A.S. Creation Tapeten AG

Earnings Release • Mar 17, 2005

News Details

Corporate | 17 March 2005 10:07

A.S. Création: Sales and earnings reach record level in fiscal 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— A.S. Création: Sales and earnings reach record level in fiscal 2004 A.S. Création Tapeten AG, Germany’s largest wallpaper manufacturer, reached new sales and earnings records in fiscal 2004 despite the continued difficult economic environment. This was announced by the company’s Managing Board at today’s press conference. Group sales rose by 10.7% from EUR 119.4 million in 2003 to EUR 132.1 million, while net profit was up 40.6% on the previous year’s EUR 4.7 million to EUR 6.6 million. Of the total sales growth of EUR 12.7 million, an amount of EUR 7.8 million was accounted for by the new sales companies in France and the Netherlands, which were taken over in the first quarter of 2004. This means that 6.5% of the total sales growth of 10.7% is external growth and 4.2% is internal growth. Both the Wallpaper Division and the Furnishing Fabrics Division contributed to internal growth. The internal sales growth in 2004 is not attributable to an aggressive pricing strategy but to a consistent product policy. Unlike other suppliers, A.S. Création continued to invest in product development and increased the share of high-quality products in the product range; high-quality products also accounted for a growing percentage of sales. These investments in the product range and the company’s strong focus on innovation were ultimately rewarded by customers. The increase in sales and improved margins led to strong earnings growth. Earnings before taxes rose by 34.8% from the previous year’s EUR 8.2 million to EUR 11.0 million in 2004. The Furnishing Fabrics Division completed the turnaround and reported a balanced result for fiscal 2004. Due to the reduction in the German corporate income tax rate from 26.5% to 25.0%, net profit increased more strongly than earnings before taxes, namely by 40.6% to EUR 6.6 million (2003: EUR 4.7 million). Based on this net profit, earnings per share amounted to EUR 2.37 (2003: EUR 1.69). The Managing Board and the Supervisory Board of A.S. Création Tapeten AG will continue their dividend policy, which has been characterised by a high dividend ratio and a high dividend yield, and propose to the General Meeting of Shareholders on May 4, 2005 payment of a dividend of EUR 1.05 per share (2003: EUR 0.75). This is the highest dividend in the history of A.S. Création and represents a payout ratio of 44.3% (2003: 44.4%). The price of the A.S. Création share reflected the company’s positive development in the past fiscal year. Rising by 37.2% from EUR 17.16 at the beginning of the year to EUR 23.55 at year-end, the A.S. Création share clearly outperformed the SDAX, which gained only 19.2% in the same period of time. The company’s Managing Board is also optimistic about the current fiscal year. Both the Wallpaper Division and the Furnishing Fabrics Division will introduce interesting new products in 2005, which will lay the basis for continued sales growth. Moreover, a new co-op advertising campaign that was launched in German movie theatres in February 2005 will additionally boost wallpaper sales. For the Furnishing Fabrics Division, additional growth potential is seen primarily in foreign markets. Building on growing sales, the Division should make a positive contribution to Group results in 2005. The company projects sales of approx. EUR 140 million and a net profit between EUR 7.0 and 7.5 million for fiscal 2005. The Group’s key figures for 2004 at a glance: 2004 2003 Change ————————————————– ——- ——- ——- Sales EUR ‘000 132,114 119,351 10.7 % Earnings before interest and taxes (EBIT) EUR ‘000 12,674 9,677 31.0 % Earnings before income taxes EUR ‘000 10,996 8,158 34.8 % Net profit EUR ‘000 6,610 4,703 40.6 % DVFA/SG earnings per share EUR/share 2.37 1.69 40.2 % Dividend EUR/share 1.05 0.75 40.0 % Gross cash flow EUR ‘000 15,566 13,857 12.3 % Capital expenditures EUR ‘000 6,248 9,669 -35.4 % Depreciation EUR ‘000 7,714 7,878 – 2,1 % Number of employees (average) 633 597 6.0 % Gummersbach, March 17, 2005 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 Annual Report is available at: http://www.as-creation.de/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 17.03.2005 —————————————————————————— WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 171007 Mär 05