Press Release from Adler Modemärkte AG

2019: EBITDA of approx. €70 million - Revenue at €495 million:

Earnings Exceed Own Forecasts, in Part Significantly
Liquidity improved to €70 Million

Haibach (near Aschaffenburg), 4 February 2020: Adler Modemärkte AG's extensive measures to improve efficiency and operational excellence paid off in financial year 2019. The preliminary, unaudited figures show that the Company managed to surpass its own forecasts for key performance indicators despite the persistently weak conditions on the German retail textiles market. Earnings before interest, taxes, depreciation and amortisation, including non-recurring expenses (EBITDA after IFRS 16), amounted to approximately €70 million, exceeding the forecast range of €64-69 million. Excluding the adjustments under IFRS 16, which have applied since 2019, EBITDA would have amounted to approximately €23 million, representing a significant improvement on the target of €18-21 million as well as the prior-year figure of €20.7 million. As expected, consolidated revenue (approximately €495 million) remained below the prior-year figure of €507.1 million due to store closures and the persistently weak industry environment. However, on a like-for-like basis the Company significantly outpaced the industry average.

Liquidity reaches record high
In financial year 2019, ADLER continued to improve upon its healthy balance sheet and its cash flow in particular. As at 31 December, cash and cash equivalents reached a record high of approximately €70 million, up significantly from €54.9 million in the previous year. Free cash flow also improved substantially due to the increase in earnings and efficient working capital management.

ADLER thus has a very sound financial foundation, enabling it to finance ongoing and planned initiatives to boost future growth and sustainably increase profitability on its own. In 2020, the Company will focus on profitable locations as it systematically continues to optimise its network of stores. In 2019, the Company closed a total of eight locations and opened two new stores in Austria. Furthermore, the Company obtained significantly better lease terms and conditions at certain locations by successfully renegotiating the lease agreements.

"We made significant headway in improving our profitability in 2019 and even surpassed our own forecasts. The very good liquidity and our free cash flow are unmatched in the industry. We are therefore confident that we will continue to hold our own in 2020 despite the persistently difficult environment", said Thomas Freude, CEO of Adler Modemärkte AG, describing the development.

ADLER will publish its annual report for 2019 and the outlook for 2020 on 12 March 2020.

Press enquiries Adler Modemärkte AG:
Peter Dietz
Media and Investor Relations
Tel.: 28
E-mail:

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. According to the preliminary figures, the Group generated revenue of approximately €495 million and EBITDA of around €70 million in 2019. 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.
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