• Revenues (excl. Bebitus) EUR 28.8 million in Q2 2020 (+68% growth compared to EUR 17.2 million in Q2 previous year); H1 2020 revenues EUR 43.7 million (+27% year over year)
• Adj. EBIT (excl. Bebitus) close to break-even EUR -0.0 million in Q2 2020 (-0.2% adj. EBIT margin) after EUR -2.4 million in Q2 previous year (-14.0% margin); H1 2020 adj. EBIT EUR -2.5 million (-5.7% margin) after -EUR 5.4 million (-15.8% margin) in H1 of the previous year
• Positive impact in Q2 from higher Covid-19 driven online sales and sale of hygiene products sourced from China as well as Chi

Strong Q2 revenue in China with +83% growth year over year; growing Europe revenues (excl. Bebitus) with +25% growth year over year; positive impact of VAT correction for China segment

EUR 23.2 million revenues were generated in Q2 2020 in China which is an increase of +83% year over year (H1 2020 EUR 33.4 million; +34% yoy) including revenues from the new business model selling hygiene articles to business customers of EUR 6.9 million in Q2 2020 and China VAT refund for earlier years (revenue impact EUR 2.8 million in Q2 2020 and EUR 3.6 million in H1 2020). Excluding the China VAT refund, Group revenues would have been EUR 26.1 million in Q2 2020 (+52% yoy) and EUR 40.2 million in H1 (+17% yoy). The China business accounted for 80% (78% excl. China VAT refund) of the Co

Significant improvement in adj. EBIT in Q2 2020 also without impact form China VAT refund

The continuous focus on improving profitability is reflected in the contribution margin (the difference between gross profit and expenses for marketing and fulfillment) as an important indicator for steering the company. Whereas, the gross profit margin decreased to 23.3% in Q2 2020 as a result of business mix with a higher share of business customers (Q2 2019: 25.4%), Marketing costs were significantly reduced from 4.6% of revenues in Q2 2019 to 1.6% in Q2 2020 and fulfillment costs were materially lowered from 13.1% in Q2 2019 to 5.2% in Q2 2020. This development is a result of the busine

Cash outflow in Q2 increased due to inventory build-up in China; growth in China requires further financing in H2

In Q2 2020, the cash outflow (incl. Bebitus) amounted to EUR 5.9 million mainly due to the inventory/net working capital build-up for major sales events in the second half of the year in China (11.11,12.12. and Cyber Week). Inventory build-up is required given that sales through the bonded warehouses in China have a long cash conversion cycle of more than 100 days as products need to be purchased, shipped to China and go through the customs and warehousing process before selling and receiving customer payments. Net working capital as of June 30, 2020 was EUR 10.1 million compared to EUR 4.1