported higher revenue. Geographically, the European market accounted for the reported growth - in particular in the Nordic region.

As reported in the interim report for Q1 2015/16, the bankruptcy of a former distributor in Switzerland had a negative impact on the consolidated revenue. This incident has in particular affected Tiger of Sweden.

Outlook for 2015/16 remains unchanged

The company expects the positive performance of the Group's core business to continue and to drive overall revenue growth and earnings development for the Group. Specifically, it expects revenue growth to attain a level of 4percent. The company expects the consolidated operating profit to be realized with an EBIT margin of approximately 10 percent.

As announced on February 4, 2016, IC Group has entered into an agreement with DKC Holding 2011 A/S to sell all of its shares in DK Company A/S. The Board of Directors expects to distribute the proceeds from the above-mentioned sale of shares to DKC Holding 2011 A/S to the shareholders.