EBITDA up 7% to approx. EUR 25 Million and up 33% to approx. EUR 31 Million When Including Extraordinary Effects
Significant Growth in Earnings Despite Persistently Difficult Environment
Personnel Changes on the Executive Board
Haibach (near Aschaffenburg), 30 January 2018: As previously announced, ADLER successfully closed the second phase of the real estate sales in Austria shortly before the end of the year. Thanks to the non-recurring income generated from these transactions and adjusted for non-recurring expenses from restructuring measures, the positive effect on the Company's earnings totalled approximately EUR 6 million. According to preliminary unaudited figures, the Group's reported EBITDA thus amounted to around EUR 31 million, up 33% against 2016. Without this one-off effect, earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 7% to approximately EUR 25 million in 2017 (2016: EUR 23.3 million).
This development was despite the fact that general conditions for the German textile retail industry continued to deteriorate in the fourth quarter of the financial year. As a result, the Company missed its operating EBITDA target of EUR 27-30 million. Consolidated revenue amounted to EUR 525.8 million, roughly 3% below the prior-year figure of EUR 544.6 million.
Free cash flow reaches record high of more than EUR 35 million, over EUR 63 million in liquidity
In 2017, ADLER was extremely successful in meeting its target of substantially improving free cash flow, which rose from EUR 11.3 million to a record high of more than EUR 35 million in the year under review. The Company is therefore also extremely liquid. ADLER's cash and cash equivalents amounted to over EUR 63 million as at 31 December 2017, representing a significant year-on-year increase of EUR 20.5 million
Strategic realignment for sustainable, profitable growth
ADLER can leverage this extremely sound financial foundation to return the Group to a profitable growth path as planned in the medium to long term. The Executive Board will announce the new corporate strategy and related measures by mid-March at the latest.
Personnel changes on the Group's Executive Board - Andrew Thorndike departs ADLER
The Supervisory Board of Adler Modemärkte AG at its extraordinary meeting today resolved to re-examine the composition of the Executive Board. Accordingly, Andrew Thorndike will leave the Company with immediate effect ADLER's Supervisory Board has also decided to establish the position of a Chief Commercial Officer within the Board, in charge of the omni-channel-strategy. Potential candidates are already under assessment. With today's early extension of the service agreement with CFO Karsten Odemann until December 31, 2021, the Supervisory Board has also set a clear signal for continuity on the Management Board.
ADLER will publish the audited annual financial statements and annual report for 2017 on 15 March 2018.
Press enquiries Adler Modemärkte AG:
Katrin Schreyer
Media and Investor Relations
Tel.: +49 6021 633 1828
E-mail: investorrelations@adler.de
Contact:
Adler Modemärkte AG
Investor Relations
Katrin Schreyer
Tel.: +49 6021 633 1828
Email: investorrelations@adler.de
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