A.S. Création Tapeten AG / Key word(s): Half Year Results/Interim Report
04.08.2011 / 09:14
A.S. Création Tapeten AG, Gummersbach
(ISIN DE0005079909)
A.S. Création reports 9.0% sales growth for the second quarter of 2011
A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer has today published the report on the six-month period ended June 30, 2011. A summary is provided below:
Sales at record level
Following on from the 3.0% rise in sales in the first quarter of 2011, the second quarter saw an even more successful performance with sales growing at a rate of 9.0%. All told, A.S. Création realised consolidated sales of EUR 99.1 million, up 5.7% on the prior-year's figure of EUR 93.8 million and marking a new record in company history. Both divisions of A.S. Création contributed to this growth, with the Wallpaper Division reporting a 5.9% increase and the Furnishing Fabrics Division achieving a growth rate of 2.5%.
Increase in commodity prices weigh on earnings position
The sales growth realised during the period failed to improve the earnings position since the considerable increase in commodity prices pushed up A.S. Création's production costs to a degree which was impossible to offset by raising sales prices. From today's point of view, the price increases implemented for parts of the product range effective March 1, 2011 were insufficient against the background of trends in commodity prices. Consequently the gross profit margin was down on the year, standing at 47.3% (2010: 50.0%) at the end of the first half of 2011. Based on the total output of EUR 103.1 million in the first six months of the current year, this translates into a gross profit shortfall of EUR 2.8 million. Moreover, profitability was weighed down by start-up costs incurred with the construction of the Russian production facility. The factors discussed above are also reflected in consolidated net profit which declined by 6.5% from EUR 4.8 million in the prior-year period to EUR 4.5 million in the first half of 2011. All told, the 6.5% decline in net profit during the first six months of the current year is lower than provided for in the full-year budget for 2011 which assumes a decline by between 10.7% and 22.6% in consolidated net profit to between EUR 6.5 million and EUR 7.5 million. This means that net profit for the first half of 2011 looks good in comparison to the original targets.
Full-year guidance for 2011 confirmed
There is no way of forecasting the extent of the negative impacts on consumer spending of the current sovereign debt crisis and the debate about the possibility of eurozone disintegration. Even so, the Managing Board expects A.S Création to draw on its strong product range and to continue growing its sales in year-on-year terms also during the second half of 2011. The future trend in commodity and energy prices remains the biggest factor of uncertainty for the company's earnings situation. Should these prices increase to such an extent that they can no longer be offset by a corresponding product range and sales price policy as well as by internal productivity improvements, the earnings position may deteriorate further.
Despite all uncertainties, the Managing Board believes that A.S. Création is well on track to realise the Group projections for the year 2011, which provide for sales revenues of between EUR 195 million and EUR 205 million and a net profit of EUR 6.5 million to EUR 7.5 million.
The Group's key figures for the first six months of 2011 are summarised below:
|
|
|
01.01.-30.06.
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01.01.-30.06.
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Change
|
|
|
|
2011
|
2010
|
|
|
Sales
|
EUR' 000
|
99,084
|
93,764
|
5.7%
|
Earnings before interest and taxes
(EBIT)
|
EUR' 000
|
7,520
|
8,046
|
– 6.5%
|
|
Earnings before income taxes
|
EUR' 000
|
6,610
|
7,034
|
– 6.0%
|
|
Net profit
|
EUR' 000
|
4,489
|
4,800
|
– 6.5%
|
|
Earnings per share
|
EUR/share
|
1.63
|
1.74
|
– 6.3%
|
|
Cash-flow
|
EUR' 000
|
9,105
|
9,434
|
– 3.5%
|
|
Capital expenditures
|
EUR' 000
|
6,607
|
3,348
|
97.3%
|
|
Depreciation
|
EUR' 000
|
5,076
|
4,892
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3.8%
|
|
Number of employees (average)
|
|
786
|
769
|
2.2%
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Gummersbach, August 4, 2011
A.S. Création Tapeten AG
The Managing Board
The full 6-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
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