Corporate | 2 August 2007 08:54
A.S. Création Tapeten AG / Half Year Results/Quarter Results
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A.S. Création Tapeten AG, Gummersbach/Germany
(ISIN DE0005079909)
Growth in foreign markets sends sales rising by 7.2% in first half of 2007
A.S. Création Tapeten AG, the leading wallpaper manufacturer in Europe,
today published its interim report for the six-month-period ended June 30,
2007. A summary of the report is provided below:
Strong sales growth in foreign markets
In the first half of 2007, A.S. Création boosted its consolidated sales by
7.2% from € 77.4 million in the previous year to € 82.9 million. This
growth was achieved in markets outside Germany, where gross sales rose by
14.1%, while domestic sales were down 3.0% on the previous year. According
to the Managing Board, the increase in sales reflects not only A.S.
Création’s successful innovation-driven product policy but also the
consolidation process of the past years. Numerous bankruptcies of wallpaper
manufacturers, especially outside Germany, have led to a shift in market
share, which has benefited the remaining efficient suppliers such as A.S.
Création. The wallpaper industry in Germany failed to participate in the
rise in consumer spending. Although the German wallpaper sector as a whole
reported a much stronger decline in sales than A.S. Création, the
development in the domestic market was disappointing.
Earnings position unchanged in H1
Earnings developed in line with sales in the first six months of 2007. At €
6.9 million, earnings before income tax were up 7.6% on the previous year’s
€ 6.4 million, so that the return on sales (before tax) reached exactly the
previous year’s level of 8.3%. An improvement in the earnings position was
prevented by the unsatisfactory gross profit margin, which amounted to
47.1% in H1 2007, compared to 49.2% in the previous year. In relation to
the higher total output, this decline in the gross profit margin represents
a gross profit shortfall of € 1.8 million. The decline is attributable to
increased raw materials and energy prices and the company’s continued high
investments in new product ranges.
Capital expenditures in new plant capacity proceeding according to plan
A.S. Création is in the process of implementing a comprehensive capex
programme with a view to further improving its competitive position. In
this context, three additional machines are being installed to expand the
production capacity of the Wallpaper Division, while the Furnishing Fabrics
Division moved to new premises, which provide a better infrastructure and
will enable continued growth. At € 7.3 million, total capital expenditure
in the first half of 2007 was up € 4.4 million or 153.9% on the previous
year’s € 2.9 million. The new machines are scheduled to be taken into
service in the second half of 2007. The capital expenditures have already
led to a rise in the staff number from 627 to 643, as the new employees
were hired at an early stage to ensure that they are well trained.
Financial structure remains robust despite record dividend
At € 4.6 million, A.S. Création paid out the highest dividend since the
1998 IPO in May 2007. Together with the high capital expenditures and the
increase in receivables and inventories resulting from the higher sales
level, this has increased the company’s liabilities in the first half of
the year. In view of the strong cash flow and the high equity ratio, which
stood at 56.5% as of June 30, 2007, the financial structure can still be
described as very robust and healthy.
Outlook remains optimistic
Against the background of the successful first half-year, the Managing
Board has confirmed the projections for the full year, according to which
Group sales and net profit will amount to approx. € 160 million and between
€ 8.7 and 9.2 million, respectively.
The Group’s key figures for the first six months of 2007 are summarised
below:
01.01. 01.01.
-30.06. -30.06.
2007 2006 Change
-------------------------------------------------- ------- ------- ------
Sales EUR '000 82,902 77,364 7.2%
Earnings before interest and taxes (EBIT) EUR '000 7,378 6,962 6.0%
Earnings before income taxes EUR '000 6,871 6,387 7.6%
Net profit EUR '000 4,214 3,982 5.8%
Earnings per share EUR/share 1.51 1.43 5.6%
Cash-flow EUR '000 8,805 8,153 8.0%
Capital expenditures EUR '000 7,322 2,884 153.9%
Depreciation EUR '000 4,304 4,046 6.4%
Number of employees (average) 643 627 2.6%
Gummersbach, August 2, 2007
A.S. Création Tapeten AG
The Managing Board
Inquiries:
Maik Krämer, Director of Finance, phone +49-(0)22 61/542-387, fax +49-(0)22
61/542-304,
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, Mrs. Börngen, Südstr. 47, D - 51645 Gummersbach,
phone +49-(0)22 61/542-350,
e-mail investor@as-creation.de
DGAP 02.08.2007
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Language: English
Issuer: A.S. Création Tapeten AG
Südstraße 47
51645 Gummersbach
Deutschland
Phone: +49 (0)22 615 42-0
Fax: +49 (0)22 6154 2-3 04
E-mail: investor@as-creation.de
Internet: http://www.as-creation.de
ISIN: DE0005079909
WKN: 507990
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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