EQS-News: Wolford AG: Management Board welcomes resolved capital increase

EQS-News: Wolford AG: Management Board welcomes resolved capital increase

EQS-News: Wolford AG / Key word(s): Capital Increase
Wolford AG: Management Board welcomes resolved capital increase

01.12.2022 / 11:58 CET/CEST
The issuer is solely responsible for the content of this announcement.

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– Implementation of capital increase planned for first quarter of 2023
– Share capital to rise again to up to EUR 48.4 million
– Equity ratio to increase to 10 percent
– Rising sales and consistent cost control
– Expected tailwind from Lanvin Group IPO 

Bregenz, December 1, 2022: The Extraordinary General Meeting of Wolford AG
today voted in favor of a capital reduction and a subsequent capital
increase. The capital has thus been reduced to EUR 32,251,924.80 and the
subsequent capital increase to up to EUR 48,377,884.80 by issuing up to
3,359,575 new no-par value shares against cash contributions has been
approved. The capital increase is to be implemented in the first quarter
of 2023. Upon implementation of the capital increase, the Company will
receive up to 20,157,450.00 euros. The shareholders are granted the
statutory subscription right.

„We are pleased that the Annual General Meeting has approved the capital
increase. This will strengthen our equity base and allow us to
systematically pursue our strategy to further develop the Wolford brand,“
explains Executive Board member Silvia Azzali (Chief Commercial Officer).

„Wolford AG will receive up to EUR 20.2 million as part of these capital
measures, which will increase the equity ratio to around 10 percent. Thus,
the company should be prepared for the current challenges,“ says Executive
Board member Paul Kotrba (Interim Chief Operational Officer).

Rising sales and strict cost management of the new management team

In the first half of 2022, Wolford AG was able to increase sales revenues
by over 29 percent, as previously reported. However, this was unable to
compensate for the sharp rise in costs for materials, personnel, energy
and logistics. In addition, there were high other operating costs, mainly
consulting expenses – as a result, the operating result (EBIT) amounted to
minus 16.9 million euros. The new Management Board team, which has been in
place since August 2022, immediately and consistently reduced operating
costs. These includes also reduced rental costs as a result of downsized
offices at headquarters. Currently, management is focusing on improving
operational processes in order to be able to respond more quickly to
changing market requirements.

„The positive revenue development shows that we are on the right track,“
said CCO Silvia Azzali. „However, it still will take some time before this
is reflected in earnings.“

In recent months, Wolford has continued to increase its visibility in the
market, including six new store openings and store relocations in key
cities. In Paris, the company opened a new flagship store on Rue Saint
Honoré. With the help of the new collaborations with such renowned brands
as Mugler, Alberta Ferretti and GCDS, the company was able to attract new
groups of customers. Recently Wolford also started a cooperation with
Sergio Rossi, since July 2021 another well-known brand under the umbrella
of Lanvin Group.

Expected tailwind from the IPO of the Lanvin Group 

The Wolford management is expecting substantial tailwind not least from
the stock market listing of the main shareholder Lanvin Group, which is
expected before the end of the year. The listing on the New York Stock
Exchange will be achieved by means of a reverse merger with the help of a
special purpose acquisition company (SPAC).

„Wolford is one of the group’s largest holdings and accordingly our
company will also benefit from a stronger position for the entire Lanvin
Group,“ explained Azzali.
 

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01.12.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Wolford AG
Wolfordstrasse 1
6900 Bregenz
Austria
Phone: +43/5574/6900
E-mail: investor@wolford.com
Internet: www.wolford.com
ISIN: AT0000834007
WKN: 83400
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID: 1503041

 
End of News EQS News Service

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1503041  01.12.2022 CET/CEST

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