DGAP-News: home24 SE / Key word(s): Quarter Results
home24 is back on growth path and increases revenue in Q3 2018 significantly
Berlin, 27 November 2018 - home24 SE ("home24") generated revenues of EUR 221 million in the first nine months of 2018 (previous year: EUR 196 million) and, adjusted for foreign currency effects, thus achieved a significant increase of 18% over the same period of the previous year. Including foreign currency effects, revenues in the first nine months of 2018 were 13% higher compared to 9M 2017. In Q3 2018, currency-adjusted revenue growth doubled to 16%, after 8% growth in Q2 2018.
In a challenging environment, home24 was able to gain market share over its competitors. Similarly to Q2 2018, Q3 2018 was also impacted by lower demand due to the extraordinary hot weather in Continental Europe. The weather-related effect on demand was also visible in the sector's business figures, with the offline segment delivering double-digit decline in some cases.
Business in Brazil, which was not affected by weather conditions, consistently performed well in the first nine months of 2018, increasing currency-adjusted revenue by 45% compared to the same period of the previous year, and achieved a positive adjusted EBITDA. Including the unfavourable currency effect, revenue growth was a strong 19%.
home24 made significant investments in the past quarter, which will have a positive impact on revenue and profitability in the coming year, but will worsen absolute profitability in 2018 compared with the previous year. Investments were made in the expansion of the assortment with a focus on private labels, and start-up investments were made in further growth, for example in a new logistics centre in Halle (Saale), three mega outlets and two showrooms.
Higher marketing expenses were used to successfully counteract the weather-related decline in demand, to gain market share and to further increase brand awareness. The transition to a new ERP system temporarily caused additional handling and personnel costs; all orders in the old ERP system have now been processed, and the new system will enable highly efficient processes at lower costs.
"We were successful in strengthening our position as the first online destination in the Home & Living market in a challenging environment and thereby gaining further market share," says Marc Appelhoff, Co-CEO of home24. "The investments that we made now, and the resulting high scalability put us in an ideal position to fully benefit from the tremendous potential of the online market".
home24 opened two additional showrooms in the past quarter. The focus of the assortment shown in the showrooms is on private labels, building on home24's strengths in curated, value for money offering. With the opening of a large showroom in Zurich in September, home24 is now also represented in Switzerland. In addition to the mega outlet in Neu-Ulm, which was launched in November, home24 will open two mega outlets in Hanover and Cologne in Q1 2019. Both concepts, showrooms and mega outlets, have proven themselves as a complementary part of the home24 strategy to attract customers and further strengthen brand awareness.
home24 expects that the growth trend seen in Q3 2018 will continue to increase. For Q4 2018, the company expects currency-adjusted revenue growth of 25 - 31%. This results in a forecast of revenue for the full year 2018 of between EUR 315 and 323 million and thus more than 20% growth adjusted for currency effects. In addition, home24 forecasts revenue growth for 2019 at or above the growth rates of the financial year 2018, confirms its medium-term earnings forecast and continues to expect to break even at the end of 2019 on the basis of adjusted EBITDA.
home24 is the 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.
+49 162 244 07 65
+49 30 201 634 728
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.
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