DGAP-News: A.S. Création Tapeten AG: Unsatisfactory profitability in FY 2011
(firmenpresse) - DGAP-News: A.S. Création Tapeten AG / Key word(s): Final Results
A.S. Création Tapeten AG: Unsatisfactory profitability in FY 2011
22.03.2012 / 10:06
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A.S. Création Tapeten AG, Gummersbach
(ISIN DE0005079909)
Unsatisfactory profitability in FY 2011
Sales revenues hit new record
2011 was another fiscal year in which A.S. Création was able to increase
its Group revenues. At EUR 192.3 million, sales revenues were up by 4.1% on
the previous year's EUR 184.6 million. This was a much more dynamic
increase than the previous year's 1.8%. Growth was primarily driven by the
German market, non-EU Eastern European countries and some Asian markets,
especially China, where the intensified product development activities had
a positive effect. By contrast, sales growth in the EU (excluding Germany)
was unsatisfactory, especially in France market, where demand was weak in
2011.
Adverse impacts on the bottom line
In spite of the increase in sales, earnings fell short of expectations.
A.S. Création generated a net profit of EUR 4.6 million in FY 2011, down
44.6% on the previous year's EUR 8.4 million, which means that the decline
was much higher than provided for in the 2011 forecast. This is primarily
attributable to the sharp rise in commodity and energy prices. The increase
in some of our product prices, which was imposed with effect from March 1,
2011, was insufficient from today's point of view. Accordingly, the gross
profit margin reached only 45.8%, down on the previous year's 48.5%. Based
on the total output of EUR 193.5 million for the full year 2011, this
translates into a gross profit shortfall of EUR 5.2 million. The costs
incurred in conjunction with the start-up of the Russian production
facility also weighed on the bottom line.
Sound financial position
As expected, capital expenditures reached a very high level. Following the
majority takeover of two French wallpaper wholesalers in 2008, the
remaining shares were acquired in 2011 as agreed. Together with the
start-up of the wallpaper production facility in Russia, this led to
capital expenditures of EUR 19.7 million in FY 2011, up EUR 12.9 million on
the previous year's EUR 6.8 million. As A.S. Création's financial resources
were insufficient to finance the unusually high capital expenditures, net
financial liabilities increased to EUR 29.4 million as of December 31, 2011
(2010: EUR 16.3 million). A high equity ratio of 56.9% (2010: 54.9%) and a
low leverage of 32.9% (2010: 18.3%) show that the financial structure of
A.S. Création remains very sound.
Consistent dividend policy
In spite of the uncertain conditions prevailing in 2012 and the financing
requirements resulting from the start-up of production in Russia, A.S.
Création will maintain its dividend policy, which provides for a high
payout ratio as long as this is warranted by the company's financial
situation. We will therefore propose to the Annual General Meeting to pay
out a dividend of EUR 0.75 (2010: EUR 1.35) per share. With regard to
earnings per share, this represents a consistent payout ratio of 44.4%
(2010: 44.3%). The decline in the absolute dividend amount reflects the
deterioration in the company's earnings position.
Improved earnings position anticipated for 2012
The Managing Board expects the market environment to remain difficult in
2012, marked by rising commodity and energy prices. In such an environment,
both divisions should expand their respective market positions, with Group
revenues of between EUR 195 million and EUR 205 million projected for 2012.
The Russian wallpaper production facility is scheduled to take up service
in autumn 2012. Due to the investments that will be required up to this
date, capital expenditures are expected to total EUR 13 million in 2012,
which is above the normal level. In spite of the expected start-up losses
in Russia and the adverse impact the commodity and energy prices will have
on the bottom line, a consolidated net profit of between EUR 6.0 million
and EUR 7.0 million is projected for 2012. The expectation of higher
earnings is based on the spring 2012 increase in sales prices and an
improved overall product range.
The Group's key figures for 2011 at a glance:
2011 2010 ChangeGummersbach, March 22, 2012
Sales EUR '000 192,262 184,603 4.1 %
Earnings before interest and taxes (EBIT) EUR '000 9,587 14,318 -33.0 %
Earnings before income taxes EUR '000 7,325 12,352 -40.7 %
Net profit EUR '000 4,650 8,395 -44.6 %
Earnings per share EUR/share 1.69 3.05 -44.6 %
Cash-flow EUR '000 14,338 19,027 -24.6 %
Capital expenditures EUR '000 19,667 6,826 188.1 %
Depreciation EUR '000 9,933 10,504 -5.4 %
Number of employees (average) 796 772 3.1 %
A.S. Création Tapeten AG
The Managing Board
Contact:
Maik Krämer
Vorstand Finanzen
Südstr. 47
D-51645 Gummersbach
Telefon + 49 - (0)22 61/542-387
Fax + 49 - (0)22 61/542-304
E-Mail: m.kraemer(at)as-creation.de
The 2011 Annual Report is available at www.as-creation.de or from:
A.S. Création Tapeten AG
Frau Börngen
Südstraße 47
D - 51645 Gummersbach
phone +49-(0)22 61/542-350
e-mail investor(at)as-creation.de
End of Corporate News
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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(at)as-creation.de
Internet: http://www.as-creation.de
ISIN: DE0005079909
WKN: 507990
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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