DGAP-News

Adler Modemärkte AG: ADLER increases H1 revenue by 5 percent

DGAP-News: Adler Modemärkte AG / Key word(s): Half Year
Results/Quarter Results
Adler Modemärkte AG: ADLER increases H1 revenue by 5 percent

06.08.2015 / 07:30

---------------------------------------------------------------------

Overall market trend surpassed once again:

ADLER increases H1 revenue by 5 percent

Executive Board confirms forecast for the overall year

Haibach (near Aschaffenburg), 6 August 2015: Adler Modemärkte AG - one of
Germany's largest textile retailers - maintained its growth in the first
half of 2015 despite operating in a difficult industry environment. While
revenues across the German textile retail industry decreased by 2% during
the reporting period, ADLER increased its consolidated revenue by 4.9% to
EUR 268.4 million. A particular highlight is the 2.2% like-for-like growth
generated in the second quarter. While like-for-like revenue in the first
half of the year was down -0.7% compared to the prior-year figure, it was
still significantly above the overall market trend.

As expected, acquisitions weigh down H1 results
The effects of the Company's recent expansion measures significantly
influenced the H1 2015 earnings indicators: as expected, earnings decreased
as a result of the acquisition of Kressner (now ADLER Orange) and the hefa
store in Mömlingen.
Due to the increased cost of goods sold for the - in total - ten newly
acquired stores, the cost of materials in the first half of the year
increased by 8% year on year to EUR 125.3 million. Gross profit
nevertheless increased slightly by 2.1% to EUR 143.1 million. This
increase, while slightly less pronounced than the growth in revenue, led to
a decrease in the gross profit margin from 54.8% to a still solid 53.3%.
During the reporting period, personnel expenses increased by 9.8% to EUR
53.0 million (previous year: EUR 48.3 million), due primarily to the
integration of the recently acquired stores and the associated staff
restructuring measures. For instance, extraordinary expenditures in the
form of severance payments and provisions at ADLER Orange alone amounted to
EUR 1.1 million.

The increase in expenses led to the expected decrease in earnings before
interest, taxes, depreciation and amortisation (EBITDA) from EUR 12.9
million to EUR 4.5 million in the first half of the year. Earnings before
interest and taxes (EBIT) decreased from EUR 5.3 million to EUR -3.4
million. Earnings before taxes (EBT) fell from EUR 2.9 million to EUR -5.8
million. Consequently, ADLER reports a consolidated net loss for the first
half of 2015 amounting to EUR -5.3 million as compared to consolidated net
profit of EUR 1.4 million in the same period of the previous year. Based on