DGAP-News: A.S. Création has a moderate start to the new fiscal year

| Source: EQS Group AG
DGAP-News: A.S. Création Tapeten AG / Key word(s): Interim
Report/Quarter Results
A.S. Création has a moderate start to the new fiscal year

15.05.2014 / 08:01


A.S. Création Tapeten AG, Gummersbach

A.S. Création has a moderate start to the new fiscal year

A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, today
published the interim report for the period ended March 31, 2014. A summary
is provided below:

Sales revenues adversely affected by Ukraine crisis 
A.S. Création's sales performance in the individual regions served by the
company differed considerably in the first quarter of 2014. While A.S.
Création was able to increase its gross revenues by 7.2% in Germany and by
3.4% in other EU countries, wallpaper exports to Russia and Ukraine dropped
sharply in the first three months of the year. The events in Ukraine led to
a drop in consumer spending and to a depreciation of the local currencies
against the euro. This combination was reflected in sharply declining
demand for German-made wallpapers from A.S. Création. While sales of
Russian-made wallpapers went up strongly at the same time, this increase
was insufficient to offset the decline in export sales. Accordingly, A.S.
Création's sales revenues in non-EU Eastern European countries dropped by
20.6% in the first three months of 2014. At EUR 54.3 million, the Group's
total first-quarter revenues were down by a moderate 0.4% on the previous
year's EUR 54.5 million. This means that sales revenues in the first three
months of 2014 fell short of the company's projections, according to which
revenues in the full year 2014 will grow by between 2.6% and 7.6%. Given,
however, that the external effects resulting from the Ukraine crisis had a
very strong influence on first-quarter revenues, the Managing Board is
satisfied that A.S. Création's sales revenues almost reached the prior year

Positive signs despite reduced earnings 
Compared to the first quarter of 2013, earnings before taxes fell by EUR
2.4 million or 51.6% from EUR 4.6 million to EUR 2.2 million. Besides the
lower high-margin export sales, this trend also reflects exchange losses
resulting from the depreciation of the Russian rouble against the euro,
which weighed on earnings before taxes in an amount of EUR 1.9 million in
the first quarter of 2014. In spite of the poorer earnings position,
business in the first quarter of 2014 also showed some positive signs. For
instance, the downward trend in the gross profit margin seen in 2013 could
be halted. Moreover, the measures taken to support sales of Russian-made
products have taken effect and resulted in better utilisation of the
Russian production capacity. In the first quarter of 2014, the Russian
production company posted an almost balanced result, adjusted for exchange
losses. The Managing Board is therefore of the opinion that the Russian
production company is on a good course.

Overall, however, the Managing Board is not satisfied with the business
trend in the first quarter of 2014. The company has therefore initiated
rationalisation and austerity measures aimed at improving the cost

Modest outlook
The uncertain environment is also weighing on the outlook for the further
course of the fiscal year 2014. The Managing Board is confident that sales
revenues in the EU will increase. Sales revenues generated by the Russian
distribution company should pick up as well, as customers' response to the
product range is good and the company meanwhile also supplies larger
customers. At this stage, it is impossible to predict what wallpaper
exports from Germany to Eastern Europe will look like at the end of the
year and what the exchange rate of the Russian rouble will be at that time.
However, both factors will have great influence on A.S. Création's earnings
position. If the Russian rouble maintains the present level, no further
exchange losses will incur.

The Group's key figures for the first three months of 2014 are summarised


                                              01.01.-     01.01.-    Change
                                               31.03.      31.03.
                                                 2014        2013
Sales                            EUR '000      54,328      54,529    -0.4 %
Earnings before interest and     EUR '000       3,661       5,248   -30.2 %
taxes (EBIT)
Earnings before taxes            EUR '000       2,208       4,567   -51.7 %
Net profit                       EUR '000         932       2,936   -68.3 %
Earnings per share               EUR/share       0.34        1.07   -68.3 %
Cash flow                        EUR '000       4,374       5,668   -22.8 %
Capital expenditures             EUR '000       1,832       1,523    20.3 %
Depreciation                     EUR '000       2,360       2,281     3.5 %
Number of employees (average)                     828         834    -0.7 %


Gummersbach, May 15, 2014

A.S. Création Tapeten AG

The Managing Board

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: 
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

End of Corporate News


15.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                               
Company:     A.S. Création Tapeten AG                              
             Südstraße 47                                          
             51645 Gummersbach                                     
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:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
End of News    DGAP News-Service  
268522 15.05.2014