EQS-News

Publication of the 2022/2023 consolidated financial statements and the results for the first quarter of 2023/2024 - Seite 3

EBITDA fell from € 21.7 million in the 2021/2022 financial year to € 7.8 million in the 2022/2023 financial year due to the effects of the KaDeWe insolvency and the weak willingness to invest in retail. Adjusted for the two one-off effects of restructuring (€ 1.9 million) and the KaDeWe insolvency (€ 3.5 million), adjusted EBITDA amounted to € 13.2 million and adjusted EBIT to € 5.4 million. Adjusted EBITDA is therefore within the forecast corridor of € 11 million to € 14 million revised in April 2023.

Earnings after taxes fell from € 9.5 million in the previous year to minus € 1.2 million. Due to the negative result, the negative special factors and in order to conserve the company's liquidity reserves and credit lines, the Executive Board and Supervisory Board will propose to the Annual General Meeting that no dividend be distributed for the 2022/2023 financial year.

First quarter of 2023/2024: weak business performance and the effects of the KaDeWe insolvency weigh on earnings performance

In the first quarter of the 2023/2024 financial year, demand for projects was weak due to the only moderate economic recovery and restrained willingness to invest. Revenues fell by 20.4% to € 38.9 million compared to the same period of the previous year (€ 48.8 million). Accordingly, EBITDA was minus € 0.9 million (previous year: € 4.9 million) and EBIT was minus € 2.8 million (previous year: € 2.3 million). 

The results for the first quarter of 2023/2024 were impacted by impairment losses of € 1.8 million due to the insolvency of the KaDeWe Group. Excluding this one-off effect, adjusted EBITDA was positive at € 0.9 million.

KPS expects to have reached the bottom in terms of revenue development in the first quarter of 2023/2024. The business situation is therefore expected to improve in the further course of the financial year.

Cautious outlook for the 2023/2024 financial year: demand expected to remain weak

KPS expects demand for transformation projects to remain at a low level due to geopolitical uncertainties and the ongoing tense economic situation. In addition, the insolvency of the KaDeWe Group and the insolvency of The Body Shop in the UK will have a negative impact on KPS' earnings in the 2023/2024 financial year in the single-digit million range. The negative effects of the two insolvencies should be partially offset by the positive effects of the cost-cutting measures.