News & Press
Consolidated financial statement 2021 reports rising sales, significant increase in trading income and continued improvement of equity ratio
7 Juni 2022 / Pressemitteilungen
- Sales revenues increase by 25 %
- Trading profit rises by 37 %
- Group net profit increases by 20%
- Equity ratio improves from 46 % to 56 %
Today, Weng Fine Art AG (WFA) presents its audited consolidated financial statement for the fiscal year 2021. This can be accessed at https://wengfineart.com/uploads/Konzernabschluss_2021.pdf.
According to the statement, the group’s revenues have increased by 25.2 % from EUR 10,433k (2020) to EUR 13,062k. At the same time, in an overall very positive year for the art market, the gross profit margin (calculated as mark-up rate) increased once again from 71.8 % to 84.6 %. As a result, trading profits rose by 37.2 % from EUR 4,360k to EUR 5,984k.
While in the comparable period of the previous year, income from financial assets had increased sharply due to the one-time distribution of ArtXX shares (2020: EUR 3.165k), only EUR 1,498k in income from financial assets were realized in 2021.
The group’s costs increased at a significantly lower rate compared to revenues, rising by just 15.1% to EUR 2,051k (2020: EUR 1.783k).
EBIT was EUR 5,011k (2020: EUR 5,921k including the special income of EUR 3,165k). The financial result was almost unchanged at EUR 238k (2020: EUR 236k). Group net income for the year totaled EUR 4,246k (2020: EUR 5,272k incl. the special income of EUR 3,165k), and consolidated net profits amounted to EUR 6,400k compared to EUR 5,312k in 2020, although EUR 1,210k (2020: EUR 95k) had already been allocated to reserves before.
From the profits achieved, the Swiss ArtXX AG intends to pass on a dividend of CHF 1,085k and the German WFA AG a dividend of EUR 865k to its shareholders.
It is noteworthy that during the fiscal year of 2021, despite extensive investments in participations in several companies, amounting to almost EUR 5 million, liabilities could be reduced from EUR 16.8 million to EUR 16.2 million. This was possible due to the strong increase in shareholders equity from EUR 15,044k to EUR 22,249k (+ 47.9 %). A large part of the profits generated in 2020 were re-invested, as in previous years, and an additional EUR 3,851k were generated from selling treasury shares, which were credited tax-free to the equity account. The equity ratio is now at the comfortable ratio of 56.5 % (2020: 46.4 %), which gives the company room to maneuver even in the current challenging environment. In total, Weng Fine Art AG can draw on equity and credit lines of around EUR 50 million. Some of the financing banks have stated that they could provide additional funds in excess of this amount in the event of investments or acquisitions that could grow the WFA Group's operating business. WFA is likely at this stage one of the best funded art trading companies in Europe und should easily be able to survive a recession in the world economy and on the art market.
The management will present further information on the results and performance in 2021 at the Annual General Meeting, which will be held in Düsseldorf on June 28, 2022. The management also intends to provide information on the Group's plans for 2022/23 on this occasion.