DGAP-News: Adler Modemärkte AG / Key word(s): Final Results
Adler Modemärkte AG: ADLER Bucks Industry Trend, Continues Profitable
Growth
19.03.2015 / 07:28
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Press Release from Adler Modemärkte AG
2014 Annual Result - Solid Basis for Further Expansion
ADLER Bucks Industry Trend, Continues Profitable Growth
Proposed Dividend of EUR0.50
Haibach (near Aschaffenburg), 19 March 2014. Adler Modemärkte AG - one of
Germany's largest textile retailers - can look back on a successful
financial year 2014. ADLER once again bucked the negative industry trend
and expanded its position, while also increasing revenue by 1.3% from
EUR528.6 million to EUR535.3 million. In the previous year, revenue was
lifted by EUR3.8 million due to a non-recurring effect resulting from the
improvement in the recognition of obligations arising in connection with
the customer loyalty card. Adjusted for this effect, revenue growth was
2.0%. In order to further strengthen its earnings, ADLER closed four
unprofitable stores in 2014. A further store was closed after an extension
of the lease could not be agreed with the owner of the store property. Four
new stores were opened during the same period. In a like-for-like
comparison - i.e., a comparison of sales on existing floor space - the
revenue growth rate even amounted to 3.0%, whereas bricks-and-mortar
retailers in Germany recorded an average decline in revenue of 3.0%.
"In 2014, ADLER once again demonstrated that our strategy of focusing on
the group of customers aged 45 and up works, even in a difficult market
environment in the textile retail industry. We have laid an extremely solid
foundation to continue our expansion. Our new modern image and a product
range tailored to our customers were the key drivers behind this success.
Our task now is to build on that success. Going forward, we will continue
to raise the level of profitability and customer service through new stores
and our online sales channel. Following our recent acquisitions of Kressner
and hefa, we believe that we are well on our way to achieving this", said
ADLER's CEO Lothar Schäfer, commenting on the results of the financial
year.
High gross profit margin; EBITDA again tops EUR40 million
Thanks to this positive development, ADLER again succeeded in maintaining
an extremely high gross profit margin in 2014. After jumping from 10% to a
record-high of 55.6% in the previous year (excluding the non-recurring
effect related to the customer loyalty card: 55.1%), the gross profit
margin amounted to 54.6% in 2014, significantly higher than the average
value of the past few years. Overall, in the same period, cost of materials
increased only slightly to EUR243.2 million (previous year: EUR234.9
million), while gross profit (EUR292.1 million) remained high and
practically unchanged (2013: EUR293.7 million). Personnel expenses
increased in 2014 by 3.5% to EUR95.2 million, while other operating
expenses decreased slightly from EUR166.5 million to EUR165.1 million.
Consequently, ADLER generated earnings before interest, taxes, depreciation
and amortisation (EBITDA) of EUR41.5 million, nearly matching the previous
year's record high of EUR42.9 million. Adjusted for the non-recurring
effect in connection with the customer loyalty card in the previous year,
EBITDA increased by 6.2%. The EBITDA margin amounted to 7.8% (previous
year: 8.1%). Adjusted for the positive non-recurring effect in the previous
year, the EBITDA margin increased by 0.3 percentage points, which was
attributable to the strong like-for-like revenue trend and strict cost
management. Earnings before interest and taxes (EBIT) amounted to EUR26.2
million (previous year: EUR28.9 million). Adjusted for non-recurring items,
this would have corresponded to an increase of EUR1.1 million, or 3.8%.
Earnings before taxes (EBT) amounted to EUR21.2 million (2013: EUR24.6
million). This decrease was due to a decline in net finance costs, which
was attributable to low interest rate levels. Due to the increase in the
tax expense, net profit for the year amounted to EUR14.1 million (previous
year: EUR18.6 million). Earnings per share decreased from EUR1.05 to
EUR0.77 due to the higher number of shares resulting from the sale of
treasury shares in early 2014.
Forecast: further profitable growth
ADLER plans to grow even further in financial year 2015. ADLER is confident
that the Company's more expansionist strategy and its recent acquisition of
the Kressner stores will make it possible to generate a mid-single-digit
percentage increase in revenue. Since the re-branding, renovation, product
range transition and adjustment in staffing levels required to integrate
the Kressner stores into ADLER's sales network will initially result in
one-time costs, the Executive Board expects EBITDA to stagnate at best at
the already high level, and to possibly decline slightly in 2015. In
subsequent years, EBITDA is expected to increase in relation to revenue.
Strong balance sheet
On the basis of these solid financial figures, ADLER is well-equipped for
the coming expansion. As at 31 December 2014, the equity ratio amounted to
43.3% (31 December 2013: 40.3%). Cash and cash equivalents increased
significantly by EUR15.2 million to EUR69.7 million (31 December 2013:
EUR54.5 million), allowing the Company to seize market opportunities
rapidly and flexibly.
Proposed dividend of EUR0.50
The Executive Board and the Supervisory Board propose that the Annual
General Meeting resolve to distribute a dividend of EUR0.50.
Adler Modemärkte AG's full annual report is now available for inspection or
download from the Company's homepage at
http://www.adlermode-unternehmen.com/en/investor-relations/reports-and-pub
lications/annual-report/.
Consolidated key performance indicators
<pre>
(EUR million) 2014 2013 Change
Revenue 535.3 528.6 +1.3%
Adjusted revenue1) 535.3 524.8 +2.0%
Gross profit 292.1 293.7 -0.5%
Adjusted gross profit1) 292.0 289.9 +0.7%
Earnings before interest, taxes, depreciation 41.5 42.9 -3.3%
and amortisation (EBITDA)
Adjusted EBITDA1) 41.5 39.1 +6.1%
Earnings before interest and taxes (EBIT) 26.2 28.9 -9.3%
Adjusted EBIT1) 26.2 25.1 +4.4%
Earnings before taxes (EBT) 21.2 24.6 -13.8%
Adjusted EBT1) 21.2 20.8 +1.9%
Earnings per share (in EUR) 0.772) 1.053) Not
comparable
</pre>
1) In 2013, revenue and earnings figures were lifted by EUR3.8 million as a
result of a non-recurring effect. This effect resulted due to the fact that
since 2013, ADLER has been using an improved IT system to analyse and
include redemptions of customer credits during the course of the year when
recognising provisions (reported under financial liabilities).
2) Based on 18,478,344 no-par value shares
3) Based on 17,621,197 no-par value shares
<pre>
31 Dec. 2014 31 Dec. 2013 Change
Total assets (EUR million) 244.3 228.4 +7.0%
Equity (EUR million) 105.6 92.0 +14.8%
Equity ratio (in %) 43.3 40.3 +3.0 pp
Debt/equity ratio (in %) 1.31 1.48 -0.17 pp
Cash and cash equivalents (EUR million) 69.7 54.5 +27.9%
Employees 4,154 4,301 -3.4%
Total number of stores 170 171 -0.6%
</pre>
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, 154 of which are located in Germany, 22 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 more information: www.adlermode-unternehmen.com; www.adlermode.com
Press enquiries:
Jasmin Dentz
GFD Finanzkommunikation
Telephone: +49 (0) 69 971 247 31
Mobile: +49 (0) 151 67204247
E-mail: dentz@gfd-finanzkommunikation.de
Investor Relations enquiries:
Jennifer GauÃmann
Adler Modemärkte AG
IndustriestraÃe Ost 1-7
D-63808 Haibach
Telephone: +49 (0) 6021 633 12 19
Mobile: +49 (0) 152 54550967
E-mail: jennifer.gaussmann@adler.de
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Language: English
Company: Adler Modemärkte AG
IndustriestraÃe 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
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334873 19.03.2015
DGAP-News: Adler Modemärkte AG: ADLER Bucks Industry Trend, Continues Profitable Growth
| Source: EQS Group AG