News & Press
WFA Subsidiary ArtXX AG Publishes Final Figures For 2021 - Strong Dividend Increase Proposed
3 Mai 2022 / Pressemitteilungen
Sales increased by 31.7%
Adjusted profit increased by 60.6%
Yield on Sales 30,4 % (after taxes) on a historical high
Equity ratio increased again to 67.6%
Dividend increase from CHF 0.25 to CHF 0.35 per share proposed
ArtXX AG ("Weng Contemporary"), the Swiss e-commerce subsidiary of Weng Fine Art AG (WFA), increased its sales by 31.7% from EUR 5,668k to EUR 7,465k in fiscal year 2021. Thus, the company was able to grow again largely unimpressed by negative external influences such as the pandemic, faltering supply chains as well as interest rate and inflation concerns. In addition to sales, the margin (calculated as a mark-up rate) for the company's own material has increased exceptionally from 76% to 110%. This trend was due to the value increases across the entire range of the art edition market, which primarily led to a higher valuation of ArtXX AG's inventory.
Both of these positive developments led to a further strong increase in trading profit to EUR 3,580k, a 54.5% improvement on the previous record figure from 2020 (EUR 2,316k). However, the special income in 2020 from the compensation payment of a business partner in the amount of EUR 450k was not repeated by any comparable income in 2021. Operating costs of EUR 970k compared with EUR 669k in 2020 (+ 45%) increased at a lower rate in relation to trading profits. Financing costs (compensated with income) remained at a very low level of EUR 14k (vs. EUR 23k in 2020). At EUR 2,269k, earnings after tax significantly exceeded the previous high from 2020 (EUR 1,809k) - the earnings for 2020 of EUR 1,413k, adjusted for the special income, actually increased by 60.6% in 2021.
The profit on revenues of ArtXX AG amounted to extraordinarily high 30.4% (after taxes) in the
business year 2021. The positive cash flow from operations led to the fact that the current receivables plus cash on hand exceed the liabilities of the company. At the Annual General Meeting to be held virtually in Zug on June 21, 2022, the Board of Directors will propose an increased dividend from CHF 0.25 to CHF 0.35 per B-share and CHF 0.035 (after CHF 0.025) per A-share from the retained earnings of EUR 3,179k and on the increased share capital of CHF 3,720k. This would increase the total dividend by 42% compared to the previous year. In addition, the legal reserve will be increased beyond the
requirements so that it will amount to exactly 50% of the nominal capital after approval by the Annual General Meeting. The full annual financial statements of 2021 can be downloaded at https://wengfineart.com/upload... since April 20, 2022. In the first quarter of 2022, sales and earnings of ArtXX were above the first quarter of 2021. Russia's invasion of Ukraine had no direct impact on ArtXX AG's business. Both countries together have contributed less than 1% to sales in the global art market and less than 0.2% to the sales of the WFA Group in recent years.