Revenue down 5%
Earnings after tax of -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
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 154.28 million (-4.1% adjusted for currency effects). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to – 3.39 million compared to 8.38 million (adjusted 2015/16 EBITDA). As a consequence of various one-off effects, EBIT totaled -15.72 million (adjusted 2015/16 EBIT: -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 4.17 million. Depreciation and amortization totaled 12.33 million (2015/16 adjusted: 11.30 million). Earnings after tax equaled – 17.88 million (2015/16 adjusted: – 10.66 million) and thus corresponds to the forecast. Earnings per share were – 3.64 (2015/16 adjusted: – 2.17).
All relevant details on business results for the past financial year will be presented within the context of the publication of Wolfords 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) in million |
2016/17 | 2015/16* | change in % |
| Revenue | 154.28 | 162.40 | -5 |
| Other operating income | 0.95 | 2.30 | ?59 |
| Changes in inventories of finished goods and work in process | 1.58 | 4.40 | -64 |
| Own work capitalized | 0.14 | 0.09 | +56 |
| Operating output | 156.95 | 169.19 | -7 |
| Cost of materials and purchased services | ?27.63 | ?27.38 | +1 |
| Personnel expenses | ?75.22 | ?73.86 | +2 |
| Other operating income | ?57.49 | ?59.57 | -3 |
| Depreciation and amortization | ?12.33 | ?11.30 | +9 |
| 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 equipment | 45,553 | 50,240 |
| Goodwill | 188 | 686 |
| Other intangible assets | 10,681 | 11,570 |
| Financial assets | 1,283 | 1,305 |
| Non-current receivables and assets | 1,891 | 1,931 |
| 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 assets | 3,261 | 5,111 |
| 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 differences | -660 | -674 |
| Equity | 44,882 | 63,814 |
| Financial liabilities | 214 | 974 |
| Other liabilities | 924 | 972 |
| Provisions for long-term employee benefits | 17,546 | 17,896 |
| Other non-current provisions | 2,347 | 2,018 |
| 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 liabilities | 138,386 | 137,467 |
*adjusted
| Cash flow in TEUR | 2016/17 | 2015/16* |
| Earnings before tax | -16,574 | -3,851 |
| Depreciation and amortization | 12,331 | 11,303 |
| Gains/losses from disposal of property, plant and equipment | 331 | -1,011 |
| Other non-cash expenses and income | 375 | 833 |
| Changes in inventories | -1,557 | -5,370 |
| Changes in trade receivables | -2,431 | 1,455 |
| Changes in other receivables and assets | 1,850 | 1,628 |
| Changes in trade payables | -52 | 432 |
| Changes in other provisions and personnel obligations | 4,478 | 37 |
| Changes in other liabilities | -446 | -957 |
| Gross cash flow | -1,695 | 4,499 |
| Net interest received | 43 | 26 |
| Net interest paid | -575 | -601 |
| Net of income taxes paid and received | -711 | -968 |
| Net cash flow from operating activities | -2,938 | 2,956 |
| Investments in property, plant and equipment and other intangible assets | -6,658 | -7,667 |
| Proceeds from the disposal of property, plant and equipment and other intangible assets | 153 | 1,472 |
| Changes in securities and other financial assets | 0 | 258 |
| Cash flow from investing activities | -6,505 | -5,937 |
| Proceeds from current and non-current financial liabilities | 23,522 | 5,673 |
| Repayment of current and non-current financial liabilities | -6,697 | -3,150 |
| Dividends paid | -982 | -980 |
| Changes in treasury shares | 0 | 250 |
| Cash flow from financing activities | 15,843 | 1,793 |
| Change in cash and cash equivalents | 6,400 | -1,188 |
| Cash and cash equivalents at the beginning of the period | 3,870 | 4,785 |
| Currency-related change in cash and cash equivalents | 42 | 273 |
| Cash and cash equivalents at the end of the period | 10,312 | 3,870 |
*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 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.