• Q1 2021 Sales EUR 14.6 million (-1.9% compared to EUR 14.9 million in Q1 2020) and adjusted EBIT -3.5 million EUR (-23.6% adjusted EBIT margin; in % of sales) compared to EUR -2.4 million (-16.3% adjusted EBIT margin) in Q1 2020
• Launch of the own mini-program on online platform WeChat • Capital increase in March
2021 generates gross issue proceeds of EUR 1.4 million to finance growth projects
• Clemens Jakopitsch, Maurice Reimer and Christian Reitermann re-elected to the Supervisory Board by the Annual General Meeting on May 14, 2021
• Warehouse relocation to Halle an der Saale started at the end of Q1 2021 and successfully completed in May 2021

Munich, May 27, 2021: windeln.de SE ("windeln.de", "Group" or "Company"; ISIN DE000WNDL201 and DE000WNDL128) today released its financial results for the first quarter (Q1) of 2021. The company generated sales of EUR 14.6 million in Q1 2021 (Q1 2020: EUR 14.9 million). The adjusted (ber.) EBIT amounted to EUR -3.5 million in the first quarter of 2021 (Q1 2020: EUR -2.4 million).

Largely stable sales at Group level in the first quarter

Compared to the same period of the previous year, revenue from continuing operations fell slightly by EUR 0.3 million or 1.9% from EUR 14.9 million to EUR 14.6 million in the three-month period of 2021. Sales revenues in the prior-year quarter included SALES TAX adjustments of EUR 0.8 million as a positive one-off effect. Compared to prior-year sales adjusted for this effect, revenue increased by 3% in Q1 2021. Sales in Europe amounted to EUR 4.4 million in Q1 2021 and were thus below the level of the prior-year quarter (Q1 2020: EUR 4.7 million). The decline of 6.7% can be attributed to the relocation of the Group's main warehouse, which limited the availability of certain products in March 2021. The outbreak of the COVID-19 pandemic triggered a strong order intake in March 2020, which was not seen again in this way in the first quarter of 2021. Sales in Europe accounted for around 30% of Group sales in the first quarter of 2021. Around 70% of windeln.de's consolidated sales were generated in China in the first quarter of 2021. At EUR 10.2 million, sales revenues there were on a par with the same period of the previous year (Q1 2020: EUR 10.2 million). Compared to prior-year sales adjusted for the effect of VAT adjustments, sales in China increased by 8.6%.

Successful launch of the WeChat Mini program in China

At the beginning of the year, the offer for customers in China was further expanded and a separate WeChat Mini program was launched. The WeChat Mini program is a shopping platform of the popular messenger app WeChat, which is used by more than 900 million users in China. The shopping platform is directly linked to WeChat (app in app). Thus, users can easily and quickly share products with friends or family. In addition, the mini-program offers other marketing tools such as live chats with customers or special promotional offers. The new sales channel will be served via the existing efficient logistics network that the Group has built up over the years. Through the WeChat Mini program, windeln.de mainly sells high-quality German baby food, drugstore articles and toys.

Relocation to the new German central warehouse completed

At the end of the first quarter, windeln.de began moving to the new German central warehouse in Halle an der Saale. By April, all activities in the former Großbeeren central warehouse had been discontinued and the tasks had been completely taken over from the new warehouse location. Remaining stocks were migrated to the new location by mid-May and the move was thus successfully completed.

Decline in gross profit margin shapes earnings development

The Group's gross profit margin (gross profit as a percentage of sales) was 16.1% in the first quarter of 2021 (Q1 2020: 26.1%). Four percentage points of the decline are attributable to the positive one-off effect from VAT adjustments recorded in the prior-year quarter. In addition, the proportion of orders served from Chinese warehouses in the Chinese end customer business has increased. Compared to direct deliveries from Germany, the margin is also lower, but at the same time the logistics costs are also lower. Fulfillment costs as a percentage of revenue decreased to 8.7% year-on-year in the first quarter of 2021 (Q1 2020: 11.0%). Marketing costs as % of sales decreased to 3.6% for the first quarter of 2021 (Q1 2020: 4.3%). Since the second half of 2020, Chinese marketing has been carried out internally, which is why marketing expenses are lower in the current fiscal year. The operating contribution margin (gross profit less fulfillment costs and marketing costs) amounted to EUR 0.6 million (3.8% of sales) in the first quarter of 2021. In the reporting period, selling expenses fell by EUR 0.8 million or 16% year-on-year to EUR 4.1 million. This is due, among other things, to the decrease in logistics costs and marketing costs, as described above. Administrative expenses in the first quarter of 2021 increased by 10% year-on-year to EUR 1.7 million (Q1 2020: EUR 1.5 million). The higher personnel and other administrative expenses are attributable to the establishment of a new team in China since the second quarter of 2020. Adjusted EBIT decreased to EUR -3.5 million in Q1 2021 compared to EUR -2.4 million in Q1 2020.

Capital increase in March 2021 generates gross proceeds of EUR 1.4 million

The Group's cash and cash equivalents decreased by EUR 3.5 million over the first quarter to EUR 5.0 million as of March 31, 2021 (December 31, 2020: EUR 8.5 million). The negative operating cash flow of EUR 4.8 million had a major impact on this development. On the other hand, there was a gross cash inflow from the capital increase carried out in March in the amount of EUR 1.4 million. Matthias Peuckert, CEO of windeln.de, comments: "The further capital increase carried out in March will enable us to advance our growth projects in 2021. We are also continuously working on further measures to improve our financial position and to finance the planned growth. For the year as a whole, we are aiming for significant sales growth and an improvement in adjusted EBIT for 2021. In this context, the successful launch of our flagship store at BabyTree was already an important step towards strengthening our market position."

Second virtual Annual General Meeting successful

in 2021, windeln.de also took advantage of the opportunities granted by the legislator in view of the coronavirus pandemic and held this year's Annual General Meeting on 14 May 2021 in virtual form. The presence of the represented share capital was 75.25%. The Annual General Meeting expressed its confidence in the members of the Executive Board and the Supervisory Board for the 2020 financial year. KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, has been appointed as auditor of the financial statements and consolidated financial statements for the 2021 financial year. At the end of this year's Annual General Meeting, the term of office of all Supervisory Board members ended. As part of the Supervisory Board elections, Clemens Jakopitsch, Maurice Reimer and Christian Reitermann were re-elected to the Supervisory Board. The Annual General Meeting also approved the remuneration system for the Supervisory Board and the Executive Board as well as the creation of a new Authorized Capital 2021. On the basis of this capital stock resolution, windeln.de is examining the implementation of a further capital increase to improve the company's financing situation and to implement the planned growth projects.