DGAP-News: home24 SE / Key word(s): Half Year Results/Quarter Results
home24 SE achieves significant revenue increase in the first half of 2018
- Currency adjusted net revenue improved by 19 percent year-on-year to EUR 151 million
- New fulfilment software successfully introduced
- Medium-term growth and earnings guidance confirmed
The exceptionally hot and dry weather from April to August in Germany significantly affected revenues in the first half of 2018. This influenced the entire furniture industry, but particularly the market for large furniture, home24's core business. The extraordinary summer caused significant double-digit revenue declines in parts of the stationary furniture retail sector; home24 has shown growth against this trend.
The strong growth of home24 in the Brazilian market provides clear proof of the success of the business model. In Brazil, home24 is active with the brand "Mobly" and was able to achieve revenue growth of 46 percent in local currency, 21 percent in reporting currency.
home24 successfully introduced a new ERP system in the first half of 2018, which is more scalable and will enable home24 to implement its growth plans in the coming quarters. All incoming orders are now processed via the new system. During the introduction, the old and new ERP systems have to run concurrently for a limited amount of time. Consequently, the processing speed of open orders during Q2 was lower than in the previous year, resulting in later recognition of revenue than expected.
Marc Appelhoff, Co-CEO of home24, said: "Even in a very challenging environment, we were able to show how successful our business model is and have grown significantly. Buying furniture on the Internet will continue to grow strongly - and here we want to further expand our position as the online destination for Home & Living."
Since the successful IPO on 15 June 2018, home24 has focused on achieving its growth targets while continuously improving the shopping experience and convenience for its customers. The additional funding from the IPO enables the company to efficiently scale its business model in the complex distance furniture trading market and grow the company. By analysing relevant data, home24's offering can be continuously adapted to meet customer requirements, and the online shop and the entire logistics process can be personalized and managed more intelligently.
Results in the third quarter are still affected by the lower market demand period until August and the ERP introduction. home24 confirms its target to grow its revenues at circa twice expected online market growth, both for the full year 2018 and the medium term. The full year 2018 revenue growth significantly depends on the lower demand period being compensated in the period September to December and, thus, may be below previous expectations. In addition, the company confirms its medium-term earnings guidance to break even on an adjusted EBITDA basis by the end of 2019, as announced in the context of the IPO.
|Greifswalder Straße 212-213|
|Phone:||+49 30 - 609880019|
|Fax:||+49 30 - 2016329499|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|