Good start into 2014 following a weak 2013 financial year

Pfullendorf, 31 March 2014 – The ALNO AG Supervisory Board today adopted the consolidated and separate financial statements of ALNO AG for the 2013 financial year. Sales volume was still negatively affected by the Group restructuring and a one-off price increase in 2012. Last year's weak summer had a negative impact as well. The ALNO Group recorded 2013 sales of 395.1 million euros, down 11.5% versus 2012 (446.3 million euros). Declining sales were partially offset by staff reduction and other measures including cutting fixed costs. EBITDA came in lower year-on-year at 5.5 million euros (2012: 14.0 million euros). EBIT improved however in 2013, up nearly 34% to 1.2 million euros (2012: 0.9 million euros). After tax, a consolidated net loss of 10.7 million euros was recorded for 2013, coming after a loss of 1.4 million last year. A debt waiver in the amount of 8.9 million euros created a one-off effect in 2012.

'After having taken steps in the summer of 2012 to restructure, we implemented an array of measures aimed at achieving long-term success for the company,' commented Max Müller, CEO of ALNO AG. 'We laid the foundations for increasing operating margins and production capacity. We entered new, higher-margin markets and beefed up our sales department. We also improved our financing situation significantly. The effects of these measures are not yet reflected in the results for financial year 2013. They do however create ideal conditions for a strong start into 2014,' said Müller.

Measures for improving operating margins

The main operational improvements include shifting of component production from Bad Salzuflen to the ALNO and WELLMANN plants in Pfullendorf and Enger and staff reductions (affecting 75 employees) at the Enger location in April of last year. 'In 2013 we made some significant investments in production facilities and equipment at all four sites in Germany,' commented ALNO AG COO Manfred Scholz. 'This not only ensures maximum flexibility and security for the future, but also reduces material costs and improves cost structures overall.' This is also reflected in another widening of gross profit margin to 44.5% in 2013 from 42.3% in 2012.

Strengthening sales

ALNO AG has invested further in internationalization, establishing an additional Chinese joint venture to position the WELLMANN brand's own kitchen studios in the Chinese market. Additional investments were made in the UK, Switzerland and United States as well, including a new showroom opened in Miami, Florida by ALNO USA and new kitchen studios in Switzerland. ALNO AG CSO Ralph Bestgen: 'We are making good progress with our internationalization strategy, as evident in our international sales – which include the Austrian market, served almost exclusively by a group of German distributors – were up by approximately 1.4 million euros (1.1%). International sales excluding Austria were up by 7.5 million euros (8%), while domestic sales declined in 2013.

 'The positive experience had at the Küchenmeile A30 trade fair last autumn proved to be no accident, as we saw customers coming back to ALNO in the first months of the year,' commented Bestgen. 'We are optimistic about the year ahead in view of how sales were up by the end of the year following a significant trend reversal for the WELLMANN and ALNO brands, and we held a 14% market share in Germany. At the end of February this figure was up to 15%.' This was seen in the first quarter of 2014 as well. In March order volume was 10% higher versus the same quarter last year.

Improved financing structure

The bond offering floated in May 2013 with a total of 45.0 million euros plus 8.0 million euros in new factoring financing have improved our financing structure. Current liabilities thus fell as a percentage of total liabilities from 84.3% (2012) to 54.6% in 2013. Financial expenses declined by 2.9 million euros versus 2012. The 2013 financial result came in lower year-on-year at -8.4 million euros (2012: -2.1 million euros), the 2012 figures being affected by a debt waiver in the amount of 8.9 million euros. 'All in all we have made tremendous progress on several key issues: having balance between short and long-term debt and lowering financial expenses. Now we are putting the last piece of the financing concept in place – taking out new overdraft facilities and other financing options,' commented ALNO AG CFO Ipek Demirtas.

2014 Outlook – Positive Effects in Store

The Board of Management estimates 2014 sales to fall within a corridor of 580 - 600 million euros, due in part to positive impact from the AFG Küchen AG acquisition. Additionally there is potential for increasing sales volume in Switzerland through expansion of the product range into the premium and starter segments for the Piatti brand and internationalization of the Forster Swiss-made steel kitchens brand. The company will also generate profits from its established distribution network in Switzerland of 80 kitchen studios. Dependence on the highly competitive German market is set to be significantly reduced by growing the high-margin export business.

This will all enhance overall long-term profitability for the ALNO Group. The Board of Management estimates EBITDA of between 20 to 25 million euros for 2014. Estimates reflect one-off effects from the AFG Küchen AG acquisition. ALNO AG expects the projected economies of scale yielding 15 to 20 million euros in savings (full-year effect), realisable starting in 2015.

Purchase price allocation will also have a positive effect in financial year 2014, which are initially reflected in the consolidated financial statements dated 31 March 2014. These will significantly improve the balance sheet structure – particularly equity.

About ALNO AG:

ALNO AG is one of Germany's leading kitchen manufacturers, with a staff of around 2,300 employees. From its seven international production sites the corporation provides a full range of kitchens to the German market and international markets. In addition to the core ALNO brand the ALNO Group also owns the brands Wellmann, Impuls, Pino, Piatti and Forster Swiss-made steel kitchens. The ALNO Group sells in more than 64 countries worldwide through over 6,000 distribution partners. In financial year 2013 the company recorded sales revenue of 395 million euros. Around 33 per cent of revenue was generated abroad.


Jürgen Schulze-Ferebee
Head of Corporate Communications & Investor Relations

Heiligenbergerstrasse 47
88630 Pfullendorf, Germany
Phone: +49 / 75 52 / 21 – 33 16
Fax: +49 / 75 52 / 21 – 77 3316

Legal note:

This press release may contain particular forward-looking statements that are based on current assumptions and prognoses made by the corporate management of ALNO AG or its affiliated companies. Various known and unknown risks and uncertainties as well as other factors may lead to significant deviations in the actual results, financial position, development or performance of ALNO AG and its affiliated companies versus opinions and estimates provided here. Neither ALNO AG nor its affiliated companies assume any obligation to update such forward-looking statements or revise these in light of future events or developments.