• COVID-19 pandemic hits Wolford
  • Restructuring program gains traction
  • Operating results significantly higher than previous year
  • Company confirms outlook on return to profitability by the end of the 2021 calendar year

On the occasion of the annual general meeting, the management board reviewed the current business performance, confirming its outlook on return to profitability by the end of 2021.

The COVID-19 crisis had a drastic impact on the past FY 2019/20 and led to a loss of revenues, totaling €10.9 mio. The crisis will not be overcome in the current FY 2020/21, as revenue losses account for  €15.5 mio as of August 31, 2020. The revenues losses constantly decreased during the months of the FY 2020/21.

In view of the COVID-19 pandemic, Wolford contributed as a crisis response by manufacturing and distributing facemasks (“Wolford Care Mask”). Since March 2020, approx. 350,000 masks have been sold, generating revenue of approx. €5.1 mio. Masks have become an integral component of the company’s product range.

The online distribution channel has proven to be a growth driver, generating approx. 25% of revenues in 05-08/2020 (2019/20: 13.3%) and showing a year-on-year growth rate (05-08/2020 vs. 05-08/2019) of around 58%. However, the online business was unable to fully offset the revenues lost in other business areas.

Concerning operating earnings (EBIT), the losses in revenues were primarily made up for with the help of the extended restructuring program by cost savings achieved, especially in terms of rental payments, procurement, and staff costs as well as by drawing on all available COVID-19 government aid. Overall, as of August 31, 2020, EBIT has improved by nearly €3.0 mio (22 %) in the year to date (05–08/2020: -€10,8 mio) compared with the previous year (05–08/2019: -€13,8 mio).