Quarterly Results

Deufol AG: Third quarter shows significant sales and earnings increase

Hofheim am Taunus, (PresseBox) - .
- 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 clearly 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.

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 opera-tions 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 million at the end of the year to € 57.7 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.

The Interim Report is available on the internet at http://www.deufol.com.

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