Munich, November 12, 2020: windeln.de SE (“windeln.de”, “Group” or “Company”; ISIN DE000WNDL201 and DE000WNDL128) today reported financial results for the third quarter (Q3) and 9 months (9M) of 2020. The Company generated revenues of EUR 15.0 million in Q3 2020 which corresponds to a slight decrease of -2.7% compared to Q3 of the previous year (EUR 15.4 million in Q3 2019) for its continuing operations (i.e. excluding the Bebitus business which is reported as “discontinued operation”). For the first 9 months 2020, revenues increased by 17.9% to EUR 58.8 million compared to

Q3 revenue for DACH and Bebitus increased year over year and quarter over quarter; China revenues below targets in Q3 but with stronger 4th quarter ahead

In China EUR 10.2 million revenues were generated in Q3 2020 which is a decrease of -5.3% year over year (Q3 2019 EUR 10.8 million) due to a temporary oversupply of milk formula in the Chinese market and a temporary suspension of the SPDC shipping process (duty-paid air freight from Germany) which will be re-activated in the next weeks. Also, marketing spent and therefore new customer acquisition have been lower during the transition from the cancelled marketing cooperation with LangTao to the local inhouse team in China. 9 months revenues for China were EUR 43.6 million compared to EUR 35.

Improvement in adj. EBIT in Q3 and 9 months 2020 for the group compared to the same period of the previous year mainly due to improvement in operating contribution from the European business and lower SG&A expenses.

Gross profit margin decreased to 17.1% in Q3 2020 (21.8% in Q3 2019) as a result of discount campaigns in China, which were necessary due to the temporary oversupply in the market. Also, the share of business customers was higher than in the previous year. This leads to lower gross profit margin but also lower marketing and fulfillment costs. Marketing costs in Q3 2020 amounted to EUR 0.5 million (3.4% of revenues) compared to EUR 0.6 million in the previous year quarter (4.0% of revenues). Fulfilment costs decreased in absolute terms to EUR 1.2 million (8.2% of revenues) compared to EUR 2.

Cash outflow reduced significantly in Q3; successful completion of capital increase in October

In Q3 2020, the cash outflow (incl. Bebitus) amounted to EUR 0.5 million and thereby improved significantly compared to EUR -5.9 Mio. Euro in Q2 2020 (9 months 2020: EUR -2.9 million). Net working capital incl. Bebitus as of September 30, 2020 was EUR 6.2 million and decreased by 38.5% compared to June 30, 2020 due to the reduction of inventory. The Group’s total cash available was EUR 5.5 million as of September 30, 2020. In October, the Group successfully completed a capital increase with existing and new investors. Through the placement of 2,821,828 new no-par value bearer shares with