DGAP-Ad hoc: Westag & Getalit AG (St.)
DGAP-Ad-hoc: Westag & Getalit AG / Key word(s): Final Results/Dividend
In the fiscal year 2017, Westag & Getalit AG generated consolidated sales revenues of EUR 234.4 million (previous year: EUR 233.0 million). The Group was thus able to achieve a moderate year-on-year increase in revenues thanks to a pick-up in business in the fourth quarter of 2017. This is attributable to the 8.8% rise in export revenues to EUR 54.6 million (previous year: EUR 50.2 million) and reflects the company's intensified sales efforts in markets outside Germany. The export share climbed from 21.5% to 23.3%.
Consolidated earnings before taxes amounted to EUR 9.1 million in the past fiscal year (previous year: EUR 10.5 million). Apart from an increase in various expense types, one-time effects also sent earnings falling below the prior year level. These included, for instance, the comprehensive reorganisation of the range of decorative products for interior construction, which initially had an adverse impact on profitability. Moreover, the expenses resulting from the discontinuation of the business activity of the Russian distribution company and the operating loss posted by this entity were fully recognised in the consolidated financial statements for 2017. The increase in various expense types primarily related to the cost of materials as well as to maintenance and advertising expenses. Consolidated net profit moved in line with earnings before taxes and reached EUR 6.5 million (previous year: EUR 7.6 million). Earnings per share amounted to EUR 1.25 per preference share (previous year: EUR 1.44) and to EUR 1.19 per ordinary share (previous year: EUR 1.38).
At today's Supervisory Board meeting, the financial statements of Westag & Getalit AG for the fiscal year 2017 were adopted, the consolidated financial statements were approved and the previously published preliminary figures were confirmed. The Management Board and the Supervisory Board will propose a dividend of EUR 0.80 per preference share and of EUR 0.74 per ordinary share to the Annual General Meeting on June 26, 2018. This is equivalent to a dividend yield of approx. 3.5% in terms of the year-end prices.
Based on the forecasts for the German construction sector, which mainly influences the business of the Doors/Frames Division, the Management Board generally expects a positive market environment for 2018. This optimistic assumption is also based on the ongoing expansion of the distribution activities in the Surfaces/Elements Division. Developments in the increasingly important export markets will again be subject to uncertainties in 2018. In particular, the economic trend in European neighbouring countries will be influenced by the ECB's continued low-interest policy and the consequences of Brexit. Against this background, it is difficult to issue an exact forecast for business outside Germany. On balance, however, the fact that the product portfolios are precisely tailored to the individual markets makes the Management Board optimistic that the company will be able to further expand its export activities assuming a benign economic environment.
The negative earnings trend in 2017 was primarily influenced by one-time effects. In view of the strategic measures already initiated and positive industry forecasts, management is optimistic about the future. Based on continued good construction activity and the sales efforts undertaken in both product segments, the Management Board projects moderately rising revenues for 2018. Although the main expense items will continue to increase, management aims for a better result in 2018. This presupposes, however, that the company will be able to offset cost increases by raising its own prices and increasing its sales volumes.
The above release and further information on Westag & Getalit are available on the Internet at www.westag-getalit.com.
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Tel.: +49 5242 / 17-5176
22-March-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Westag & Getalit AG|
|Phone:||+49 (0)5242 17 - 0|
|Fax:||+49 (0)5242 17 - 5603|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
667347 22-March-2018 CET/CEST