EBITDA of women's luxury fashion group up by 5.4 %
06 Mar '07
3 min read
ESCADA AG records operative business performance for first quarter of fiscal year 2006/2007 (reporting date: October 31) in line with expectations and improves earnings still further.
Consolidated sales for the women\'s luxury fashion manufacturer totaled 161.2 million Euro for the first three months, as against 166.7 million Euro for the same period of last year (-3.3%).
This reduction is essentially due to foreign currency effects and the deliberate adjournment of sales into the second quarter. The shift of sales is the result of the delivery schedules being adjusted to market requirements. Currency adjusted - that is on the basis of constant exchange rates - consolidated sales would have remained on the level of same quarter of last year (-0.5%).
Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 5.4%, up from the 20.5 million Euro recorded for the same quarter of last year to 21.6 million Euro.
This was primarily the result of further improvements in the cost ratio (share of operative costs in sales) from 57.6% to 56.6%. While the exchange of foreign currencies had a negative effect on sales, and with it on the gross profit, the measures taken to hedge foreign currencies had a positive counter-effect on costs and other operating income. As a consequence, the influence of foreign currencies on EBITDA was more or less neutral.
The quarterly profit after taxes and minority interests was up from last year\'s first quarter result of 6.2 million Euro to 6.9 million Euro, which is a plus of 11.3%.
marketing@alchempro.com
