Munich, 27 August 2015. windeln.de AG, the leading online retailer for baby and toddler products in Europe, increased revenues by 85% and improved operating margins significantly in the first six months of 2015. With an adjusted EBIT margin of -5.3% (previous year period: - 11.0%) the ambitious expectations were met, putting windeln.de well on track to reach its full year targets for growth and profitability.

The successful development in the first half of the year was driven by growing the number of active customers (+117k), the number of orders and the average order value per customer while maintaining a return rate under 10% – very low compared to peers.

While all regions contributed to the growth in revenues, the European business, with an 88% growth rate, grew fastest. The biggest business segment – windeln.de – increased sales by 80% to EUR 64 million. Thereof approximately EUR 41 million were attributable to customers in China where the share of non-food products increased further. The online shopping club windelbar increased revenues by 113% to EUR 7.2 million. The business segment windeln.ch grew by 124% to EUR 3.4 million. The recently acquired online shop feedo will start contributing to the overall revenue growth from the secon

„windeln.de represents both organic and inorganic growth”, says Alexander Brand, co-founder and management board member of the company. “We push dynamic organic growth in our core markets through targeted marketing, entering new markets and extending our product range. Additionally, we can take advantage of the market potential in other European countries quickly by acquiring attractive online shops.”

Significant improvement in profitability

Gross profit of EUR 19.6 million was generated which corresponds to a gross margin of 26.2% (H1 2014: EUR 9.2 million or 22.7%). The increase reflects both systematically extending the product range into higher margin products and better purchasing conditions.

The adjusted EBIT margin of -5.3% clearly exceeded previous year’s figure (-11.0%) and also improved in absolute terms. Lower selling and distribution costs due to economies of scale were partially offset by higher marketing costs mainly attributable to a TV campaign in the second quarter to increase brand awareness.

Only 15.0% of revenues (H1 2014: 16.6%) were attributable to adjusted other SG&A expenses despite additional costs for the initial public offering and the entry into the Italian market in the second quarter.

The business segment windeln.de, which already reached break even in the previous year, achieved a positive adjusted EBIT margin of 5.2%. As of June 30, the cash position of the company was comfortable at EUR 122.6 million. “The overall limited cash need of our business provides us with enough leeway for further investments into growth”, says Konstantin Urban, co-founder and member of the management board. “Even after the acquisition of feedo and bebitus as well as the market entry into Italy, we are able to continue our expansion to further European countries and work on our growing

Confirmation of forecast

For the full year 2015, windeln.de expects further growth in revenues of around 70% for the core markets compared to EUR 101 million in the previous year even taking into account the seasonal slowdown during the summer months in Europe and China. The expected additional sales contribution from acquisitions and the introduction of pannolini.it in Italy will contribute approximately EUR 10 million in revenues in 2015.

Even after the consolidation of the new companies, whose margins are not yet at the same level as the group, windeln.de is still aiming for a gross margin of approximatel