DGAP-News

Adler Modemärkte AG: Strong Liquidity Despite COVID-19 Restrictions - Sharper Focus on Costs and Liquidity

DGAP-News: Adler Modemärkte AG / Key word(s): 9 Month figures/Quarterly / Interim Statement Adler Modemärkte AG: Strong Liquidity Despite COVID-19 Restrictions - Sharper Focus on Costs and Liquidity 05.11.2020 / 07:30 The issuer is solely responsible for the content of this announcement. Press Release from Adler Modemärkte AG

Clear upwards trend and positive EBITDA in Q3 2020

Strong Liquidity Despite COVID-19 Restrictions - Sharper Focus on Costs and Liquidity
No compromises under "New ADLER" growth strategy for 2023

Haibach (near Aschaffenburg), 5 November 2020: Adler Modemärkte AG - having taken great strides, as promised, in Q3 to make up for the coronavirus-induced year-on-year drop in revenue and even post a positive EBITDA figure - saw itself once again saddled with significant burdens in connection with the new restrictions enacted towards the end of October to combat the pandemic. The Executive Board has taken immediate action. Thanks to the measures implemented in the wake of the spring lockdown, which have been stepped up further, the Group's liquidity is secured until well into the year 2021. As at 30 September 2020, this amounted to €24.8 million. ADLER also expects a healthy liquidity situation as at 31 December 2020 despite the considerable operational difficulties that the pandemic is forecast to cause in the fourth quarter. To ensure this, management will focus on securing funds, for instance by further drawing on the committed line of credit of €69 million in total, which had been granted in May. At the end of October, a second tranche was drawn upon in the amount of €24.5 million, potentially to be followed in Q1 2021 by a €9 million third tranche. Furthermore, efforts were stepped up again to reduce and avoid expenses. This is accomplished primarily by making extensive use of the short time work and through increasing digitalisation, for instance where marketing activities are concerned. In addition, expenditures are being postponed. This also includes rent deferrals and the postponement of planned renovation work and other projects, with the exception of those projects falling under the "New ADLER" growth strategy.