DGAP-News: Home24 AG / Key word(s): Quarter Results
home24 accelerates growth and continues on path to profitability in first quarter 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.
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.