Ad hoc announcement by United Labels AG dated 15 May 2018
ISIN: DE 0005489561, WKN: 548956, Ticker: ULC

United Labels AG: Improved earnings in first quarter

• Group revenue stands at €6.6 million after first quarter
• Group profit up by 36.2% at €241 thousand
• Order backlog rises by 10.9% to €7.1 million

Münster, 15 May 2018. United Labels AG recorded Group revenue of €6.6 million (prev. year: €7.0 million) in the first three months of 2018. Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled €0.7 million (prev. year: €0.7 million). Fuelled by high-margin revenue generated within the Special Retail segment and growth in the Key Account segment, EBIT rose by11.1% to €541 thousand (prev. year: €487 thousand). Post-tax profit for the Group improved by 36.2% to €241 thousand in the current financial year (prev. year: €177 thousand).

Order backlog at the end of the quarter was up by 10.9% at €7.1 million (prev. year: €6.4 million) andmainly includes orders within the Key Account segment; orders attributable to the Special Retail segment are serviced from stock and merchandise within this area is dispatched shortly after orders have been placed by customers.

Operating cash flow rose significantly by €1.4 million to €1.5 million (prev. year: €0.1 million).

Germany, in particular, saw growth within the Key Account segment. The Special Retail segment serves existing and new trading partners with merchandise centred around the "Pummeleinhorn", "Diddl", "Ralph Ruthe" and "DFB - Deutscher Fußballbund" (German Football Association) licences. However, goods relating to the German Football Association are not scheduled for delivery until the second quarter of the year, in time for the upcoming Football World Cup.

In addition to supplying goods to retail partners via a B2B shop, the Group markets selected product lines to end consumers through the proprietary online stores of Elfen Service GmbH, which recorded growth in both revenue and earnings during the first quarter.

Overall, the growth target for Group revenue in the 2018 financial year stands at 2% - 7%. Based oncurrent projections, EBIT is expected to lie between €1.8 million and €2.8 million in 2018. Above all, the Company will be looking to evolve its specialist retailing and e-commerce business in strategic terms for the purpose of achieving its earnings targets.

The report issued by United Labels AG for the first three months of 2018 can be downloaded from the Company's website in the coming days: http://www.unitedlabels.com/investor-relations/finanzberichte

Further information:
United Labels AG – Investor Relations -
Gildenstraße 6, 48157 Münster, Tel.: +49 (0) 251-3221-0, Fax: +49 (0) 251-3221-960
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