DGAP-News: Wolford AG: Sales and earnings in the first half of 2011/12
(firmenpresse) - DGAP-News: Wolford AG / Key word(s): Half Year Results
Wolford AG: Sales and earnings in the first half of 2011/12
16.12.2011 / 07:20
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Press Information
Sales and earnings in the first half of 2011/12
Wolford Group: First Half-Year Sales at the Prior Year Level
- Sales of EUR 73.6 million in the first half of 2011/12
- EBITDA at EUR 6.6 million slightly below previous year, EBITDA margin
of 9.0 percent
- Consistently solid capital structure
- Monobrand distribution remains above 60 percent level
- Increased sales and earnings expected for the entire 2011/12 fiscal
year
Vienna/Bregenz, December 16, 2011. Wolford Aktiengesellschaft, a publicly
listed company on the Vienna Stock Exchange, generated sales of EUR 73.6
million in the first half of the current fiscal year (May 1, 2011 to
October 31, 2011), thus maintaining the level of sales achieved in the
previous year (1st HY 2010/11: EUR 74.0 million). Adjusted for currency
effects, sales were up by 1.0 percent. This development must be considered
against the backdrop of the ongoing market uncertainty and the unusually
warm weather conditions prevailing in parts of Europe in the period
September to October 2011. In turn, this resulted in the buying restraint
exercised by consumers and retailers in several of Wolford's core European
markets. Costs related to the targeted expansion of Wolford's proprietary
stores which were already or will be opened in the present fiscal year were
among the factors impacting earnings indicators. A slight rise in sales and
earnings is expected for the entire 2011/12 fiscal year based on the
perceptible signs of a recovery in the retail business and repeat orders
placed by trade partners starting at the end of October.
Constant sales level - EBITDA slightly below the previous year
On balance, sales in the first half of 2011/12 amounted to EUR 73.6
million, a slight decline of 0.6 percent compared to the previous
year (1st HY 2010/11: EUR 74.0 million). Adjusted for currency effects,
sales actually rose by 1.0 percent. This development took place in the
light of the strong prior-year performance, with sales in the first half of
the 2010/11 fiscal year climbing 8.1 percent from the comparable period of
2009/10. The slight sales decrease in the first half of the current 2011/12
fiscal year is primarily due to the very warm weather, which prevailed in
several of Wolford's core European markets between September and October.
This led to spending restraint on the part of consumers with respect to
products from the fall/winter collection which had already been delivered
to stores.
In addition to the market- and weather-related consumer spending
reluctance, investments for several retail stores which have already been
opened or will soon be opened in the course of the current fiscal year also
affected earnings indicators. EBITDA totaled EUR 6.6 million, which
corresponds to an EBITDA margin of 9.0 percent (1st HY 2010/11: EBITDA at
EUR 7.1 million, EBITDA margin of 9.6 percent). The operating profit
amounted to EUR 2.7 million, down from EUR 3.2 million in the prior year.
The result from continuing operations (result before taxes) was EUR 1.8
million (1st HY 2010/11: EUR 2.5 million).
Solid equity basis
As at the reporting date of October 31, 2011, shareholders' equity of the
Wolford Group amounted to EUR82.6 million, a rise of 2.1 percent from the
comparable level of the previous year (October 31, 2010: EUR 81.0 million).
The equity-to-asset ratio as at October 31, 2011 was 52.0 percent, thus
maintaining the high prior-year level (October 31, 2010: 52.5 percent).
Capital investments in the first six months of the 2011/12 fiscal year
totaled EUR 4.4 million, a rise of 53.9 percent from the previous year.
Wolford increasingly invested in expanding and optimizing its proprietary
stores in the first two quarters of the current fiscal year as part of its
targeted efforts to expand its own distribution network. In the same period
net debt climbed to EUR 26.8 million (October 31, 2010: EUR 23.5 million),
the debt/equity ratio (gearing) was 32.5 percent.
Sales growth with Wolford's proprietary stores
The retail business continued to develop positively in the first six months
of the 2011/12 fiscal year. Wolford's proprietary stores (own boutiques,
concession shop-in-shops and factory outlets) achieved sales growth of 3.2
percent in the reporting period. Thus the share of total sales generated by
retail outlets amounted to 49.3 percent in the first half-year (1st HY
2010/11: 47.4 percent).
An analysis of the sales development of the individual distribution
channels indicates that sales with the 111 Wolford-owned boutiques
increased slightly during the reporting period. However, total sales with
boutiques including the 95 partner-operated boutiques were down slightly.
Sales via the department store distribution channel rose by 6.0 percent in
the first half of the 2011/12 fiscal year and thus made a major
contribution to overall sales development, whereas the business with
multi-brand retailers fell by 8.1 percent. Sales at factory outlets were up
4.9 percent in the first half of 2011/12 compared to the first half of
2010/11.
Monobrand distribution remains above the 60 percent level
Wolford once again increased sales via its controlled distribution channels
(own and partner-owned boutiques, factory outlets and concession
shop-in-shops). As a result, it further expanded the share of its 262
monobrand points of sale in relation to total sales, which reached a level
of 60.3 percent in the first half-year (1st HY 2010/11: 59.1 percent).
Uneven development in core geographic markets
From a regional perspective, Wolford's core geographic markets did not
develop uniformly. Wolford generated sales growth in the UK (+ 6.3 percent
in Group currency, + 11.2 percent in the local currency), Germany (+ 5.1
percent), CEE (+ 2.8 percent), Belgium (+ 1.3 percent) and Scandinavia (+
1.1 percent). In contrast, sales dropped in Austria (- 1.5 percent), Italy
(- 5.2 percent), France (- 6.8 percent) and the Netherlands (- 10.5
percent). In Switzerland Wolford was faced with a sales decline (- 12.7
percent in Group currency, - 22.7 percent in the local currency) as a
consequence of the strong Swiss franc and the related outflow of purchasing
power to neighboring countries.
In the first six months of the current fiscal year, sales in Spain showed
a very good development(+ 37.0 percent) due to adaptations made to
the distribution structure. Wolford continued the strong growth of 2010/11
on the Asia/Oceania market and generated a 6.3 percent sales increase in
the first half of the current fiscal year. Sales in the USA were impacted
by the exchange rate development, declining in the Group currency (- 6.1
percent in EUR) but rising in the local currency (+ 3.5 percent in USD).
Outlook
The Wolford Group will continue to systematically expand its own
distribution network in the second half of 2011/12, open new points of sale
and intensify its cooperation with trade partners. Wolford has already
initiated future-oriented investments impacting earnings in the first
half-year. Penetrating new markets and launching new products will remain
top priorities, and the company will continue to focus on
efficiency-enhancement measures in the months to come. Against this
backdrop and based on the perceptible signs of a sales recovery since the
end of October 2011, the Executive Board of the Wolford Group expects to
generate a slight improvement in sales and earnings in the entire 2011/12
fiscal year.
Contact: Holger Dahmen (Chief Executive Officer)
Peter Simma (Deputy Chief Executive Officer)
Investor(at)wolford.com
Wolford Aktiengesellschaft, Wolfordstraße 1, A-6901 Bregenz
+43 (0) 5574 690-0
www.wolford.com
Photos available for download:
http://service.wolford.com/download/nehe/photos_wolford_q2.zip
Photos: Wolford AG
Overview of sales and financial data for the first half of the 2011/12
fiscal year
(May 1, 2011 to October 31, 2011)
in TEUR 1st HY 1st HY Change Change* Gross cash flow = Net result for the period
2011/12 2010/11 absolute in %
Sales 73,563 74,025 (462) - 0.6 %
EBITDA 6,631 7,141 (510) - 7.1 %
EBITDA margin 9.0 % 9.6 % (0.6)
EBIT 2,719 3,205 (486) - 15.2 %
EBIT margin 3.7 % 4.3 % (0.6)
Result from continuing operations 1,757 2,467 (710) - 28.8 %
(Result before taxes)
Net result for the period 998 1,910 (912) - 47.7 %
Earnings per share in EUR 0.20 0.39 (0.19) - 47.7 %
Gross cash flow* 5,442 6,349 (907) - 14.3 %
Capital investments excluding 4,357 2,832 1,525 53.9 %
financial assets
Depreciation, amortization, 3,913 3,936 (23) - 0.6 %
impairment and reversal of
impairment
Net debt 26,831 23,533 3,298 14.0 %
Debt/equity ratio (gearing) 32.5 % 29.1 % 3.4
Shareholders' equity 82,635 80,963 1,672 2.1 %
Equity-to-asset ratio 52.0 % 52.5 % (0.5)
Number of employees at period-end 1,719 1,567 152 9.7 %
(in full-time equivalents incl.
apprentices)
+/- Depreciation, amortization, impairment losses/reversals of
impairment losses on intangible assets and property, plant and
equipment
-/+ Gains/losses on the disposal of property, plant and equipment
+/- Change in non-current provisions
= Gross cash flow
The interim report for the first half of the 2011/12 fiscal year is
available on the Internet at www.wolford.com under Investor Relations.
End of Corporate News
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Language: English
Company: Wolford AG
Wolfordstraße 1
6901 Bregenz
Austria
Phone: +43/5574/6907434
Fax: +43/5574/6907440
E-mail: investor(at)wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
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150024 16.12.2011
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Datum: 16.12.2011 - 07:20 Uhr
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