DGAP-News: Adler Modemärkte AG: Revenue up 5.5% in first

DGAP-News: Adler Modemärkte AG / Key word(s): 9-month figures/Quarter Results Adler Modemärkte AG: Revenue up 5.5% in first nine months of the year 12.11.2015 / 07:30 --------------------------------------------------------------------- ADLER continues to significantly outpace the industry / Outlook for 2015 confirmed overall Haibach near Aschaffenburg, 12 November 2015: Adler Modemärkte AG - one of Germany's largest textile retailers - continued successfully along its growth path in the first nine months of 2015, again bucking the gloomy industry trend. Consolidated revenue increased by 5.5% to EUR 398.6 million, while revenue throughout the German textile retail industry fell by 2%. On a like-for-like basis, ADLER achieved slight growth of 0.1%. Third-quarter revenue grew even more significantly, by 6.8% to EUR 130.2 million. Like-for-like growth amounted to 1.8% here. "ADLER is a strong brand with a successful strategy and strict cost management. This is why we are growing even in the currently consolidating industry environment", said Lothar Schäfer, CEO of Adler Modemärkte AG. "Thanks to our solid financial capabilities, we will continue to expand our competitive stance strategically through new store openings." Ramp-up costs for acquired stores reduce earnings as projected In the first nine months of the year, ADLER added a total of twelve new stores to its sales and distribution network. Along with the eight stores acquired from Kressner at the beginning of the year, which are now trading under the name ADLER Orange, these new stores included the two former hefa stores in Mömlingen and Lollar, as well as two newly opened stores. Integration costs for the new stores reduced earnings in the first nine months of the year, as did business with concessionary suppliers which remained significantly below expectations as well as increased marketing expenses. Cost of materials increased due to the above-average increase in costs of goods sold by 9% to EUR 188.6 million for the new stores, and gross profit increased by 3% to EUR 210.1 million. The gross profit margin amounted to 52.7% (as compared to 54.2% in the same period of the previous year). The increase in personnel expenses of 8.5% to EUR 77.0 million was attributable in particular to the acquisition of the Kressner and hefa stores. Severance packages and staff restructuring measures resulted in extraordinary expenses for ADLER Orange amounting to EUR 1.1 million. The increase in expenses led to the expected decrease in earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 4.6 million in the first nine months of the year (previous year: EUR 18.3 million). Earnings before interest and taxes (EBIT) fell from EUR 6.8 million in the previous year to EUR -7.5 million in the first nine months of 2015. Earnings before taxes (EBT) fell from EUR 3.1 million to EUR -11.1 million in the first nine months of 2015. ADLER thus reports a consolidated net loss as at 30 September 2015 amounting to EUR 9.3 million as compared to a consolidated net profit of EUR 1.4 million in the same period of the previous year. The adjusted earnings per share amounted to EUR -0.50 (compared to EUR 0.08 in the same period of the previous year). Significant increase in revenue in Q3 In the third quarter of 2015, ADLER realised a significant 6.8% increase in consolidated revenue to EUR 130.2 million. On a like-for-like basis, this represented a 1.8% increase. EBITDA fell primarily as a result of increased marketing expenses to EUR 0.1 million. In terms of EBIT, a loss of EUR -4.0 million was realised. Forecast confirmed: further profitable growth expected Based on the revenue trend in the first nine months of 2015, the Management Board affirms its outlook for the overall year, projecting revenue growth in the mid-single-digit percentage range. ADLER's comments on EBITDA remain unchanged: due to prepayments and expenses for integrating the Kressner stores acquired, we expect EBITDA to stagnate at best at the already high level, and possibly to decline temporarily. The Company expects to report EBITDA for the current fourth quarter of 2015 that is significantly up year on year. In the medium term, the Executive Board expects the expansion measures currently being undertaken to strengthen ADLER and to lead to further profitable growth. Adler Modemärkte AG's full quarterly report is now available for inspection or download from the Company's homepage at http://www.adlermode-unternehmen.com/en/inves...ts-and-pub lications/financial-reports/ ADLER Group's key performance indicators <pre> (EUR million) 9M 2015 9M 2014 Change Q3 2015 Q3 2014 Change Revenue 398.6 377.9 +5.5% 130.2 122.0 +6.8% Gross profit 210.1 204.8 +2.1% 67.0 64.7 +3.6% EBITDA 4.6 18.3 -74.9% 0.1 5.4 -98.1% Earnings before 7.5 6.8 >-100% -4.0 1.5 >-100% interest and taxes EBIT) Earnings before -11.1 3.1 >-100% -5.3 0.3 >-100% taxes Earnings/share -0.50(1) 0.08(2) >-100% -0.22(1) 0.00(1) >-100% (in EUR) </pre> (1) Based on 18,510,000 no-par value shares (2) Based on 18,446,163 no-par value shares <pre> 30 Sept. 2015 31 Dec. 2014 Change Total assets (EUR million) 250.0 244.3 +2.3% Equity (EUR million) 86.9 105.6 -17.7% Equity ratio (in %) 34.8 43.3 -8.5pp Debt/equity ratio (in %) 1.88 1.31 Cash and cash equivalents 34.8 69.7 -50.0% (EUR million) Employees 4,209 4,154 +1.3% Total number of stores 179 170 +5.3% </pre> About Adler Modemärkte: Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2014, the Group generated revenue of EUR535.3 million with a workforce of around 4,150, generating EUR41.5 million in EBITDA. ADLER currently operates 179 stores, 155 of which are located in Germany, 21 in Austria, two in Luxembourg, one 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 60 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 45 and over. For further information: www.adlermode-unternehmen.com; www.adlermode.com --------------------------------------------------------------------- 12.11.2015 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Adler Modemärkte AG Industriestraße Ost 1-7 63808 Haibach Germany Phone: +49 (0) 6021 633 0 Fax: +49 (0) 6021 633 1299 E-mail: info@adler.de Internet: www.adlermode.com ISIN: DE000A1H8MU2 WKN: A1H8MU Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------- 411961 12.11.2015