Deutsche Beteiligungs AG: Further earnings growth
Consolidated net income of 40.1 million euros after first nine months
Frankfurt am Main, 14 September 2012. Deutsche Beteiligungs AG (DBAG) achieved a consolidated net income of 40.1 million euros in the first nine months of the 2011/2012 financial year (1 November to 31 October), of which 12.3 million euros are attributable to the third quarter (31 July 2012). Net asset value rose to 19.58 euros per share. Including the dividend of 0.80 euros per share paid in March 2012, this equates to an increase of 2.91 euros per share over the opening net asset value at the onset of the financial year. The gain of 2.91 euros per share represents a return on net asset value of 17.5 percent. For the nine-month period of 2010/2011, Deutsche Beteiligungs AG posted consolidated net income of 9.7 million euros and a rise in net asset value per share of 3.7 percent. DBAG regularly calls attention to the fact that individual quarterly results are of limited significance for a conclusive assessment of the Company’s performance, due to the long-term nature of its business and the erratic swings of external influential factors, such as valuation ratios in the stock markets; this holds particularly true for comparisons of individual quarters.
Apart from DBAG’s most recent acquisitions, which are currently still valued at cost, nearly all the portfolio companies contributed positively towards the nine-months result, and it is increasingly apparent that 2012 budgets will be met. Most companies have budgeted higher earnings and reduced debt for the year. Up to the end of the reporting period on 31 July, nearly one-fourth of the net result of valuation and disposal for the nine-month period was attributable to the price movement of shares in Homag Group AG, the largest investment in DBAG’s portfolio. The stock market trend also had a favourable influence on the value of DBAG’s other investments, although only to a minor extent.
“These very satisfactory results for the nine-month period are proof of the excellent progress our portfolio companies made,” said Wilken von Hodenberg, Spokesman of the Board of Management of DBAG, commenting on the quarterly report. “The 17.5 percent return on net asset value contributed towards maintaining a long-term average return of more than 15 percent over the last 15-year period.”
In its interim report, however, DBAG has pointed out that there have been increasing reports of a slowdown in business dynamism in major European economies as well as in Asian growth regions. “It seems that currently major positive impulses resulting from the economic trend are not to be expected. In light of the economic slowdown, growth in revenues and earnings will probably remain restrained for the time being. That limits the potential for value appreciation and, consequently, the probability of further augmenting DBAG’s net income in the coming months over and above the very satisfactory level reached to date,” the report states. The Board of Management assumes that DBAG will pay a dividend for financial year 2011/2012 in line with the Company’s dividend policy.