DGAP-News: home24 SE
/ Key word(s): 9 Month figures/Quarter Results
home24 grows 20% in Q3 2019 and
Berlin, 26 November 2019 - home24 SE ("home24", the "Company") generated revenues of EUR 85 million in Q3 2019 (previous year: EUR 70 million), representing a currency-adjusted increase of 20%. Including currency effects, the revenues were 21% higher than in the previous quarter.
In the first nine months of 2019, the Company's revenues amounted to EUR 262 million (previous year: EUR 221 million) and grew by 19% compared to the prior-year period, both in constant currency and including foreign currency effects. In Europe, revenues grew by 17% compared to prior year's quarter to EUR 62 million. In Brazil, revenues increased by 28% at constant currency to EUR 22 million (previous year: EUR 17 million) in Q3 2019. Since the Brazilian currency is broadly in line with the previous year, the impact of currency-adjusted reporting is limited.
home24 confirms the break-even target on the basis of adjusted EBITDA for Q4 2019. Q3 2019 has shown an improvement from -10% in Q2 2019 to -9%, despite seasonally increased marketing expenses (e. g. TV spot, catalogue) in the third quarter. Overall, Q3 2019 adjusted EBITDA margin improved significantly by 10%-points compared to the previous year, at historic best Q3 profitability margin.
The improvement in profitability in combination with positive working capital effects has had the expected impact on the Company's cash position. The cash balance of home24 after the third quarter is at EUR 44 million. Cash outflow significantly reduced to EUR 7.7 million compared to the previous quarter, with outflow expected to continue to decrease as adjusted EBITDA eventually turns positive.
home24 achieved further important milestones in Q3 2019. In Brazil, warehouse capacity was added with the opening of a new warehouse in Minas Gerais. In total, the Brazilian warehouse capacity has now more than doubled to around 50,000 sqm and on the back of a centralized inventory model, operations and sales growth have improved significantly. In Europe, home24 achieved further efficiency gains in customer service following the SAP implementation. For instance, the automated returns processing and app-based customer self-service solutions enable more customer-centric solutions. Consequently, customer satisfaction levels have increased thanks to both improved claims handling and by reducing the reasons for claims.
"With a strong revenue growth of 20 percent and further improvements in our operational efficiency, we made crucial progress on our path to profitability," says Marc Appelhoff, Co-CEO of home24. "We are confident that we will reach our growth targets for 2019 and reach break-even on adjusted EBITDA basis in the fourth quarter 2019."
home24 confirms its outlook and expects revenue growth at constant currency in 2019 to reach or slightly exceed the 2018 growth rate in constant currency (18%). The Company also aims to break even in Q4 2019 on the basis of adjusted EBITDA.
For 2020, home24 is planning with stable revenue growth rates, similar to 2018 and 2019. In addition, the Company is aiming for a full year adjusted EBITDA break-even.
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 offers a significant value-for-money value proposition to customers. 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.
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.
|Greifswalder Straße 212-213|
|Phone:||+49 30 - 609880019|
|Fax:||+49 30 - 2016329499|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||921393|
|End of News||DGAP News Service|