- Prachi Singh |
Adler Modemärkte AG said in a statement that after the official order to close all 171 stores for several weeks in response to the Covid-19 pandemic had a massive impact on the KPIs in the first half of the year. Revenue amounted to 138.1 million euros, over 40 percent below the prior-year period. The company also reported a significant drop in EBITDA from 25 million euros to negative 19.7 million euros. Due to the impairment losses amounting to 5.8 million euros, the company’s consolidated net loss was 49.4 million euros compared to negative 4.9 million euros generated in the prior-year period.
The company added that provided that the pandemic does not flare up again and no further restrictions need to be imposed, Adler Modemärkte’s executive board expects revenue for the months from July to December not to be on par with the prior-year figures. Revenue is expected to increase gradually over the remainder of the year. Depending on Adler’s ability to place the inventories not sold off in the first half of the year and to remain as flexible and efficient as possible in managing its costs, EBITDA for the second half is expected to improve significantly compared to the first half of the year.
After the company secured substantial financing commitments in May, of which it has thus far drawn down approximately 20 million euros, the group reported sound liquidity of 44.4 million euros as at June 30, 2020. The company said that the group can use these funds and the more than 40 million euros remaining under the syndicated loan, to take the strategic actions necessary to emerge stronger from the Covid-19 crisis. Adler is also striving to become profitable by substantially streamlining its structures and organisation, in particular at headquarters, and by ramping up its existing store optimisation programme.
Picture:Facebook/Adler Modemärkte Ag