burgbad Aktiengesellschaft
burgbad AG: Sales and operating earnings substantially higher than in previous year
burgbad Aktiengesellschaft / Quarter Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- - Strong growth in incoming orders - Positive outlook - New Supervisory Board members appointed Bad Fredeburg, 12 November 2008 – burgbad AG, Europe’s leading provider of premium segment bathroom furniture concepts, achieved further substantial growth in the first nine months of 2008 thanks to its innovative product portfolio and improved competitive position. The company boosted its sales revenues by 9.8% to EUR 61.7 million between January and September (9 months 2007: EUR 56.2 million). With sales growth of 8.9% to EUR 19.9 million, the third quarter also showed a pleasing performance (Q3 2007: EUR 18.3 million). As a result of its strong competitive position in Germany, burgbad posted sales growth of 11.0% to EUR 35.2 million in its domestic market between January and September (9 months 2007: EUR 31.7 million). The company also achieved significant growth in its incoming orders, which rose by 11.5% to EUR 62.6 million in the first nine months (9 months 2007: EUR 56.2 million). Here as well, demand for burgbad products remained especially high in Germany, where incoming orders grew by 15.0%. Strong operating earnings growth burgbad increased its operating earnings (EBIT) by 25.6% to EUR 6.5 million in the first nine months of 2008 (9 months 2007: EUR 5.2 million). Notwithstanding considerably higher material and personnel expenses, the EBIT margin rose from 9.2% to 10.5%. Costs of materials grew disproportionately to EUR 18.6 million (9 months 2007: EUR 16.4 million), while personnel expenses rose from EUR 21.5 million to EUR 23.3 million. The repayment of financial liabilities in connection with bank loans in previous years even enabled burgbad to post slightly positive net financial expenses in the 3rd quarter. Overall, EBT for the months January to September rose by 25.6% from EUR 5.1 million in 2007 to EUR 6.5 million. Due to a one-off, non-cash tax charge of EUR 1.6 million resulting from the reassessment of tax loss carryovers in the context of the transfer of the majority shareholding in burgbad AG, however, the net income for the first nine months of 2008 dropped to EUR 3.0 million (9 months 2007: EUR 4.3 million). Earnings per share therefore amounted to EUR 0.86 (9 months 2007: EUR 1.23). D&O changes In the third quarter, Arnsberg District Court approved the petition filed by the Management Board of burgbad AG and appointed Dr. Erdal Karamercan (58), Hüsamettin Onanc (52), Levent Avni Ersalman (48) and Haluk Bayraktar (39) as members of the Supervisory Board to succeed the retiring members. As previously, Wolfram Wenzel and Dr. Stephan Göckeler continue to sit on the board. Dieter Ruddies, founder of burgbad AG, will continue to contribute his longstanding, in-depth knowledge of the sector as an honorary member of the Supervisory Board. The election of the new Chairman of the Supervisory Board, Dr. Erdal Karamercan, and the Deputy Chairman, Hüsamettin Onanc, took place on 28/30 October 2008. Change of control In the context of the change of control and following the expiry of the final acceptance deadline on 21 August 2008, the Eczacibasi Group held a total of 3,184,234 burgbad shares. This corresponds to around 90.46% of the share capital and voting rights in burgbad AG. Through its links to the Eczacibasi Group, a global player, burgbad AG will be able to expand its leading market position considerably faster and to advance into new international markets and address new target groups. Ongoing positive outlook In view of the continuing high volume of incoming orders during the period under report, the Management Board has confirmed its forecast for 2008 and expects to see growth in both sales and earnings before taxes for the financial year as a whole. Earnings after taxes will be affected by the one-off, non-cash tax charge. For the coming year, the Management Board is also confident that burgbad’s strong market position and innovative product portfolio will enable the company to outperform its sector. The Management Board Haubrok Investor Relations GmbH Kaistr. 16 40221 Düsseldorf Telefon +49 (0) 211-301260 Fax +49 (0) 211-30126172 m.kempkes@haubrok.de 12.11.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: burgbad Aktiengesellschaft Kirchplatz 10 57392 Schmallenberg Deutschland Phone: +49 (0) 2974.9617-0 Fax: +49 (0) 2974.9617-277 E-mail: info@burgbad.de Internet: www.burgbad.de ISIN: DE000A0EKLW0 WKN: A0EKLW Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf; Freiverkehr in Berlin, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
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