DGAP-Adhoc: A.S. Création Tapeten AG: Business performance in Q2 2018 below expectations

In the report for the period ended March 31, 2018, the Managing Board pointed out that the Group's projections for the full year 2018, which provided for consolidated revenues of between EUR 150 million and EUR 155 million and EBIT (excl. extraordinary effects) of between EUR 4 million and EUR 5 million as well as earnings after taxes (excl. extraordinary effects) of between EUR 3 million and EUR 4 million, materially depend on growing revenues in the coming quarters. The projections are also based on the assumption that the Russian joint venture, A.S. & Palitra, is clearly profitable in 2018.

According to the preliminary figures now available for the second quarter of 2018, the expectations of the Managing Board have not been met. Consolidated revenues declined by 4.9% in the second quarter of 2018, which means that revenues for the first six months of 2018 dropped by 3.9% from EUR 75.7 million in the previous year to EUR 72.8 million. Compared to the previous year, EBIT improved noticeably in the second quarter due to the cost-cutting measures implemented by the Group. Against the background of the above revenue trend, the improvement in earnings was lower than planned, however. A.S. Création posts an operating profit of EUR 0.9 million for the first six months of 2018, compared to an operating loss of EUR -0.3 million in the same period of the previous year. Adjusted for currency effects of EUR -0.3 million (previous year:
EUR -0.4 million), EBIT amounted to EUR 1.2 million in H1 2018 (previous year: EUR 0.1 million). The business performance of the Russian joint venture also fell short of expectations and A.S. & Palitra failed to break even in the first half of 2018. Overall, A.S. Création generated earnings after taxes, adjusted for currency effects, of EUR 0.3 million in the first six months of 2018, compared to an adjusted loss after taxes of EUR -0.8 million in the same period of the previous year. Reported earnings after taxes including currency effects amounted to EUR -1.1 million in H1 2018 (previous year: EUR -2.2 million).

After discussion and analysis of the available figures, the Managing Board today concluded that the revenue and earnings projections for the full year 2018 will probably not be reached although earnings improved in the first half of 2018.

Further details will be disclosed in the interim report for the period ended June 30, 2018, which is scheduled for publication on August 2, 2018.

Gummersbach, July 25, 2018

A.S. Création Tapeten AG

The Managing Board

Contact:
Maik Krämer
Chairman of the Managing Board
Director of Finance and Controlling
Südstr. 47
D-51645 Gummersbach
Phone +49-2261-542 387
Fax +49-2261-542 304
E-Mail: m.kraemer@as-creation.de