News & Press
WFA subsidiary ArtXX AG has once again increased the pace of growth in 2021 - profitability remains exceptionally high
10 Feb. 2022 / Pressemitteilungen
- Turnover increased by about 36%
- Profit margin from own goods increased from 76 % to about 109 %.
- Trading profit increased by about 60 %
- High Casflow leads to equity ratio of about 70 %
- Significant increase in ArtXX AG dividends possible
According to preliminary figures, ArtXX AG, the Swiss e-commerce subsidiary of Weng Fine Art AG, has increased its revenues by about 36 % compared to the previous year to about EUR 7,700k (from EUR 5,668k in the financial year 2021). This means that the company’s pace of growth has accelerated yet again, unaffected by negative external influences such as the pandemic, supply chain issues and pressure on interest rates and inflation. The volume of the ArtXX business has accelerated during the second half of 2021 by about 70 % compared to the first half of the year.
In addition to turnover, the profit margin (calculated as the mark-up rate) for goods owned by ArtXX has also increased extraordinarily from 76% to approx. 109%. This development is due to price increases across the entire art edition market, which above all led to a higher market valuation of ArtXX AG's existing inventory. Sales with margins of several hundred percent were not uncommon last year.
Both positive developments have led to a further strong increase in the trading profit to around 3,700k EUR, which is an improvement of around 60 % from the previous historic high in 2020 (2,316k EUR). This trend has even accelerated during the second half of 2021. The extra-ordinary income in 2020 from the compensation payment of a business partner in the amount of 450k EUR was not offset by any comparable income source in the past year.
The operating costs have increased at a lesser rate than trading profit. Financing costs were at a very low level in 2021 as they were in 2020.
The profit in the financial year of 2021 will significantly exceed the previous high from 2020 (EUR 1,809k), as the company's profitability was also exceptionally high in 2021. The first significant income from the token business is expected for 2022.
The high financial and operational cashflow has led to a sharp reduction in the company's net debt at the end of 2021.
Due to the high profits, which has led to an improvement of ArtXX AG's equity ratio to almost 70% as of 31 December 2021, a strong increase in the dividend distributed to shareholders for 2021 is possible. The Board of Directors will propose the new dividend with making the final results of 2021 public in March 2021. At that time, the management also intends to present the strategic measures initiated to further accelerate growth.
The preliminary figures for the 2021 financial year from the trading business of Weng Fine Art AG are to be announced on 11 February 2022.
ABOUT ARTXX AG
ArtXX AG (formerly WFA Online AG) is more than 61% owned by Weng Fine Art AG in Monheim. The chairman of the board of directors, Rüdiger K. Weng, also holds more than 23 % of the shares. The free float is distributed among more than 500 shareholders. The company is currently considered one of the most profitable art e-commerce companies worldwide. The company focuses on online trading with works by internationally important contemporary artists such as Jeff Koons, Damien Hirst, Christo, Robert Longo, Alex Katz, Bernar Venet and Ai Weiwei. The graphic and sculptural editions are offered via the e-commerce platform "Weng Contemporary" established in 2015. Further information at: www.wengcontemporary.com
ABOUT WENG FINE ART AG
WENG FINE ART AG (WFA), founded in 1994 in Germany, is today one of Europe’s most successful and profitable art trading companies. Since 2012, it is the only art dealership quoted on a public stock exchange. With four business units (B2B, E-commerce, Data, and Art/Fin/Tech) and an agile team of finance, art and digital experts, the company serves clients worldwide. WFA is specialised in trading works by internationally renowned artists of the 20th and 21st centuries such as Andy Warhol, Pablo Picasso, Jeff Koons, Gerhard Richter, Damien Hirst, Alex Katz, Robert Longo and Ai Weiwei.
Weng Fine Art focuses on business-to-business trades and services the major international auction houses as well as renowned dealers and galleries. With its Swiss subsidiary, ArtXX AG, WFA also has an e-commerce business which trades exclusive print and sculpture editions by the most important contemporary artists. Weng Fine Art holds a significant stake in Artnet AG, the world’s leading data and information provider for the art market, which has become an associated company of WFA AG. Weng Fine Art is now also developing the digital art market around blockchain technology with partners from the finance and tech industries. The goal is to increase accessibility to the art market and to establish transparency in line with fine art’s existing status as an asset class. Further information at: www.wengfineart.com
Weng Fine Art AG
Melanie Moske | Chief Digital Officer
Rheinpromenade 8 | 40789 Monheim am Rhein
Phone +49 (0)2173 690 8700 | Mobile +49 (0)173 5977239