A.S. Creation Tapeten AG

Earnings Release • May 7, 2015

News Details

Corporate | 7 May 2015 08:15

A.S. Création starts the fiscal year 2015 with greatly improved earnings

A.S. Création Tapeten AG / Key word(s): Quarter Results/Interim Report

2015-05-07 / 08:15

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A.S. Création Tapeten AG, Gummersbach

(ISIN DE000A1TNNN5)

A.S. Création starts the fiscal year 2015 with greatly improved earnings

A.S. Création Tapeten AG, Europe’s leading wallpaper manufacturer, today published the interim report for the period ended March 31, 2015. A summary is provided below:

Declining sales revenues in Q1

As expected by the Managing Board, the macroeconomic environment, especially in Eastern Europe, had an adverse effect on A.S. Création’s sales revenues in the first quarter of 2015. At EUR 47.0 million, consolidated sales revenues were down by EUR 7.3 million or 13.5% on the previous year’s EUR 54.3 million. A.S. Création’s first-quarter revenues clearly reflect the effects of the Ukraine crisis. Wallpaper exports to Ukraine have come to a virtual standstill, and A.S. Création’s wallpaper sales in Russia also declined notably due to the depreciation of the rouble against the euro and the downward economic trend in Russia. By contrast, the business trend in Germany was encouraging in the opinion of the Managing Board. Domestic gross revenues more or less stayed at the very high level of the previous year, although A.S. Création had benefited from one-time effects such as the restocking of former Praktiker and Max Bahr stores in the first quarter of 2014. Customers apparently remain appreciative of the continued high investments made by A.S. Création in the further development of its product range and in new marketing concepts.

Greatly improved earnings

In spite of the drop in revenues, earnings improved notably in the first quarter of 2015. At EUR 5.7 million, earnings before taxes more than doubled from the previous year’s EUR 2.2 million and the return on sales before taxes reached a very high 12.2% (previous year: 4.1%). The Group result was clearly influenced by the exchange rate trend of the Russian rouble against the euro, which led to translation-related exchange gains in Q1 2015 and to exchange losses in the same period of the previous year. Adjusted for these exchange rate effects, earnings before taxes amounted to EUR 3.8 million in the first three months of 2015, which was more or less on a par with the previous year’s EUR 4.0 million. Against the background of the EUR 7.3 million drop in sales revenues in the first quarter of 2015, the Managing Board is satisfied with this earnings performance, as A.S. Création was able to offset the shortfall in earnings resulting from the reduced revenues by an improved gross profit margin as well as cost savings.

Forecast for 2015 confirmed

Although the drop in revenues in the first quarter of 2015 was stronger than projected for the full year 2015, the Managing Board is confident that the sales forecast, according to which consolidated sales revenues in 2015 will amount to between EUR 175 million and EUR 185 million, will be met. On the one hand, the Managing Board expects sales revenues in the European Union to pick up; on the other hand, a further increase in demand for locally produced wallpapers in Russia should lead to growing sales. With regard to the earnings position, the Managing Board confirmed the statements made for the full year 2015. Provided that no significant burdens exceeding the amount of EUR 7.0 million already 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 2015, the earnings position should improve notably. This means that A.S. Création would post a high profit in the fiscal year 2015 after the loss-making year 2014.

Operationally, A.S. Création Tapeten AG will focus on adjusting its cost structures to the reduced revenues and on further optimising its production processes in Germany. As far as the Russian companies are concerned, their earnings position is expected to improve on the back of growing sales revenues.

The Group’s key figures for the first three months of 2015 are summarised below:

		01.01.-31.03.	01.01.-31.03.	Change
		2015	2014
Sales	EUR ‘000	46,969	54,328	– 13.5 %
Earnings before interest and taxes (EBIT)	EUR ‘000	4,722	3,661	29.0 %
Earnings before income taxes	EUR ‘000	5,730	2,208	159.5 %
Earnings after income taxes	EUR ‘000	4,194	932	350.0 %
Earnings per share	EUR/share	1.52	0.34	347.1 %
Cash flow	EUR ‘000	5,276	4,374	20.6 %
Capital expenditures	EUR ‘000	686	1,832	– 62.6 %
Depreciation	EUR ‘000	2,176	2,360	– 7.8 %
Number of employees (average)		814	828	– 1.7 %

Gummersbach, May 7, 2015

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 3-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

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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

End of News	DGAP News-Service

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353881  2015-05-07