DGAP-News

Adler Modemärkte AG: ADLER Bucks Industry Trend, Continues Profitable Growth - Seite 2

record-high of 55.6% in the previous year (excluding the non-recurring
effect related to the customer loyalty card: 55.1%), the gross profit
margin amounted to 54.6% in 2014, significantly higher than the average
value of the past few years. Overall, in the same period, cost of materials
increased only slightly to EUR243.2 million (previous year: EUR234.9
million), while gross profit (EUR292.1 million) remained high and
practically unchanged (2013: EUR293.7 million). Personnel expenses
increased in 2014 by 3.5% to EUR95.2 million, while other operating
expenses decreased slightly from EUR166.5 million to EUR165.1 million.
Consequently, ADLER generated earnings before interest, taxes, depreciation
and amortisation (EBITDA) of EUR41.5 million, nearly matching the previous
year's record high of EUR42.9 million. Adjusted for the non-recurring
effect in connection with the customer loyalty card in the previous year,
EBITDA increased by 6.2%. The EBITDA margin amounted to 7.8% (previous
year: 8.1%). Adjusted for the positive non-recurring effect in the previous
year, the EBITDA margin increased by 0.3 percentage points, which was
attributable to the strong like-for-like revenue trend and strict cost
management. Earnings before interest and taxes (EBIT) amounted to EUR26.2
million (previous year: EUR28.9 million). Adjusted for non-recurring items,
this would have corresponded to an increase of EUR1.1 million, or 3.8%.
Earnings before taxes (EBT) amounted to EUR21.2 million (2013: EUR24.6
million). This decrease was due to a decline in net finance costs, which
was attributable to low interest rate levels. Due to the increase in the
tax expense, net profit for the year amounted to EUR14.1 million (previous
year: EUR18.6 million). Earnings per share decreased from EUR1.05 to
EUR0.77 due to the higher number of shares resulting from the sale of
treasury shares in early 2014.

Forecast: further profitable growth

ADLER plans to grow even further in financial year 2015. ADLER is confident
that the Company's more expansionist strategy and its recent acquisition of
the Kressner stores will make it possible to generate a mid-single-digit
percentage increase in revenue. Since the re-branding, renovation, product
range transition and adjustment in staffing levels required to integrate
the Kressner stores into ADLER's sales network will initially result in
one-time costs, the Executive Board expects EBITDA to stagnate at best at
the already high level, and to possibly decline slightly in 2015. In