DGAP-News: Adler Modemärkte AG: Forecast Achieved Despite Persistently Difficult Environment

Press Release
from Adler Modemärkte AG
2018: EBITDA of EUR20.7 million - Revenue at EUR507.1 million:

Forecast Achieved Despite Persistently Difficult Environment
Store Closures to Sustainably Increase Profitability Beginning in 2019

Haibach (near Aschaffenburg), 20 February 2019: Adler Modemärkte AG has succeeded in meeting its forecast figures, which had been adjusted in November 2018, despite the persistently weak conditions on the German retail textiles market. The Group's reported earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR20.7 million after the preliminary, non-audited figures were reported (2017: EUR32.0 million). From a purely operating standpoint, i.e., adjusted for non-recurring items, EBITDA rose slightly from EUR25.4 million to EUR26.1 million. This means that the previous year's EBITDA had been influenced by non-recurring income amounting to EUR6.6 million, primarily in relation to the sale of real estate in Austria. By contrast, one-off expenses in connection with the Group's strategic realignment were incurred in the year under review, for instance due to staff cuts.

Consolidated Group-revenue also amounted to EUR507.1 million as forecasted, although this was 3.6% below the prior-year figure of EUR525.8 million. With cash and cash equivalents amounting to EUR54.9 million as at the reporting date (31 December 2017: EUR63.3 million), ADLER once again had a very sound financial foundation, enabling it to finance ongoing and planned initiatives to boost future growth and sustainably increase profitability on its own.

Optimisation of Store Network to Increase Profitability
ADLER remains resolute in its implementation of the necessary steps to sustainably increase the Group's profitability. In this context, the company analysed its entire store network once again in detail and will implement optimization measures in the coming years, in particular at fashion stores, which contributed negatively to earnings. This is expected to have a positive impact on the Group's earnings near-term. In addition, ADLER will continue to selectively pursue growth opportunities and open up new fashion markets at attractive locations.

In addition, ADLER will continue to implement the successfully established conservative accounting and financing strategy going forward. Accordingly, the focus will remain on generating sustained positive free cash flows and reporting soundly positive net liquidity.

ADLER will publish its audited annual financial statements and annual report for 2018 on 14 March 2019.

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, according to preliminary figures, the Group earned EUR507.1 million in revenue and generated EUR20.7 million in EBITDA (adjusted: approximately EUR26.1 million). As at 31 December 2018, ADLER has 3,786 employees and currently operates 178 stores, 150 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 45 and over.
For more information: www.adlermode-unternehmen.com; www.adlermode.com

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