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DGAP-News: Gerry Weber International AG / Key word(s): Interim Report
Quarterly statement: GERRY WEBER International AG increases normalised EBITDA despite lockdown in Q1 2021
- Online revenues grow by over 54% to EUR 9.1 million
- Coronavirus pandemic sends consolidated revenues falling by 45% to EUR 46.4 million
- At EUR -3.0 million, normalised EBITDA slightly above previous year due to strict cost discipline
- Liquidity currently secured
- Forecast for FY 2021 confirmed
Halle/Westphalia, 27 May 2021 - GERRY WEBER International AG today presented its quarterly statement for the first three months of the fiscal year 2021. The quarterly statement is available online at:
In the first three months of 2021, the business performance of GERRY WEBER International AG continued to be strongly influenced by the global coronavirus pandemic. While the GERRY WEBER stores in some European countries remained open or were allowed to reopen gradually, the German stores were closed almost without interruption in the first quarter. Since 8 March 2021, the opening situation has changed depending on the regional infection trend (e.g. limited number of customers permitted per store or purchase only by prior appointment, negative test result or vaccination/recovery). In the first quarter of 2021, the GERRY WEBER Group lost some 55 sales days throughout Germany.
As a result, the GERRY WEBER Group generated revenues of EUR 46.4 million in the first quarter of 2021 (EUR 83.7 million in Q1 2020). This represents a decrease by approx. 45% compared to the same period of 2020, which was only little affected by the effects of the coronavirus pandemic. Due to the lockdown and intensive sales promotion measures, e-commerce revenues grew strongly by around 54% in the first quarter to EUR 9.1 million (previous year: EUR 5.9 million). Revenues of the Retail segment declined sharply to EUR 20.1 million (previous year: EUR 38.9 million). With its wholesale partners, GERRY WEBER generated revenues of EUR 26.3 million (previous year: EUR 44.7 million).
Gross profit declined less sharply in the first three months and stood at EUR 31.7 million (previous year: EUR 51.7 million). Consequently, the gross profit margin improved by 6.5 percentage points to 68.3% (previous year: 61.8%). Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR 4.8 million (previous year: EUR 7.6 million). At EUR -3.0 million, EBITDA adjusted for the effects of lease accounting in accordance with IFRS 16 (normalised EBITDA) exceeded the previous year's EUR -3.5 million despite the decline in revenues. This year-on-year improvement in earnings is attributable to the cost-cutting measures implemented in 2020 as well as to the strict cost discipline applied throughout the Group. Consolidated net income for the period was slightly below the prior year level at EUR -10.1 million (previous year: EUR -9.5 million)
"The first quarter of 2021 was dominated by the lockdown and the pandemic. We were nevertheless able to increase our normalised EBITDA compared to the previous year. This makes us confident that we are on the right track - the restructuring exercises of the past years are beginning to pay off," said Florian Frank, Chief Financial Officer (CFO) of GERRY WEBER International AG. "What is more, the vaccination progress and the planned gradual lifting of the lockdowns make us cautiously optimistic that the situation in the retail sector will also improve soon," Florian Frank added.
The GERRY WEBER Group's response to the crisis included financing measures, the use of government aid as well as operational measures. To secure its liquidity, for instance, the company raised an additional credit facility of EUR 5 million in February and applied for and was granted government aid ("Überbrückungshilfe III") of EUR 12 million in March. "As the year progresses, we will examine further financing measures such as additional credit facilities or government support depending on the situation," said Florian Frank.
The government support services used still include short-time work for employees based in Germany; similar solutions for employees at foreign locations are implemented in accordance with applicable legal options. The operational measures include the expansion of the online business in conjunction with a stronger connection between the stationary and digital points of sale. To reduce rental expenses, the company remains in talks with its landlords and continues to take advantage of statutory regulations. In addition, talks are underway to sublet sales space to partners offering complementary product ranges. Investments continue to be reviewed critically and will be postponed where appropriate. Since the beginning of the pandemic, the operational measures have also included comprehensive concepts to maintain the health of the GERRY-WEBER Group's employees, customers and business partners.
The Managing Board of GERRY WEBER International AG is convinced that the above measures will help secure the liquidity of the company and the continuation of its business activities. This assumption is based on a planning period until 2023. For the fiscal year2021, the Managing Board continues to project consolidated revenue of between EUR 260 million and EUR 280 million, and at the same time intends to further improve the company's profitability. Normalised consolidated EBITDA is expected to improve to a negative low double-digit million figure.
In March, a pre-contract on the sale of Ravenna Park, the company's own logistics centre in Halle Westphalia, was signed. The buyer is WB Logistik GmbH, a company owned by Christian Busch, the majority shareholder of Walbusch Walter Busch GmbH & Co KG based in Solingen. Christian Busch and GERRY WEBER plan to jointly use Ravenna Park in future. Ravenna Park and the then former workforce of GERRY WEBER Logistik GmbH will thus remain the hub for the Group's distribution logistics also in the future. According to the insolvency plan, proceeds from the sale of Ravenna Park will be distributed to the insolvency creditors of GERRY WEBER International AG.
Investor relations contact
27.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Gerry Weber International AG
+49 (0)5201 185-0
+49 (0)5201 5857
Regulated Market in Dusseldorf, Frankfurt (General Standard)
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