Solid sales and earnings development in the first quarter of 2022 through consistent implementation of the European expansion strategy – Advice Eating

DGAP-News: BIKE24 Holding AG / Key word(s): Quarterly Results/Quarterly/Interim Statement
BIKE24 continues to grow in a challenging environment: Solid sales and earnings development in the first quarter of 2022 driven by the consistent implementation of the European expansion strategy
05/10/2022 / 07:30
The issuer is solely responsible for the content of this announcement.

BIKE24 continues to grow in a challenging environment: Solid sales and earnings development in the first quarter of 2022 driven by the consistent implementation of the European expansion strategy

  • Consolidated sales grew by 7% year-on-year to EUR 61.8 million

  • New localized online shops in France and Italy are showing a significant double-digit increase in sales

  • Again strong growth in Spain

  • Active customers up 10% year-on-year to 835,000

  • Outlook for the full year 2022 confirmed at the lower end of the range

Dresden, May 10, 2022. In a challenging environment, the bicycle specialist BIKE24 has made a successful start to the 2022 financial year – both operationally and strategically. Compared to the extraordinary Q1 of the previous year – benefiting from good weather and corona-related restrictions in stationary trade – the European e-commerce platform increased its consolidated sales in the first three months by 7.3% to EUR 61.8 million. In particular, the successful internationalization of the Group contributed to the growth in sales: Spain, France and Italy recorded an average growth in business volume of around 68% with their localized online shops. As expected, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) adjusted for special effects were EUR 3.8 million (Q1 2021: EUR 7.3 million).

“The significant increases in Spain, France and Italy, where we launched our local shops at the beginning of January, show that our European expansion is progressing significantly,” says Andrés Martin-Birner, co-founder and CEO of BIKE24. “Even in bad economic times, our business model proves successful. One reason is that rising fuel costs mean that more and more people are using their bikes, further boosting sales of complete bikes, accessories and clothing. We are also pleased that after a few difficult quarters we were able to significantly increase our inventory with full bicycles.”

Q1 shows profitable growth in a challenging environment

BIKE24 generated sales of EUR 61.8 million in the first three months of 2022. Compared to Q1 2021, this corresponds to an increase of 7.3% (Q1 2021: EUR 57.6 million). The decline in gross margin to 28.4% was in line with expectations (Q1 2021: 30.7%) given the strong demand in the comparison period, which benefited from the good weather and corona-related restrictions in brick-and-mortar retail combined with limited availability.

Significant investments in the second management level and additional one-off expenses for additional temporary workers to compensate for the high staff shortages caused by the pandemic in the first quarter of 2022 led to an increase in the personnel expenses ratio by 2.0 percentage points to 10.7%. Earnings before interest, taxes, depreciation and amortization (EBITDA) were thus EUR 3.2 million and EUR 2.3 million below the previous year’s figure. At the same time, however, this is also an improvement of EUR 1.7 million compared to the fourth quarter of 2021. Adjusted for special effects of EUR 0.7 million, which mainly related to non-cash expenses for employee participation programs, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) amounted to EUR 3.8 million after EUR 7.3 million in the previous year (adjusted EBITDA margin 6.2% compared to 12.7% in Q1 2021).

Timm Armbrust, CFO of BIKE24 comments: “The geopolitical and macroeconomic environment has become increasingly uncertain in recent weeks. We are currently facing a multitude of challenges that we have not seen in decades. All of this makes it very difficult to assess the effects on consumption in our market segment, but the very positive development of our steadily growing customer base, which continued unabated in the first quarter, and the significant progress made at our localized online shops prove that our product is Europe goes down well Markets. The feedback from our customers is extremely positive and with our BIKE24 brand, which is easy to understand in every language, we can quickly gain a foothold there.”

Growth supported by strong customer metrics

The number of active customers as of March 31, 2022 was 835 thousand, 10% more than the same date in the previous year. The number of orders rose by 4% to 419 thousand in the reporting period. Viewed over a rolling twelve-month period, the average number of orders per active customer remained almost unchanged at 2.12 (previous year: 2.14). The average order volume per year was EUR 303 after EUR 293 in the previous year. 74.3% of orders in Q1 2022 came from returning customers (Q1 2021: 74.1%).

Outlook for the full year 2022 confirmed at the lower end of the range

The construction of the new logistics center in the greater Barcelona area to expand and streamline deliveries to southern European customers is progressing according to plan. Due to the war in Ukraine and the corona restrictions in China, the economic environment remains under pressure from various factors such as raw material shortages and price increases, rising interest rates and supply chain disruptions. Due to these increased uncertainties, sales and earnings for the full year 2022 are expected to be at the lower end of the forecast range (growth of 10 to 17 percent, adjusted EBITDA margin of 9 to 10 percent).

The complete quarterly report including the consolidated financial statements can be found here:

https://ir.bike24.com/websites/bike24/English/3000/publications.html

BIKE24’s Q1 2022 earnings call for analysts and investors will take place today at 15:00 CEST. The following link will take you to the live webcast of the conference:

https://www.c-meeting.com/web3/join/M83CVPWDCR7BJD

Conference language is English. The presentation will be available for download from 1:00 p.m.

Unaudited Condensed Consolidated Income Statement (Adjusted View)

in k€

Q1 2022

Q1 2021

delta

Income and Other Income

DACH markets

40,392

38,554

5%

Spain (localized)

1,808

1,001

81%

Italy (localized)

957

743

29%

France (localized)

1.407

738

91%

rest of the EEA

11,686

11,806

-1%

rest of the world

5.511

4,722

17%

revenue

61,761

57,564

7%

other income

30

46

-35%

total income

61,791

57,610

7%

COGS (Merchandise, Consumables and Supplies)

– 44,267

– 39,929

11%

gross profit

17,524

17,682

-1%

gross margin

28.4%

30.7%

-2.3p

Cost of performance marketing

– 619

– 142

337%

selling expenses1

– 5,140

– 4,513

14%

personnel costs

– 6,595

– 5,008

32%

Other expenses

– 1,979

– 2,504

-21%

EBITDA

3.191

5,515

-42%

EBITDA margin

5.2%

9.6%

-4.4p

adjustments

655

1,802

-64%

Adjusted EBITDA

3,846

7.317

-47%

Adjusted EBITDA margin

6.2%

12.7%

-6.5p

Depreciation (excluding items similar to goodwill)

– 1,170

– 936

25%

Adjusted EBIT

2,676

6,381

-58%

Adjusted EBIT margin

4.3%

11.1%

-6.8p

Depreciation on items similar to goodwill

– 2,484

– 2,484

0%

adjustments

– 655

– 1,802

-64%

Earnings before interest and taxes (EBIT)

– 463

2,095

-122%

EBIT margin

-0.8%

3.6%

-4.4p

Financing expenses, net

– 312

– 1,102

-72%

Profit / (loss) before tax

– 776

993

-178%

income tax expense

189

– 322

-159%

result for the period

– 587

670

-188%

Rounding differences may occur.

1Including impairment of trade accounts receivable.

Press contact:
Bettina Fries
Email: presse@bike24.net
+49 1722976243

Investor contact:
Moritz publisher
Email: ir@bike24.net
+49 151 2414 0166

About BIKE24
BIKE24 is one of the leading e-commerce platforms for bicycles in continental Europe. The online retailer with a focus on the premium segment is the central point of contact for the rapidly growing community of bicycle enthusiasts and thus promotes green mobility. Founded in Dresden in 2002 by the managing directors Andrés Martin-Birner, Falk Herrmann and Lars Witt, responsible for Legal & Own Brands, the company has quickly become one of the leading companies in continental Europe and a globally active online retailer in this fast-growing region Market develops market. The web shop offers customers 77,000 products from more than 800 brands. This means that BIKE24 has the widest range of brands in the industry in continental Europe. The online bike platform is already present in continental Europe with five local web shops in Germany (bike24.de), Austria (bike24.at), Spain (bike24.es), France (bike24.fr) and Italy (bike24.it). . In addition, the international shop (bike24.com) supplies customers all over the world.

05/10/2022 Release of a Corporate News/Financial 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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