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home24 SE: home24 reports very strong Q2 2020, achieves positive adjusted EBITDA on a twelve-month basis and upgrades its guidance for FY 2020

2020-08-13 18:30:05

DGAP-News: home24 SE / Key word(s): Half Year Results/Change in Forecast
13.08.2020 / 18:30
The issuer is solely responsible for the content of this announcement.

home24 reports very strong Q2 2020, achieves positive adjusted EBITDA on a twelve-month basis and upgrades its guidance for FY 2020

  • Order intake increased by 71% in Q2 2020 on a currency-adjusted level, despite flat marketing expenses, compared to Q2 2019.
  • Very strong currency-adjusted revenue growth of 49% year-over-year to EUR 119 million in Q2 2020, indicating strong further revenue growth in Q3 2020 through open orders which will be realized in the upcoming months.
  • For the first time, home24 achieved an adjusted EBITDA break-even in the last twelve months.
  • Profitability improvement of 18%-points in adjusted EBITDA profitability year-over-year in Q2 2020, with adjusted EBITDA margin at 8%, as operative scale effects materialize.
  • Significant cash generation from operating activities in Q2 2020 resulting in a positive H1 2020 cash flow. Cash at the end of June 2020 at EUR 47 million.
  • home24 is upgrading its guidance for FY 2020 and now plans with a currency-adjusted revenue growth in the range of 25% to 35% (previously > 15%). In addition, the Company expects an adjusted EBITDA margin in a range of 1% to 3% (previously > 0%).

Berlin, 13 August 2020 - In Q2 2020, home24 SE ("home24", the "Company") posted the best quarter in the Company's history. The main reason was a strong increase in currency-adjusted order intake of 71%, despite flat marketing expenses in Q2 2020 compared to Q2 2019. As a significant amount of orders placed in Q2 2020 will be delivered in Q3 2020, the revenue realisation partly shifts to Q3 2020. The strong order intake translates into a strong currency-adjusted revenue growth of 49% to EUR 119 million in Q2 2020, compared to Q2 2019. Even including the significant currency effects of the Brazilian Real devaluation, revenues were 40% higher than in Q2 2019.

Q2 2020 was also the most profitable quarter in the Company's history and led to the milestone of last twelve months adjusted EBITDA break-even for the first time, demonstrating the structural profitability of the business model which now realizes scale effects. Despite the revenue realisation spillover from the second to the third quarter, Q2 2020 showed a year-over-year improvement of the adjusted EBITDA margin by 18 percentage points to 8%. Even against a normalized demand picture without COVID-19 effects, H1 2020 would have been profitable on the basis of adjusted EBITDA, as the platform investments of the last two years pay-off and translate into profitable growth.

The Company's cash flow was positive in H1 2020. As a result, the cash balance of home24 amounted to EUR 47 million at the end of Q2 2020, representing an increase of EUR 4 million compared to Q1 2020. On the back of positive cash flow for the last three quarters in aggregate, the cash position has remained broadly stable over the last twelve months. Cash only reduced by EUR 4 million from Q2 2019 to Q2 2020.

Looking at the entire first half of the year 2020, home24 generated revenues of EUR 222 million, representing a currency-adjusted growth of 31% compared to H1 2019 (EUR 178 million), despite reducing marketing spend during the period by 7%. Including currency effects, revenues increased by 25%. The growth was driven by both regional segments in Europe and Brazil, albeit with a different timing and duration of the consumer reactions to COVID-19 related lockdown restrictions. In H1 2020, revenues in Europe increased by 31% compared to the previous year, while revenues in Brazil grew by 30% at constant currency.

"The second quarter of 2020 was the best quarter in the Company's history, with consumers in Europe and Brazil increasingly turning to the home24 platform. This demonstrates that we are establishing ourselves as a trusted go-to destination for home & living. COVID-19 is not the driver but rather a catalyst for a sustained change of customer behaviour. To put the growth momentum of the second quarter into perspective, we added more active customers in Q2 than in the last four quarters combined, now reaching 1.8 million - and did not increase marketing spend to achieve this.", says Marc Appelhoff, CEO of home24. "Our quarterly results highlight the attractiveness of the home24 value proposition to our customers. They also prove the inherent profitability of the platform we have built over the last years with significant operational leverage potential, that led to this jump in profitability and showed a positive cash flow of the first half of 2020. What was a slow, but gradual shift to e-commerce even before COVID-19, accelerated over the last months. We believe much of these changes will remain and that the online penetration of the market will probably continue to increase at a higher pace than before COVID-19.".

Revised financial outlook

While the Company acknowledges that significant uncertainty linked to the COVID-19 pandemic remains in place, home24 is upgrading its guidance for FY 2020. On the basis of the strong first half of 2020 and visibility of trading in July, the outlook has been upgraded to currency-adjusted revenue growth in the range of 25% to 35% (previously > 15%). In addition, the Company expects an adjusted EBITDA margin in the range of 1% to 3% (previously > 0%).

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About home24

home24 is a leading pure-play home & living e-commerce platform in Continental Europe and Brazil. With over 100,000 articles sourced from more than 500 manufacturers, home24 offers a unique selection of large and small furniture pieces, garden furniture, mattresses and lighting. This curated, broad assortment offers a significant value-for-money value proposition to customers. home24 is headquartered in Berlin and employs almost 1,500 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.

Media contact:

Anne Gaida
anne.gaida@home24.de
+49 30 201 632 941 6

Investor contact:
Philipp Steinhäuser
ir@home24.de
+49 30 201 634 728

Legal disclaimer:

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.



13.08.2020 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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