Munich, August 8, 2019: windeln.de SE (“windeln.de” or “Group”), one of the leading online retailers for family products in Europe and to customers in China, today reported results for the first half (H1) and second quarter (Q2) of 2019. The Group generated revenues of EUR 40.9 million in H1 2019 (H1 2018: EUR 56.4 million) and EUR 20.1 million in Q2 2019 (Q2 2018: EUR 23.5 million). Adjusted (adj.) EBIT was EUR -7.3 million in H1 2019 (H1 2018: EUR -11.1 million) and EUR -3.3 million in Q2 2019 (Q2 2018: EUR -5.9 million).

Revenue development impacted by ongoing profitability focus

Revenues in the DACH region (Germany, Austria and Switzerland) amounted to EUR 9.0 million in H1 2019 (H1 2018: EUR 12.6 million) and EUR 4.3 million in Q2 (Q2 2018: EUR 5.3 million). DACH accounted for approximately 22% of Group revenues in H1 2019. Over the past one and a half years, windeln.de has consistently followed the implementation of the Group's focus on improving profitability in Europe. Due to the reduction of the existing product portfolio and the focus on higher margin products, the Group ranges on a lower but much more sustainable revenue basis. As a result, the margin based

Further improvement on product margins, operating contribution and cost structure

The Group’s long-term strategy of focusing on high-margin products, primarily consumer durables such as clothing and toys, as well as the renegotiation of supplier terms had a positive impact on the gross margin for the European business. As a result, the Group margin (gross profit as of revenues) increased by 1.1% to 25.0% compared to the same period of the previous year.
Selling and distribution costs decreased from EUR 21.6 million in H1 2018 to EUR 14.2 million in H1 2019 (minus 34%) and from EUR 9.3 million in Q2 2018 to EUR 6.5 million in Q2 2019 (minus 30%). The substantial s

Cash outflow reduced; financing options evaluated

In H1 2019, an improved operating cash outflow of EUR 8.6 million was recorded compared to EUR 13.8 million in the previous year. Operating cash outflow was EUR 3.3 million in Q2 2019 and therefore lower than in Q1 2019 with EUR 5.3 million (EUR 2.4 million cash inflow in Q2 2018). As a result, the Group’s total cash available was EUR 12.1 million as of June 30, 2019, which is EUR 3.4 million lower compared to March 31, 2019. In the context of the operating cash outflow and to fund the various growth measures in China the Group is evaluating financing options.
CEO Matthias Peuckert