EANS-News: Wolford Aktiengesellschaft Wolford continues its positive revenue
development
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
quarterly report/9-month report
Vienna/Bregenz, March 18, 2016.Wolford AG, which is listed on the Vienna Stock
Exchange, generated revenue growth in all its product groups in the first three
quarters of the current financial year (May 1, 2015 to January 31, 2016)and
slightly increased EBIT adjusted for all one-off effects. Higher revenue is also
expected in the entire 2015/16 financial year.
Against the backdrop of a challenging economic and political environment
additionally burdened by the warm winter temperatures, the Wolford Group
reported a revenue increase of 6.3% in the first nine months of the 2015/16
financial year to EUR 128.7 million, not least thanks to positive currency
effects. The revenue increase equaled 1.1% when adjusted to take account of
these effects. Cost increases arising especially from the increase in value of
the US dollar and the British pound as well as one-off effects reported in 2014/
15 negatively impacted the development of Wolford's operating results. EBIT in
the first nine months of the current financial year amounted to EUR 2.16
million, compared to the prior-year level of EUR 7.08 million. Adjusted to
include all one-off effects, EBIT in the first three quarters of 2015/16 was up
by EUR 1.02 million from the previous year. In the same period, earnings after
tax amounted to EUR 0.70 million, compared to EUR 4.46 million in the prior-year
period. Earnings per share equaled EUR 0.14, down from EUR 0.91in the first nine
months of 2014/15. Wolford employed an average of 1,574 people (FTE) in the
first three quarters of the current financial year, compared to 1,567 employees
in the previous year.
Solid contributions to revenue growth from the retail and online businesses
In terms of distribution channels, Wolford's own retail business made a
substantial contribution to revenue growth, expanding by 5% (4% on a like-for-
like basis) in the first three quarters of 2015/16. The online business was also
successful once again, as shown by its 66% growth. At the same time, on a
cumulative basis the wholesale business remained at about the same level as in
the previous year. This was in contrast to a third-quarter decline mainly
attributable to a shift in delivery dates into the first half of the current
financial year.
Revenue increase in all product groups
The trend towards figure-shaping lingerie with a functional character continued
unabated. Accordingly, the Lingerie segment showed significant revenue growth.
At the same time, the other segments of the Wolford Group i.e. Legwear, Ready-
to-wear, Accessories and Trading Goods also generated revenue increases in the
same period.
Uneven regional market development
From a regional perspective, Wolford generated double-digit growth in Italy and
Spain, and also clearly increased revenues in Scandinavia, Netherlands and
Belgium. Positive currency effects supported the positive revenue development in
the USA, Great Britain and Switzerland. Wolford faced a weakening of sales
momentum in its relevant Asian markets, but still continued to report double-
digit revenue growth in Asia during the first three quarters of the year in
contrast to the general trend. Wolford still succeeded in maintaining revenues
in France at the prior-year level in spite of the revenue decrease related to
the dramatic events which took place in Paris in the middle of November. In
contrast, the core markets of Austria and Germany showed a slight drop in
revenues. The tense economic situation in Russia negatively affected revenue
development in Central and Eastern Europe.
Healthy balance sheet structure
The asset and capital structure of the Wolford Group remained very sound at the
balance sheet date of January 31, 2016. The balance sheet total fell to EUR
145.91 million compared to EUR 150.51 million at the end of the prior-year
period. This was the result of lower receivables and the drop in cash and cash
equivalents. Equity of the Wolford Group as of January 31, 2016 amounted to EUR
75.21 million, a drop of EUR 4.01 million from the comparable figure in the
previous year. Accordingly, net debt rose from EUR 15.76 million to EUR 17.37
million. The equity ratio was 52% (January 31, 2015: 53%) and gearing equaled
23% (January 31, 2015: 20%).
Unabated innovative strength
Wolford repeatedly demonstrated its innovative strength, as shown by product
innovations such as PURE tights, the Cotton Contour line or the large selection
of Shape & Control styles. The latest innovation from Wolford - Comfort Cut 40
tights: a pair of tights, which adjusts to fit every figure, will be presented
as part of the autumn/winter collection 2016/17. At present, the R&D team is
collaborating with the industry network smart-textiles on a project to develop a
completely recyclable lingerie product line which can be returned to the so-
called cradle to cradle production process.
Outlook
It is difficult at the present time to make predictions about the further
development of Wolford's core markets. This especially applies to the company's
retail activities in France. As long no recovery takes place in these markets,
it will be a challenge for Wolford to achieve its declared objective of
generating positive operating results. Nevertheless, despite these circumstances
Wolford's management also expects higher revenues in the 2015/16 financial year
as a whole compared to the previous year.
The report for the first three quarters of the 2015/16 financial year can be
downloaded under company.wolford.com, Investor Relations.
http://company.wolford.com/wp-content/uploads/2016/03/Wolford_Q3-Report_2015_16_EN.pdf
Earnings 05/15 - 01/
Data 16 05/14 - 01/15 Chg. in % 2014/15
Revenues in EUR mill. 128.71 121.13 +6 157.35
EBIT in EUR mill. 2.16 7.08 -70 2.17
Earnings
before tax in EUR mill. 1.39 6.39 -78 1.21
Earnings
after tax in EUR mill. 0.70 4.46 -84 1.03
Capital
expenditure in EUR mill. 5.24 8.24 -36 10.97
Free cash
flow in EUR mill. 1.10 0.79 +39 -0.54
Employees
(on average) FTE 1,574 1,567 +1 1,574
Balance
Sheet Data 31.01.2016 31.01.2015 Chg. in % 30.04.2015
Equity in EUR mill. 75.21 79.22 -5 74.83
Net debt in EUR mill. 17.37 15.76 +10 17.12
Working
capital in EUR mill. 38.97 39.14 -1 38.14
Balance
sheet total in EUR mill. 145.91 150.51 -3 147.44
Equity ratio in % 52 53 -2 51
Gearing in % 23 20 +15 23
Stock Exchange 05/15 - 01/ 05/14 - 01/
Data 16 15 Chg. in % 2014/15
Earnings per
share in EUR 0.14 0.91 -85 0.21
Share price
high in EUR 25.48 24.05 +6 24.12
Share price
low in EUR 21.35 18.75 +14 18.75
Share price at
end of period in EUR 25.05 21.29 +18 24.00
Shares
outstanding
(weighted) in 1,000 4,912 4,900 +1 4,900
Market
capitalization
(ultimo) in EUR mill. 125.23 106.45 +18 120.00
Further inquiry note:
Wolford AG
Maresa Hoffmann
Referentin Investor Relations & Corporate Communications
Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford.com
end of announcement euro adhoc
--------------------------------------------------------------------------------
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
