publishes nine months and third quarter 2019 results

• 9M 2019 revenues EUR 59.4 million (Q3 2019: EUR 18.5 million) and 9M 2019 adjusted EBIT EUR -12.0 million (Q3 2019: EUR -4.7 million)
• Quarter over quarter (Q3 2019 compared to Q2 2019) some revenue growth for Europe (+4%); China revenues lower (-16%) due to delayed opening of second bonded warehouse (up and running now) and implementation of strategic cooperation for China
• Total cash available EUR 9.7 million as of September 30, 2019 (EUR -2.4 million in Q3 2019); cash capital increase with subscription rights planned
• Target to reach adjusted EBIT break-eve

Munich, November 13, 2019: SE (“” or “Group) published its financial results for the first nine months (9M) and the third quarter (Q3) 2019 today. The Group generated revenues of EUR 59.4 million in 9M 2019 (9M 2018: EUR 78.5 million) and EUR 18.5 million in Q3 2019 (Q3 2018: EUR 22.2 million). Adjusted (adj.) EBIT was EUR -12.0 million in 9M 2019 (9M 2018: EUR -16.0 million) and EUR
-4.7 million in Q3 2019 (Q3 2018: EUR -4.9 million). Revenues are lower than anticipated but in terms of profitability and cost efficiency, the Group has made further progress.

Revenue development in Europe stabilized, China lower but progress on BWH II and cooperation

In the DACH region (Germany, Austria and Switzerland), revenues amounted to EUR 13.4 million in 9M 2019 (9M 2018: EUR 18.3 million) and EUR 4.5 million in Q3 2019 (Q3 2018: EUR 5.7 million). DACH accounted for approximately 23% of Group revenues in 9M 2019. With revenues of EUR 10.3 million in 9M 2019 (9M 2018: EUR 19.3 million) and EUR 3.3 million in Q3 2019 (Q3 2018: EUR 4.7 million), approximately 17% of Group revenues are attributable to Rest of Europe (Bebitus shops in Spain, Portugal and France). On a quarter over quarter (qoq) basis (Q3 2019 compared to Q2 2019) revenues in the DACH

Further improvement on operating contribution and cost structure

The adj. Group gross profit margin (gross profit as % of revenues) slightly increased to 24.0% in 9M 2019 compared to the previous year (9M 2018: 23.8%). In Q3 2019 the gross margin with 21.7% was lower than in the previous quarter and previous year (Q2 2019: 24.9%; Q3 2018: 22.4%) due to the lower revenue contribution from China.
Selling and distribution expenses decreased by 31% to EUR 20.5 million in the 9M 2019 (on a quarterly basis by 21% to EUR 6.2 million in Q3 2019), mainly from logistics costs (-36%), personnel costs (-29%), marketing (-25%) and warehouse rental (-35%). Wareh

Cash outflow further reduced and financing planned

In 9M 2019, the operating cash outflow of EUR 10.7 million was significantly improved compared to EUR 17.3 million in the previous year. Operating cash outflow was EUR 2.1 million in Q3 2019 and lower than in Q2 2019 with EUR 3.8 million. The Group’s total cash available was EUR 9.7 million as of September 30, 2019, which is EUR 2.4 million lower compared to June 30, 2019 (EUR 7.6 million as of November 11, 2019). In order to strengthen liquidity to fund operating cash outflow until break-even, to fund the various growth measures in China and to create strategic flexibility for business c

Select key figures for the first nine months and third quarter of 2019

9M 20199M 2018Q3 2019Q3 2018
Revenues (EUR million)59.478.518.522.2
Rest of Europe10.319.33.34.7
Operating Contribution
in % of revenues4.7%2.1%3.6%1.8%
Adjusted EBIT (EUR million)-12.0-16.0-4.7-4.9
in % of revenues-20.2%-20.5%-25.5%-22.2%