A.S. Création Tapeten AG: Gratifying results in Q3 2020

A.S. Création Tapeten AG, Gummersbach (ISIN DE000A1TNNN5)

Gratifying results in Q3 2020

A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, today published its interim report for the period ended September 30, 2020. A summary is provided below:

Revenues rise sharply in Q3
Following the far-reaching measures that were taken in many countries as of mid-March to contain the spread of the coronavirus, the gradual easing of the COVID-19 restrictions in the various countries sent demand for wallpapers and furnishing fabrics rising as of June, with A.S. Création growing its consolidated revenues by 13.3% from € 32.7 million to € 37.1 million in the third quarter of 2020. This means that the 9.3% decline in revenues recorded in the first half of 2020 as a result of the coronavirus pandemic was offset almost entirely. At € 105.6 million, A.S. Création's consolidated nine-month revenues were only 2.5% below the prior-year level of € 108.3 million. The revenue trend in Germany is particularly pleasing, as gross revenues in the first nine months of 2020 rose by 6.7% from € 47.8 million in the previous year to € 51.0 million. Against the background of the positive revenue trend in the third quarter, the Managing Board now projects consolidated sales revenues of between € 135 million and € 140 million for the full year 2020.

Earnings improve in current fiscal year
For the first nine months of 2020, A.S. Création reports earnings before interest and taxes of € 1.4 million, down by € 2.8 million on the previous year's € 4.2 million. The decline is exclusively due to exchange losses resulting from the strong depreciation of the Russian and Belarusian rouble against the euro in the course of the first nine months of 2020, which resulted in a translation-related exchange loss of € 4.6 million (2019: exchange gain of € 1.3 million). Adjusted for these non-cash currency effects, EBIT amounted to € 6.0 million in the fiscal year 2020, up € 3.1 million on the previous year's € 2.9 million. This doubling of the result means that A.S. Création's operating performance has improved noticeably in the current fiscal year 2020. The positive trend is greatly influenced by the improved gross profit margin, with the successful product policy and the increased share of high-margin low-volume business in total sales revenues having a positive effect.
Earnings forecast for FY 2020 upgraded
A.S. Création will continue to pursue its strategy of internationalising the product range and modernising the company. One example in this respect is the addition of the internationally renowned KARL LAGERFELD fashion brand to the company's portfolio of licensed brands. A.S. Création will present the corresponding wallpaper collection in November and December 2020. In spite of the economic uncertainties for the coming months which arise from the renewed partial lockdowns in major wallpaper markets, the Managing Board currently assumes that A.S. Création will probably generate earnings before interest and taxes (excluding currency effects) of between € 6 million and € 7 million in the full year 2020. The original plans for FY 2020 had envisaged earnings before interest and taxes of between € 4 million and € 5 million, excluding currency effects. Because of the upward revision of the EBIT forecast, consolidated earnings after taxes from continuing operations (excluding currency effects) in the fiscal year 2020 will, from today's point of view, probably be higher than originally assumed and come in at between € 4 million and € 5 million instead of the planned € 2.5 million to € 3.5 million.

The Group's key figures for the first nine months of 2020 are summarised below:

Gummersbach, November 5, 2020

A.S. Création Tapeten AG
The Managing Board

Inquiries:
Maik Krämer, Director of Finance and Controlling, phone +49-2261-542 387, fax +49-2261-542 304,
e-mail: m.kraemer@as-creation.de

The full interim report is available at:
www.as-creation.de or from
A.S. Création Tapeten AG, Frau Börngen, Südstr. 47, D - 51645 Gummersbach, phone +49-2261-542 350,
e-mail: investor@as-creation.de