Essanelle Hair Group AG presents third-quarter figures

Further growth in sales and earnings

Sales growth gaining in momentum

Düsseldorf, 17.11.2006 – In the third quarter of the current financial year, Essanelle Hair Group achieved further sales growth and succeeded in increasing its growth momentum. Following a growth rate of 1.9% in the first half of the year, third-quarter sales rose by 3.4% compared with the same quarter in the previous year. Sales in the first nine months showed overall growth of 2.4% to reach Euro 86.0 million, compared with Euro 84.0 million in the equivalent period in the previous year. The Group also achieved year-on-year improvements in all of its key earnings figures.

In terms of the individual salon concepts, sales at HairExpress rose by 10.9% from Euro 11.0 million to Euro 12.2 million. Super Cut also generated sales growth of 3.0% to Euro 13.9 million, compared with Euro 13.5 million in the previous year. The 12 salons operating under the newly introduced TOP TEN brand generated sales of Euro 1.2 million. Sales at essanelle – Ihr Friseur declined from Euro 52.7 million to Euro 51.7 million. The salons operated by Jürgen Tröndle generated sales of Euro 3.5 million, as against Euro 3.8 million in the previous year. The Beauty Hair Shops, which sell products exclusive to hairdressers, increased their sales by around 36.4% from Euro 2.2 million to Euro 3.0 million.

Key earnings figures for the first nine months also remain higher than the equivalent figures for the previous year. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 9.0% from Euro 6.9 million to Euro 7.5 million. Pre-tax earnings improved by 19.4% from Euro 3.1 million to Euro 3.7 million and net income for the first nine months rose by around 20.4% from Euro 1.8 million to Euro 2.2 million.

&#Our earnings for the first nine months are certainly respectable,” commented Uwe Grimminger, Chairman of the company’s Management Board. “We have reported sales and earnings growth and expect this trend to be reflected in the figures for the overall year. Strong Christmas sales should enable us to meet our targeted level of growth of 5% for the fourth quarter at least. This shows that we are basically following the right course in terms of our strategy. We will channel all of our energies into maintaining this course in 2007.”

Kontakt:
Haubrok Investor Relations
Michael Müller
+49-21 56-49 65 195
M.Mueller@haubrok.de