Ahlers expects lower full year sales but improved earnings

Ahlers has adjusted the revenue and earnings forecast for the full fiscal year 2020/21. The company said in a release that the course of the Covid-19 pandemic led to more extensive and longer-lasting Europe-wide containment measures in the second quarter than originally assumed. As a result, the company expects the lockdown-related revenue shortfall of the first six months unlikely to be largely offset in the second half of the fiscal.

Group sales revenues in FY 2020/21 are now expected to be at best in the mid-single-digit percentage range below the prior-year level of 151.6 million euros. The company added that the gross profit margin is likely to decline moderately in the full fiscal year compared to 47.3 percent in the previous year due to the aggressive marketing of old merchandise.

EBIT before one-time effects is expected to be below the previous year’s level of negative 12.4 million euros by a mid-single-digit million amount. In the full fiscal year, however, the company expects extraordinary income from stopgap aid granted by the government will lead to high positive one-time effects. Consequently, earnings before and after income taxes are likely to improve much more strongly than previously expected.

The company further said that while consolidated earnings in the second Covid-19 year are expected to be negative again, they should be about halved compared to the previous year’s figure of negative 18.4 million euros.

Ahlers revenues in the first half-year declined by 16.1 percent to 59.3 million euros due to lockdowns. The reduced operating expenses, negative 7.3 percent, failed to fully offset the drop in gross profit. Government stopgap aid was the main reason for high positive one-time effects of 9.1 million euros, which improved consolidated earnings to negative 4.1 million euros compared to negative 9.4 million euros in the previous year’s first half.