A.S. Création Tapeten AG / Key word(s): Final Results
25.03.2011 / 10:07
A.S. Création Tapeten AG, Gummersbach
(ISIN DE0005079909)
Group sales and cash flow reach historical highs in 2010
Sales growth in both divisions
Group sales climbed 1.8% from EUR 181.3 million in the previous year to EUR 184.6 million, which was the highest level in the history of A.S. Création. Both divisions contributed to this growth, with the Wallpaper Division achieving a growth rate of 1.6% and the Furnishing Fabrics Division reporting a 3.8% increase in sales. The basis for these sales revenues was laid by the good business trend in Germany, in non-EU Eastern European countries and in some Asian countries. The extended product development activities had a positive effect in this context. By contrast, the sales performance in France, the largest wallpaper market in the EU, was unsatisfactory. The French market was characterised by weak demand in the second half of the year, which prevented a stronger increase in Group sales.
Improved earnings position
Building on the above sales growth, the earnings position of A.S. Création improved. Earnings before interest and taxes rose by 6.6% from EUR 13.4 million in 2009 to EUR 14.3 million; as a result, the EBIT margin reached 7.8% (2009: 7.4%). This shows that the company was able to offset the unexpectedly strong increase in commodity and energy prices in 2010 by improved capacity utilisation and higher staff productivity. It was also positive to see that both divisions are profitable and that the Furnishing Fabrics Division reported the best result of the past ten years in fiscal 2010. At EUR 8.4 million, net profit for the year 2010 was up by 11.9% on the previous year's EUR 7.5 million.
Excellent financial position
Building on the improved earnings position, cash flow reached EUR 19.0 million (2009: EUR 17.6 million), which was the highest level in the history of A.S. Création and underlines the Group's high internal funding resources. As a result, net financial liabilities were reduced by EUR 4.3 million from EUR 20.6 million on December 31, 2009 to EUR 16.3 million on December 31, 2010. The equity ratio increased to 54.9% on the balance sheet date (2009: 51.8%). The high equity ratio and the reduced debt show that the financial situation of A.S. Création is excellent.
Consistent dividend policy
A dividend of EUR 1.35 per share (2009: EUR 1.20) will be proposed to the General Meeting of Shareholders. Based on earnings per share of EUR 3.05 (2009: EUR 2.72), this represents a payout ratio of 44.3% (2009: 44.1%). A.S. Création will thus continue its dividend policy, which provides for a high payout ratio as long as this is permitted by the company's financial situation, and underlines the A.S. Création share's good reputation as a high-yield paper.
High capital expenditures planned in 2011
The Managing Board assumes that the market environment in 2011 will remain difficult and be marked by overcapacity and rising commodity and energy prices. In this environment, both divisions are expected to expand their respective market positions; accordingly, Group sales of EUR 195 million to 205 million are projected for the Group in 2011. As a result of the planned acquisition of the remaining shares in the two French subsidiaries, SCE SAS and MCF Investissement SAS, and the planned start-up of a wallpaper production facility in Russia, capital expenditures will probably reach a very high level of EUR 26 million in 2011. The resulting financing charges and the start-up losses incurred in Russia will weigh on the result in the fiscal year 2011. Accordingly, the Managing Board expects the Group's net profit to reach between EUR 6.5 million and EUR 7.5 million, which would be below the prior year level. For 2012, the Managing Board projects a further increase in sales revenues to a new historical high as well as earnings that exceed the level of 2010.
The Group's key figures for 2010 at a glance:
|
|
|
2010
|
2009
|
Change.
|
|
|
|
|
|
|
|
Sales
|
EUR '000
|
184,603
|
181,325
|
1.8 %
|
|
Earnings before interest and taxes (EBIT)
|
EUR '000
|
14,318
|
13,428
|
6.6 %
|
|
Earnings before income taxes
|
EUR '000
|
12,352
|
10,834
|
14.0 %
|
|
Net profit
|
EUR '000
|
8,395
|
7,499
|
11.9 %
|
|
Earnings per share
|
EUR/share
|
3.05
|
2.72
|
12.1 %
|
|
Cash-flow
|
EUR '000
|
19,027
|
17,568
|
8.3 %
|
|
Capital expenditures
|
EUR '000
|
6,826
|
5,771
|
18.3 %
|
|
Depreciation
|
EUR '000
|
10,504
|
9,864
|
6.5 %
|
|
Number of employees (average)
|
|
772
|
787
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– 1.9 %
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Gummersbach, March 25, 2011
A.S. Création Tapeten AG
The Managing Board
The full annual 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
Contact:
Maik Krämer
Vorstand Finanzen
Südstr. 47
D-51645 Gummersbach
Telefon + 49 – (0)22 61/542-387
Fax + 49 – (0)22 61/542-304
E-Mail: m.kraemer@as-creation.de