DGAP-News: home24 SE
/ Key word(s): Half Year Results
home24 achieves 28% growth in Q2 2019 and shows significant profitability improvements
Berlin, 3 September 2019 - home24 SE ("home24", the "Company") generated revenues of EUR 85 million in Q2 2019 (previous year: EUR 67 million) and, adjusted for foreign currency effects, thus achieved a significant increase of 28% compared to Q2 2018. Even including currency effects, the increase was a strong 27% in Q2 2019 compared to the same period of the previous year. Since the Brazilian currency is broadly stabilizing, the gap on constant currency reporting is closing. Looking at the entire first half of the year, revenues improved by 19% in constant currency and by 18% including foreign currency effects to EUR 178 million in h1 2019 compared to h1 2018. Brazil alone grew its revenues by 43% at constant currency in Q2 2019 compared to the previous year, with Europe at +24%.
home24 aims to reach break even on the basis of adjusted EBITDA at the end of this year. Q2 2019 has shown a significant step towards that goal with an adjusted EBITDA improvement from -16% in Q1 2019 to -10% in Q2 2019, also improving 3%-points compared to previous year.
Investments start to payoff
The development is driven by first positive effects from IPO investments and is further supported by the absence of one-time effects that have had a negative impact on results in the previous year. The slow-down in demand during the hot summer and additional handling costs from the introduction of a new ERP system have negatively influenced growth and profitability in Europe in 2018 as of Q2. The achievement of important milestones defined for 2019 have started to show first efficiency gains and will continue to drive growth and profitability improvements in the future.
The Company has invested cash in new logistics centres and new outlets as well as a corresponding build-up of inventory in these locations. This effect will not occur in the second half of the year, so that the Company's cash position is expected to reduce only moderately towards the end of the year. home24 is well on track regarding overall financials and milestone achievement to date in Q3 2019.
home24 continues to achieve its 2019 milestones as planned. These include the opening of its fifth outlet in Germany and significant improvements of the usability of the app. Personalized customer acquisition and conversion have been intensified and further styles have been added to home24's third party assortment and private labels. The new logistics center in Halle (Saale) is now completely operational and will deliver its full efficiency gains from Q3 2019 onwards.
"Efficiency gains from our IPO investments have started to payoff and will further support growth and profitability improvements," says Marc Appelhoff, Co-CEO of home24. "We are therefore well on track to reach our growth targets for 2019 and break even for the Group as a whole on the basis of adjusted EBITDA at the end of the year."
home24 confirms its outlook and expects revenue growth at constant currency in 2019 to reach or slightly exceed the 2018 growth rate in constant currency (18%). The Company also continues to aim to break even at the end of the year on the basis of adjusted EBITDA. Full year profitability on the basis of adjusted EBITDA is achievable in 2020.
home24 is a leading pure-play home & living e-commerce platform in Continental Europe and Brazil. With over 100.000 article numbers from more than 500 manufacturers, home24 offers a unique selection of large and small furniture pieces, garden furniture, mattresses and lighting. home24 is headquartered in Berlin and employs more than 1.000 people worldwide. The Company is active in seven European markets: Germany, France, Austria, the Netherlands, Switzerland, Belgium and Italy. home24 is also active in Brazil under the "Mobly" brand. In Europe, the Company delivers its products - regardless of size and weight - free of charge to the homes of its customers and also offers free returns. home24's product range consists of numerous brands, including a large number of private labels. home24 is listed on the Frankfurt Stock Exchange (ISIN DE000A14KEB5). For more information, please visit the Company's website at www.home24.com.
This publication contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the Company's management. Forward-looking statements contain no guarantee for the occurrence of future results and developments and are associated with known and unknown risks and uncertainties. Due to various factors, actual future results, developments and events may differ materially from those described in these statements; neither the Company nor any other person accepts any responsibility whatsoever for the accuracy of the opinions or underlying assumptions contained in this publication. The Company assumes no obligation to update the forward-looking statements contained in this publication.
|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|
|EQS News ID:||867411|
|End of News||DGAP News Service|