windeln.de Q4 2018 trading update in context of today’s upcoming Extraordinary General Meeting: Revenues of EUR 26.2 million, total cash available at EUR 11.1 million
• Preliminary revenues in Q4 2018 of EUR 26.2 million; expected increase in sales due to Christmas business and successful sales campaigns (+18% sales growth compared to Q3 2018); preliminary revenues of EUR 104.7 million in the 2018 financial year
• Available liquidity of EUR 11.1 million as of December 31, 2018; Cash burn of EUR -1.7 million in Q4 2018 lower than in Q3 2018, due to operating performance and net working capital
Munich, January 9, 2019: windeln.de SE ("windeln.de" or "Group"), one of the leading online retailers of family products in Europe and for customers in China, announces preliminary figures for the fourth quarter (Q4) of 2018 in connection with today's Extraordinary General Meeting. Based on preliminary financial figures, the Group generated sales of EUR 26.2 million in Q4 2018. This corresponds to growth of 18% compared to the third quarter (Q3) of 2018 (EUR 22.2 million), which results from the Christmas business and successful sales campaigns in China and the DACH region.
In February 2018, the Group initiated significant efficiency and profitability measures, including streamlining international business and focusing all European businesses on margin improvements and reducing overhead costs. windeln.de made significant progress with these measures in 2018, accepting a lower but more sustainable revenue base of EUR 104.7 million in the 2018 financial year (FY) compared to the previous year (FY 2017: EUR 188.3 million excluding Feedo) on the basis of preliminary financial figures.
Sales growth in China and DACH region, stabilization of sales at Bebitus shops
Business in China recovered in Q4 2018 after the challenging market environment in the first nine months of the year. As a result, sales in China in Q4 2018 amounted to EUR 15.8 million in China (EUR 56.7 million in FY2018). This is an increase of +33.3% compared to Q3 2018, driven by strong sales promotions on Singles Day (11/11) and Black Friday. China accounts for about 60% of Group sales in Q4 2018 (54% in FY2018).
Sales revenues in the DACH region (Germany, Austria, Switzerland) amounted to EUR 5.9 million in Q4 2018 (EUR 24.2 million in FY2018). This is an increase of +3.6% compared to Q3 2018 due to strong Christmas sales and promotions (e.B. Black Friday), as well as the reduction in inventory. DACH accounts for approximately 23% of Group sales in Q4 (23% in FY2018).
In the rest of Europe (RoE) outside DACH, mainly the countries covered by Bebitus Spain, Portugal and France, the Group generated sales of EUR 4.5 million in Q4 2018 (EUR 23.9 million in FY 2018). This is a decrease of -2.9% compared to Q3 2018 due to the continued focus on margin improvements and profitability of the business. RoE contributed to 17% of Group sales in Q4 2018 (23% in FY2018).
Reduced cash burn in Q4 2018
The Group's available liquidity, consisting of cash and time deposits, amounted to EUR 11.1 million as of December 31, 2018. The total change in available cash and cash equivalents amounted to EUR -1.7 million in Q4 2018. This is a quarter-on-quarter improvement due to increased operating performance and lower net working capital as of December 31, 2018, primarily as a result of lower inventory and lower trade receivables.
The final results for FY 2018, including operating profit, will be announced windeln.de with the publication of the consolidated financial statements on March 20, 2019. This information is also made available on the Group's website under https://corporate.windeln.de.