home24 accelerates growth and continues on path to profitability in first quarter 2018

home24 accelerates growth and continues on path to profitability in first quarter 2018

• First quarter 2018 revenue increased to EUR 84.5m, up 30% year-on-year at constant currency rates^[1]
• Gross profit margin up 1 percentage point year-on-year to 45% for Q1 2018
• Continued improvement of adjusted EBITDA supports home24's path to group-wide break-even
• LatAm continued to be profitable on an adjusted EBITDA basis in Q1 2018

Berlin, 3 May 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 path to profitability in the first quarter 2018. Revenue increased significantly from EUR 67.5m in Q1 2017 to EUR 84.5m in Q1 2018, which adjusted for currency effects corresponds to an increase of 30% year-on-year.² Compared to the previous quarter, revenue increased by 6.0%.

In the first quarter 2018, home24 increased its strong gross profit margin to 45%, up 1 percentage point compared to the same period in Q1 2017 and on a similar level as reported for the full year 2017. Despite increasing marketing expenses to acquire new customers, home24 also improved its adjusted EBITDA from minus EUR 7.2m in Q1 2017 to minus EUR 5.1m in Q1 2018, applying IFRS 16 for the first time. This led to a further improvement of the adjusted EBITDA margin by more than 4 percentage points compared to Q1 2017. After reaching break-even in the seasonally strong fourth quarter 2017, LatAm continued to be profitable on an adjusted EBITDA basis.

Marc Appelhoff, Co-CEO of home24, said: "The first quarter results underpin our successful and sustainable growth story. home24 combines an innovative and unique customer value proposition with a strong acceleration of revenue growth. We have achieved this while continuously showing highly attractive gross margins. And we continue to deliver profitability improvements quarter after quarter as we follow a clear path to reach break-even in the medium-term."

home24 has built the best-in-class platform to drive profitable growth, offering superior value and an inspiring home & living experience to mass market customers. In addition to a broad and relevant assortment, the company also offers its customers great value for money, fast and convenient delivery and a uniquely tailored shopping experience online and in its showrooms. Following investments in the platform, home24 has accelerated growth since mid-2017. One key driver of home24's ability to grow its revenue, while also improving its highly attractive gross margins, is the strength of its significant private label business.

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: www.home24.de

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Disclaimer:
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 revenue, 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 three months ended March 31, 2018 or subsequent periods, such financial information is unaudited.

^[1] /2 Year-on-year quarterly revenue growth on the basis of IFRS implied constant currency rates calculated as LatAm IFRS external revenue (R$) / LatAm IFRS external revenue (EUR). From Q1'17 to Q1'18: FX at EUR/BRL 3.35