home24 SE: home24 achieves major milestone: break-even in fourth quarter combined with strong revenue growth of 20% in 2019

home24 achieves major milestone: break-even in fourth quarter combined with strong revenue growth of 20% in 2019

• home24 achieved EBITDA break-even in Q4 2019, improving adjusted EBITDA margin by 17%-points compared to Q4 2018
• Significant currency-adjusted revenue growth in Q4 2019 of 21% to EUR 109 million compared to Q4 2018
• Strong annual revenue growth in 2019 of 20% to EUR 372 million on a currency-adjusted level compared to 2018
• Positive cash flow from operating activities in H2 2019 - cash position of EUR 46 million at the end of 2019

Berlin, 11 February 2020 - In a strong final quarter of 2019, home24 SE ("home24", the "Company") was profitable for the first time on the basis of adjusted EBITDA. With an adjusted EBITDA of EUR 2.5 million and an adjusted EBITDA margin of 2% home24 posted its first group-wide profitable quarter, in line with its guidance. This is shown in the preliminary, unaudited full-year financials for 2019, which were published today. The development was driven by a strong performance in both segments, with Europe at 1%, and Brazil at 7% in Q4 2019, and demonstrated a significant improvement by 17%-points year over year. The Q4 2019 EBITDA is also positive excluding adjustments (only share-based compensation expenses) and one-time effects.

In the past quarter, home24 generated revenues of EUR 109 million, representing a currency-adjusted growth of 21% compared to the same period of the previous year. Including currency effects, revenues increased by 19% both in Q4 and full year 2019. Based on preliminary financials, the Company's revenues for the full year 2019 amounted to EUR 372 million and grew by 20% at constant currency compared to the previous year, underlining the ability of the Company to combine significant profitability improvements with continued strong growth.

In the second half of 2019, efficiencies from investments initiated post IPO showed their financial impact. As a consequence, the cash flow from operating activities was positive for the last six months of 2019. This had an important impact on the Company's cash position. At the end of 2019, the cash balance of home24 amounted to EUR 46 million. From July to December 2019, the cash outflow was limited, at only EUR 6 million. The available cash position leaves ample headroom for 2020, given the core profitability has been reached and crucial sizable investment projects are completed.

Focus in 2020 on profitable growth and strengthening customer value proposition

In 2019, home24 has invested heavily in the logistical and technological foundations of long-term growth. Most notably, home24 successfully extended its warehouse capacity in Europe and Brazil by more than 70%. Supplemental investments in the new ERP system in Europe continue to ensure highly efficient processes at lower costs.

"We have established the basis for long-term, sustainable growth by completing important investment projects and reaching core profitability in the fourth quarter of 2019. In 2020, we will accelerate our data-driven approach to improve our product and service offering at great value for customers, helping them to create individual 'happy homes'", says Marc Appelhoff, CEO of home24.

home24 successfully focuses on the model of making furniture shopping an individual and inspiring experience. In 2020, the Company intends to continue expanding its unique and tailored home & living shopping experience with a broad and relevant assortment, excellent service and reliable delivery options.

Financial outlook

For 2020, home24 is planning stable currency-adjusted revenue growth rates of 15-20%, in a similar range to 2018 and 2019. In addition, the Company is aiming for a full year adjusted EBITDA break-even in 2020, and guides in a range of plus to minus 2% adjusted EBITDA margin.

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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 more than 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.