Munich, March 22, 2016 – With its takeover of men’s fashion retailer WORMLAND, Munich-based fashion group LUDWIG BECK (ISIN DE 0005199905) has set the course for considerable growth in its stationary offering in the fiscal year 2015. The flagship store at Munich’s Marienplatz and the company´s online division remain on a stable course.
Dieter Münch, Member of the Board at LUDWIG BECK, appeared thoroughly satisfied with the fiscal year just ended: The integration of WORMLAND is going seamlessly, and the LUDWIG BECK Group remains on course. We are going to utilise the resultant opportunities and possibilities also in 2016.
Sales development
At group level, LUDWIG BECK achieved gross sales in the amount of € 158.6m in 2015, compared to € 102.7m in the previous year. The over-proportional increase was primarily down to the acquisition of WORMLAND which, as a new segment of the Group, achieved consolidated sales of € 54.7m. Like-for-like gross sales were at € 104.0m, which corresponds to an increase of 1.2%. For comparison: the German textile retail industry ended 2015 on par after three years of falling figures (TextilWirtschaft). During the fiscal year just ended, the online shop at www.ludwigbeck.de also proved to be an important pillar of sales, with further development potential unfolding.
Earnings situation
The remaining key figures are also influenced by the Group’s expansion: thus earnings before interest and taxes (EBIT) amounted to € 18.3m (previous year: € 10.6m). The EBIT margin amounted to 13.7% in comparison to 12.3% in the previous year. EBIT was therefore in line with the forecasts adjusted after the acquisition of WORMLAND, which the management of LUDWIG BECK estimated at a value between € 17m and € 19m (previously approx. € 10m).
Earnings before taxes (EBT) amounted to € 17.3m (previous year: € 9.5m). The EBT margin amounted to 12.9% (previous year: 11.0%). A non-recurring tax-free consolidated income from the first-time consolidation of the WORMLAND Group in the amount of € 9.8m was reported in the earnings. Thus taxes on income were only at € 2.1m (previous year: € 2.8m).
Consolidated net profit was at € 15.2m, compared to € 6.7m in the previous year.
In terms of equity, there was an increase to € 79.4m (previous year: € 67.2m). The equity ratio amounted to 60.2% (previous year: 60.5%).
Dividend payment
At the Annual General Meeting in May 10, 2016, the Executive and Supervisory Board will propose a dividend payment amounting to € 0.75 per no-par share entitled to profit. The previous year’s dividend likewise amounted to € 0.75 per share. Thus the corporation is emphasising its efforts vis-à-vis the shareholders to stabilize the value of the LUDWIG BECK share as an attractive investment and to let investors benefit from the results.
Outlook
Despite the enormous tasks Germany and Europe are having to face in 2016, leading economic researchers rate the prospects and the development of the consumer climate in Germany as promising.
LUDWIG BECK’s management shares this optimistic outlook, but is also conscious that the industry is still exposed to a tremendous dynamism that includes a number of inestimable influencing factors. Stable, sustainable growth will therefore determine the Group’s course over the current year too. Consequently, during the fiscal year 2016, the Executive Board expects sales at group level to be at € 180m to € 190m and earnings before interest and taxes (EBIT) at € 8m to € 9m.
Further information about the company and its stock is available on the company`s website at kaufhaus.ludwigbeck.de/english/.
Key figures of the group
| €m | 2015 | 2014 |
| Sales (gross) | 158.6 | 102.7 |
| Sales (net) | 133.3 | 86.3 |
| Earnings before interest, taxes and depreciation (EBITDA) | 22.3 | 13.4 |
| Earnings before interest and taxes (EBIT) | 18.3 | 10.6 |
| Earnings before taxes (EBT) | 17.3 | 9.5 |
| Consolidated net profit | 15.2 | 6.7 |
| Equity | 79.4 | 64.4 |
| Equity ratio in % | 60.2 | 60.5 |
| Investments | 2.2 | 6.5 |
| Employees (individuals) 1) | 816 | 478 |
| Earnings per share (in €) | 4.11 | 1.81 |
| Dividend (in €) | 0.75 | 0.75 |
1) without apprentices
About LUDWIG BECK
LUDWIG BECK AG is one of the leading companies in the German textile retail industry, achieving gross sales in the amount of € 104m in the year 2015 (as of December 31, 2015) with approx. 500 employees and a total area of 12,400 sqm.
LUDWIG BECK is located at the heart of Munich, directly at the Marienplatz. Over seven floors, the Munich-based fashion company offers international fashion, leather goods and accessories, as well as exclusive cosmetics. With more than 12,000 titles it also offers Europe’s largest stationary selection of classic, jazz and world music alongside audiobooks. Since the end of 2012 the unique brand portfolio of the company’s beauty department has also been available for online shopping at www.ludwigbeck.de. Here customers are awaited by a unique selection of almost 10,000 products from over 100 brands in luxury and niche cosmetics.
WORMLAND:
THEO WORMLAND GmbH & Co. KG, which is based in Hanover, achieved sales in the amount of € 80m (as of December 31, 2015) with 467 employees over an area of around 14,800 sqm. Here the corporation incorporates two different store concepts: WORMLAND and THEO. With 15 branches, THEO WORMLAND GmbH & Co. KG is now amongst the leading German men’s fashion retailers.