ANNUAL REPORT 2011 A.S. CRÉATION TAPETEN AG

with effect from March 1, 2011. In spite
of these measures, the gross profit margin
(quotient of gross profit and total output)
declined by 2.7 percentage points from
48.5% in the previous year to 45.8% in
2011. In relation to the increased total
output of € 193.5 million, the decline in
the margin means that € 5.2 million less
in earnings was available to cover other
expenses. The comparison with earnings
before interest and taxes of € 9.6 million
illustrates the strong negative impact of
the increased commodity and energy prices
on the company’s bottom line.
• Increased personnel expenses
As explained under “Employees”, staff
productivity did not improve materially in
the fiscal year 2011 due to the increase
in the company’s headcount. Sales per
employee amounted to € 0.242 million
in the fiscal year, compared to € 0.239 in
the previous year. Accordingly, A.S. Création
was unable to offset the collective pay
rise; as a result, personnel expenses as a
percentage of total output deteriorated
moderately from 21.1% in the previous
year to 21.3% in 2011.
• Adverse trend in other operating
expenses
The increased utilisation of the company’s
production capacity led to an improved
cost situation, as the fixed costs were spread
over a higher total output. However, this
contrasted with higher marketing and
sales costs and increased expenses in
conjunction with the first-time deliveries
to the new DIY customers. Moreover,
higher freight rates and a trend towards
customers ordering smaller quantities per
order led to a disproportionate increase
in transport costs. As a result, other
operating expenses as a percentage of total
output deteriorated from the previous
year’s 14.6% to 14.8%.
As the rise in commodity and energy prices in
2011 could not be offset by increases in the
company’s own prices and internal productivity
improvements, earnings before interest and
taxes declined, as mentioned above, by 33.0%
from € 14.3 million in the previous year to
€ 9.6 million in 2011.
The financial result also had an adverse impact
on the bottom line and deteriorated from
€ -2.0 million in the previous year to € -2.3
million in 2011. As in the previous year, the
discount factor used for the actuarial calculation
of the pension provisions had to be adjusted
to reflect the developments in the capital
market and was reduced from 4.9% to 4.6%.
This led to an actuarial increase in pension provisions
by € 0.3 million, which was recognised
as interest expense. In the fiscal year 2010, the
GROUP MANAGEMENT REPORT
43