EANS-News: Wolford Aktiengesellschaft Visible success of restructuring program
? free cash flow now positive again
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
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• Loss reduced by more than a third
• Successful capital increase boosts equity base
• Key focus on digitization and internationalization
Annual Reports
Bregenz - Wolford AG, which is listed on the Vienna Stock Exchange, today
published its annual financial statements for the 2017/18 financial year (May
2017 to April 2018). The Wolford Group's revenues fell by 3.4% to EUR 149.07
million in the 2017/18 financial year. Adjusted for currency items, the downturn
in revenues came to 1.4%. Given the systematic reduction in current expenses,
operating earnings (EBIT) rose by EUR 6.5 million to EUR -9.22 million, while
the annual loss after tax amounted to EUR -11.54 million, as against EUR -17.88
million in the previous year.
Past financial year with key focus on restructuring / significant reduction in
fixed costs
Within the company's extensive restructuring program, personnel expenses fell by
EUR 6.35 million to EUR 68.86 million. In the past financial year, Wolford
significantly streamlined and enhanced the efficiency of its processes while
systematically reducing excess capacities. Among other measures, the company
integrated production into supply chain management, streamlined its logistics
processes, and optimized deployment planning at its boutiques. As a result, the
average number of employees (full-time equivalents) fell by 111 to 1,433 in the
2017/18 financial year (previous year's average: 1,544 FTE employees). The
company stands to benefit from the corresponding cost savings on a sustainable
basis. Other operating expenses also decreased in the past financial year, in
this case from EUR 57.49 million to EUR 55.64 million, with particularly marked
year-on-year reductions in customs duties (-39%), travel expenses (-16%),
freight charges (-15%), insurance premiums (-10%), and rental expenses (-6%).
Free cash flow positive for the first time in 5 years
At EUR 1.83 million, the free cash flow was significantly higher than in the
previous year (EUR -9.45 million). This was mainly due to the successful
reduction in working capital and the improved loss after tax.
Successful capital increase boosts financial structure
The capital increase resolved by the extraordinary shareholders' meeting on May
4, 2018 was successfully completed on July 11, 2018. As a result, Wolford AG
will receive fresh equity of around EUR 22 million. This will substantially
boost the company's equity, with the equity ratio set to rise to around 46%.
Key focus on digitization and internationalization in current financial year
Wolford will be investing above all in digitizing its business in the current
financial year, and especially in expanding its online business and digital
marketing aimed at younger target groups. This also includes the planned
expansion in the company's cooperation with global and national online retail
partners. Wolford plans to systematically expand its business in Asia. The
management will be relying on local distributors (master franchise partners) for
its entry into the Japanese market. The company is still planning its marketing
strategy for China and is being assisted here by Fosun, its new principal
shareholder.
Outlook confirmed
In the past financial year, the management laid important foundations enabling
the company to regain profitability on an operating level (EBIT). Personnel
expenses alone were sustainably reduced by EUR 6.35 million in the 2017/18
financial year. Not only that, the one-off expenses incurred in connection with
the restructuring program will no longer apply in future. In the current
financial year, customers will notice the realignment of the company's branding
and enjoy an enhanced shopping experience.
The 2017/18 Annual Report can be viewed and downloaded in the Investor Relations
section of the company's website at:company.wolford.com.
http://company.wolford.com/wp-content/uploads/2018/07/Annual_Report_2017_18.pdf
[http://company.wolford.com/wp-content/uploads/2018/07/
Annual_Report_2017_18.pdf]
Earnings Data 2017/18 2016/17 Vdg. %
Revenues in EUR mill. 149.07 154.28 -3
EBIT in EUR mill. -9.22 -15.72 -41
Revenues before in EUR mill. -11.43 -16.57 -31
tax
Revenues after in EUR mill. -11.54 -17.88 -36
tax
Capital in EUR mill. 1.40 6.72 -79
expenditure
Free Cashflow in EUR mill. 1.83 -9.45 >100
Employees on FTE 1,433 1,544 -7
average
Balance Sheet 30.04.2018 30.04.2017 Vdg. %
Data
Equity in EUR mill. 33.90 44.88 -25
Net dept in EUR mill. 30.09 31.27 -4
Working Capital in EUR mill. 34.59 45.73 -24
Balance sheet in EUR mill. 114.33 138.39 -17
total
Equity ratio in % 30 32 -9
Gearing in % 89 70 27
Stock Exchange 2017/18 2016/17 Vdg. %
Data
Earnings per in EUR -2.35 -3.64 -35
share
Share price in EUR 19.75 26.01 -24
high
Share price low in EUR 11.36 19.10 -41
Share price at
the end of in EUR 13.60 19.28 -30
period
Shares
outstanding in Tsd. 4,912 4,912 0
(weighted)
Market
capitalization in EUR mill. 68.00 96.38 -29
(ultimo)
Further inquiry note:
Wolford AG
Maresa Hoffmann
Investor Relations & 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: http://company.wolford.com
ISIN: AT0000834007
indexes: ATX GP
stockmarkets: Wien, Frankfurt, New York
language: English
