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DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Quarterly / Interim Statement
CORPORATE QUARTERLY STATEMENT
Economic environment and development in retail
Although stationary fashion retail could start the first quarter of 2022 without a lockdown, the high infection level, driven by the omicron variant, kept consumer sentiment far from what would have been a normal year. The start of the war in Ukraine in February and the subsequent price increases, especially in energy, had an additional negative impact on sales development in the stationary fashion trade. The latest GfK consumer panel shows that the war in Ukraine has left its mark on consumers. Worries about sanctions effects, the surge in inflation, and fears about an escalating conflict considerably dampen consumer sentiment. According to a survey by Allianz Trade (formerly Euler Hermes), fashion retailers in Germany could face a billion euros sales loss due to the war in Ukraine. With the COVID-19 pandemic now slowly easing, consumer sentiment in the weeks and months ahead will largely depend on the development of the war in Ukraine.
GENERAL PRESENTATION OF FIGURES IN THE INTERIM STATEMENT
The comparability of the Group's earnings situation with the previous year is very limited, as the Marienplatz flagship store was closed due to a complete lockdown from December 16, 2020, to March 7, 2021.
CONSOLIDATED EARNINGS SITUATION
Development of sales
However, LUDWIG BECK is still far from normalising sales due to the overall environment.
Profitability of the Group
Operating expenses were € 6.9m in the first quarter of 2022 (previous year: € 5.9m). Accordingly, the operating result (EBIT) was € -1.3m (previous year: € -3.5m).
With a financial result of € -0.5m (previous year: € -0.6m), earnings before taxes (EBT) were € -1.8m (previous year: € -4.2m). Earnings after taxes (EAT) amounted to € -1.1m (previous year: € -2.7m).
Balance sheet structure
As in the previous year, the main components of long-term assets were the rights of use for rental agreements (€ 59.7m) and the property at Munich's Marienplatz (€ 69.9m). As of March 31, 2022, the total amount of long-term assets remained unchanged from December 31, 2021, at € 151.6m.
Short-term assets increased from € 16.6m (December 31, 2021) to € 19.2m. Inventories increased seasonally from € 10.3m to € 11.6m as planned.
Cash and cash equivalents amounted to € 0.4m (December 31, 2021: € 0.3m).
Balance sheet structure
Long-term liabilities decreased by € 1.0m mainly due to scheduled repayments of financial liabilities and amounted to € 86.0m (December 31, 2021: € 87.0m).
Short-term liabilities increased seasonally from € 18.3m (December 31, 2021) to € 23.0m due to the development of short-term assets, the repayment of long-term financial liabilities, and the development of earnings.
In total, the Group's liabilities amounted to € 109.0m as of March 31, 2022 (December 31, 2021: € 105.3m).
The cash flow from operating activities after the first three months of 2022 was € -2.8m (previous year: € -5.7m). The cash flow from investing activities amounted to € -0.8m (previous year: € -1.3m). The investments were mainly for the new traditional costume department at the Marienplatz flagship store, which opened in March. The cash flow from financing activities was € 3.7m (previous year: € -3.9m).
An assessment of further economic development is difficult due to the ongoing COVID-19 pandemic with continuing imponderable infection patterns and its consequences for the global economy. In addition, the conflict between the Western states, Russia, and Ukraine must be monitored, and the resulting consequences for the global economy and the German economy will develop.
Assuming a more normal course of business, Oktoberfest taking place, and non-restricted Christmas business with Christmas markets like before the pandemic, LUDWIG BECK expects gross sales of between € 85m and € 88m and slightly positive earnings before taxes (EBT) in the fiscal year 2022, as already presented in the forecast report of the consolidated financial statements of December 31, 2021.
However, a prerequisite for this forecast is that there are no further restrictions in the city centres, such as lockdowns, 2G regulations, curfews hours, or access restrictions. In case of renewed restrictions due to the COVID-19 pandemic or additional negative developments in the Ukraine conflict, it would be difficult to estimate the extent to which the sales and earnings situation of LUDWIG BECK would be negatively affected.
GROUP KEY FIGURES
21.04.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
+49 (0)89 2 36 91-0
+49 (0)89 2 36 91-600
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID:
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