DGAP-News: A.S. Création Tapeten AG / Key word(s): Quarter
Results/Interim Report
A.S. Création starts the fiscal year 2015 with greatly improved
earnings
07.05.2015 / 08:15
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A.S. Création Tapeten AG, Gummersbach
(ISIN DE000A1TNNN5)
A.S. Création starts the fiscal year 2015 with greatly improved earnings
A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, today
published the interim report for the period ended March 31, 2015. A summary
is provided below:
Declining sales revenues in Q1
As expected by the Managing Board, the macroeconomic environment,
especially in Eastern Europe, had an adverse effect on A.S. Création's
sales revenues in the first quarter of 2015. At EUR 47.0 million,
consolidated sales revenues were down by EUR 7.3 million or 13.5% on the
previous year's EUR 54.3 million. A.S. Création's first-quarter revenues
clearly reflect the effects of the Ukraine crisis. Wallpaper exports to
Ukraine have come to a virtual standstill, and A.S. Création's wallpaper
sales in Russia also declined notably due to the depreciation of the rouble
against the euro and the downward economic trend in Russia. By contrast,
the business trend in Germany was encouraging in the opinion of the
Managing Board. Domestic gross revenues more or less stayed at the very
high level of the previous year, although A.S. Création had benefited from
one-time effects such as the restocking of former Praktiker and Max Bahr
stores in the first quarter of 2014. Customers apparently remain
appreciative of the continued high investments made by A.S. Création in the
further development of its product range and in new marketing concepts.
Greatly improved earnings
In spite of the drop in revenues, earnings improved notably in the first
quarter of 2015. At EUR 5.7 million, earnings before taxes more than
doubled from the previous year's EUR 2.2 million and the return on sales
before taxes reached a very high 12.2% (previous year: 4.1%). The Group
result was clearly influenced by the exchange rate trend of the Russian
rouble against the euro, which led to translation-related exchange gains in
Q1 2015 and to exchange losses in the same period of the previous year.
Adjusted for these exchange rate effects, earnings before taxes amounted to
EUR 3.8 million in the first three months of 2015, which was more or less
on a par with the previous year's EUR 4.0 million. Against the background
of the EUR 7.3 million drop in sales revenues in the first quarter of 2015,
the Managing Board is satisfied with this earnings performance, as A.S.
Création was able to offset the shortfall in earnings resulting from the
reduced revenues by an improved gross profit margin as well as cost
savings.
Forecast for 2015 confirmed
Although the drop in revenues in the first quarter of 2015 was stronger
than projected for the full year 2015, the Managing Board is confident that
the sales forecast, according to which consolidated sales revenues in 2015
will amount to between EUR 175 million and EUR 185 million, will be met. On
the one hand, the Managing Board expects sales revenues in the European
Union to pick up; on the other hand, a further increase in demand for
locally produced wallpapers in Russia should lead to growing sales. With
regard to the earnings position, the Managing Board confirmed the
statements made for the full 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. This means that
A.S. Création would post a high profit in the fiscal year 2015 after the
loss-making year 2014.
Operationally, A.S. Création Tapeten AG will focus on adjusting its cost
structures to the reduced revenues and on further optimising its production
processes in Germany. As far as the Russian companies are concerned, their
earnings position is expected to improve on the back of growing sales
revenues.
The Group's key figures for the first three months of 2015 are summarised
below:
<pre>
01.01.- 01.01.- Change
31.03. 31.03.
2015 2014
Sales EUR '000 46,969 54,328 - 13.5 %
Earnings before interest and
taxes (EBIT) EUR '000 4,722 3,661 29.0 %
Earnings before income taxes EUR '000 5,730 2,208 159.5 %
Earnings after income taxes EUR '000 4,194 932 350.0 %
Earnings per share EUR/share 1.52 0.34 347.1 %
Cash flow EUR '000 5,276 4,374 20.6 %
Capital expenditures EUR '000 686 1,832 - 62.6 %
Depreciation EUR '000 2,176 2,360 - 7.8 %
Number of employees (average) 814 828 - 1.7 %
</pre>
Gummersbach, May 7, 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 3-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
SüdstraÃe 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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353881 07.05.2015
DGAP-News: A.S. Création starts the fiscal year 2015 with greatly improved earnings
| Source: EQS Group AG