Home24 AG: home24 accelerates growth in 2017

DGAP-News: Home24 AG / Key word(s): Final Results

19.03.2018 / 08:30
The issuer is solely responsible for the content of this announcement.

home24 accelerates growth in 2017

  • Full year net revenues increase to EUR 276m, up +13% (2016: EUR 244m); continuing revenue acceleration during the year, with Q4 net revenues of EUR 80m, up 21% year-on-year
  • Gross profit margin up 3 percentage points year-on-year to 45% for 2017, and up by 1 percentage point year-on-year to 46% in Q4 2017
  • Adjusted EBITDA further improved; LatAm as first region with adjusted EBITDA break-even in seasonally strong Q4

Berlin, 19 March 2018 - Home24 AG (together with its consolidated subsidiaries "home24"), the leading home & living pure-play e-commerce platform in continental Europe and Brazil, further accelerated its growth in 2017. home24 significantly increased net revenues to EUR 276m, up 13% from EUR 244m in 2016. Its gross profit margin continued to improve to 45% (2016: 42%). Despite increased marketing spend and significant investment in its processes and systems, home24 improved its adjusted EBITDA from EUR (40m) in 2016 to EUR (22m) in 2017. The company's adjusted EBITDA margin improved by 9 percentage points over the same period. This development exemplifies home24's strengthened position in its core markets in continental Europe and Brazil. It also evidences home24's ability to grow its net revenues sustainably and at highly attractive gross margins as well as to continue along its path to profitability.

Marc Appelhoff, Co-CEO of home24, said: "Through our unique combination of a non-inventory platform approach with our high-margin private label inventory model, home24 combines a broad product offering with highly competitive prices and superior delivery times. With this strategy, we can realize untapped potential by driving a large and fragmented customer base from offline to online, solidifying our position as the go-to home & living destination."

In Q4 2017, home24 saw another strong quarter, further accelerating growth while at the same time improving profitability: net revenues increased to EUR 80m, up 26% from EUR 63m in the previous quarter and up 21% from EUR 66m in Q4 2016. The gross profit margin for the fourth quarter amounted to 46%, up 2 percentage points compared to Q3 2017 and up 1 percentage point compared to the same period in 2016. LatAm was the first region to reach adjusted EBITDA break-even in the seasonally strong fourth quarter 2017.

"home24 developed very successfully in 2017 and, following another strong fourth quarter, we finished the year with record results across our markets. Not only have net revenues continued to grow again over the last year, our adjusted EBITDA is also improving rapidly," Marc Appelhoff said.

A number of optimization initiatives have contributed to home24's positive performance. In particular, the company saw positive performance effects from its investments in optimized processes and systems as well as its continued focus on product quality, fulfillment performance and customer service quality.

Home & living market volume in home24's European markets amounted to more than EUR 100 billion in aggregate in 2017, with market volume in Brazil amounting to approximately EUR 14 billion during the same period (source: Euromonitor International). As the overall market continues to migrate from offline to online, these figures emphasize the significant underlying growth potential for home24 as the leading home & living pure-play e-commerce platform in its geographic regions. As home24 captures additional market opportunities and explores growth initiatives, the company is evaluating various financing options to fund the continued expansion of the business, which may include capital markets transactions.

About home24
home24 is the leading home & living pure-play e-commerce platform in continental Europe and Brazil. With over 100,000 SKUs sourced from over 500 suppliers, home24 offers its customers a unique selection of large and small furniture items, outdoor furniture, mattresses and lighting products. home24 is headquartered in Berlin and has more than 1,000 employees worldwide. The company is active in seven European markets: Germany, France, Austria, the Netherlands, Switzerland, Belgium and Italy. home24 is also active in Brazil. In Europe, the company delivers its products - regardless of size and weight - free of charge to its customers' homes and offers also free returns. The product offering of home24 comprises numerous brands, including a large number of private labels. Further information can be found on the company's website:

Media contacts:
Knut Engelmann
Mobile: +49 174 234 2808

Maximilian Karpf
Mobile: +44 (0)7970 716953

It should be noted that reference has been made in this publication to information concerning markets and market trends. Such information was obtained from the sources mentioned herein. home24 has accurately reproduced such information and, to the extent it is aware and able to ascertain from information published by such sources, no facts have been omitted that would render the reproduced information inaccurate or misleading. However, home24 has not independently verified the figures, market data or other information on which its sources have based their studies. Accordingly, home24 makes no representation or warranty as to the accuracy of any such information.

This publication contains forward-looking statements based on current views and assumptions of home24 and made to the best of its knowledge. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause home24's net revenues, profitability or the degree to which it performs or achieves its targets to materially deviate from what is explicitly or implicitly stated or described in this publication. Therefore, persons who obtain possession of this publication should not rely on such forward-looking statements. home24 accepts no guarantee or responsibility regarding such forward-looking statements and will not adjust them to future results or developments

To the extent this publication contains financial information with respect to the fiscal year ended December 31, 2017 or subsequent periods, such financial information is unaudited. Consequently, such financial information is still subject to change.

19.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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