Deutsche Euroshop Newsroom

Corporate News

20.04.2006

Deutsche EuroShop: Group with all-time record in FY 2005

  • Revenue: Euro 72.1 million (+17%), EBIT: Euro 57.5 million (+16%)
  • Profit: Euro 48.7 million (+76%)
  • Tax-free dividend increased to Euro 2.00 Euro per share (+4%)
  • Net Asset Value per share: Euro 46.22 Euro (+5%)
  • Forecast 2006: Further increase of revenue and net profit of more than 20%
  • Disposal of the center Shopping Etrembières

 

Deutsche EuroShop AG today looked back on the best financial year in its existence and disclosed the results for FY 2005 on its annual earnings press and analysts' conference in Hamburg.

 

Consolidated revenue up by 17.4%

Consolidated revenue was up by 17.4% from Euro 61.4 million to Euro 72.1 million in financial year 2005. This development is mainly attributable to the newly opened shopping centers. The Pécs Árkád in Hungary and the Phoenix-Center Hamburg were opened during 2004 and thus made a contribution to Group revenue during the whole of the year under review. Forum Wetzlar, which opened in February 2005, generated revenue for the first time.

 

Vacancy rate remained under 1%

As in the previous year, the vacancy rate was under 1%. The need for write-downs for rent losses was, at around Euro 0.2 million or 0.3% of revenue, at a level which impressively confirms the quality of center management.

 

Net finance costs increase due to investments

Net finance costs increased by Euro 5.8 million to Euro -26.4 million. Firstly, interest income declined substantially by around Euro 0.4 million to Euro 2.2 million due to increased investment activity and the resulting reduction in cash funds. Secondly, interest expenses from the recognition of the borrowing costs for our newly opened properties rose by Euro 5.6 million to Euro 33.6 million. Income from investments was Euro 0.2 million above the previous year’s income because the Polish investee in Wroclaw distributed more income than in the preceding year.

 

Gains on measurements rose to Euro 49.9 million

Gains on fair value adjustments rose year-on-year by Euro 41.9 million from Euro 8.0 million to Euro 49.9 million. The newly opened centers in Hamburg and Wetzlar were recognised at their market values for the first time. This made possible the recognition of measurement gains amounting to Euro 33.8 million. The revaluation of existing properties also led to materially higher Group income. These properties recorded increases in value of Euro 25.2 million. Only one German property was written down by Euro 6.6 million. The expenses of Euro 2.5 million associated with investment in these properties incurred in the year under review are deducted from this amount.

 

Profit increased by 76%

In the year under review, earnings before income and taxes (EBIT) increased by 15.6% from Euro 49.8 million to Euro 57.5 million, while EBT (profit before taxes) grew by 117.6% from Euro 37.3 million to Euro 81,1 million. After deducting income taxes amounting to Euro 19.3 million and other taxes amounting to Euro 0.1 million, consolidated net profit reached Euro 61.7 million (previous year: Euro 26.4 million). Of this, Euro 48.7 million (previous year: Euro 27.7 million) is attributable to Group shareholders. This comes up to an increase of 76%.

 

Earnings per share increased

Earnings per share (undiluted) amounted to Euro 3.09 compared with Euro 1.78 in the previous year. Of this amount, Euro 1.24 per share (2004: Euro 1.32) is attributable to operations (-6%) and Euro 1.85 (2004: Euro 0.46) to gains on measurements of financial instruments and properties (+302%). The reduction in operating profit is explained by the one-time disposal and exchange rate gains generated in the previous year.

 

Dividend proposal: Euro 2.00 per share

The Executive and Supervisory Boards will propose to the shareholders at the Annual General Meeting on 22 June 2006 in Hamburg that a tax-free dividend of Euro 2.00 per share be distributed for financial year 2005.

 

Net asset value rises

Based on the consolidated financial statements, the Group’s net asset value as at 31 December 2005 was Euro 794.5 million (Euro 46.22 per share) compared with Euro 686.8 million (Euro 43.96 per share) in the previous year (+5%).

 

Forecast

Revenue increase of 26 to 30% anticipated

Deutsche EuroShop anticipates revenue of between Euro 91 and Euro 94 million in financial year 2006 (2005: Euro 72.1 million).

 

Further improvement in EBIT and EBT planned

In the case of earnings before interest and taxes (EBIT), an increase to Euro 72 to Euro 75 million compared with Euro 57.5 million in 2005 is expected, and for financial year 2007 a further rise to Euro 75 to Euro 78 million is anticipated. Profit before taxes (EBT without gains/losses on measurements) is expected to reach Euro 37 - Euro 40 million in financial year 2006 and Euro 40 to Euro 43 million in financial year 2007. By way of comparison: 2005 EBT was Euro 31.2 million.

 

Shopping center in France sold

Deutsche EuroShop has sold its center Shopping Etrembières in Annemasse to French investors in mid-April 2006 on the basis of a share deal. From this transaction the Company expects a additional contribution to its net profit of a least Euro 3.5 million in the second quarter.

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Thursday, 20 April 2006, at 05:00 p.m. CET live on the Internet. The webcast can be accessed at the Company's website at http://www.deutsche-euroshop.com/ir.

 

Key Data of Deutsche EuroShop (IFRS)

 

in Euro million

 

2005

2004

+/-

Revenue

72.1

 

61.4

17%

Income from investments

5.0

 

4.8

4%

Net interest expense

-31.4

 

-25.3

24%

EBIT

57.5

49.8

 

16%

EBT

81.1

37.3

 

118%

Share of consolidated profit attributable to Group shareholders

 

 

48.7

 

27.7

 

76%

Earnings per share (Euro)1)

 

3.09

1.78

74%

Equity

 

787.4

684.4

15%

Liabilities

 

677.1

612.6

11%

Total assets

1.543.6

 

1.370.2

13%

Equity ratio (%)

 

51.0

49.9

 

Gearing (%)

 

96

100

 

Net asset value

794.5

 

686.8

16%

Net asset value per share (Euro)

46.22

 

43.96

5%

Number of shares

 

17,187,499 

15,625,000

 

Cash and cash equivalents

 

197.2

150.3

31%

Dividend per share (Euro)

 

2.00 2) 

1.92

4%

 

1) undiluted 2) proposal

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