DGAP-News: Home24 AG / Key word(s): Final Results
home24 accelerates growth in 2017
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.
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.