ALNO AG: ALNO AG publishes its results for the first half of 2011

ALNO AG / Key word(s): Half Year Results

31.08.2011 / 19:12

ALNO AG publishes its results for the first half of 2011

- Focus on the restructuring of the company defines the first half year of 2011

- ALNO AG expects an increased group EBITDA compared to last year

- Healthy order books for the second half year 2011

Pfullendorf, August 31, 2011 - ALNO AG, one of the world's largest manufacturers of fitted kitchens, has published its figures for the first half of 2011. Despite the economic recovery, ALNO was not yet participating in the kitchen market's growth in the reporting period. The Group's revenue and earnings trends are still burdened by the parallel production of the new and old Wellmann range at the company's site in Enger. These production problems have now been solved and no further losses are expected to arise from these problems from September onwards.

'In the first half year, we have worked hard to implement the restructuring of the company and to optimize our internal processes,' said Max Müller, CEO of ALNO AG. 'Thanks to the systemic implementation of our concept for reorganization and the healthy order books for the second half year, including large international commissions, we are optimistic about the coming months and expect an increase in the overall EBITDA for 2011 compared to last year's figure.'

In the first six months of the fiscal year, consolidated revenue fell by 4.7% to EUR 222.7 million as opposed to last year's figure (EUR 233.7 million). Domestic revenue declined by 3.7% to EUR 160.8 million. Due to the liquidation of five foreign subsidiaries and their reorganization into sales units in the second half of 2010, revenue generated outside Germany dropped by 7.3% to EUR 61.9 million. As a result, the share of foreign sales in total sales (the export ratio) fell from 28.6% to 27.8%. Due to significant price increases on the supplier side, and despite lower revenue, the cost of materials rose from EUR 135.1 million to EUR 140.7 million. As a consequence, the cost of materials ratio deteriorated by 5% in a year-on-year comparison since price increases were not compensated by higher selling prices. Moreover, transportation expenses rose on the back of mineral oil price hikes. In summary, consolidated EBITDA declined from EUR 7.5 million in the previous year to EUR -8.5 million. There was an even more marked decrease in EBIT, which fell from EUR 1.5 million to EUR -15.4 million. Earnings per share stood at EUR -0.95, compared with EUR -0.15 a year ago.

Numerous problems across the Group have already been solved starting May 2011 to date. Along with the normalization of production at the Enger site mentioned above, further examples include the optimization of workflow processes and internal logistics, and personnel improvements to the management structure. New orders placed for the coming months are also significantly higher than last year's levels. Particularly noteworthy are the orders newly acquired in Turkey and China. After the end of the reporting period, ALNO raised revenue in July 2011 by around EUR 5.5 million compared with July 2010. Within one month, this has already compensated for around half of the year-on-year decline in revenue of EUR 11.0 million in the first six months. For the second half of the year, the Managing Board anticipates that it can virtually recover the drop in revenue that has been incurred in the interim. ALNO is therefore retaining the forecast it issued in preparation for its annual financial statements of an increase in full-year consolidated EBITDA compared with the figure of around EUR 1.0 million that was reported for 2010. Moreover, the relief to the balance sheet and the improvement of equity in the wake of the Restructuring Agreement II from February 9, 2011, will begin to take effect in the second half of 2011.

Furthermore, with respect to its 2012 export business, ALNO expects a significant increase in its foreign sales from the recruitment of additional personnel and other measures in the second half of 2011.

About ALNO AG:
ALNO AG is one of Germany's leading kitchen manufacturers. It has four national production facilities and also a production facility in Dubai, and serves the German and international markets with a full range of kitchens. The ALNO Group has four brands: the core brand ALNO and also WELLMANN (classic/modern), IMPULS (minimalist) and PINO (entry-level prices). ALNO AG has around 7,000 distribution partners and is active in more than 64 countries. In fiscal year 2010 around 1,787 employees recorded revenues of approx. EUR 467.3 million. Foreign sales accounted for 28.4% of revenues.

Note for editors:
If you would like to find out more about ALNO and its products, then please visit our online press center at There you can also find ready-to-print images of people and products.

Legal notice:
This press release may include forward-looking statements, which are based on the current expectations and forecasts of ALNO AG's management or its associated companies. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, or performance of ALNO AG and its affiliated companies deviating substantially from the estimates included herein. Neither ALNO AG nor its affiliated companies undertake to update any such forward-looking statement and to adjust these to future events or developments.

Patricia Eschenlohr
T +49/ 172 8106376

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