Deutsche EuroShop: good start into FY 2008 (DE)

Deutsche EuroShop AG has reported about its results for the first three months of the financial year 2008. The highlights are:

  • Revenue: €26.9 million (+19%)
  • EBIT: €22.5 million (+20%)
  • Profit: €10.2 million (+61%)
  • Earnings per share: €0.30

Revenue came to €26.9 million, representing a 19% rise year-on-year (€22.7 million). The Galeria Baltycka and the Stadt-Galerie Hameln, which opened in October 2007 and March 2008, respectively, contributed significantly to this revenue increase. Moreover, revenue from existing properties increased by 2.2%.

Earnings before interest and taxes (EBIT) increased by €3.8 million (+20%) from €18.7 million to €22.5 million. This is chiefly due to contributions to earnings from the two recently opened properties.

Net finance costs amounted to €-11.9 million, €1.8 million more than the €-10.1 million recorded during the previous year. This results from the interest expense due to the new centers and also from a higher profit attributable to minority shareholders.

Measurement loss of €-0.1 million rose to become a measurement gain of €1.8 million. This is attributable exclusively to unrealized exchange rate gains.

Overall the profit before tax (EBT) was increased from €8.5 million to €12.3 million. Consolidated profit was €10.2 million, up by €6.3 million (+61%) on the same period of the previous year (€3.9 million). Earnings per share rose from €0.18 to €0.30. Of this, €0.27 results from operating profit and €0.03 from measurement gains.

The Stadt-Galerie Passau is set to open in the autumn of 2008. Currently 95% of the retail space has been let to well-known retailers.

The Company is significantly more optimistic than just a few months ago to be able to initiate new investments and to meet the investment targets of €150 million to €200 million by the end of the year.

On the basis of the profits of the first three months the forecast for the FY 2008 is confirmed: Revenue should range between €110 million and €113 million and thus significantly increase (2007: €95.8 million). Earnings before interest and taxes (EBIT) is expected to reach €90 million to €92 million (2007: €77.2 million). The Company is expecting earnings before tax (EBT) without measurement gains to reach €43 million to €45 million (2007: €37.7 million).

The Executive Board is optimistic that the Company will be in a position to pay out a tax-free dividend of at least €1.05 per share for the 2008 financial year.

Source: Deutsche EuroShop

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