Special effects boost ALNO in the 2014 financial year – programme for improving the operating result gets off to a good start

Pfullendorf, 31 March 2015 – In financial 2014, ALNO AG achieved sales revenues of 545.8 million euros (previous year: 395.1 million euros), a figure which is below the originally forecast 580 to 600 million euros. Thanks to the positive effects from the purchase price allocation in the takeover of AFP Küchen AG, EBITDA was 40 million euros above the already upgraded forecast by the Board of Management ('up to 38 million euros'), and significantly topped the previous year's amount (6.7 million euros). EBIT improved as well as a result, rising from 2.4 million euros (2013) to 6.2 million euros (2014). Consolidated net income after taxes on revenues was - 4.1 million euros (2013: -9.5 million euros). These figures are taken from the consolidated and individual annual financial statements 2014, published by ALNO AG on this day.

The significantly positive trend in the EBITDA is almost exclusively attributable to special effects from the takeover the Swiss company, AFP Küchen AG, in the first quarter of 2014. The reason why sales revenues did not develop in line with the forecast is primarily due to the German kitchen market which lagged behind expected performance. At the start of 2014, significant orders were still being placed in the German kitchen furniture sector; however, the level of orders tailed off again significantly towards the end of the year.

Overall, the business in Germany performed much less strongly than that abroad. By the end of 2014, domestic orders received by the German kitchen industry had only increased by +1.1%, whereas the international business recorded a +5.6 percent rise in orders.

Growth in domestic market share

In spite of this, the ALNO Group was able to increase its market share (in terms of sales revenue) from 13.2 percent to 14.6 percent in 2014, according to information from the GfK consumer research association. This means ALNO has retained its 2nd place in Germany.

Not least thanks to the takeover of AFP, ALNO AG also succeeded in pushing ahead with its international development, above all in the key markets of the UK, Switzerland and the USA. The export share of sales revenues developed by a correspondingly positive extent in the past financial year. It had increased to 52
percent by the end of 2014.

Reorientation is progressing

'The 2014 financial year was a bit of a curate's egg for us,' said Max Müller, CEO of ALNO AG. 'On the one hand, we generated significant one-off effects from the takeover of AFP and we have secured a highly lucrative slice of foreign business for ourselves, with sustainable profit margins. On the other hand, we are unhappy with our operating result. As a result, we acted promptly in 2014 to introduce measures to counteract this situation,' continued Müller.

These will focus on the reorientation of the Group, which has already got underway. The key elements involve making production throughout Germany more flexible, centralising administrative units as well as optimising the brand and product portfolio. Several project groups are currently working intensively to prepare for the planned gradual implementation of these measures. The objective is to make the Group more straightforward, faster and leaner in its dealings with customers, so that we can grow together. As a result, the ALNO Group should be made profitable in the long term.

Positive initial signs

'We are convinced that we will achieve significant improvements in the ongoing 2015 financial year. We have set the course and the initial signs are positive, even though there is still a lot of spade work to get through,' said Max Müller.

In January 2015, we started a joint venture in Russia with the Pervaya Mebel'naya Fabrica (1mf) – a very successful and profitable operator in the Russian market with sales revenues of about 30 million euros in 2014. This, together with the new anchor shareholder of ALNO AG, Nature Home Holding Company, which is quoted on the Hong Kong Stock Exchange, has improved the business and capital situation of the kitchen manufacturer. Max Müller: 'These steps show what potential is waiting to be tapped in our company. Above all, however, they indicate the level of confidence our partners place in us.'

The detailed annual report for 2014 will be published by mid-April.