A.S. Creation Tapeten AG

Quarterly Report • Nov 8, 2004

News Details

Corporate | 8 November 2004 09:29

A.S. Création again successful in Q3 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– A.S. Création again successful in Q3 2004; current-year earnings up approx. 60% on the previous year On November 8, 2004, A.S. Création Tapeten AG, Germany’s largest wallpaper manufacturer, published its interim report for the nine-month period ended September 30, 2004. A summary of the report is provided below: Sales boosted by internal and external growth While first-quarter and second-quarter sales already increased by 9.3%, and 16.9%, respectively, the third quarter of 2004 was equally successful, with sales growing by 12.9%. This means that A.S. Création generated consolidated nine-month sales of EUR 102.0 million, up EUR 11.6 million or 12.8% on the previous year’s EUR 90.4 million. Of the total sales growth, EUR 6.1 million were attributable to the takeover of three wallpaper wholesalers in France and the Netherlands. The increase in sales reported in the current fiscal year thus consists of 6.8% external growth and 6.0% internal growth. Both the Wallpaper Division and the Furnishing Fabrics Division contributed to this internal sales growth. As a result of the acquisitions in Western Europe, international sales account for a growing share of total sales. While 54.7% of gross sales were generated abroad in the first three quarters of 2003, this share rose to 57.9% in 2004. Sustainable improvement in financial and earnings position In conjunction with an optimised cost structure, the rise in sales has clearly improved the earnings position in the current fiscal year 2004. The gross profit margin rose from 48.5% in the previous year to 49.5% in the first nine months of 2004. This key figure shows that the sales growth was not achieved through aggressive pricing. Instead, the share of higher quality products in A.S. Création’s product range has increased in recent months. Essentially this means that customers have ultimately rewarded the company’s investments in the product range as well as its focus on innovation. Optimised production processes additionally increased the positive effect on the gross profit margin. Earnings before income taxes totalled EUR 8.1 million in the first nine months of 2004, up 63.2% on the previous year’s EUR 5.0 million. Earnings per share surged 59.8% from EUR 1.07 in the previous year to EUR 1.71 in the first nine months of 2004. Due to the greatly enhanced earnings position, the company’s internal financing strength continued to improve. Gross cash flow amounted to EUR 11.7 million in the first nine months of 2004, up 15.8% on the previous year’s EUR 10.1 million. The gross cash flow was thus sufficient to cover the EUR 5.2 million capex, which was reduced from EUR 9.0 million in 2003. The strong decline does not reflect a more restrictive spending policy but the fact that last year’s capital expenditure volume was unusually high due to the capacity expansion at the Wiehl-Bomig plant. Net financial liabilities were reduced by EUR 5.2 million from EUR 19.8 million on December 31, 2003 to EUR 14.6 million on September 30, 2004. Accordingly, the arithmetical debt repayment period (ratio of net financial liabilities to gross cash flow) has been reduced to less than one year. A.S. Création’s robust and healthy financial structure is reflected not only in the very short debt repayment period but also in the high equity ratio of 52.4% (as of September 30, 2004). Optimistic outlook Against the background of the very successful performance in the financial year to date, the Managing Board expects its original Group projections for the year 2004 to be exceeded and now projects sales of EUR 132 million and a net profit of EUR 6.5 – 7.0 million. A summary of the Group’s key figures for the nine-month period ended September 30, 2004 is provided below: 01.01. 01.01. -30.09. -30.09. 2004 2003 Change ————————————————– ——- ——- ——- Sales EUR ‘000 101,999 90,434 12.8 % Earnings before interest and taxes (EBIT) EUR ‘000 9,370 6,065 54.5 % Earnings before income taxes EUR ‘000 8,110 4,968 63.2 % Net profit EUR ‘000 4,771 2,982 60.0 % DVFA/SG earnings per share EUR/share 1.71 1.07 59.8 % Gross cash flow EUR ‘000 11,676 10,081 15.8 % Capital expenditures EUR ‘000 5,182 8,964 -42.2 % Depreciation EUR ‘000 5,725 6,004 – 4.6 % Number of employees (average) 634 604 5.0 % Gummersbach, November 8, 2004 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.com/investor or from: A.S. Création Tapeten AG, Frau Börngen, Südstr. 47, D – 51645 Gummersbach, phone + 49 – (0)22 61/542-350 end of message, (c)DGAP 08.11.2004 ——————————————————————————– WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 080929 Nov 04