EANS-Adhoc: Wolford Aktiengesellschaft Wolford Publishes Interim Report on the
First Half of 2015/16
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Mid Year Results/quarterly report
14.12.2015
* Revenue growth in all segments
* Further strengthening of retail competence
* Revenue increase and positive operating results expected for the entire year
2015/16
Vienna/Bregenz, December 14, 2015.Wolford AG, which is listed on the Vienna
Stock Exchange, generated a substantial increase in revenues in all segments in
the first half of the 2015/16 financial year (May 1, 2015 to October 31, 2015)
against the backdrop of a challenging economic and political environment. It
also gained momentum in its operating business by increasing second-quarter EBIT
in a year-on-year comparison.
On balance, Wolford reported significant revenue growth in the first six months
of the current financial year, with revenues up 9.1% to EUR 79.24 million, also
due to positive currency effects of the US dollar and British pound. Revenue
growth was 3.1% when adjusted for currency effects. The development Wolford's
operating earnings indicators should be considered in connection with the one-
off effects reported in the 2014/15 financial year, cost increases related to
the appreciation of the US dollar and British pound as well as a slight
expansion of the Wolford workforce as a means of strengthening its retail
business. Against this backdrop, the half-year operating results (EBIT) of EUR
-0.28 million were below the prior-year figure (H1 2014/15: EUR 3.17 million).
However, when adjusted to take account of all one-off effects, EBIT in the first
half of the current financial year actually rose by EUR 2.63 million. Wolford
gained additional strength in its operating business by posting a year-on-year
EBIT increase in the second quarter of 2015/16. Earnings after tax totaled EUR
-0.90 million compared to EUR 1.38 million in the previous year. Earnings per
share equalled EUR -0.18, down from EUR 0.28 in the first half of 2014/15.
Retail and online businesses as growth drivers
A declared objective of Wolford is to enhance its retail competence in all
regions. In this regard, Wolford considerably strengthened its international
retail team in the first half-year. The expansion of operations and hiring of
new staff was also reflected in the revenue development of the retail business.
Revenues generated by Wolford-owned retail stores rose by more than 7% in both
absolute terms and on a like-for-like basis. Year-on-year retail growth was also
achieved taking currency effects into account. The online business once again
developed very successfully, showing a 63.9% increase in revenues. The wholesale
segment reported growth of 5.2%, which can be attributed to changed delivery
dates.
Revenue growth in most core sales markets
From a regional perspective, Wolford's core sales markets showed a fundamentally
positive picture. Wolford generated double-digit revenue increases in the USA,
Great Britain and on the Asian growth market. In spite of the difficult economic
conditions prevailing in Europe, Wolford still reported a rise in revenues in
Belgium, Netherlands, France and southern European markets, whereas Austria and
Germany were particularly impacted by the long heat wave and witnessed a slight
drop in revenues.
Solid balance sheet structure
The Wolford Group continued to boasts a sound asset and capital structure at the
balance sheet date of October 31, 2015. The balance sheet total increased to EUR
154.28 million compared to EUR 148.14 million at the prior half-year balance
sheet date of October 31, 2014, which was the result of higher inventories and
higher deferred tax assets, Equity of the Wolford Group as of October 31, 2015
amounted to EUR 73.28 million, a drop of EUR 2.94 million from the comparable
figure at the end of 2014/15. As a result, net debt rose from EUR 20.66 million
to EUR 25.50 million. The equity ratio was 48% (October 31, 2014: 51%) and
gearing equaled 35% (October 31, 2014: 27%).
Strengthening of innovation capabilities
The consistent orientation of all activities to the company's strategic
reorientation initiative not only led to significant revenue growth in Wolford's
online and retail businesses, but also led to a more dynamic innovation process.
One direct result was a further milestone set by Wolford following the launch
last year of the world's first bonded tights (Pure 50 Tights). This autumn
Wolford presented its Pure 10 Tights, a unique bonding technique developed by
Wolford after years of research, which attracted considerable attention.
Outlook
The first half of the Wolford business year is traditionally the weakest for
seasonal reasons. Wolford implemented the strategic reorientation in recent
months, thus laying the groundwork for increased revenues and improved earnings.
For this reason, Wolford confirms its original target of generating a further
increase in revenues and once again concluding the current financial year with
positive operating results.
The report on the first quarter of 2015/16 is available at company.wolford.com /
Investor Relations:http://company.wolford.com/wp-content/uploads/2015/12/
Wolford_HY_Report_2015_16.pdf
Earnings
Data 05 -10/15 05 -10/14 Chg. in % 2014/15
Revenues in EUR mill. 79.24 72.63 +9 157.35
EBIT in EUR mill. -0.28 3.17 >100 2.17
Earnings
before tax in EUR mill. -0.80 2.72 >100 1.21
Earnings
after tax in EUR mill. -0.90 1.38 >100 1.03
Capital
expenditure in EUR mill. 3.60 5.44 -34 10.97
Free cash
flow in EUR mill. -7.33 -3.87 -89 -0.54
Employees
(on average) FTE 1,578 1,567 +1 1,574
Balance
Sheet Data 31.10.2015 31.10.2014 Chg. in % 30.04.2015
Equity in EUR mill. 73.28 76.22 -4 74.83
Net debt in EUR mill. 25.50 20.66 +23 17.12
Working
capital in EUR mill. 43.74 39.97 +9 38.14
Balance
sheet total in EUR mill. 154.28 148.14 +4 147.44
Equity ratio in % 48 51 - 51
Gearing in % 35 27 - 23
Stock Exchange
Data 05 -10/15 05 -10/14 Chg. in % 2014/15
Earnings per
share in EUR -0.18 0.28 >100 0.21
Share price
high in EUR 23.98 24.05 0 24.12
Share price
low in EUR 20.89 18.75 +11 18.75
Share price at
end of period in EUR 22.42 19.45 +15 24.00
Shares
outstanding
(weighted) in 1,000 4,900 4,900 0 4,900
Market
capitalization
(ultimo) in EUR mill. 112.10 97.25 +15 120.00
About Wolford AG
Wolford AG, which is headquarters in Bregenz on Lake Constance (Austria) has 16
subsidiaries and markets its products in more than 60 countries through 270
Monobrand points of sale (company-owned and partner-operated), approx. 3,000
distribution partners and online. The company, which has been listed on the
Vienna Stock Exchange since 1995, generated revenues of EUR 157.4 million in the
2014/15 financial year (May 1, 2014 - April 30, 2015) with roughly 1,570
employees. Since its founding in 1950, Wolford has grown to become the leading
global brand for luxurious legwear, exclusive lingerie and high-quality
bodywear.
Further inquiry note:
Wolford AG
Maresa Hoffmann
Referentin Investor Relations und Corporate Communications
Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford.com
end of announcement euro adhoc
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issuer: 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
