Munich, May 28, 2019: windeln.de SE (”windeln.de“, “Company” or “Group”), one of the leading online retailers for family products in Europe and to customers in China, published its financial results for the first quarter (Q1) 2019 today. The Company achieved revenues of EUR 20.8 million and adjusted (adj.) EBIT of EUR -4.0 million (-19.5% margin in % of revenues). These results are in line with expectations in terms of profitability, taking into account the restructuring measures initiated in February 2018, especially the reduction of marketing expenses and the strong focus on m

Q1 revenue development impacted by typically lower quarter than Q4 and ongoing focus on margin and cost improvements in European business

Revenues in China in Q1 2019 amounted to EUR 12.3 million (Q1 2018: EUR 17.5 million) accounting for approximately 59% of Group revenues. The Chinese market keeps slowly recovering from the negative effects in 2018, which led to a significant decrease in revenues from Q2 onwards last year. Revenues in Q1 are also seasonally lower given Chinese New Year. For the rest of 2019, windeln.de sees a lot of growth potential and puts a lot of strategic and operational focus on the Chinese market: (1) new Chinese investors for China have been added in the first quarter, (2) a second Bonded Warehouse

Improved adj EBIT underlines more sustainable basis

Selling and distribution expenses decreased by 37% and EUR 4.6 million compared to prior year quarter and thus developed in line with revenues. The main cost savings relate to personnel expenses, logistic and marketing costs. Operating contribution margin (difference between gross profit and expenses for adj. marketing and adj. fulfillment costs) amounted to EUR 0.9 million in Q1 2019 (4.2% of revenues). This is a small improvement by 0.1pp compared to Q1 2018 (EUR 1.3 million or 4.1% of revenues). This is mainly the result of an increased gross profit margin of 25.1% in Q1 2019 (Q1 2018: 2

Capital increase strengthened liquidity position and supports China growth strategy

With entry in the commercial register on March 14, 2019, the Group has successfully completed the capital increase with gross proceeds of EUR 10.1 million. The Group’s total cash available amounted to EUR 15.5 million as of March 31, 2019.
With the proceeds of the capital increase, windeln.de intends to realize projects for the announced growth path in China and to conclude the restructuring program. Two new Asian investors participated in the capital increase who will actively support the projects with local know-how and network in order to improve the development on the Chinese ma