A.S. Creation Tapeten AG

Earnings Release • Aug 6, 2015

News Details

Corporate | 6 August 2015 08:15

A.S. Création Tapeten AG: Positive earnings trend continues in Q2 2015

A.S. Création Tapeten AG / Key word(s): Half Year Results

2015-08-06 / 08:15

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A.S. Création Tapeten AG, Gummersbach

(ISIN DE000A1TNNN5)

Positive earnings trend continues in Q2 2015

A.S. Création Tapeten AG, Europe’s leading wallpaper manufacturer, today published the interim report for the period ended June 30, 2015. A summary is provided below:

Sales revenues in Eastern Europe continue to decline sharply

The 13.5% decline in A.S. Création’s sales revenues in the first quarter of 2015 slowed down only slightly to 11.0% in the second quarter. A further improvement or even a turnaround were prevented by the continued difficult economic environment, especially in Eastern Europe. The ongoing crisis in Ukraine, the depreciation of the rouble compared to the previous year and the downward economic trend in Russia, combined with high inflation, all had a negative impact on demand for wallpapers in this region. As a consequence, gross revenues in non-EU Eastern European countries were down by 45.4% on the previous year in the first six months of 2015. By contrast, the Managing Board was pleased with the positive business trend in Germany, where gross revenues more or less stayed at the very high level of the previous year. At EUR 87.2 million, A.S. Création’s total consolidated sales revenues for the first half of 2015 were down by EUR 12.3 million or 12.4% on the previous year’s EUR 99.5 million.

Clearly improved earnings in H1

In spite of the continued decline in sales revenues, earnings before taxes improved again in the second quarter of 2015. Earnings before taxes for the full six-month period totalled EUR 9.1 million, up EUR 4.2 million or 85.6% on the previous year’s EUR 4.9 million. The Managing Board points out that both the previous year’s and the current financial year’s earnings were influenced by extraordinary effects in the form of exchange gains and losses resulting from the exchange rate trend of the Russian rouble as well as by other extraordinary expenses and income. Adjusted for these factors, earnings before taxes were exactly on a par with the previous year’s EUR 5.2 million. In view of the EUR 12.3 million decline in sales revenues, the Managing Board considers this to be a very good result, which was achieved thanks to an improved gross profit margin, reduced operating expenses as well as the sharp reduction in the start-up losses posted by the Russian production company.

Earnings forecast for full 2015 confirmed

Although the sales trend was less positive than planned, the Managing Board has confirmed its earnings forecast for the fiscal 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. Impressive proof of these improved earnings was given already in the first half of 2015. After the loss-making year of 2014, A.S. Création will again post a high profit in the fiscal year 2015. In keeping with the company’s dividend policy to date, such an improvement in earnings would lead to a dividend being paid for the fiscal year 2015, as A.S. Création’s dividend policy provides for a high payout ratio as long as this is warranted by the company’s financial position. As outlined above, A.S. Création’s financial position as of June 30, 2015 was excellent, which is why the Managing Board currently sees no financial reasons that would speak against a dividend payment. Right on the contrary, net financial liabilities were reduced by EUR 7.0 million from EUR 11.9 million as of December 31, 2014 to EUR 4.9 million as of June 30, 2015, and an equity ratio of 62.5% as of June 30, 2015 (previous year: 58.6%) means that A.S. Création’s equity capitalisation is excellent.

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

		01.01.-30.06.	01.01.-30.06.	Change
		2015	2014
Sales	EUR ‘000	87,160	99,501	-12.4 %
Earnings before interest and taxes (EBIT)	EUR ‘000	7,466	6,516	14.6 %
Earnings before income taxes	EUR ‘000	9,081	4,894	85.6 %
Earnings after income taxes	EUR ‘000	7,288	2,658	174.2 %
Earnings per share	EUR/share	2.64	0.96	175.0 %
Cash-flow	EUR ‘000	9,357	8,507	10.0 %
Capital expenditures	EUR ‘000	1,926	3,191	-39.6 %
Depreciation	EUR ‘000	4,344	4,728	-8.1 %
Number of employees (average)		807	825	-2.2 %

Gummersbach, August 6, 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 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

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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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383851  2015-08-06