DGAP-News: A.S. Création Tapeten AG

A.S. Création Tapeten AG, Gummersbach
(ISIN DE000A1TNNN5)

Decline in sales revenues could not be halted

A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, today published the interim report for the period ended June 30, 2017. A summary is provided below:

Revenues decline due to difficult framework conditions
The continued difficult macroeconomic environment had an adverse impact on A.S. Création's sales revenues in the first six months of 2017. At EUR 75.7 million, consolidated sales revenues were down by EUR 6.0 million or 7.3% on the previous year's EUR 81.7 million. Contrary to what had been expected the decline in sales could not be halted in the second quarter of 2017, which is why the sales performance in the year to date is regarded as disappointing by the Managing Board. In the first six months of 2017, A.S. Création suffered a strong drop in revenues of 12.5% in the European Union (EU). The strongest declines were recorded in Germany and France, which experienced reduced demand for wallpapers and furnishing fabrics in the reporting period. A.S. Création's gross revenues in non-EU Eastern European countries were up by a gratifying 11% on the previous year in the first half of 2017. This was also attributable to the fact that the Russian rouble appreciated against the euro compared to the previous year.

Revenue shortfall and pressure on margins send earnings falling sharply
A.S. Création's earnings clearly deteriorated in the current fiscal year. As a result of the unexpectedly strong decline in the gross profit margin in H1 2017, which resulted from increased commodity costs and fiercer price competition, the EUR 6.0 million drop in sales revenues contrasted with a decline in gross profits in the same amount. In addition, high exchange losses and the still not ideal cost structure resulted in a loss after taxes of EUR -2.2 million in the first half of 2017, compared to a profit after taxes of EUR 5.6 million in the same period of the previous year. Adjusted for the exchange rate effects, earnings after taxes declined from EUR 3.4 million in the previous year to EUR -0.8 million in the first half of 2017.

Projections for full 2017 unlikely to be met
In view of the business performance in the second quarter of 2017, the Managing Board currently assumes that the full-year projections for 2017, which provided for sales revenues of between EUR 155 million and EUR 160 million and earnings after taxes of between EUR 4 million and EUR 5 million (excl. extraordinary effects such as exchange gains or losses), are unlikely to be met. With regard to sales revenues, the second half of 2017 will probably be marked by continued fierce competition for market share. The Managing Board of A.S. Création does not expect a general turnaround that could lead to a significant increase in wallpaper consumption in the Western and Eastern European wallpaper markets by the end of 2017. It will therefore be very important for A.S. Création to improve its cost structures.

In view of the great uncertainty currently surrounding the factors that will influence A.S. Création's earnings until the end of the fiscal year 2017, the Managing Board will not present revised projections for the full year 2017 before the end of the third quarter.

The Group's key figures for the first six months of 2017 are summarised below:

Gummersbach, July 27, 2017

A.S. Création Tapeten AG

The Managing Board

Inquiries:
Maik Krämer,
Chairman of the Managing Board, 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 6-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