DGAP-News: Wolford AG: Sales and earnings in 2012/13 financial year
(firmenpresse) - DGAP-News: Wolford AG / Key word(s): Final Results
Wolford AG: Sales and earnings in 2012/13 financial year
19.07.2013 / 07:59
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Press Information
Sales and earnings in the 2012/13 financial year
Wolford Announces Final Results for the 2012/13 Financial Year
- Preliminary results published on June 14, 2013 confirmed
- Sales up 1.6% to EUR 156.47 million
- EBITDA and EBIT significantly below the prior-year level
- Clearly positive cash flow and consistently sound capital structure
- Continuation of international expansion, own retail stores generate
sales increase
- Sales growth and positive operating results targeted for 2013/14
Vienna/Bregenz, July 19, 2013. Wolford AG, a publicly listed company on the
Vienna Stock Exchange, announced its final results for the 2012/13
financial year today, confirming the preliminary figures published on June
14, 2013. In the past financial year (May 1, 2012 - April 30, 2013), the
company succeeded in increasing sales by 1.6% or EUR 2.40 million to EUR
156.47 million. EBITDA at EUR 7.90 million was significantly below the
comparable prior-year level (2011/12: EUR 15.18 million), whereas EBIT
totaled EUR -0.91 million (2011/12: EUR 6.86 million). In spite of this
earnings decline, Wolford generated a positive operating cash flow of EUR
6.31 million and raised its free cash flow to EUR 0.48 million, and
continues to boast a consistently sound balance sheet structure featuring
an equity ratio of 55%. The company is striving to achieve sales growth as
well as positive operating results again in the current 2013/14 financial
year.
Growth in Wolford's own retail business, decline with trading partners
While Wolford's own retail stores generated considerable sales growth of
6%, its wholesale business with trading partners reported a decline of 5%.
Accordingly, the overall rise in sales could not fully compensate for the
increased costs, including the expenses incurred by the expansion of
international distribution. Due to the earnings development, the Management
Board will propose to the Annual General Meeting scheduled for September
17, 2013 that the dividend payment will be suspended for the 2012/13
financial year in order to use the financial resources for investments in
growth areas. 'We managed to achieve satisfying sales increases in our own
retail business against the backdrop of a challenging business environment.
This shows that our long-term strategy focusing on our network of monobrand
stores including the expansion of international distribution is right. We
opened up a series of new boutiques both in our core markets as well as in
growth markets. In addition, we have already begun to strengthen our
wholesale business with new types of sales concepts', says Holger Dahmen,
Chief Executive Officer of Wolford AG, in commenting on the company's
business development.
Continuation of international expansion - controlled distribution generates
sales growth
As in past financial years, those points of sale which exclusively offer
Wolford products showed a particularly good development during the period
under review. Wolford-controlled distribution channels, i.e. own and
partner-operated boutiques, concession shop-in-shops, e-commerce and
factory outlets, succeeded in increasing sales by 5% overall, raising their
share of total Group sales to 67% (2011/12: 65%).
Wolford's own retail stores (own boutiques, concession shop-in-shops,
e-commerce and factory outlets) registered a 6% rise in sales in the
2012/13 financial year. In particular, the online business developed very
well, posting sales growth of 47%. Accordingly, the share of total sales
generated by the retail business rose to 58% (2011/12: 55%). In part, this
growth was due to the expansion of Wolford's own distribution network in
the past financial year. However, a satisfying sales growth of 2% was also
achieved on a like-for-like basis.
Sales growth in economically challenging core markets
The 2012/13 financial year in most of Wolford's core markets was
characterized by a weak economic situation and ongoing uncertainty on the
part of consumers. In Wolford's core European market (share of Group sales
in 2012/13 excl. Russia: 76%), the reluctance to purchase on the part of
consumers had a considerable impact on sales, especially in Southern
Europe. In addition, the unusually long and tough winter in 2013 also
adversely influenced demand in the entire industry, which was particularly
perceptible in the fourth quarter of the financial year. These factors
combined to have a dampening effect on the sales and earnings development
of the Wolford Group.
EBITDA and EBIT below the prior-year level
EBITDA at EUR 7.90 million in the past financial year was significantly
below the comparable prior-year performance (2011/12: EUR 15.18 million),
and EBIT totaled EUR -0.91 million (2011/12: EUR 6.86 million). In spite of
the improved financial result and a lower income tax burden, the
consolidated financial statements for 2012/13 show earnings after tax of
EUR -2.76 million (2011/12: EUR 1.26 million).
'In the short term we were simply not able to generate the level of sales
growth required in order to compensate for the higher costs', says Thomas
Melzer, Chief Financial Officer of Wolford AG in commenting on the business
results presented today. 'In particular, the start-up costs to prepare
Wolford's market entry in Greater China, increased rental costs for the
company's own retail stores, higher advertising expenditures to strengthen
the brand as well as inventory write-downs and consulting fees focusing on
the reorientation of the wholesale business were responsible for the
decline in earnings', he adds. Moreover, the evaluation of last year's
audit also reduced earnings. Furthermore, it was decided to close
loss-making stores in Europe and the USA, shut down external storage
facilities and dispose of old merchandise, resulting in non-recurring
expenses of EUR 1.52 million.
Clearly positive operating cash flow and consistently sound capital
structure
The optimization of working capital, especially inventories, enabled
Wolford to generate a clearly positive operating cash flow of EUR 6.31
million in the 2012/13 financial year (2011/12: EUR 7.27 million) and to
generate a free cash flow of EUR 0.48 million, an improvement from the
previous year (2011/12: EUR 0.37 million). Total equity of the Wolford
Group at the balance sheet date of April 30, 2013 amounted to EUR 78.15
million (April 30, 2012: EUR 83.77 million). This comprises an extremely
solid equity ratio of 55% (April 30, 2012: 58%). The gearing ratio reached
a level of 20% (April 30, 2012: 17%). 'From today's perspective, Wolford
has the necessary financial resources to be able to implement the planned
steps in product development, to further strengthen our brand and expand
our international distribution', Thomas Melzer affirms.
Outlook
Wolford will also further expand its global store network in the future.
The opening of new Wolford-owned and partner-operated boutiques to
strengthen the company's controlled distribution is planned along with the
intensified cooperation with trade partners. Required investments should
promote growth in the retail segment, and new concepts are designed to lead
to increased sales also in the wholesale business. In addition, special
attention will be paid to the online business activities of the Wolford
Group. All in all, the objective is to further strengthen the international
presence of the Wolford brand. In addition to concentrating on its core
European markets as well as North America, the Wolford Group plans to
extend its store network in the future especially in growth markets, mainly
in Greater China and the Gulf Region. 'Although the external business
environment is not ideal in many European markets at the present time, I am
convinced that in the long term we will be able to successfully continue
the path we have chosen to pursue. Wolford is a strong brand with
potential. As the management we have the responsibility and the goal to
generate sustainably profitable growth, and to achieve sales growth and
positive operating results again in the current financial year', concludes
CEO Holger Dahmen.
The Annual Report 2012/13 and Annual Financial Report 2012/13 are available
on the Internet at www.wolford.com under Investor Relations.
Contact:
Holger Dahmen (Chairman of the Management Board)
Thomas Melzer (Member of the Management Board)
investor(at)wolford.com
Wolford AG, Wolfordstrasse 1, A 6900 Bregenz
+43 (0) 5574 690-1268
+43 (0) 5574 690-1477
www.wolford.com
About Wolford AG
Wolford AG headquartered in Bregenz on Lake Constance (Austria) operates 16
subsidiaries and markets its Legwear, Ready-to-wear, Lingerie, Swimwear,
Accessories and Trading Goods product segments in about 70 countries via
more than 260 monobrand stores (own and partner-operated), approximately
3,000 trading partners and online. The Austrian company, which has been
publicly listed on the Vienna Stock Exchange since 1995, generated sales of
EUR 156.47 million in the 2012/13 financial year (May 1, 2012 - April 30,
2013), and has about 1,600 employees. Since its founding in the year 1950,
Wolford has evolved from a local producer of pantyhose to a global fashion
brand in the segment of affordable luxury products.
Wolford Group Key Data
Earnings data 2012/13 adjusted 1) 2012/13 Chg.
%
Revenues in EUR mill. 156.47 154.06 +1.6
EBITDA in EUR mill. 7.90 15.18 -48
EBIT in EUR mill. -0.91 6.86>100
Earnings before tax in EUR mill. -2.25 5.04>100
Earnings after tax in EUR mill. -2.76 1.26>100
Capital expediture in EUR mill. 6.03 7.94 -24
Operating cash flow In EUR mill. 6.31 7.27 -13
Free cash flow in EUR mill. 0.48 0.37 +30
Employees on average FTE 1,606 1,665 -4
Balance sheet data 30.04.13 Angepasst1) Vdg.%
30.04.12
Equity in EUR mill. 78.15 83.77 -7
Net dept in EUR mill. 15.73 14.15 +11
Working capital in EUR mill. 38.26 39.77 -4
Balance sheet total In EUR mill. 142.32 145.46 -2
Equity ratio in % 55 58 -
Gearing in % 20 17 -
1) Adjustment due to early application of IAS 19 revised (EmployeeEnd of Corporate News
Benefits)
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19.07.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Wolford AGWolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6901268
Fax: +43/5574/6901219
E-mail: investor(at)wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in
Open Market ; Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
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221970 19.07.2013
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