DGAP-News: Adler Modemärkte AG: Free Cash Flow of EUR 23.8 Million Significantly Above Prior-year Figure

Preliminary Q2 Figures Confirmed: Adjusted Operating Profit Up 13.3%

Free Cash Flow of EUR 23.8 Million Significantly Above Prior-year Figure
Cash and Cash Equivalents Robust at EUR 58.7 Million
 

Haibach (near Aschaffenburg), 2 August 2018: ADLER Modemärkte AG confirmed the preliminary figures for the second quarter of 2018 that it had announced on 18 July 2018: Although revenue declined by 3.4% to EUR 140.4 million during the quarter (Q2 2017: EUR 145.3 million), EBITDA (adjusted for negative non-recurring effects) increased to EUR 18.7 million (reported: EUR 17.9 million). This represents a 13.3% increase against the comparable prior-year figure of EUR 16.5 million (reported: EUR 22.7 million). The Q2 consolidated net profit, which in the previous year had been significantly influenced by extraordinary other operating income from real estate transactions, totalled EUR 8.3 million (Q2 2017: EUR 12.4 million).

As announced, as at 30 June 2018, ADLER reported cumulative consolidated revenue of EUR 243.1 million (H1 2017: EUR 254.0 million) and EBITDA of EUR 0 million (H1 2017: EUR 10.2 million; like-for-like: EUR 4.0 million). The consolidated net loss declined to EUR 9.0 million (H1 2017: net loss of EUR 0.8 million). Operational improvements and efficiency enhancements led to a significant increase in the gross profit margin from 52.9% to 54.3% as compared to the first half year 2017.

Free cash flow improved by more than 90%
In Q2 2018, free cash flow amounted to EUR 23.8 million, representing a year-on-year improvement of 92% (Q2 2017: EUR 12.4 million). Free cash flow for the first half of the year amounted to EUR 2.0 million (H1 2017: EUR 8.0 million).

As at 30 June 2018, Adler again reported a high cash position of EUR 58.7 million (30 December 2017: EUR 63.3 million), meaning that the decrease in cash and cash equivalents typically seen in the first half of the year was limited to EUR 4.6 million. As at 30 June 2017, ADLER's cash position had amounted to EUR 40.7 million.

ADLER CEO acquires approximately 1% of shares in Company
At the end of July, Thomas Freude, CEO of Adler Modemärkte AG, purchased a total of approximately 182,000 shares in the Company for around EUR 764,000. He therefore now holds an interest of nearly 1%. "With my commitment as a shareholder, I naturally want to set an example; the volume is far more than symbolic. I firmly believe in our 2020 Strategy and I am convinced that we will soon return ADLER to its former strength", said Freude, commenting on the transaction.

Forecast for full year 2018 confirmed
On 18 July, the management confirmed the outlook for the full year it issued in March 2018. According to that outlook, ADLER's Executive Board expects full-year revenue to remain roughly at the same level as in the previous year (EUR 525.8 million). EBITDA is expected to significantly exceed the adjusted 2017 figure (EUR 25.4 million) and amount to between EUR 26 million and EUR 29 million. As predicted, the ADLER 2020 Strategy and the already announced switch in the logistics service provider will begin to have a positive effect for the first time in financial year 2019.

The full report on the first half of 2018 is available for download at http://www.adlermode-unternehmen.com/en/investor-relations/reports-and-publications/financial-reports.
 

ADLER Group's key performance indicators

^* based on 18,510,000 no-par value shares.