Ad-hoc release : Quarterly Results
Deufol AG: Third quarter shows significant sales and earnings increase
Hofheim, November 13, 2012
Ad-hoc release pursuant to sec. 15 of the Securities Trading Act
Quarterly Results
Deufol AG: Third quarter shows significant sales and earnings increase
- Sales in Q3 € 90.5 million (+ 13.5 %), after nine months € 248.5 million (+ 7.2 %)
- Adjusted EBITA (after one-off expenses) in Q3 € 4.0 million (+ 42.8 %), after nine months € 9.2 million (+ 29 %)
- EBITA from continuing operations in Q3 € 3.5 million (+ 25.4), after nine months € 6.0 million (– 23.5 %)
- Operating cash flow in Q3 € 4.6 million (previous year € 0.2 million), after nine months € 10.3 million (previous year € 4.5 million)
Sales in the third quarter up 13.5 %
In a strong third quarter, sales amounted to € 90.5 million. This represents growth of 13.5 % on the same period in the previous year. The sales boost which was already apparent in the first half-year (3.9 %) has thus picked up.
Cumulative sales in the first nine months of 2012 were at € 248.5 million significantly higher (7.2 %) than in the same period in the previous year. In Germany, at € 134.4 million, sales were 4.2 % higher than in the previous year. In the Rest of Europe, sales declined by 4.2 % to € 62.3 million. In the USA / Rest of the World, sales were significantly higher than in the previous year, at € 51.5 million, a rise of 37.0 %.
Adjusted operating result after nine months 29 % above previous year
The third-quarter operating result (EBITA) amounted to € 3.5 million (previous year: € 2.8 million). This corresponds to an improvement of 25.4 %. Third-quarter EBITA net of one-off expenses of € 0.5 million amounted to € 4.0 million, an increase of 42.8 %. These one-off expenses were almost entirely associated with the € 26 million action for damages against former managers of the Company. This also includes the costs associated with the launch of a European stock corporation (SE) and the registered shares.
EBITA net of cumulative one-off expenses of € 3.14 million amounted to € 9.17 million and thus clear-ly exceeded the figure for the previous year of € 7.88 million. The unadjusted EBITA for the first nine months of 2012 was € 6.03 million. Including a one-off effect in Belgium in the second quarter of 2011 (release of liabilities to employees in the amount of € 0.78 million), the comparative operating basis amounted to € 7.10 million. Hence, the comparative operating result is around 29 % higher than in the previous year.
The individual segments developed as follows in the first nine months of the year: In Germany, we recorded a welcome increase in EBITA from € 3.84 million to € 5.80 million. This development reflects initial success for the reorganization and integration measures launched by the Company. In the Rest of Europe, EBITA declined by 24.8 % to € 4.02 million, mainly due to the winding-down of the one-off effect in Belgium (see above). The USA / Rest of the World segment realized a result of € 1.75 million (previous year: € 0.57 million). The expansion of capacity in Data Packaging is now bearing fruits here. The EBITA loss of Deufol AG (Holding) – which accounted for most of the one-off expenses – was € 5.53 million (previous year: € 1.85 million) as a consequence of these one-off expenses.
Development in the segments
9M 2011 |
Germany |
Rest of Europe |
USA / Rest of the World |
Holding company |
Elimination |
Group |
figures in € thousand |
|
|
|
|
|
|
External sales |
129.002 |
65,009 |
37,567 |
220 |
0 |
231,798 |
EBITA = EBIT |
3,836 |
5,340 |
565 |
-1,846 |
-18 |
7,877 |
Adjusted EBIT* |
3,836 |
4,560 |
565 |
-1,846 |
-18 |
7,097 |
* The adjusted EBITA for 2012 is adjusted for one-off expenses (€ 3.14 million) and in 2011 for the release of liabilities to employees in Belgium (€ 0.78 million).
Unadjusted earnings before taxes (EBT) in the first nine months of the year were € 3.55 million (previ-ous year: € 5.12 million). After income tax expenses (€ 1.893 million), the result from continuing operations is € 1.66 million, compared to € 3.13 million in the first nine months of 2011.
The discontinued operation “Carton Business” in the USA led to a loss of € 0.28 million (previous year: – € 0.47 million). The loss consists of a current loss of € 0.03 million and the final measurement of the pension commitment (– € 0.25 million). This means a result for the period of € 1.38 million (previous year: € 2.66 million).
After deduction of the profit shares of noncontrolling interests (€ 0.36 million), a net profit of € 1.01 million (previous year: profit of € 2.24 million) is attributable to the shareholders of Deufol AG. Earn-ings per share in the first nine months were € 0.023 (previous year: € 0.051).
Financial position
In the first nine months, the cash flow provided by operating activities amounted to € 10.3 million and was thus significantly higher than the level in the previous year (€ 4.53 million).
The financial liabilities of the Deufol Group decreased in the first nine months of the fiscal year by € 0.3 million to € 79.3 million. As cash and financial receivables simultaneously decreased slightly (– € 0.1 million), the net financial liabilities fell slightly less strongly, by € 0.2 million, from € 57.9 mil-lion at the end of the year to € 57.7 million.
Key data of the first nine months 2012
figures in € thousand |
Q3 2012 |
Q3 2011* |
change (%) |
9M 2012 |
9M 2011* |
change (%) |
Sales |
90,507 |
79,714 |
13.5 |
248,466 |
231,798 |
7.2 |
EBITDA |
5,678 |
4,875 |
16.5 |
12,600 |
14,285 |
-11.8 |
EBITA = EBIT |
3,514 |
2,803 |
25.4 |
6,028 |
7,877 |
-35.5 |
Adjusted EBIT** |
4,002 |
2,803 |
42.8 |
9,166 |
7,097 |
29.2 |
EBT |
2,755 |
1,943 |
41.8 |
3,547 |
5,119 |
-30.7 |
Income from continuing operations |
2,316 |
1,402 |
65.2 |
1,660 |
3,126 |
-46.9 |
Loss from discontinued operation |
9 |
-36 |
n/m |
-283 |
-469 |
-39.7 |
income for the period |
2,325 |
1,366 |
70.2 |
1,377 |
2,657 |
-48.2 |
of which attributable to noncontrolling interests |
152 |
146 |
4.1 |
364 |
419 |
-13.1 |
of which attributable to equity holders of parent |
2,173 |
1,220 |
78.1 |
1,013 |
2,238 |
-54.7 |
Earnings per share (€) |
0.05 |
0,028 |
78.1 |
0,023 |
0,051 |
-54.7 |
Operating cash flow |
4,625 |
152 |
n/m |
10,293 |
4,525 |
127.5 |
Investm. in tangible assets |
1,067 |
1,590 |
-32.9 |
5,776 |
4,489 |
28.7 |
Net financial liabilities |
57,738 |
54,210 |
6.5 |
57,738 |
54,210 |
6.5 |
Equity ratio (%) |
42 |
44 |
-4.9 |
42 |
44 |
-4.9 |
Employees (September 30) |
2,736 |
2,735 |
0 |
2,736 |
2,735 |
0 |
*The presentation for the first six months 2011 is adjusted for the effect of the discontinued operation, this means all income and expenses for this operation are reported separately in the income statement under “Loss from discontin-ued operation (net of tax)”.
** The adjusted EBITA for 2012 is adjusted for one-off expenses (€ 0.49 million in Q3 and € 3.14 million in the first nine months) and in 2011 for the release of liabilities to employees in Belgium (€ 0.78 million).
Outlook – Sales Envisaged at Upper End of Planning
The planning for the 2012 fiscal year anticipated sales of between € 315 million and € 330 million and an operating result (EBITA) between € 12 million and € 14 million. Deufol AG now expects a volume of sales at the upper end of this range and expects EBITA adjusted for one-off expenses to fall within the forecast range. One-off expenses of up to € 4.5 million are currently expected for this year.
Ad-hoc release: Half Year Results of Deufol AG
A stronger operating first half year 2012
Hofheim, August 14, 2012
Ad-hoc release pursuant to sec. 15 of the Securities Trading Act
Half Year Results
Deufol AG with a stronger operating first half year 2012
- Sales € 158.0 million (+ 3.9 %; previous year € 152.1 million)
- Adjusted EBITA (after one-off expenses) € 5.16 million (+ 20.3 %)
- EBITA from continuing operations € 2.61 million (– 50.5 %; previous year € 5.07 million)
- Operating cash flow € 5.67 million (previous year € 4.37 million)
Sales in the first six months up 3.9 %
Total sales in the first six months of 2012 were at € 158.0 million 3.9 % higher than in the same period in the previous year. Adjusted for the 10 % average appreciation of the US dollar versus the euro, this growth amounts to 2.0 %. With a 56.4 % share of Group sales, the proportion accounted for by Germany remained stable compared to the previous year. The share of sales realized elsewhere in Europe decreased, from 28.4 % to 25.6 %, and the USA’s share of sales fell by 2.6 percentage points to 17.9 %.
Adjusted operating result 20% above previous year
The operating result (EBITA) adjusted by one-off expenses amounted to € 5.16 million and thus exceeded the previous year’s figure of € 5.07 million. One-off expenses of € 2.65 million arose predominantly in connection with the € 26 million action for damages against former managers of the company. But included are also costs associated with the conversion into a European public limited company (SE) and for the introduction of registered shares. In the first half of 2012, the unadjusted EBITA amounted to € 2.51 million. Including a one-off effect in Belgium in the second quarter of 2011 (release of liabilities to employees in the amount of € 0.78 million), the comparative operating basis amounted to € 4.29 million. Hence, the comparative operating result is around 20.3 % above the previous year.
The individual segments performed as follows in the first six months: In Germany we recorded a wel-come increase in EBITA from € 2.67 million to € 3.89 million. This development reflects initial success for the reorganization and integration measures launched by the company. In the Rest of Europe, EBITA declined by 34.1 % to € 2.36 million, mainly due to the discontinuance of the one-off effect in Belgium (see above). The USA / Rest of the World segment realized a result of € 0.16 million (previ-ous year: € 0.18 million). This reflected expenses associated with the expansion of capacity in the Data Packaging division. The EBITA loss of Deufol AG (Holding), were most of the one-off expenses occurred, was € 3.87 million (previous year: € 1.35 million) as a consequence of the one-off expenses.
Development in the segments
6M 2012 |
Germany |
Rest of Europe |
USA / Rest iof the World |
Holding company |
Elimination |
Group |
figures in € thousand |
|
|
|
|
|
|
External sales |
89,027 |
40,468 |
28,311 |
153 |
0 |
157,959 |
EBITA = EBIT |
3,887 |
2,360 |
159 |
-3,869 |
-23 |
2,514 |
Adjusted EBIT* |
4,137 |
2,360 |
159 |
-1,469 |
-23 |
5,164 |
|
|
|
|
|
|
|
6M 2011 |
Germany |
Rest of Europe |
USA / Rest of the World |
Holding company |
Elimination |
Group |
figures in € thousand |
|
|
|
|
|
|
External sales |
85,700 |
43,157 |
23,081 |
146 |
0 |
152,084 |
EBITA = EBIT |
2,670 |
3,583 |
182 |
-1,352 |
-9 |
5,074 |
Adjusted EBIT* |
2,670 |
2,803 |
182 |
-1,352 |
-9 |
4,294 |
|
|
|
|
|
|
|
* The adjusted EBITA for 2012 is adjusted for one-off expenses (€ 1.55 million in Q2 and € 2.65 million in the first half year) and in 2011 for the release of liabilities to employees in Belgium (€ 0.78 million).
Unadjusted earnings before taxes (EBT) in the first half year were € 0.79 million (previous year: € 3.18 million). After income tax expenses (€ 1.45 million), the result from continuing operations is – € 0.66 million, compared to € 1.72 million in the first six months of 2011. The discontinued operation “Carton Business” in the USA led to a loss of € 0.29 million (previous year: – € 0.43 million). The loss consists of a current loss of € 0.04 million and the final measurement of the pension commitment (– € 0.25 million). This means a result for the period of – € 0.95 million (previous year: € 1.29 million)
After deduction of the profit shares of noncontrolling interests (€ 0.21 million), there is a net loss of € 1.16 million (previous year: profit of € 1.02 million) attributable to the shareholders of Deufol AG. Earnings per share in the first six months were – € 0.028 (previous year: € 0.023).
Financial position
In the first six months, the cash flow provided by operating activities amounted to € 5.67 million and was thus significantly higher than the level in the previous year (€ 4.37 million). The financial liabilities of the Deufol Group decreased in the first six months of the fiscal year by € 0.8 million to € 78.8 million. As cash and financial receivables simultaneously decreased (– € 2.1 million), the net financial liabilities rose by € 1.3 million, from € 57.9 million at the end of the year to € 59.2 million.
Key data of the first six months 2012
figures in € thousand |
Q2 2012 |
Q2 2011* |
change (%) |
6M 2012 |
6M 2011* |
change (%) |
Sales |
78,552 |
76,956 |
2.1 |
157,959 |
152,084 |
3.9 |
EBITDA |
3,265 |
5,442 |
-40 |
6,922 |
9,410 |
-26.4 |
EBITA = EBIT |
1,077 |
3,242 |
-66.8 |
2,514 |
5,074 |
-50.5 |
Adjusted EBIT |
2,627 |
2,462 |
6.7 |
5,164 |
4,294 |
20.3 |
EBT |
-21 |
2,284 |
n/m |
792 |
3,176 |
-75.1 |
Income from continuing operations |
-824 |
1,332 |
n/m |
-656 |
1,724 |
n/m |
Loss from discontinued operation |
-278 |
-272 |
2.2 |
-292 |
-433 |
-32.6 |
Income for the period |
-1,102 |
1,060 |
n/m |
-948 |
1,291 |
n/m |
of which attributable to noncontrolling interests |
133 |
166 |
-19.9 |
212 |
273 |
-22.3 |
of which attributable to equity holders of parent |
-1,235 |
894 |
n/m |
-1,160 |
1,018 |
n/m |
Earnings per share (€) |
-0.0028 |
0.02 |
n/m |
-0.026 |
0.023 |
n/m |
Operation cash flow |
-62 |
1,911 |
-92.7 |
5,668 |
4,373 |
29.6 |
Investm. in tangible assets |
1,378 |
1,409 |
-2.2 |
4,709 |
2,899 |
62.4 |
Net financial liabilities |
59,179 |
51,616 |
14.7 |
59,179 |
51,616 |
14.7 |
Equity ration (%) |
42.8 |
43.4 |
-1.3 |
42.8 |
43.4 |
-1.3 |
Employees (June 30) |
2,770 |
2,789 |
-0.7 |
2,770 |
2,789 |
-0.7 |
*The presentation for the first six months 2011 is adjusted for the effect of the discontinued operation, this means all income and expenses for this operation are reported separately in the income statement under “Loss from discontin-ued operation (net of tax)”
** The adjusted EBITA for 2012 is adjusted for one-off expenses (€ 1.55 million in Q2 and € 2.65 million in the first half year) and in 2011 for the release of liabilities to employees in Belgium (€ 0.78 million).
Outlook
The plan for the 2012 fiscal year anticipated sales between € 315 million and € 330 million and an operating result (EBITA) between € 12 million and € 14 million. Deufol AG has confirmed the plan in terms of sales and expects EBITA adjusted by one-off expenses to be in the forecast range. One-off expenses of up to € 4.5 million are expected for this year.
Further, management expects that Deufol share trading will return to normal after the introduction of registered shares.
Ad-hoc update: Deufol AG extends legal action against former senior managers
Hofheim, June 27th, 2012
Ad-hoc update pursuant to Section 15 of the German Securities Trading Act (WpHG)
Legal Matter
Deufol AG extends legal action against former senior managers
The Management Board and the Supervisory Board of Deufol AG, Hofheim, filed on April 4, 2012, a criminal complaint with the district attorney of Frankfurt am Main, Germany, against the former managing director of its subsidiary Deufol Tailleur GmbH, Manfred Wagner, against Deufol AG’s former chairman of the board, Andreas Bargende, two other people from his personal circle, as well as against the former general counsel of the company, Wolfgang Gluecks. The district attorney in Frankfurt am Main has commenced investigative proceedings (file number 7210 Js 216358/12). Deufol AG now expands the criminal complaint to the former managers of the Group Mark Agatz, Frank Jovanovic und Jost Hahnebeck.
It is suspected that the aforementioned persons engaged in actions detrimental to the Deufol Group during the course of business from 2006 through 2011.
Beside the criminal complaint Deufol AG is filing civil claims for the damages it is entitled to. Today, it filed civil claims with the district court of Frankfurt am Main against the former Deufol managers Andreas Bargende, Manfred Artur Wagner, Tammo Fey, Wolfgang Glücks, Mark Agatz, Frank Jovanovic, Jost Hahnebeck, and four other people from the personal circle of Andreas Bargende.
Damages presently amount to Euro 26.4 million, which will be pursued by judicial process against the above mentioned persons in different amounts.
The company is confident it can enforce its claims for damages.
Ad-hoc release Quarterly Results: Positive sales growth
Hofheim, May 30, 2012
Ad-hoc release pursuant to sec. 15 of the Securities Trading Act
Quarterly Results
Deufol AG with a stronger operating first quarter 2012
- Sales € 79.4 million (+ 5.7 %; previous year € 75.1 million)
- EBITA from continuing operations € 1.44 million (– 21,6 %; previous year € 1.83 million)
- Adjusted EBITA (after costs for internal investigations) € 2.54 million (+ 39 %)
- Operating cash flow € 5.73 million (previous year € 2.46 million)
Positive sales growth
In the first quarter of 2012, at € 79.4 million sales were 5.7 % higher than in the same period in the previous year. Adjusted for the 4.1 % average appreciation of the US dollar versus the euro, this growth amounts to 5.0 %. In Germany, sales rose by 8.1 % on the same quarter in the previous year, to € 46.0 million. In the Rest of Europe, sales fell by 5.9 % to € 20.6 million. In the USA / Rest of the world, sales were significantly higher than in the previous year, at € 13.2 million, a rise of 16.9 %.
Stronger operating earnings
Adjusted for the costs of the Company’s internal investigations the EBITA amounted to € 2.54 million, compared and thus was around 39 % higher to the previous year. This reflects initial success of the measures taken in the last months (e.g. establishing a central purchasing system).
The unadjusted operating result (EBITA) in the first quarter was at € 1.44 million 21.6 % lower than the level for the same period in the previous year (€ 1.83 million). The result is attributable to one-off ex-penses incurred by Deufol AG (holding) which also burdened the other earnings indicators. The individual segments performed as follows: In Germany, EBITA showed a pleasant increase from € 1.36 million to € 2.53 million. Particularly here the structural measures bear fruit. In the Rest of Eu-rope, EBITA fell by 19.5 % to € 1.02 million. The USA / Rest of the World segment realized an operat-ing loss of € 0.33 million (previous year: – € 0.26 million). This reflected expenses associated with the expansion of capacity in the Data Packaging division, which led to a scheduled temporary decrease in the operating result. Due to the special item, the EBITA loss of Deufol AG (Holding) amounted to € 1.73 million compared to € 0.58 million before.
Unadjusted earnings before taxes (EBT) amounted to € 0.81 million in the first quarter (previous year: € 0.92 million). After tax expenses (€ 0.65 million), the income from continuing operations amounts to € 0.17 million, compared to € 0.39 million in the first quarter of 2011. The discontinued operation “Carton Business” in the USA yielded a small loss of € 14 thousand (pre-vious year: € 161 thousand). This corresponds to a result for the period of € 0.15 million (previous year: + € 0.23 million). After deduction of the profit shares of noncontrolling interests (€ 0.08 million), a net profit of € 0.08 million is attributable to the shareholders of Deufol AG, compared € 0.12 million in the previous year. Earnings per share in the first quarter were € 0.002 (previous year: € 0.003).
Financial position
The first-quarter cash flow provided by operating activities amounted to € 5.73 million and was thus significantly higher than the level in the previous year (€ 2.46 million).
The financial indebtedness of the Deufol Group decreased in the first three months of the fiscal year by € 1.8 million to € 77.8 million. Since cash and financial receivables simultaneously declined (– € 0.5 million), net financial liabilities also fell (though slightly less strongly), by € 1.3 million, from € 57.9 million at the end of the year to € 56.6 million.
Key data of the first quarter 2012
figures in € thousand |
2012 |
2011* |
change (%) |
Sales |
79,407 |
75,128 |
5.7 |
EBITDA |
3,657 |
3,968 |
-7.8 |
EBIT(A) |
1,437 |
1,832 |
-9.7 |
EBT |
813 |
892 |
-21.6 |
Income from continuing operations |
168 |
392 |
-57.1 |
Loss from discontinued operation |
-14 |
-161 |
-91.3 |
Income for the period |
154 |
231 |
-33.3 |
of which attributable to noncontrolling interests |
79 |
107 |
-26.2 |
of which attributable to equity holders of parent |
75 |
124 |
-39.5 |
Earnings per share (€) |
0.002 |
0.003 |
-39.5 |
Operating cash flow |
5,730 |
2,462 |
132.7 |
Investments in tangible assets |
3,331 |
1,490 |
123.6 |
Net financial liabilities |
56,553 |
50,749 |
11.4 |
Employees (average) |
2,693 |
2,803 |
-3.9 |
*The presentation for the first quarter 2011 is adjusted for the effect of the discontinued operation, this means all income and expenses for this operation are reported separately in the income statement under “Loss from discontinued operation (net of tax)”
Outlook
Deufol AG confirms its planning figures published for fiscal year 2012 in its annual financial report. These envisage sales in a corridor between € 315 million and € 330 million and an operating result (EBITA) of between € 12 million and € 14 million.
Deufol AG: Clarification to the Notes of the Annual Report 2011 (Relationships with related parties)
Hofheim, 18th May 2012
It has appropriately been brought to our attention that a contradiction between the information on page 122 of the Annual Report 2011 (Events after the balance sheet date: business dealings to the detriment of Deufol Group) and the information on page 125 (Relationships with related parties) might be perceivable. Hence, we would like to clarify, based on third party appraiser options, that there is reason to believe that the transactions with Manfred Wagner which are described on page 125 are doubtful with regard to their arm’s length nature. These transactions are subject of the criminal proceedings and the compensation claims which are described on page 125.
Strategic Company Decisions / Dividend
Hofheim, 16th May 2012
Ad-hoc release pursuant to Section 15 of the German Securities Trad-ing Act (WpHG)
Strategic Company Decisions / Dividend
Deufol AG decides on change of legal form to SE, the implementation of registered shares and makes a dividend proposal
Today, the Managing Board of Deufol AG resolved with the approval of the Supervisory Board to transform the company into a European public limited company (Societas Europaea, SE). The change in legal form is still subject to the approval of the Annual General Meeting, which is to be held in Hofheim on July 4th, 2012.
Due to the transformation into an SE, the existing shareholders of Deufol AG will automatically become shareholders of Deufol AG SE; the rights of shareholders remain unaffected. Nor is the change in legal form expected to have any implications for clients and employees of Deufol Group.
In the course of the legal change, Deufol plans to convert its two-tier management structure consisting of the Managing Board and the Supervisory Board to the internationally common one tier system with an Administrative Board.
The intended transformation into an SE reflects the increasingly international character both of Deufol's business activities and its workforce. At the same time the Managing Board and The Supervisory Board resolved to propose the conversion of all bearer shares into registered shares at the Company's Annual Shareholders' Meeting. Registered shares enable improved, direct contact between a public limited company and its shareholders. We are able to get in contact with our registered shareholders in a more targeted manner and inform them immediately and directly about developments within our company. The Managing Board and Supervisory Board of Deufol AG also today resolved to propose a dividend of 3 euro cent per share for fiscal 2011.
Deufol AG in the business year 2011
Hofheim, April 20, 2012
Ad-hoc release pursuant to sec. 15 of the Securities Trading Act
Annual Results
Deufol AG in the business year 2011
- Sales € 315.2 million (previous year € 303.0 million)
- Operating earnings (EBITA) from continuing operations € 10.7 million (previous year € 11.9 million)
- Income from continuing operations € 3.9 million (previous year € 4.5 million)
Deufol AG today published its annual accounts for the year 2011 and looks back on a challenging fiscal year 2011 full of changes. In terms of public perception, the turnover of personnel at the level of the Company’s management is certainly one of the most significant of these changes. This change was made due to the discovery of a breach of trust on the part of high-ranking executives who did not always act in the shareholders’ interests. However, new personnel have now been appointed to these management positions.
In the organizational field, in 2011 we made further progress toward creating a uniform profile throughout the Group. The strengthening of our headquarters in Hofheim (Wallau) as a central management unit, the integration of our industrial goods packaging locations in the overall Group and the strategic development of a central purchasing system as one of our responses to fluctuating wood prices were important steps.
As a further measure in the context of change the board is concretely assessing the transformation of Deufol AG into a Societas Europaea (SE) as well as converting bearer shares to registered shares.
Rising sales
In an economic environment showing a positive overall trend, in the reporting period sales from continuing operations increased by 4.0 % on the previous year to € 315.2 million. We have thus achieved our planning targets, which had envisaged sales in a corridor of between € 310 million and € 325 million.
If the sales trend is adjusted for the acquisitions, this shows organic growth of 2.8 %. If one also takes into consideration the US dollar’s depreciation against the euro of around 5 % on average, this represents adjusted growth of 3.6 %.
Earnings development
On the results side, in Germany Export & Industrial Packaging suffered due to rising wood prices and thus recorded lower results. In the USA, the volumes provided by battery packaging were lower, so that the expected results were not achieved. In the Rest of Europe, our Italian subsidiary and our Belgian companies exceeded expectations. In overall terms, the operating result from continuing operations was at € 10.7 million lower than the adjusted figure for the previous year (€ 11.9 million).
Earnings before taxes amounted to € 7.4 million in the past year and were thus slightly below the level in 2010 (€ 7.5 million). After income tax expenses (€ 3.50 million) the income from continuing operations is € 3.9 million (previous year: € 4.5 million).
The discontinued operation “Carton Business” in the USA led to a loss of € 3.3 million (previous year: – € 1.2 million). This consists of a current loss of € 0.8 million and a pension liability of € 2.5 million.
This means a result for the period of € 0.6 million (previous year: € 3.3 million). The profit share for noncontrolling interests is € 0.5 million (€ 0.4 million). Earnings attributable to the shareholders of Deufol AG amounted to € 0.1 million in the period under review, compared to € 2.9 million in the same period in the previous year. Earnings per share were € 0.002 in 2011 (previous year: € 0.067).
In the invitation to the Annual General Meeting, the Executive and Supervisory Boards will propose the appropriation of the net income (calculated according to German Commercial Code principles) of Deufol AG for the fiscal year 2011 in the amount of € 9.4 million.
Financial position
In late October, the Deufol Group reorganized its financing structures in Germany. The Group has entered into a loan facility with a consortium of banks, with an initial volume of € 45 million. This credit facility has a term of four years and includes an option for a one-year extension. This was almost entirely used for the repayment of existing loans but also increased the Group’s credit facility by approx. € 10 million. This financing safeguards medium-term liquidity requirements and provides scope for growth for the Group.
In the past fiscal year, the financial liabilities of the Deufol Group increased slightly, from € 78.2 million to € 79.6 million.
The operating cash flow amounted to € 4.6 million in the period under review and was thus significantly lower than in the previous year (€ 19.9 million). This decline is predominantly due to the cut-off date-related € 10.9 million increase in trade receivables. In the previous year, trade receivables decreased by € 6.4 million while increasing cash flow.
Development in the segments
At € 173.2 million, consolidated sales in Germany in 2011 exceeded sales in the previous year by 7.7 %. EBITA in this sector decreased from € 7.3 million to € 5.4 million. The profit has mainly been influenced by increased commodity prices (wood) which led to additional expenditure. However, the continued slight easing of wood prices in the fourth quarter and the increasing factoring-in of the commodities price trend in our customer relationships give cause for optimism.
In the Rest of Europe, we achieved consolidated sales of € 87.0 million, an increase of 2.2 % on the previous year. The operating result (EBITA) rose in the past year by 49.2 % from € 5.0 million to € 7.4 million. This increase is primarily due to improved results in Belgium. Favorable operating business was a factor in this country, which also benefited from the release of a liability to employees and from income from a legal dispute in the amount of € 0.8 million. In Italy, results also went up despite the € 0.4 million start-up losses associated with the new Roverbella site.
In the USA / Rest of the World segment, consolidated sales – adjusted for the discontinued “Carton Business” – were at € 54.5 million 3.8 % lower than in the previous year. This was mainly due to lower battery packaging volumes, which increases in Data Packaging were unable to compensate for. The new operations in Charlotte and Suzhou contributed sales volumes in the low single-digit million range. EBITA in this segment amounted to € 1.1 million, compared to € 2.1 million in the previous year. This was due to the lower rate of utilization of production capacities due to lower volumes in the packaging business and the associated decrease in the operating result.
Key data of the year 2011
figures in € million |
2011 |
2010* |
change (%) |
Sales |
315.2 |
303 |
4 |
EBITDA |
19.5 |
20.6 |
-5.2 |
EBIT(A) |
10.7 |
11.9 |
-9.7 |
EBT |
7.4 |
7.5 |
-2 |
Income from continuing operations |
3.9 |
4.5 |
-14.6 |
Loss from discontinued operation |
-3.3 |
-1.2 |
165.8 |
Income for the period |
0.6 |
3.3 |
-81.5 |
of which attributable to |
0.5 |
0.4 |
37.4 |
noncontrolling interests |
|
|
|
of which attributable to equity |
0.1 |
2.9 |
-97 |
holders of parent |
|
|
|
Earnings per share (€) |
0.002 |
0.067 |
n/m |
Operating cash flow |
4.6 |
19.9 |
-76.8 |
Investments in tangible assets |
7.3 |
8.1 |
-9.8 |
Net financial liabilities |
57.9 |
49.3 |
17.5 |
Employees (average) |
2,818 |
2,721 |
3.6 |
* The presentation for 2010 is adjusted for the effect of the discontinued operation, this means all income and expenses for this operation are reported separately in the income statement under “Loss from discontinued operation (net of tax)”
Outlook
In view of a weaker economic environment for the fiscal year 2012, the Deufol Group plans sales in a corridor between € 315 million and € 330 million. The operating result (EBITA) should amount to between € 12 million and € 14 million.
With regard to the sales trend, we predict a clear increase in the USA, driven by the growth of Data Packaging. In Germany and the Rest of Europe, we predict stable or slightly falling sales.
In terms of our results forecast, we predict a significant improvement in business in the USA. In line with our sales planning, this will mainly be provided by our Data Packaging division. In Germany, we expect all of our services to report significantly improved results. For the Rest of Europe, we envisage stable or slightly falling operating results.
Ad-hoc Release: Deufol AG is taking legal action against former senior managers
Hofheim, 4th April 2012
Ad-hoc release pursuant to Section 15 of the German Securities Trading Act (WpHG)
Legal Matter
Deufol AG is taking legal action against former senior managers.
Today, the Management Board and the Supervisory Board of Deufol AG, Hofheim, filed a criminal complaint with the district attorney of Frankfurt am Main, Germany, against the former managing director of its subsidiary Deufol Tailleur GmbH, Manfred Wagner, against Deufol AG’s former chairman of the board, Andreas Bargende, two other people from his personal circle, as well as against the former general counsel of the company, Wolfgang Gluecks. The district attorney in Frankfurt am Main has now commenced investigative proceedings. Deufol AG had already separated from the aforementioned persons at the end of 2011.
Damages presently amount to low two-digit millions of Euros. In addition to the criminal proceedings having been commenced, Deufol AG shall be filing civil claims for the damages it is entitled to. The company is confident it can enforce its claims for damages.