Press Release from Adler Modemärkte AG
EBITDA up 7% to approx.€25 Million and up 33% to approx.€31 Million When Including Extraordinary Effects
Significant Growth in Earnings Despite Persistently Difficult Environment
Personnel Changes on the Executive Board
Haibach (near Aschaffenburg), 30 January 2018: As previously announced, ADLER successfully closed the second phase of the real estate sales in Austria shortly before the end of the year. Thanks to the non-recurring income generated from these transactions and adjusted for non-recurring expenses fromrestructuring measures, the positive effect on the Company's earnings totalled approximately €6 million.
According to preliminary unaudited figures, the Group's reported EBITDA thus amounted to around€31million, up 33% against 2016. Without this one-off effect, earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 7% to approximately€25 million in 2017 (2016: €23.3 million).
This development was despite the fact that general conditions for the German textile retail industry continued to deteriorate in the fourth quarter of the financial year. As a result, the Company missed its operating EBITDA target of€27-30 million. Consolidated revenue amounted to€525.8 million, roughly 3% below the prior-year figure of€544.6 million.
Free cash flow reaches record high of more than€35 million, over€63 million in liquidity
In 2017, ADLER was extremely successful in meeting its target of substantially improving free cash flow, which rose from€11.3 million to a record high of more than€35 million in the year under review. The Company is therefore also extremely liquid. ADLER's cash and cash equivalents amounted to over€63 million as at 31 December 2017, representing a significant year-on-year increase of€20.5 million
Strategic realignment for sustainable, profitable growth
ADLER can leverage this extremely sound financial foundation to return the Group to a profitable growth path as planned in the medium to long term. The Executive Board will announce the new corporate strategy and related measures by mid-March at the latest.
Personnel changes on the Group's Executive Board-Andrew Thorndike departs ADLER
The Supervisory Board of Adler Modemärkte AG at its extraordinary meeting today resolved to re-examine the composition of the Executive Board. Accordingly, Andrew Thorndike will leave the Company with immediate effectADLER's Supervisory Board has also decided to establish the position of a Chief Commercial Officer within the Board, in charge of the Omni-Channel-strategy. Potential candidates are already under assessment. With today's early extension of the service agreement with CFO Karsten Odemann until December 31, 2021, the Supervisory Board has also set a clear signal for continuity on the Management Board.
ADLER will publish the audited annual financial statements and annual report for 2017 on 15 March 2018.
Press enquiries Adler Modemärkte AG:Katrin Schreyer
Media and 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. According to the preliminary figures, the Group generated revenue of€525.8 million and EBITDA of approximately€31 million (adjusted approx.€25 million) in 2017. As at 31 December 2017, ADLER employed a workforce of around 3,800 and currently operates 182 stores, 155 of which are located in Germany, 22 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 m2of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to nearly 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 45 and over.
For more information:www.adlermode-unternehmen.com;www.adlermode.com
Adler Modemärkte AG published this content on 30 January 2018 and is solely responsible for the information contained herein.
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