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Annual Result

Bregenz –

  • Revenue down 5%
  • Earnings after tax of EUR -17.88 million in line with the last adjusted forecast
  • Prior-year earnings adjusted following routine review by the Austrian Financial Reporting Enforcement Panel
  • Medium-term forecast confirmed

Vienna/ Bregenz, August 8, 2017: Wolford AG announces the most important business results for the 2016/17 financial year (May 2016 to April 2017) before publishing its complete consolidated annual financial statements. Earnings are in line with expectations. Revenue in the past financial year fell by 5% year-on-year to EUR 154.28 million (-4.1% adjusted for currency effects). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR – 3.39 million compared to EUR 8.38 million (adjusted 2015/16 EBITDA). As a consequence of various one-off effects, EBIT totaled EUR -15.72 million (adjusted 2015/16 EBIT: EUR -2.92 million). Excluding these effects (e.g. unscheduled depreciations due to impairments, restructuring expenses and one-off effects in other operating expenses), EBITDA in the 2016/17 financial year was about EUR 4.17 million. Depreciation and amortization totaled EUR 12.33 million (2015/16 adjusted: EUR 11.30 million). Earnings after tax equaled EUR – 17.88 million (2015/16 adjusted: EUR – 10.66 million) and thus corresponds to the forecast. Earnings per share were EUR – 3.64 (2015/16 adjusted: EUR – 2.17). All relevant details on business results for the past financial year will be presented within the context of the publication of Wolford’s consolidated annual financial statements on August 24, 2017.

Adjusted prior-year figures Within the context of a random sampling carried out by the Austrian Financial Reporting Enforcement Panel (AFREP), the consolidated financial statements as at April 30, 2016 as well as the half-year reports as at October 31, 2015 and October 31, 2016 of the Wolford Group were selected and subject to a review pursuant to Section 2 Para. 1 (2) Austrian Financial Reporting Enforcement Act (audit without particular cause). The conclusion was that the consolidated financial statements as at April 30, 2016 contained flawed assumptions underlying cash flow forecasts for determining the value in use of impairment tests implemented in accordance with IAS 36. In addition, the review by AFREP also uncovered misrepresentations in several detailed items (e.g. netting) in the cash flow statement for the period May 1, 2015 to April 30, 2016. Errors made in earlier periods were retroactively adjusted. These retroactive adjustments did not have any impact on information contained in the balance sheet at the beginning of the prior-year period on May 1, 2015. The effects of these retroactive adjustments on individual items are presented in the notes to the consolidated financial statements in section II. Adjustments pursuant to IAS 8.

Outlook confirmed In the first three months of the current financial year (May to July 2017), Wolford succeeded in raising revenue by about 3% adjusted for currency effects. However, management only plans to generate slight revenue growth in the current 2017/18 financial year compared to the previous year. A time frame of two years has been designated for implementing the planned restructuring measures. These measures will first take full effect starting in the 2018/19 financial year. Against this backdrop, Wolford still expects negative operating earnings in the current 2017/18 financial year, as it already communicated on April 12, 2017. The company anticipates positive operating earnings again starting in the 2018/19 financial year.

Income statement
(condensed) 2016/17 2015/16* change in %
in EUR million
Revenue 154.28 162.40 -5
Other operating 0.95 2.30 -59
income
Changes in
inventories of 1.58 4.40 -64
finished goods and
work in process
Own work 0.14 0.09 +56
capitalized
Operating output 156.95 169.19 -7
Cost of materials
and purchased -27.63 -27.38 +1
services
Personnel expenses -75.22 -73.86 +2
Other operating -57.49 -59.57 -3
income
Depreciation and -12.33 -11.30 +9
amortization
EBIT -15.72 -2.92 >100
Financial result -0.86 -0.93 +8
Earnings before tax -16.57 -3.85 >100
Income tax -1.31 -6.81 -81
Earnings after tax -17.88 -10.66 +68

*adjusted

results in TEUR 30.04.2017 30.04.2016*

Property, plant and 45,553 50,240
equipment
Goodwill 188 686
Other intangible asets 10,681 11,570
Financial assets 1,283 1,305
Non-currrent receivables 1,891 1,931
and assets
Deferred tax assets 1,891 2,898
Non-current assets 61,487 68,630
Inventories 49,392 47,836
Trade receivables 11,190 8,758
Other receivables and 3,261 5,111
assets
Prepaid expenses 2,744 3,262
Cash and cash equivalents 10,312 3,870
Current assets 76,899 68,837
Total assets 138,386 137,467

Share capital 36,350 36,350
Capital reserves 1,817 1,817
Other reserves 7,375 26,321
Currency translation -660 -674
differences
Equity 44,882 63,814
Financial liabilities 214 974
Other liabilities 924 972
Provisions for long-term 17,546 17,896
employee benefits
Other non-current 2,347 2,018
provisions
Deferred tax liabilities 53 60
Non-current liabilities 21,084 21,920
Financial liabilities 42,645 25,060
Trade payables 5,035 5,086
Other liabilities 13,076 13,476
Income tax liabilities 520 1,464
Other provisions 11,144 6,647
Current liabilities 72,420 51,733
Total equity and 138,386 137,467
liabilities

*adjusted

Cash flow in TEUR 2016/17 2015/16*
Earnings before tax -16,574 -3,851
Depreciation and 12,331 11,303
amortization
Gains/losses from disposal
of property, plant and 331 -1,011
equipment
Other non-cash expenses 375 833
and income
Changes in inventories -1,557 -5,370
Changes in trade -2,431 1,455
receivables
Changes in other 1,850 1,628
receivables and assets
Changes in trade payables -52 432
Changes in other
provisions and personnel 4,478 37
obligations
Changes in other -446 -957
liabilities
Gross cash flow -1,695 4,499
Net interest received 43 26
Net interest paid -575 -601
Net of income taxes paid -711 -968
and received
Net cash flow from -2,938 2,956
operating activities
Investments in property,
plant and equipment and -6,658 -7,667
other intangible asets
Proceeds from the disposal
of property, plant and 153 1,472
equipment and other
intangible assets
Changes in securities and 0 258
other financial assets
Cash flow from investing -6,505 -5,937
activities
Proceeds from current and
non-current financial 23,522 5,673
liabilities
Repayment of current and
non-current financial -6,697 -3,150
liabilities
Dividends paid -982 -980
Changes in treasury shares 0 250
Cash flow from financing 15,843 1,793
activities
Change in cash and cash 6,400 -1,188
equivalents
Cash and cash equivalents
at the beginning of the 3,870 4,785
period
Currency-related change in 42 273
cash and cash equivalents
Cash and cash equivalents 10,312 3,870
at the end of the period

*adjusted

About Wolford AG Wolford AG, which has its headquarters in Bregenz on Lake Constance (Austria), has 16 subsidiaries and markets its products in more than 60 countries via 267 mono-brand points of sales (company-owned and partner-operated), around 3,000 distribution partners, and online. Listed on the Vienna Stock Exchange since 1995, in the 2016/17 financial year (May 1, 2016 – April 30, 2017) the company had around 1,544 employees and generated revenues of EUR 154.28 million. Founded in 1950, Wolford has since grown to become the leading global brand for luxurious legwear, exclusive lingerie, and high-quality bodywear.

end of announcement euro adhoc

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, New York, Frankfurt
language: English

Digital press kit: http://www.ots.at/pressemappe/16324/aom

Rückfragen & Kontakt:

Brigitte Kurz (Board)Maresa Hoffmann (Investor Relations & Corporate Communications)Tel.: +43 5574 690 1258
investor@wolford.com | company.wolford



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