Wolford Aktiengesellschaft

EANS-News: Wolford AG
Revenues and Earnings of the 2013/14 Financial Year (with photo)

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annual result

Press Information

Wolford AG: Revenues and Earnings of the 2013/14 Financial Year in Line with
Expectations


    - Currency-adjusted revenues rise by about 1%
    - Adjusted operating results and earnings after tax at the prior-year level
    - Considerably positive cash flow from operating activities and consistently
      solid balance sheet structure
    - Implementation of strategic refocusing
    - Objective for 2014/15: operating turnaround


Vienna/Bregenz, July 18, 2014. Wolford AG, a publicly listed company on the
Vienna Stock Exchange, announces its annual results for the 2013/14 financial
year today. The results are in line with the guidance most recently published
by the company. Currency-adjusted revenues in the past financial year (May 1,
2013 to April 30, 2014) could be increased by about 1% to EUR 157.90 million
(2012/13: EUR 156.47 million). Taking account of the negative currency effects 
of about EUR 2 million, reported Group revenues declined slightly by 0.4% to 
EUR 155.87 million. Operating results adjusted for non-recurring effects were 
at the prior-year level: EBITDA adjusted amounted to EUR 7.11 million (2012/13: 
EUR 7.90 million) and EBIT adjusted totaled EUR -0.97 million (2012/13: 
EUR -0.91 million). In spite of non-recurring expenses totaling EUR 3.76 
million in connection with the strategic refocusing, earnings after tax 
amounted to EUR -2.81 million and thus also matched the previous year's level 
(2012/13: EUR -2.76 million). Due to the consistent optimization of working 
capital, Wolford generated a clearly positive cash flow from operating 
activities of EUR 6.30 million (2012/13: EUR 6.31 million) and boasts a 
consistently solid balance sheet structure with an equity ratio of 54% 
(April 30, 2013: 55%). "Wolford is striving to achieve the operating turnaround 
in the current financial year 2014/15. We are determinedly implementing all 
strategic refocusing measures for this purpose. The product portfolio will be 
gradually adapted and the collection statement will be sharpened, marketing 
activities are realigned and intensified, and we are continually optimizing 
our distribution. We want the organization to be more agile through internal 
process changes and further enhance our innovative strength", says Axel Dreher, 
Speaker of the Management Board of Wolford AG.

Significant improvement in Wolford's own retail and online business, revenue
decline in the wholesale segment

Currency-adjusted revenues increased by about 1% in the past financial year
(May 1, 2013 - April 30, 2014) to EUR 157.90 million (2012/13: EUR 156.47 
million). Taking account of the negative currency effects of about EUR 2 
million, mainly related to the British Pound and US Dollar, reported Group 
revenues declined slightly by 0.4% to EUR 155.87 million. The company's own 
retail business continued to generate growth in 2013/14. Wolford-owned points 
of sale achieved a significant revenue increase of 5%, and the online business
also developed very positively, featuring a 23% rise in revenues. In contrast, 
revenues fell by 8% in the wholesale business, i.e. the business with 
partner-operated boutiques, department stores and multi-brand retailers. From 
a regional perspective, revenues developed very differently. The USA, Wolford's
largest single market accounting for 17% of total revenues, generated growth 
both in the Group and in the local currency. Revenues also increased in the 
European markets of Italy, Spain, Belgium, Great Britain and Austria. In 
contrast, revenues in the core markets of Germany and France decreased 
year-on-year, mainly as a result of the decline in the wholesale business. 
Wolford achieved substantial double-digit revenue growth in Greater China and 
the Gulf Region. The quarterly development of revenues shows an ambivalent 
picture. Following a decline in the first two quarters of the 2013/14 financial 
year, third-quarter revenues rose due to a satisfactory Christmas season but 
could not fully compensate the revenue drop in the first two quarters. Revenues 
also climbed slightly in the fourth quarter. In particular, the first half-year 
revenue decreases in the wholesale business were significantly reduced in the 
third and fourth quarter.

EBITDA and EBIT adjusted practically unchanged, non-recurring expenses of EUR
3.76 million, earnings after tax also at the prior-year level

The negative earnings of the 2013/14 financial year are largely attributable to
non-recurring effects and expenses of EUR 3.76 million in connection with the
strategic refocusing. They included expenses for the closing of loss-making
points of sale, costs for conceptual and strategy changes, the relocation of
parts of the production as well as severance payments. EBIT including non-
recurring effects totaled EUR -4.72 million and is thus in line with the most
recently issued guidance of approx. EUR -5 million. EBITDA adjusted for non-
recurring expenses totaled EUR 7.11 million (2012/13: EUR 7.90 million), whereas
EBIT adjusted amounted to EUR -0.97 million (2012/13: EUR -0.91 million),
corresponding to the previous year's level. Savings of about EUR 2 million were
achieved in operating areas due to process optimization measures and in turn
led to lower material costs and personnel expenses. The rise in other operating
expenses is mainly due to increased rental costs for existing and new points of
sale as well as the intensification of marketing measures. Earnings after tax
of EUR -2.81 million could also be maintained at the same level as in the
previous year (2012/13: EUR -2.76 million). As a consequence of the negative
earnings, the Supervisory Board and Management Board will propose to the Annual
General Meeting on September 18, 2014 to waive the dividend for the 2013/14
financial year.

Considerably positive cash flow from operating activities and consistently
solid balance sheet structure

Thanks to the consequent optimization of working capital, especially
inventories, a considerably positive cash flow from operating activities of 
EUR 6.30 million could be generated (2012/13: EUR 6.31 million) in spite of 
the negative earnings. The Wolford Group reported equity of EUR 74.38 million 
as of the balance sheet date on April 30, 2014 (April 30, 2013: EUR 78.15 
million). The equity ratio equaled a solid level of 54% (April 30, 2013: 55%), 
whereas gearing reached 23% (April 30, 2013: 20%). "With the sale of a non-core 
land and a lease option in the first quarter of the new financial year 2014/15, 
we managed to reduce net debt by EUR 10.7 million, which amounted to EUR 17.04 
million as of the balance sheet date. Combined with our strong cash flow from 
operating activities and the safeguarding of sufficient lines of credit, we 
have ensured the financing of the strategic refocusing, including the planned
investments in core technologies and the expansion of distribution", explains 
Chief Financial Officer Thomas Melzer.

Implementation of strategic refocusing

The focal points of the strategic refocusing launched in December 2013
encompass the adaptation of the product portfolio, the sharpening of the
collection statement and the focus on the company's core business, the
realignment of communication in all its facets, the focus on markets with the
highest cost/benefit ratio and the global optimization of distribution,
including a relaunch of the wholesale business and the strengthening of the
online business. The defined measures are accompanied by internal process
optimization and organizational adjustments, with the objective to make the
company more agile and market-oriented and to further enhance its innovative
strength.

Outlook

Wolford's goal for the 2014/15 financial year is to achieve the operating
turnaround. Since a book profit of about EUR 7.4 million was generated in the
first quarter from the sale of non-core land and a lease option, Wolford is
well on the way to achieving the aspired earnings target.

The Annual Report and the Annual Financial Report 2013/14 can be downloaded at
company.wolford.com under Investor Relations.
http://company.wolford.com/wp-content/uploads/2014/07/Wolford-Annual-financial-
report_13_14.pdf

Contact:
Axel Dreher (Speaker of the Management Board)
Thomas Melzer (Chief Financial Officer)
investor@wolford.com
Wolford AG, Wolfordstraße 1, A-6900 Bregenz
+43 (0) 5574 690-1268 (IR)
+43 (0) 5574 690-1477 (PR)
company.wolford.com

Photos
Picture credits: Wolford AG
Pure 50 Tights (pantyhose):
http://service.wolford.com/download/nehe/14434_002.zip
Jewellery Tights (Limited Edition):
http://service.wolford.com/download/press/aw1415/jewellery/00020.zip
Sheer Touch (Lingerie):
http://service.wolford.com/download/press/shape_and_control/69662.zip
Use of photos only until October 31, 2018, and exclusively for editorial
purposes.

About Wolford AG

Wolford AG headquartered in Bregenz on Lake Constance (Austria) operates 16
subsidiaries and markets its products in about 60 countries via roughly 270
monobrand stores (own and partner-operated), approximately 3,000 trading
partners and online. The company, which has been publicly listed on the Vienna
Stock Exchange since 1995, generated revenues of EUR155.87 million in the 
2013/14 financial year (May 1, 2013 - April 30, 2014) and has about 1,560 
employees. Since its founding in the year 1950, Wolford has become a leading
global manufacturer's brand in the segment of luxury tights, exclusive Lingerie 
and high quality bodywear.

Wolford Group Key Data


Earnings Data            |             |   2013/14 |   2012/13 | Chg. in % |

|Revenues                |in EUR mill. |    155.87 |    156.47 |    -0.4   |
|EBITDA adjusted         |in EUR mill. |      7.11 |      7.90 |     -10   |
|EBIT adjusted           |in EUR mill. |     -0.97 |     -0.91 |      -7   |
|Earnings before tax     |in EUR mill. |     -5.89 |     -2.25 |    >100   |
|Earnings after tax      |in EUR mill. |     -2.81 |     -2.76 |      -2   |
|Capital expenditure     |in EUR mill. |      7.87 |      6.03 |     +31   |
|Free cash flow          |in EUR mill. |     -0.97 |      0.48 |    >100   |
|Employees (on average)  |FTE          |      1562 |      1606 |      -3   |

Balance Sheet Data

|                        |             |30.04.2014 |30.04.2013 | Chg. in % |
|Equity                  |in EUR mill. |     74.38 |     78.15 |        -5 |
|Net debt                |in EUR mill. |     17.04 |     15.96 |        +7 |
|Working capital         |in EUR mill. |     33.72 |     38.49 |       -12 |
|Balance sheet total     |in EUR mill. |    138.12 |    142.32 |        -3 |
|Equity ratio            |in %         |     54    |     55    |         - |
|Gearing                 |in %         |     23    |     20    |         - |


Stock Exchange Data


|                        |             |   2013/14 |   2012/13 | Chg. in % |
|Earnings per share      |in EUR       |     -0.57 |     -0.56 |        -2 |
|Share price high        |in EUR       |     22.77 |     28.90 |       -21 |
|Share price low         |in EUR       |     16.81 |     20.53 |       -18 |
|Share price at end of   |             |           |           |           |
 period                  |in EUR       |     19.10 |     20.62 |        -7 |
|Shares outstanding      |in 1,000     |      4900 |      4900 |         0 |
|(weighted)              |             |           |           |           |
|Market capitalization   |in EUR mill. |     95.48 |    103.08 |        -7 |
|(ultimo)                |             |           |           |           |
Pictures with Announcement:
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http://resources.euroadhoc.com/us/ibRJP0co
http://resources.euroadhoc.com/us/7VnaUZmK
http://resources.euroadhoc.com/us/yWs6zJ8S

Further inquiry note:
Wolford AG
Karolina Tasek
Tel.: +43 5574 690 1268
mailto:investor@wolford.com
Web: company.wolford.com

end of announcement                               euro adhoc 
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Pictures with Announcement:
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http://resources.euroadhoc.com/us/ibRJP0co
http://resources.euroadhoc.com/us/7VnaUZmK
http://resources.euroadhoc.com/us/yWs6zJ8S


company:     Wolford Aktiengesellschaft
             Wolfordstrasse 1
             A-6900 Bregenz
phone:       +43 (0) 5574 690-1268
FAX:         +43 (0) 5574 690-1219
mail:     investor@wolford.com
WWW:         company.wolford.com
sector:      Textiles & Clothing
ISIN:        AT0000834007
indexes:     ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York 
language:   English
 

 


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