• 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 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)
in € million
2016/172015/16*change in %
Other operating income0.952.30?59
Changes in inventories of finished goods and work in process1.584.40-64
Own work capitalized0.140.09+56
Operating output156.95169.19-7
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
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




Results in TEUR30.04.201730.04.2016*
Property, plant and equipment45,55350,240
Other intangible assets10,68111,570
Financial assets1,2831,305
Non-current receivables and assets1,8911,931
Deferred tax assets1,8912,898
Non-current assets61,48768,630
Trade receivables11,1908,758
Other receivables and assets3,2615,111
Prepaid expenses2,7443,262
Cash and cash equivalents10,3123,870
Current assets76,89968,837
Total assets138,386137,467
Share capital36,35036,350
Capital reserves1,8171,817
Other reserves7,37526,321
Currency translation differences-660-674
Financial liabilities214974
Other liabilities924972
Provisions for long-term employee benefits17,54617,896
Other non-current provisions2,3472,018
Deferred tax liabilities5360
Non-current liabilities21,08421,920
Financial liabilities42,64525,060
Trade payables5,0355,086
Other liabilities13,07613,476
Income tax liabilities5201,464
Other provisions11,1446,647
Current liabilities72,42051,733
Total equity and liabilities138,386137,467




Cash flow in TEUR2016/172015/16*
Earnings before tax-16,574-3,851
Depreciation and amortization12,33111,303
Gains/losses from disposal of property, plant and equipment331-1,011
Other non-cash expenses and income375833
Changes in inventories-1,557-5,370
Changes in trade receivables-2,4311,455
Changes in other receivables and assets1,8501,628
Changes in trade payables-52432
Changes in other provisions and personnel obligations4,47837
Changes in other liabilities-446-957
Gross cash flow-1,6954,499
Net interest received4326
Net interest paid-575-601
Net of income taxes paid and received-711-968
Net cash flow from operating activities-2,9382,956
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 assets1531,472
Changes in securities and other financial assets0258
Cash flow from investing activities-6,505-5,937
Proceeds from current and non-current financial liabilities23,5225,673
Repayment of current and non-current financial liabilities-6,697-3,150
Dividends paid-982-980
Changes in treasury shares0250
Cash flow from financing activities15,8431,793
Change in cash and cash equivalents6,400-1,188
Cash and cash equivalents at the beginning of the period3,8704,785
Currency-related change in cash and cash equivalents42273
Cash and cash equivalents at the end of the period10,3123,870





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.