Adler Modemärkte AG

  • WKN: A1H8MU
  • ISIN: DE000A1H8MU2
  • Land: Deutschland

Nachricht vom 07.05.2019 | 07:00

Adler Modemärkte AG: Significant Earnings Improvement in Q1

DGAP-News: Adler Modemärkte AG / Key word(s): Quarterly / Interim Statement/Quarter Results

07.05.2019 / 07:00
The issuer is solely responsible for the content of this announcement.


Press Release from Adler Modemärkte AG

Outlook for 2019 Confirmed - First Report in Accordance with IFRS 16

Significant Earnings Improvement in Q1
Measures to Boost Efficiency Increasingly Bearing Fruit

Haibach (near Aschaffenburg), 7 May 2019: ADLER was able to significantly improve earnings in the first quarter of 2019 due to the positive effects from the "ADLER 2020 strategy" which are becoming increasingly apparent. With consolidated revenue of EUR99.3 million as at 31 March 2019, the company has made the expected solid start to the new financial year. This figure was below the prior-year level of EUR102.7 million, however, this was attributable to already completed store closures and the ongoing muted development of the textiles retail sector. The measures that had been introduced in prior periods to improve efficiency are increasingly having a positive effect on earnings. For instance, the gross profit margin increased from 48.8% in the prior year to 49.4%. With regard to the P&L figures from earnings before interest, taxes, depreciation and amortisation (EBITDA), it must be noted that ADLER - as previously disclosed in the 2018 Annual Report - applied a new accounting standard, IFRS 16, for the first time during the quarter under review. This changed how the Company accounts for leases. Against this background, EBITDA increased in what is traditionally the weakest quarter of the financial year by 60% from EUR-5.8 million to EUR-2.3 million (prior to IFRS 16 the comparable figures would have amounted to EUR-14.3 million and EUR-17.8 million in Q1 2018). Adjusted for non-recurring items, EBITDA improved from EUR-4.1 million to EUR-1.2 million (prior to IFRS 16: increase from EUR-16.1 million to EUR-13.2 million). The non-recurring items related primarily to transformation and restructuring costs. In the first quarter, ADLER also recorded substantial increases in earnings before interest and taxes (EBIT) from EUR-17.4 million to EUR-13.5 million and earnings after taxes from EUR-16.6 million in the prior-year period to EUR-13.3 million.

ADLER's balance sheet remains healthy - substantial effects from IFRS 16
The changes brought about by IFRS 16 also had a significant effect on the statement of financial position. Total assets amounted to EUR393.2 million as at 31 March 2019 (31 December 2018: EUR412.0 million). In comparison, prior to IFRS 16, total assets would have amounted to EUR215.8 million and EUR226.8 million, respectively. Equity amounted to EUR46.0 million at the end of the quarter under review (31 December 2018: EUR59.3 million), corresponding to an equity ratio of 11.7% (14.4%). Prior to IFRS 16, equity would have amounted to EUR81.9 million (EUR96.3 million) and the equity ratio would have been 38.0% (42.5%). After the first three months of 2019, ADLER has a comfortable liquidity cushion of EUR25.9 million. While this is significantly below the EUR54.9 million recorded at the end of 2018, the decrease is in line with the orders for the new spring/summer collections typically seen in the industry at this time of year.

"ADLER 2020 Strategy" systematically implemented - 2019 forecast confirmed
ADLER is consequently implementing its "2020 Strategy", announced in 2018, which is designed to return the Company to sustainable and profitable growth. This strategy is based on a number of measures aimed at adjusting the product, marketing and communications strategy and also includes an extensive store optimisation programme, the closure of up to 17 unprofitable stores and the opening of up to six lucrative new locations by 2021. A twelve-month comparison revealed that the number of ADLER stores had already been reduced from 181 to 175 stores as at 31 March 2019.

Adler Modemärkte AG is looking ahead with confidence to 2019 and 2020, despite the persistently difficult environment. After the strong start to the year, the Executive Board continues to forecast revenue of just under EUR500 million for 2019 as a whole due to the location adjustments. Thanks to the efficiency enhancement measures successfully implemented in previous years, EBITDA after IFRS 16 is expected to amount to EUR64-69 million (prior to IFRS 16: EUR27-30 million). Non-recurring expenses of EUR8-10 million are expected in connection with the changes to the network of stores, most of which have already been implemented this year, as well as further measures aimed at improving efficiency. Accordingly, the Company expects to report EBITDA of EUR55-60 million (prior to IFRS 16: EUR18-21 million).


The Report on the First Quarter of 2019 can be downloaded at https://www.adlermode-unternehmen.com/en/investor-relations/reports-and-publications/financial-reports/2019/.

 

ADLER Group's key performance indicators

(EUR million) Q1 2019

After IFRS 16
Q1 2018

After IFRS 16
Change Q1 2019

Prior to

IFRS 16
Q1 2018

Prior to
IFRS 16
Change
Revenue 99.3 102.7 -3.3% 99.3 102.7 -3.3%
Gross profit 49.1 50.1 -2.0% 49.1 50.1 -2.0%
Gross profit margin 49.4% 48.8% +60 bps 49.4% 48.8% +60 bps
Earnings before interest, taxes, depreciation and amortisation (EBITDA) -2.3 -5.8 +60.3% -14.3 -17.8 +19.7%
Adjusted EBITDA -1.2 -4.1 +7.1% -13.2 -16.1 +18.0%
Earnings before interest and taxes (EBIT) -13.5 -17.4 +22.4% -18.0 -21.9 +17.8%
Consolidated net profit/loss -13.3 -16.6 +19.9% -14.4 -17.3 +16.8%
Earnings per share (in EUR)* -0.72 -0.90 +19.9% -0.78 -0.93 +16.8%
 


* based on 18,510,000 no-par value shares.

  31 Mar. 2019

After IFRS 16
31 Dec. 2018

After IFRS 16
31 Mar. 2019

Prior to

IFRS 16
31 Dec. 2018

Prior to
IFRS 16
Total assets (EUR million) 393.2 412.0 215.8 226.8
Equity (EUR million) 46.0 59.3 81.9 96.3
Equity ratio 11.7% 14.4% 38.0% 42.5%
Debt/equity ratio 7.55 5.94 1.63 1.36
Cash (EUR million) 25.9 54.9 25.9 54.9
Employees 3,692 3,786    
Total number of stores 175 178    
 

 

Adler Modemärkte AG press enquiries and investor relations
Jasmin Dentz
Investor Relations
Tel.: +49 6021 633 1828
E-mail: investorrelations@adler.de

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2018, the Group earned EUR507.1 million in revenue and generated EUR20.7 million in EBITDA (adjusted: EUR26.2 million). As at 31 March 2019, ADLER has approximately 3,700 employees and currently operates 175 stores, 147 of which are located in Germany, 23 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.
For more information: www.adlermode-unternehmen.com; www.adlermode.com



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