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.

   ══════════════════════════════════════════════════════════════════════════

   - 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.
    

   ══════════════════════════════════════════════════════════════════════════

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

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     Wolford AG
                Wolfordstrasse 1
                6900 Bregenz
                Austria
   Phone:       +43/5574/6900
   E-mail:      [email protected]
   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

   ══════════════════════════════════════════════════════════════════════════

   1503041  01.12.2022 CET/CEST

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print