05.11.2020 Adler Modemärkte AG  DE000A1H8MU2

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.

Positive demand and earnings trend in Q3 2020
With ADLER forced to close down all stores temporarily during the lockdown, it reported a 40% drop in revenue at the half-year point; during the quarter under review, revenue was down by only 14% (€100.8 million). This revenue trend, which ADLER had projected in advance, was sustained until around 20 October. Cumulatively for the first nine months of the year, mainly due to the pandemic consolidated revenue fell from €353.6 million in the previous year to €238.9 million in the current year. Thanks to a high degree of cost flexibility and the use of working time accounts and short time work, ADLER generated positive EBITDA (earnings before interest, taxes, depreciation and amortisation) in the third quarter amounting to €0.5 million (Q3 2019: €8.3 million). The Company reports a negative EBITDA for the first nine months of €19.2 million due to an extremely weak first half of the year caused by the coronavirus pandemic (9M 2019: €33.3 million). ADLER's after-tax earnings are also deep in the red (€-63.0 million; 9M 2019 €-10.3 million) ahead of the final quarter of the year, which usually tends to be strong.

Liquidity buffer strong at end of September 2020 despite COVID-19 costs
Because ADLER successfully secured a total of €69 million in funding commitments in May - of which €20.5 million have been drawn down thus far - it reported a strong liquidity buffer of €24.8 million as at 30 September 2020. With total assets declining significantly from €409.4 million as at 31 December 2019 to €363.2 million, the equity ratio as at 30 September 2020 fell from 16.1% to 0.9%. The equity ratio of the ADLER Group's parent company stood at 33.4%. Following the loss reported for the first nine months of the year, free cash flow amounted to €-33.1 million (30 September 2019: €25.7 million). ADLER significantly reduced its working capital by selling off inventories during the quarter under review, with the figure as at 30 September 2020 (€47.1 million) falling below not only the figure at the end of 2019 (€47.5 million) but also the figure at the end of the previous September (€51.2 million).

New restrictions to bring further challenges in the fourth quarter
In October 2020 - before rising numbers of COVID-19 infections had resulted in renewed restrictions being imposed by public officials in the regions of relevance to ADLER - the Company had been well on the way towards sustaining the positive trend of Q3 and achieving its new annual targets. However, the recent announcement of large-scale restrictions on public life and hence also on consumer spending led to sharp declines in revenue which are expected to persist over the remainder of the year - particularly throughout November. The considerable uncertainty as to the further course of the pandemic and any associated restrictions makes it extremely difficult to predict future developments, and as such issuing a specific full-year forecast for 2020 is not expedient at the present time. The expectation thus remains that COVID-19 will cause a significant year-on-year decline in consolidated revenue and a substantial loss will be recorded after taxes in 2020. From today's perspective, the Company's liquidity is secured into the coming financial year thanks to the focus on cost efficiency and liquidity generation that the Executive Board has further stepped up in addition to the actions already taken. As things stand today, the management expects the operating environment to return to normality in 2021, with sharp increases to be recorded in revenue, earnings and cash flows.

"New ADLER" strategy aims to boost earnings back up to €560 million and EBITDA to €70 million by 2023
On 7 October 2020, ADLER unveiled its "New ADLER" project outlining a strategic programme designed to systematically refine the successful brick-and-mortar store concept in more than 170 locations and to massively expand the Company's online activities. The aim is to lift consolidated revenue to €560 million by 2023, with roughly €500 million being generated in the stores and at least €60 million earned online. Before the crisis hit, revenue had amounted to approximately €485 million (in stores) and approximately €10 million (online) in 2019. The EBITDA target for 2023 is to return to a pre-crisis level of at least €70 million. This target is meant to be achieved not only through an increase in revenue but also by implementing an end-to-end digital value chain, streamlining structures and processes and realising further efficiency enhancements. By lifting profits and leveraging significant potential within working capital, the aim is to return to sustainable positive free cash flows in the years to come.

The Report on the first nine months of 2020 can be downloaded at https://www.adlermode-unternehmen.com/investor-relations/reports-and-publications/financial-reports/2020/.


ADLER Group's key performance indicators

(€ million) Q3 2020 Q3 2019 9M 2020 9M 2019
Revenue 100.8 117.6 238.9 353.6
Gross profit 45.2 59.1 112.0 188.1
Gross profit margin 44.8% 50.2% 46.9% 53.2%
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 0.5 8.3 -19.2 33.3
Earnings before interest and taxes (EBIT) -10.4 -3.1 -58.6 -0.7
Consolidated net loss -13.5 -5.4 -63.0 -10.3
Earnings per share (in €)* -0.73 -0.29 -3.40 -0.56

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

  30 Sep. 2020 31 Dec. 2019
Total assets (€ million) 363.2 409.4
Equity (€ million) 3.2 66.1
Equity ratio 0.9% 16.1%
Cash and cash equivalents (€ million) 24.8 70.1
Employees 3,356 3,617
Total number of stores 171 172*

* 30 Sep. 2019: 176

Adler Modemärkte AG press enquiries and investor relations:
Peter Dietz
Media and Investor Relations
Tel.: +49 6021 633 1828
E-mail: [email protected]

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2019, the Group generated revenue of €495.4 million and EBITDA of €70.3 million. As at 31 December 2019, ADLER employed a workforce of around 3,600 and currently operates 172 stores, 143 of which are located in Germany, 24 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to more than 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.
For more information: www.adlermode-unternehmen.com; www.adlermode.com

05.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Adler Modemärkte AG
Industriestraße Ost 1-7
63808 Haibach
Phone: +49 (0) 6021 633 0
Fax: +49 (0) 6021 633 1299
E-mail: [email protected]
Internet: www.adlermode.com
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1145579

End of News DGAP News Service

1145579  05.11.2020 


Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023
Umsatzerlöse1 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBITDA1,2 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBITDA-Marge3 0,00 0,00 0,00 0,00 0,00 0,00
EBIT1,4 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBIT-Marge5 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Jahresüberschuss1 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Netto-Marge6 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Cashflow1,7 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Ergebnis je Aktie8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Dividende8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Quelle: boersengefluester.de und Firmenangaben

1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de


WKN Kurs in € Einschätzung Börsenwert in Mio. €
0,000 0,00
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
Dividende '22 in € Dividende '23 in € Div.-Rendite '23
in %
0,00 0,00 0,00
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
0,00% 0,00% 0,00% 0,00%
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