DGAP-News: Adler Modemärkte AG: EBITDA Improves to EUR 25.1 Million in H1

Press Release from Adler Modemärkte AG

ADLER Headed for Success

EBITDA Improves to EUR 25.1 Million in H1
Liquidity at EUR 54.5 Million, Free Cash Flow Hits EUR 20.6 Million

Haibach (near Aschaffenburg), 1 August 2019: ADLER further improved its profitability and free cash flow in the first six months of the 2019 financial year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to EUR 25.1 million in H1 2019 (H1 2018: EUR 24.1 million). As announced, the earnings growth was down to efficiency gains from ADLER's "2020 Strategy". The improvements were achieved despite the persistently underperforming textile retail industry. Due to the planned store closures, sales of EUR 236.0 million did not reach the previous year's level of EUR 243.1 million, as expected. Gross profit on goods sold - a key factor in measuring profitability - improved from 54.3% to 54.7% in the reporting period. Adjusted for the non-recurring effects of transformation and restructuring costs, EBIDTA increased from EUR 26.7 million to EUR 27.4 million. There were also significant improvements in earnings before interest and taxes (EBIT) (up from EUR 0.7 million to EUR 3.0 million in H1) and earnings after taxes (from EUR -7.6 million to EUR -4.5 million).

ADLER's liquidity cushion at EUR 54.5 million - free cash flow hits record high in Q2
ADLER saw significant improvements in liquidity and free cash flow in the second quarter thanks to highly successful working capital management. Liquidity rose from EUR 25.9 million as at 31 March 2019 to EUR 54.5 million as at 30 June 2019. Free cash flow amounted to EUR 38.0 million in the reporting quarter, up 26.7% year on year. At EUR 20.6 million, free cash flow for the first half of the year was also significantly higher than the EUR 16.6 million recorded as at 30 June 2018. The balance sheet remains very strong. Total assets amounted to EUR 395.8 million as at 30 June 2019 (31 December 2018: EUR 411.3 million). Equity amounted to EUR 55.1 million at the end of June (31 December 2018: EUR 59.7 million), corresponding to an equity ratio of 13.9% (14.5%).

Annual targets firmly in sight - store optimisation on track
As a result and after a healthy start to the third quarter, ADLER is well on course to achieve its annual targets for 2019. The Executive Board continues to forecast total revenue of just under EUR 500 million for 2019 due to the store optimisation program. Including the impact from IFRS 16 of EUR 46 million to EUR 48 million as communicated in the annual report 2018 operating EBITDA of between EUR 73 million and EUR 78 million is expected. Factoring in non-recurring costs for the planned store closures, an EBITDA of EUR 64 million to EUR 69 million is targeted.

The report on the first half 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

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

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 EUR 507.1 million in revenue and generated - prior to IFRS 16 - EUR 20.7 million in EBITDA (adjusted: EUR 26.2 million). As at 30 June 2019, ADLER has approximately 3,600 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