Preliminary Annual Results

Deufol SE: Preliminary Annual Results 2012

(PresseBox) ( Hofheim am Taunus, )
- Sales € 333.0 million (previous year € 315.2 million)
- Adjusted EBITA (after one-off expenses) € 10.1 million (previous year € 9.6 million)
- EBITA from continuing operations 6.2 million (previous year € 10.7 million)
- Operating cash flow 16.0 million (previous year € 4.6 million)

Deufol SE announces today the preliminary results for the fiscal year 2012. The complete annual fi-nancial statements will be published on April 24.

Increasing sales

In 2012 the Deufol Group realized a positive sales trend which was mainly driven by the American market, where sales rose by 30.4 % to € 71.1 million. In the Rest of Europe we were at almost the same level as in the previous year (€ 85.9 million, compared to € 87.0 million) while in Germany at € 175.7 million we were slightly higher than in the previous year (€ 173.2 million).

Overall in the reporting period sales from continuing operations increased by 5.7 % on the previous year to € 333.0 million. We have thus slightly exceeded our planning targets, which had envisaged sales in a corridor of between € 315 million and € 330 million. Adjusted for the US dollar's appreciation against the Euro of around 7.7 % on average, this represents adjusted growth of 3.9 %.

Comparative operating result approx. € 0.50 million higher than in previous year

The figures were negatively affected by one-off expenses associated with the action for damages ver-sus former managers of the Company. In this connection, one-off expenses of € 3.9 million have aris-en at the level of the holding company for investigations, court proceedings and reorganization. The expenses associated with the launch of a European stock corporation (SE) and the registered shares are a small proportion of this amount.

The comparative operating result is at € 10.1 million approx. € 0.5 million higher than in the previous year. The unadjusted operating result before goodwill amortization (EBITA) fell in the reporting period from € 10.7 million to € 6.2 million. Adjusted for the one-off expenses (€ 3.9 million) it amounted to € 10.1 million. Allowing for the one-off items in 2011 amounting to € 1.1 million (€ 0.8 million release of liabilities to employees, € 0.8 million income from a legal dispute, -€ 0.5 million action related costs), the comparative operating basis amounts to € 9.6 million.

The unadjusted earnings before taxes (EBT) in the past year were € 2.8 million (previous year: € 7.4 million). After income tax expenses (€ 2.4 million), the income from continuing operations is € 0.4 mil-lion (previous year € 3.9 million).

The discontinued operation “Carton Business” in the USA led to a loss of € 0.34 million (previous year: – € 3.3 million). This means a result for the period of € 0.1 million (previous year: € 0.6 million). The profit share for noncontrolling interests is € 0.3 million (previous year € 0.5 million). Earnings attributa-ble to the shareholders of Deufol SE amounted to – € 0.5 million in the period under review, compared to € 0.1 million in the same period in the previous year. Earnings per share were – € 0.006 in 2012 (previous year € 0.002).

Development in the segments

At € 175.7 million, consolidated sales in Germany in 2012 slightly exceeded sales in the previous year which amounted to € 173.2 million. EBITA in this sector increased by 39.5 % from € 5.4 million to € 7.5 million. The EBITA margin rose from 3.1 % to 4.3 %. This increase is primarily attributable to stronger results for “Export & Industrial Packaging”. This reflects initial success for the reorganization and inte-gration measures as well as the central purchasing system which has now been established.

In the Rest of Europe we realized consolidated sales of € 85.9 million, which is only slightly lower than in the previous year (€ 87.0 million). However, this sales trend was unevenly distributed among the Group’s regions, with + 0.3 % in Belgium, – 13.1 % in Italy and + 10.4 % in the Slovakia / Czech Re-public / Austria region. In the past year, the operating result (EBITA) fell from € 7.4 million to € 4.3 million. This decrease is primarily due to lower results in Belgium. In 2011 this included one-off items (release of liabilities to employees and income from a legal dispute, each of which amounted to € 0.8 million). We also realized lower volumes at our Belgian automotive location. In Italy, the figures were slightly lower than in the previous year (as expected), while the Slovakia / Czech Republic / Austria region reported significantly improved results.

In the USA / Rest of the World segment, consolidated sales were at € 71.1 million 30.4 % higher than in the previous year. This is mainly attributable to higher volumes in Data Packaging. Sales realized from the operations in Charlotte and Suzhou have increased by more than two-thirds but are still in the low single-digit million range. Adjusting sales by segment by 7.7 % on average – to allow for the US dollar’s appreciation against the euro – the increase amounted to 20.5 %. EBITA in this segment amounted to € 0.4 million, compared to € 1.1 million in the previous year. Our subsidiaries Deufol Packaging (Suzhou) Co., Ltd. and Deufol Charlotte LLC both recorded small losses. Our newly estab-lished subsidiary in Singapore (Deufol Singapore PTE. LTD.) was included in the scope of consolidati-on for the first time, but did not yet have any operating business.

Financial position – Strong operating cash flow

The operating cash flow amounted to € 16.0 million in the period under review and was thus signifi-cantly higher than in the previous year (€ 4.6 million). This rise is predominantly due to the € 5.1 mil-lion decrease in trade receivables. In the previous year, trade receivables increased by € 10.8 million while decreasing cash flow. In addition, the loss resulting from the discontinued operation was around € 3.0 million lower.

In the past fiscal year the financial liabilities of the Deufol Group clearly decreased, from € 79.6 million to € 70.9 million. Net financial liabilities – defined as the total financial liabilities less financial receiva-bles and cash – decreased less strongly, by € 2.9 million from € 57.9 million on December 31, 2011 to € 55.0 million at the end of the period under review. This was due to the decrease in cash held (– € 4.1 million) and lower financial receivables (– € 1.7 million).
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