Corporate | 4 August 2016 08:10

A.S. Création Tapeten AG: Revenue shortfall weighing on bottom line

DGAP-News: A.S. Création Tapeten AG / Key word(s): Half Year Results/Interim Report

2016-08-04 / 08:10
The issuer is solely responsible for the content of this announcement.

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

Revenue shortfall weighing on bottom line

A.S. Création Tapeten AG, Europe’s leading wallpaper manufacturer, today published the interim report for the period ended June 30, 2016. A summary is provided below:

Sales revenue decline because of difficult environment
At EUR 81.7 million, A.S. Création’s consolidated sales revenues were down by EUR 5.5 million or 6.2% on the previous year’s EUR 87.2 million. The strongest declines in revenues were recorded in non-EU Eastern European countries, where the framework conditions remain difficult and are having an adverse impact on exports to these countries. But the EU wallpaper markets, especially Germany, the UK and the Baltic States, are not in a good state either. On balance, sales revenues fell short of expectations in the first six months of the year. From today’s point of view, the sales projections for the full year 2016 appear very ambitious. Realistically, sales revenues are expected to remain slightly below the originally projected range of EUR 160 million to EUR 170 million and to come in at between EUR 150 million and EUR 160 million.

Earnings still below the prior year level
Although sales revenues contracted by EUR 5.5 million, A.S. Création was able to contain the decline in earnings before taxes to EUR 1.4 million in the first half of 2016; consequently, earnings before taxes reached EUR 7.7 million in the current fiscal year (previous year: EUR 9.1 million). In view of the difficult environment, the Managing Board considers this to be a good result, which was achieved thanks to an improved gross profit margin, reduced personnel expenses and the greatly improved earnings position of the Russian production company.

In fiscal 2015, the company’s earnings were significantly affected by several extraordinary effects such as exchange losses and severence payments in conjunction with the concentration of the German production facilities. Consequently, A.S. Création posted a loss in the second half of 2015. Compared to the previous year, the Managing Board believes that A.S. Création is in a much better state for the second half of the current fiscal year, as the cost structures have been optimised in the meantime. From today’s point of view, the Managing Board therefore assumes that A.S. Création will be able to generate profits also in the remaining six months of the fiscal year 2016. A.S. Création’s earnings exceeded the level of the full year 2015 already at the half-year stage 2016. A profit in the second half of 2016 would further improve the company’s earnings compared to the previous year.

Earnings forecast for full year 2016 confirmed
The Managing Board had projected a notable improvement in earnings provided that no significant burdens exceeding the amount recognised as an expense in the previous years arise from the antitrust proceedings and that the Russian rouble does not depreciate extremely against the euro by the end of 2016. As described above, the earnings trend in the first half of 2016 was in line with the expectations for the full year, which is why the Managing Board has confirmed its earnings forecast.

In keeping with the company’s dividend policy to date, such an improvement in earnings would lead to a higher dividend for the fiscal year 2016. In view of A.S. Création’s excellent financial position as at June 30, 2016, the Managing Board does not see any financial reasons that would speak against a higher dividend. Financial liabilities have been repaid in full, and A.S. Création had a net credit position of EUR 3.7 million as of June 30, 2016. The equity ratio of 63.3% on June 30, 2016 (previous year: 62.5%) additionally underlines the excellent financial position of A.S. Création.

The Group’s key figures for the first six months of 2016 are summarised below:

		01.01.-30.06.	01.01.-30.06.	Change
		2016	2015
Sales	EUR ‘000	81,725	87,160	-6.2 %
EBIT	EUR ‘000	5,362	7,466	-28.2 %
Earnings before taxes	EUR ‘000	7,700	9,081	-15.2 %
Earnings after taxes	EUR ‘000	5,615	7,288	-23.0 %
Earnings per share	EUR/share	2.04	2.64	-22.7 %
Cash-flow	EUR ‘000	9,963	9,357	6.5 %
Capital expenditures	EUR ‘000	2,640	1,926	37.1 %
Depreciation	EUR ‘000	3,882	4,344	-10.6 %
Number of employees (average)		767	807	-5.0 %

Gummersbach, August 4, 2016

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 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

2016-08-04 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	A.S. Création Tapeten AG
	Südstraße 47
	51645 Gummersbach
	Germany
Phone:	+49 22 61 54 2-0
Fax:	+49 22 61 54 2-3 04
E-mail:	investor@as-creation.de
Internet:	http://www.as-creation.de
ISIN:	DE000A1TNNN5
WKN:	A1TNNN
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

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