2011 annual report - ALNO

36SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Economic reportVIII. Results of operations, net assets andliquidityGeneral development of businessThe income statement for the ALNO Group (according toInternational Financial Reporting Standards) is based onthe nature of expense method.The ALNO Group's negative result in the period underreview was attributable to several factors. In addition tofeeble export business, the introduction of a new Wellmannrange in the Enger plant, an inappropriate pricepolicy launched in 2010 and higher prices for productionmaterial, as well as higher transport costs all contributedto the negative result in the financial year 2011. While salesdeclined in relation to the previous year, Pino was the onlyone of the four Group brands to generate higher sales.Sales and earningsConsolidated revenues totalled EUR 452.8 million in thefinancial year 2011, a drop of 3.1% over the previousyear's total of EUR 467.3 million.Domestic revenue fell 2.5% to EUR 326.4 million. Thisdecline in sales was due, on the one hand, to initial problemsassociated with parallel production of the old andnew Wellmann ranges which, however, have now beensolved. At the same time, an inappropriate price policylaunched in 2010 likewise resulted in lower sales andconsequently to a decline in gross profit.As in the previous year, the development of sales wasalso burdened by export business in 2011. This effectwas intensified by the scheduled liquidation of five foreignsubsidiaries in the previous year and their conversion tomarketing entities. As a result of their temporarily reducedmarketing activity, sales generated outside Germany fellby 4.7% to EUR 126.4 million. The export quota as awhole consequently declined from 28.4% to 27.9%.The following table sets out the key figures for the years2009 to 2011 in relation to the fields of business to becontinued.in '000 EUR 2011 2010 2009Sales revenue 452,810 467,297 493,373Changes in inventories and capitalized goods and services for own account 882 –1,993 –3,724Cost of materials 286,398 271,907 278,654Gross profit 167,294 193,397 210,995Gross profit margin (in % of sales revenue) 36.9 % 41.4 % 42.8 %Other operating income 6,270 7,062 6,460Personnel expenses 98,529 97,900 98,539Other operating expenses 94,169 92,611 102,950Income from reorganization (previous year's expense) –24,338 8,962 –1,306EBITDA 5,204 986 17,272Write-downs 15,902 12,104 40,186Operating result (EBIT) –10,698 –11,118 –22,914Financial result –14,518 –1,060 –16,287Profit/loss before income taxes (EBT) –25,216 –12,178 –39,201