A.S. Création Tapeten AG / Key word(s): Quarter Results
10.11.2014 / 08:10
A.S. Création Tapeten AG, Gummersbach
(ISIN DE000A1TNNN5)
A.S. Création reports much lower decline in revenues and earnings
A.S. Création Tapeten AG, Europe’s leading wallpaper manufacturer, today published the interim report for the period ended September 30, 2014. A summary is provided below:
Q3 revenues decline at lower rate
The 10.1% slump in sales revenues recorded by A.S. Création in the second quarter of 2014 did not continue. While A.S. Création’s revenues declined also in the third quarter, the 5.4% reduction was much lower than had been feared after the second quarter. At EUR 145.2 million, total Group revenues for the first nine months of 2014 were down by 5.1% on the previous year’s EUR 153.1 million. The decline in revenues should be seen against the background of the deteriorating economic environment in Western and Eastern Europe, where A.S. Création generates over 90% of its Group revenues. The mostly negative news prevailing at present is weighing on private households’ consumption propensity, which also affects demand for wallpapers. In addition the depreciation of the Ukrainian and Russian currencies against the euro, which makes it more difficult to export German-made wallpapers, has negative effects. On the upside, sales of Russian-made wallpapers continued to increase.
Earnings almost at prior year level in Q3
In response to the deterioration in earnings, the Managing Board implemented austerity and rationalisation measures in the course of the year. The positive effects of these measures are reflected in the consolidated income statement for the third quarter of 2014, when the gross profit margin improved and personnel expenses as a percentage of total output were reduced. As a result, earnings before interest and taxes for the third quarter of 2014 were down by only EUR 0.1 million or 5.6% on the previous year’s EUR 2.2 million to EUR 2.1 million, although sales revenues declined by EUR 2.6 million compared to the prior year period. An improvement in third-quarter earnings was prevented by higher exchange losses and write-downs on trade receivables. Given that EBIT in the first half of 2014 were down by 31.4% on the previous year, the Managing Board interprets this as a positive trend. EBIT for the nine-month period totalled EUR 8.6 million, down by 26.5% on the previous year’s EUR 11.7 million.
Forecast confirmed in spite of uncertain environment
The Managing Board does not expect sales revenues to increase in the fourth quarter of 2014 compared to previous year. While the strong growth in sales of Russian-made wallpapers should continue in the remaining months of the year, it is safe to assume that wallpaper exports to Eastern Europe, especially to Russia, will decline further, as export conditions are likely to deteriorate even more due to the ongoing depreciation of the local currency against the euro and the declining consumption propensity. As the economic outlook for the EU, especially for Germany, has deteriorated, sales revenues in this region, too, are more likely to decline than to increase. However, from today’s point of view, the Managing Board assumes that the company will reach the sales forecast for the full year 2014, according to which Group sales revenues will amount to between EUR 180 million and EUR 190 million.
Unlike sales revenues, fourth-quarter earnings are expected to be much better than in the previous year, when a loss was posted due to one-time effects. The Managing Board therefore continues to believe that A.S. Création will post a higher net profit for the fiscal year 2014 than for the year 2013.
The Group’s key figures for the first nine months of 2014 are summarised below:
|
|
01.01.-30.09. |
01.01.-30.09. |
Change |
|
|
2014 |
2013 |
|
Sales |
EUR ‘000 |
145,240 |
153,094 |
– 5.1 % |
Earnings before interest and taxes (EBIT) |
EUR ‘000 |
8,606 |
11,713 |
– 26.5 % |
Earnings before taxes |
EUR ‘000 |
6,107 |
8,550 |
– 28.6 % |
Net profit |
EUR ‘000 |
3,176 |
4,852 |
– 34.5 % |
Earnings per share |
EUR/share |
1.15 |
1.76 |
– 34.7 % |
Cash flow |
EUR ‘000 |
11,886 |
13,789 |
– 13.8 % |
Capital expenditures |
EUR ‘000 |
4,297 |
7,292 |
– 41.1 % |
Depreciation |
EUR ‘000 |
7,096 |
7,045 |
0.7 % |
Number of employees (average) |
|
823 |
836 |
– 1.6 % |
Gummersbach, November 10, 2014
A.S. Création Tapeten AG
The Managing Board
Inquiries:
Maik Krämer, Director of Finance and Controlling,
phone +49-(0)22 61/542-387,
fax +49-(0)22 61/542-304,
e-mail m.kraemer@as-creation.de
The full nine-month report is available at:
www.as-creation.de
or from:
A.S. Création Tapeten AG,
Frau Börngen,
Südstr. 47,
D – 51645 Gummersbach,
phone: +49-(0)22 61/542-350,
e-mail: investor@as-creation.de