Westag & Getalit AG: Group sales revenues and earnings below prior year in H1 2017

Westag & Getalit AG: Group sales revenues and earnings below prior year in H1 2017

Westag & Getalit AG generated consolidated sales revenues of EUR 117.8 million in the first half of 2017. This means that revenues were down by a moderate -0.9% on the previous year (EUR 118.8 million), reflecting the decline in domestic business. Exports showed a positive trend during this period, with revenues in the Group's foreign markets rising by 4.7% to EUR 26.5 million (previous year: EUR 25.3 million). Consequently, the export share climbed from 21.3% to 22.5%.

This business performance translated into consolidated earnings before taxes of EUR 4.5 million, which was clearly below the previous year's EUR 5.4 million. Apart from the unsatisfactory trend in top line revenues, earnings were impacted by price increases for a wide variety of raw materials as well as higher budgets allocated to sales activities. As a result, net profit for the period declined to EUR 3.1 million (previous year: EUR 3.8 million). Net profit per share amounted to EUR 0.56 for the ordinary shares (previous year: EUR 0.67) and to EUR 0.62 for the preference shares (previous year: EUR 0.73).

Outlook
The Management Board is not satisfied with the business performance during the first half of 2017. Apart from the subdued sales revenues for the first six months, current trends in the commodities markets are one of the key factors in the Group's profitability. Specifically, Westag & Getalit AG is faced with clearly higher raw materials prices. The result for the full year 2017 will be determined in great measure by the company's ability to pass on these price increases by raising the prices of its own products.

The management is optimistic that the enhanced sales activities will have a positive impact on sales revenues during the remaining months of the financial year 2017. Against this background, the Management Board continues to assume that both divisions will achieve a slight increase in sales revenues for the full year. Taking into account the factors weighing on profitability as discussed above, consolidated earnings for the full year are expected to come in below the previous year's level.

Given that a Russian distribution company was established at the end of 2016, Westag & Getalit AG publishes its figures on a consolidated basis. The prior year figures have been adjusted accordingly.

The above release and further information on Westag & Getalit are available on the Internet at www.westag-getalit.com.

Additional information:
Westag & Getalit AG | Thomas Sudhoff
PR und Finanzkommunikation
Hellweg 15 | D-33378 Rheda-Wiedenbrück
Tel. +49 (0) 52 42 / 17-5176 | Fax +49 (0) 52 42 / 17-75176
sudhoff@westag-getalit.com | www.westag-getalit.com