Home / Knowledge / News / Apparel/Garments / Ahlers fiscal 2007/2008 result impacted by exchange rate differences
Ahlers fiscal 2007/2008 result impacted by exchange rate differences
09
Feb '09
Ahlers AG, the menswear company, released its first preliminary figures for the 2007/2008 annual accounts. German menswear company Ahlers saw sales rise by 3.2 percent to EUR 268 million (previous year: EUR 260 million) in the financial year 2007/2008. This growth is primarily attributable to the premium segment, which comprises Pierre Cardin, Baldessarini and Otto Kern and reported an impressive 11 percent increase in sales. The premium segment now accounts for 47 percent of total Group sales (previous year: 43 percent).

During the financial year the company systematically expanded the product offering of Pierre Cardin and achieved incremental retail distribution of knitwear, shirts and suits in addition to the brand's traditional strength in jeans. As for Baldessarini, the company launched Baldessarini Black, a high-quality line positioned below the luxury collection, which sold well in its initial year. Going forward, sales will be further stimulated by the recently announced eyewear partnership between Baldessarini and Rodenstock.

The regional breakdown shows that the sales growth was achieved in the international markets; the trend was led by eastern Europe where sales rose by 19 percent but was also supported by western Europe where sales were up 2 percent on the previous year. Following a weak fourth quarter 2007/2008, sales in Germany declined slightly by 2 percent.

The weak fourth quarter sales (-7 percent) were a key contributor to the 20 percent decline in EBIT for the year. While EBIT for the first nine months was still up on the previous year's figure, the preliminary 2007/2008 EBIT (adjusted for extraordinary factors) came in at EUR 7.8 million.

As already announced in October, Ahlers has launched a comprehensive cost cutting programme which will deliver a high single-digit million amount in savings already during the current financial year 2008/2009. Implementation of the programme has proceeded as scheduled. All redundancy and social plans were completed, and the required notices of termination given, already last year. At EUR 4.4 million, the non-recurrent charges remained within expectations and were provisioned for in the 2007/08 accounts. Towards the end of the year, profitability was additionally impacted by the unexpectedly rapid depreciation of the Polish zloty which put a EUR 1.8 million dent in the company's result.

After provisions for redundancy compensations, exchange rate losses, interest and taxes, Ahlers is reporting a net result of EUR 0.3 million (previous year: EUR 9.7 million) which is below management's expectations. At year-end, the Ahlers Group's cash and equivalent holdings remained positive and the equity ratio stood at a good 50 percent. The comfortable financial position should allow to pay out a satisfactory dividend.

Ahlers AG is a leading listed manufacturer of men's fashion in Europe. This innovative and well-capitalised company looks back on almost ninety years of swift and flexible adjustment to the requirements of the times and the markets.

Ahlers AG

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search