Wolford AG — Earnings Release 2003

Jul 16, 2003

News Details

Ad-hoc | 16 July 2003 08:49

Wolford AG english

Wolford comes out on top in financial 2002/2003 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Wolford AG, which is listed on the Vienna Stock Exchange, dealt relatively well with the demanding economic and industry climate in the year to the end of April 2003. Consolidated sales in the past fiscal year reached EUR 128.8 million compared to EUR 137.6 million one year earlier. Despite this decrease, Wolford clearly achieved the turnaround. Net income was EUR 2.5 million, up from a net loss of EUR 4.6 million in the previous fiscal year. A full 30 percent of the decrease in sales revenue was attributable to the closing of unprofitable boutiques with associated loss of business. The newly opened stores were not yet able to make up for the loss of business from the closings. Only in the quarters to come will they unfold their high potential to drive up sales. The total number of boutiques remained constant at 248. Almost one-third of the revenue decline was caused by exchange rate fluctutations. Over the fiscal year the U.S. dollar, in which 14.2 percent of Group sales were billed, lost 23.6 percent of its value against the euro. The British pound fell by 12.8 percent and the Swiss franc by 3.4 percent as measured against the euro. EBITDA rose by a substantial 56.4 percent from EUR 7.7 million to EUR 12.1 million last year, resulting in EBITDA margin growth to a new margin of 9.4 percent. The operating result after all restructuring costs improved from a negative EUR 2.5 million to EUR 3.4 million, making the EBIT margin 2.6 percent. Earnings before taxes improved by EUR 7.2 million to EUR 1.4 million. Net income was EUR 2.5 million, an increase of EUR 7.1 million from one year earlier. Earnings per share were EUR 0.52, up from a loss of EUR 0.97 in the previous year. Wolford’s management aims for a significant improvement in profit margins in the medium and long term. Restructuring has optimized the internal factors at Wolford to such an extent that it will only take moderate growth in sales to achieve disproportionately high profit growth. Ultimately, however, the recovery in consumer confidence and improved economic conditions will be the crucial factor for Wolford’s business success. Contact: Fritz Humer, CEO, Tel. +43 (0) 5574/690 ext. 1250, Peter Simma, CFO, Tel. +43 (0) 5574/690 ext. 1213 investor@wolford.com, www.wolford.com end of ad-hoc-announcement (c)DGAP 16.07.2003 ——————————————————————————– WKN: 083400; ISIN: AT0000834007; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart 160849 Jul 03