ALNO AG: EBIT raised in the first nine months of 2010
ALNO AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
19.11.2010 11:50
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Group interim announcement pursuant to § 37 x of the German Securities
Trading Act (WpHG) for ALNO AG for the third quarter
of 2010
November 19, 2010
ALNO AG: EBIT raised in the first nine months of 2010
- Structural revenue adjustment to EUR 344.7 million
- EBIT improved from EUR -1.5 million to EUR 0.7 million
Important events during the reporting period
During the first nine months of 2010, the ALNO Group's business was
characterized by the progressing implementation of the 'ALNO 2013' future
concept. The most important events during the third quarter included the
area-wide introduction across Germany of the IMPULS brand's 10-day kitchen
product range. After the successful realization of a six-month pilot
operation with selected customers, the so-called rapid delivery kitchen has
been available across the whole of Germany as a standard product since
September 26, 2010. This has allowed the ALNO Group to respond to changes
in customer requirements, and to significantly improve service for its
clients. Comparable delivery times in the sector currently range between
three and five weeks.
The new WELLMANN product range was launched on the market in September 2010
at the company's own in-house trade fair ('ALNO Design Tour'). It is
differentiated from its predecessor product range by its new construction,
and a vertical grid based on the ALNO brand construction platform. The
vertical grid offers an orderly and optically appealing joint alignment.
For wholesalers and retailers, the adapted cupboard/vertical grid also
offers the advantage that the kitchen is easier to plan. A modernized ALNO
product range was also presented at the 'ALNO Design Tour', allowing
expertise in glass kitchens for the premium segment to be deepened further.
The new WELLMANN product range, which was presented as part of the
'Küchenmeile A 30' on the ALNO Design Tour, forms the basis for a licensing
agreement that was concluded in September with ESPRIT INTERNATIONAL Ltd.
('ESPRIT'). As a consequence, ALNO AG ranks as a licensing partner of
ESPRIT, and exclusive partner for the kitchens area. The agreement makes
provision for the marketing of kitchens with ESPRIT-specific product
attributes under the name 'ESPRIT home' kitchens on the basis of the
WELLMANN kitchens brand. The first kitchen of this type will be presented
in January 2011 at the 'Living Kitchen' International Kitchen Show in
Cologne. It should then be available from March 2011 in kitchen stores with
high-quality kitchen furnishings, as well as at kitchen specialists.
The ALNO Group reported an 80 percent year-on-year increase in show kitchen
placings at its in-house trade fair. A program shift towards higher quality
products and more attractive price groups was also achieved with all four
Group brands. As a consequence, the trade fair represents an outstanding
overall signal that the aim has been achieved of repositioning ALNO and
WELLMANN in line with their target groups.
A survey entitled 'ALNO Strategy Check', which was conducted in August
across the whole of Germany by the Düsseldorf-based sector information
service 'markt intern' (specialist furniture trading), also shows that the
measures implemented as part of 'ALNO 2013' are already taking effect. In
overall terms, 77.1 percent of survey participants assessed the
restructuring strategy positively, with 45.7 percent regarding the process
as good, and 31.4 percent appraising it as very good. The new strategy was
also felt to be put into daily living practice at ALNO by 52.9 percent of
the respondents.
Moreover, ALNO achieved an important sales success in China in September.
There, the company received a further major order to equip a residential
estate in Shanghai with a total of 631 kitchens from the classic ALNOTERM
program. This order should be shipped by December 2010.
As part of the 'ALNO 2013' future concept, the ALNO Group's foreign
subsidiaries will be converted into pure sales units, and partially
liquidated. After a resolution was passed in the first half of 2010 to
close five of foreign subsidiaries, the subsidiaries ALNO AUSTRIA
Möbelvertriebsgesellschaft m.b.H., Wiener Neudorf/Austria, ALNO NEDERLAND
B.V., Dongen/Netherlands and ALNO IBERICA S.A., Madrid/Spain were
liquidated on July 28, 2010. Liquidation procedure was commenced at the
subsidiary ALNO ITALIA s.r.l., Florence/Italy.
Profitability trends
With a 4.7 percent year-on-year revenue decline, the positive trends of
three of the total of four Group brands - WELLMANN, IMPULS und PINO -
continued during the nine-month period. Solely the ALNO brand reported
falling revenues. This decline at ALNO was particularly due to the specific
decision to refrain from entering into low-margin revenues as part of 'ALNO
2013'.' This allowed sales quality per cabinet to be raised further during
the third quarter, however, and a few strategically important major
customers to be re-acquired.
Consolidated revenue amounted to EUR 344.7 million during the first nine
months of 2010, representing a 4.7 percent decline compared with EUR 361.6
million in the previous year. This was mainly due to the export business,
particularly as a consequence of the ongoing real estate crisis in Southern
Europe and the United Kingdom. By way of repositioning and product range
streamlining, the management also consciously refrained from entering into
low-margin revenues, in order to boost profitability. This effect was also
still evident in the third quarter since agreements on higher prices that
have been entered into accordingly with important major customers did not
take effect until August.
EBITDA fell from EUR 11.0 million in the previous year to EUR 9.8 million.
Scheduled amortization/depreciation was down from EUR 12.5 million to EUR
9.2 million thanks to the special write-down performed in the 2009 annual
financial statements, which will also continue to result in lower scheduled
amortization/depreciation in the coming years. EBIT was raised from EUR
-1.5 million in the previous year to currently EUR 0.7 million thanks to
lower other sales expenses.
Development of financial and net asset positions
As part of the 'ALNO 2013' future concept, the factoring financing granted
to Impuls Küchen GmbH and pino Küchen GmbH in March 2010 was raised from
EUR 15.0 million to EUR 20.0 million.
Following the end of the period under review, a resolution was passed on
November 3, 2010 to postpone the capital increase that was started on
October 20, 2010 for the time being. With this decision, the Managing and
Supervisory boards wish to facilitate the opportunity for two potential
investors, which are significant for the company in the boards' view, to
participate in the capital increase. These investors had expressed their
interest, but were unable to subscribe for new shares in the company within
the public offering period due to internal processes. The postponement of
the capital increase takes into account the contents of the reorganization
agreement with the financing partners, as well as the prescribed timeframe
(until the end of April 2011), and the liquidity forecasts that have been
issued to date.
Market environment
Following the deep economic crisis, a significant recovery in the economic
environment during the first nine months of 2010 characterized all markets
that are relevant to ALNO, particularly Germany. For the full year, the
International Monetary Fund (IMF) is forecasting that Germany's economic
output will grow by 3.3 percent year-on-year in 2010, and by 2.0 percent in
2011. Following the sharp plunge in 2009, the IMF now anticipates growth of
1.7 percent for 2010 for the Eurozone. At the same time, its experts are
now expecting global GDP growth of 4.8 percent for this year, and 4.2
percent next year.
As far as consumers' spending and investment behavior is concerned, trends
in labor market data, building investments, and consumer prices are of
central significance in the kitchen sector. While inflation remains at a
low level, labor market data have already improved significantly over the
course of the year to date. European construction investment figures still
fail to indicate a sustainable positive trend, by contrast. Homes that have
been newly moved into, or built, particularly owner-occupier houses and
apartments, are regarded as the relevant indicator for the kitchen market,
since these generally also entail the purchase of new kitchens.
Kitchen market
Germany is Europe's largest kitchen furniture market, with respect to both
kitchens sold and production output. In the first eight months of 2010, the
German Kitchen Furniture Industry Association (VdDK) observed a slight
increase in the sales of German kitchen furniture manufacturers of 0.2
percent compared with the corresponding prior-year period. The export
business reported growth of 1.6 percent over the same period. From ALNO's
perspective, the Spanish and UK markets nevertheless remain characterized
by major consumer spending weakness, and the effects of the recession and
real estate crisis.
Pfullendorf, November 19, 2010
ALNO Aktiengesellschaft
The Managing Board
Contact:
ALNO AG
Andrea Wolf
Corporate Communications & Investor Relations Director
Telephone: +49 (0)211-159785-3316
Fax: +49 (0)211-159785-773316
E-mail: andrea.wolf@alno.de
19.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ALNO AG
Airport Office I, Peter-Müller-Straße 14/14a
40468 Düsseldorf
Deutschland
Internet: www.alno.de
End of Announcement DGAP News-Service
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