DGAP-News

Adler Modemärkte AG: Focus on Improved Profitability and Free Cash Flow in 2017 - Seite 2

"The cost reduction measures which we had initiated in 2016 had an increasingly positive effect in the fourth quarter. In light of the generally difficult industry environment, the results generated can truly be considered a success. We intend to build on that success in 2017 and increase EBITDA substantially to EUR 27-30 million", said Lothar Schäfer, CEO of Adler Modemärkte AG.

Free cash flow increases to EUR 11.4 million - balance sheet structure remains sound

Despite the decline in revenue and earnings, the Company successfully realised significant improvements in its cash flow thanks to cost savings, reduced investments and efficient working capital management. Operating cash flows increased from EUR 19.5 million to EUR 22.2 million, and free cash flow even increased from EUR 2.9 million to EUR 11.4 million. A negative figure of EUR -20.2 million had been reported for that metric at the end of the first nine months.


At the reporting date, ADLER continues to boast a highly sound balance sheet structure. For instance, with total assets reduced from EUR 243.4 million to EUR 222.6 million, the equity ratio amounted to 42.8% and was thus virtually at the same level as in the previous year (43.1%). The decrease in cash and cash equivalents from EUR 52.1 million at the end of 2015 to EUR 42.8 million as at 31 December 2016 was limited thanks to the positive development in the fourth quarter. Net financial liabilities rose during the same period from EUR 24.4 million to EUR 28.4 million. By comparison, at the end of September 2016 that figure had been significantly higher at EUR 61.5 million.

EBITDA expected to increase to EUR 27-30 million in 2017 despite general conditions which remain difficult

The positive effects resulting from the cost efficiency measures are not expected to be fully evident until 2017. Approximately EUR 10 million in savings overall are expected in connection with optimised procurement processes, personnel expenses, marketing expenditures and other outlays. Adler Modemärkte AG therefore remains confident of a significant increase in earnings for financial year 2017 despite the persistently difficult conditions. The Executive Board expects EBITDA to increase to EUR 27-30 million. Despite the expected substantial improvements in online sales, the weakness in the textile retail industry is likely to lead to a slight decline in consolidated revenue in 2017.