DGAP-News
Adler Modemärkte AG: Significant Impact From Efficiency and Liquidity Optimisation Measures
DGAP-News: Adler Modemärkte AG / Key word(s): Quarter Results
Positive Start to 2017: |
Haibach (near Aschaffenburg), 11 May 2017: Adler Modemärkte AG kicked off the new financial year on a positive note, significantly exceeding some of its own targets from the same quarter in 2016. In addition to revenue, earnings and cash flows also improved substantially. This was attributable to comprehensive measures introduced in 2016 to increase efficiency and profitability as well as to optimise cash flows.
ADLER significantly outperforms overall sector
In Q1 2017, ADLER built on earlier successes and outperformed the overall sector's revenue trend: While the textile retail industry recorded a 2% decline in revenue according to
Textilwirtschaft magazine's TW-Testclub survey panel, ADLER increased its revenue in Q1 2017 by 3.2% to EUR 108.7 million (Q1 2016: EUR 105.3 million). On a like-for-like basis, this
represents growth of 1.5%. The dynamic business performance in March in particular contributed to the positive results. The period from January to March is typically ADLER's weakest quarter on
account of the sell-off of winter merchandise.
Earnings benefit from improved cost efficiency
The Group's cost of materials increased less markedly than its revenue, by 2.1% from
EUR 54.9 million to EUR 56.0 million. As a result, gross profit improved from EUR 50.5 million to
EUR 52.7 million. The gross profit on goods sold increased accordingly, from 47.9% to 48.5%.
As is typically the case with its business model, ADLER will also not begin to generate a profit in 2017 until the second half of the financial year. However, the positive news after three months is that earnings before interest, taxes, depreciation and amortisation (EBITDA) improved significantly from EUR -16.6 million in the previous year to EUR -12.5 million. This development is attributable to savings across all levels of the Group, in particular in terms of personnel expenses and marketing expenditures. Earnings before interest and taxes (EBIT) also increased significantly from EUR -20.6 million in the previous year to EUR -16.7 million in Q1 2017. Earnings before taxes (EBT) increased from EUR -21.9 million to EUR -18.0 million in the first three months of 2017.