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A.S. Creation Tapeten AG
Earnings Release • Mar 23, 2017
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Earnings Release
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Corporate | 23 March 2017 09:50
A.S. Création Tapeten AG: Earnings improve notably in spite of revenue shortfall
DGAP-News: A.S. Création Tapeten AG / Key word(s): Final Results
23.03.2017 / 09:50
The issuer is solely responsible for the content of this announcement.
A.S. Création Tapeten AG, Gummersbach
(ISIN DE000A1TNNN5)
Earnings improve notably in spite of revenue shortfall
Sales revenues drop sharply in fiscal 2016
A.S. Création’s sales revenues declined by EUR 13.9 million or 8.4% from EUR 166.5 million in the previous year to EUR 152.6 million in the fiscal year 2016. As in the previous year, A.S. Création recorded the strongest reduction in sales revenues in non-EU Eastern European countries, where gross revenues were down by 16.4% on the previous year. Besides the poor economic situation in this region, the weakness of the local currencies against the euro was one of the main reasons for this slump in revenues. It made German-made wallpapers much more expensive than those produced by local competitors, which led to a decline in wallpaper exports, especially to Russia and Belarus. Wallpaper markets in the EU, where A.S. Création generates over 80% of its revenues, failed to stimulate growth that would have offset this reduction in sales revenues.
Earnings before taxes improve notably
In spite of the above-mentioned EUR 13.9 million drop in sales revenues, A.S. Création was able to reduce the decline in the operating result from EUR 7.9 million in the previous year by EUR 2.0 million to EUR 5.9 million in the fiscal year 2016. By contrast, consolidated earnings before taxes improved thanks to the much higher earnings contribution made by A.S. & Palitra, the Russian joint venture. At EUR 10.2 million, consolidated earnings before taxes in 2016 were up by 81.5% on the previous year’s EUR 5.6 million, which means that the strong increase in earnings projected by the Managing Board for the fiscal year 2016 was achieved. However, consolidated earnings before taxes were materially influenced by special factors such as exchange gains in fiscal 2016.
Excellent financial position
A.S. Création was able to fully deleverage the company already in the past fiscal year. The net credit position, which had amounted to EUR 0.3 million on December 31, 2015, was increased to EUR 11.7 million in the course of fiscal 2016. At 68.8%, the equity ratio exceeded the previous year’s high level of 66.4% as of the balance sheet date. The Managing Board is of the opinion that the financial position of A.S. Création is very solid and will allow the company to continue its growth strategy in spite of the uncertain environment.
Consistent dividend poliy – dividend of EUR 1.25
A.S. Création’s dividend policy provides for a high payout ratio as long as this is permitted by the company’s financial situation. With A.S. Création’s earnings position having improved notably in the financial year 2016 – as reflected in earnings after taxes of EUR 7.4 million and earnings per share of EUR 2.70 – a dividend of EUR 1.25 per share will be proposed to the Annual General Meeting of Shareholders. In relation to earnings per share, this is equivalent to a dividend ratio of approx. 46%.
Outlook on 2017 subject to great uncertainty
The Managing Board projects consolidated sales revenues of between EUR 155 million and EUR 160 million for 2017. Due to the extraordinary uncertainty surrounding the factors that will influence earnings in 2017, the Managing Board expects earnings after taxes to decline to between EUR 4 million and EUR 5 million, provided that no additional burdens result from the anti-trust proceedings and no exchange losses are incurred.
The Group’s key figures for the fiscal year 2016 are summarised below:
| 2016 | 2015 | Change | ||
| Sales revenues | EUR m | 152.6 | 166.5 | – 8.4 % |
| Earnings before interest and taxes (EBIT) | EUR m | 5.9 | 7.9 | – 24.9 % |
| Earnings before taxes | EUR m | 10.2 | 5.6 | 81.5 % |
| Earnings after taxes | EUR m | 7.4 | 3.3 | 126.2 % |
| Earnings per share | EUR/share | 2.70 | 1.19 | 126.9 % |
| Cash flow | EUR m | 13.9 | 13.5 | 3.2 % |
| Capital expenditures | EUR m | 5.0 | 5.3 | – 6.1 % |
| Depreciation | EUR m | 7.6 | 8.6 | – 11.9 % |
| Number of employees (average) | 768 | 801 | – 4.1 % |
Gummersbach, March 23, 2017
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: [email protected]
The 2016 Annual 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: [email protected]
23.03.2017 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.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
| 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: | [email protected] |
| 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 |
| End of News | DGAP News Service |