windeln.de publishes results for the first quarter of 2021
• Q1 2021 revenues EUR 14.6 million (-1.9% vs. EUR 14.9 million in Q1 2020) and adjusted
EBIT EUR -3.5 million (-23.6% adjusted EBIT margin; as % of revenues) compared to EUR -2.4 million
(-16.3 % adjusted EBIT margin) in Q1 2020
• Launch of own mini-program on online platform WeChat
• Capital increase in March 2021 generates gross proceeds of EUR 1.4 million to finance growth projects
• Clemens Jakopitsch, Maurice Reimer and Christian Reitermann re-elected to the Supervisory Board by the Annual General Meeting on May 14, 2021
• Warehouse relocation to Halle an der Saale started at the end of Q1 2021 and successfully completed in May 2021
Munich, May 27, 2021:
windeln.de SE ("windeln.de", "Group" or "Company"; ISIN DE000WNDL201 and DE000WNDL128) today published its financial results for the first quarter (Q1) 2021. The Company generated revenues of EUR 14.6 million in Q1 2021 (Q1 2020: EUR 14.9 million). Adjusted (adj.) EBIT amounted to EUR -3.5 million in Q1 2021 (Q1 2020: EUR -2.4 million).
Revenues largely stable at Group level in first quarter
Compared to the same period of the previous year, revenues from continuing operations in the first three months of 2021 decreased slightly by EUR 0.3 million or 1.9% from EUR 14.9 million to EUR 14.6 million. Revenues in the prior-year quarter included a VAT refund in the amount of EUR 0.8 million as a positive one-time effect. Compared to the previous year's revenues adjusted for this effect, revenues in Q1 2021 increased by 3%.
Revenues in Europe amounted to EUR 4.4 million in Q1 2021 and were thus below the level of the prior-year quarter (Q1 2020: EUR 4.7 million). The 6.7% decline can be attributed to the warehouse relocation of the Group's main warehouse, which limited the availability of certain products in March 2021. The outbreak of the COVID 19 pandemic triggered a strong order intake in March 2020, which was not seen again in the same way in the first quarter of 2021. Revenues in Europe accounted for approximately 30% of Group revenues in the first quarter of 2021.
Around 70% of windeln.de's Group revenues were generated in China in Q1 2021. At EUR 10.2 million, revenues there were at the level of the prior-year period (Q1 2020: EUR 10.2 million). Compared to prior-year revenues adjusted for the effect from the VAT refund mentioned above, revenues in China increased by 8.6%.
Successful launch of the WeChat Mini program in China
At the beginning of the year, the offer for customers in China was further expanded and a separate WeChat Mini program was launched. The WeChat Mini program is a shopping platform for the popular messenger app WeChat, which is used by more than 900 million users in China. The shopping platform is directly linked to WeChat. This allows users to share products with friends or family easily and quickly. In addition, the mini program offers further marketing tools such as live chats with customers or special promotional offers. The new sales channel is served via the existing efficient logistics network that the Group has built up over the years. Via the WeChat Mini program, windeln.de primarily sells high-quality German baby food, drugstore items and toys.
Move to new German central warehouse completed
At the end of the first quarter, windeln.de had begun moving to its new German central warehouse in Halle/Saale. By April, all activities at the previous central warehouse in Großbeeren had been discontinued and the tasks taken over in full by the new warehouse location. Remaining stocks were migrated to the new location by mid-May and the move was thus successfully completed.
Decline in gross profit margin determines earnings development
The Group's gross profit margin (gross profit as a percentage of revenues) was 16.1% in the first quarter of 2021 (Q1 2020: 26.1%). Four percentage points of the decrease are attributable to the positive one-time effect from the VAT refund recorded in the prior-year quarter. In addition, the share of orders served from Chinese warehouses increased in the Chinese end customer business. Compared with direct deliveries from Germany, the margin here is also lower, but at the same time logistics costs are lower as well.
Fulfillment costs as a percentage of revenues decreased to 8.7% year-over-year in Q1 2021 (Q1 2020: 11.0%).
Marketing expenses as a % of revenues decreased to 3.6% for the first quarter of 2021 (Q1 2020: 4.3%). Since the second half of 2020, Chinese marketing has been executed internally, which is why marketing expenses are lower in the current financial year. The operating contribution (gross profit less fulfillment costs and marketing costs) amounted to EUR 0.6 million (3.8% of revenues) in Q1 2021.
Selling and distribution expenses decreased by EUR 0.8 million or 16% to EUR 4.1 million in the reporting period compared to the previous year. This is due, among other things, to the decrease in logistics costs and marketing costs, as described above.
Administrative expenses in the first quarter of 2021 increased by 10% year-on-year and amounted to EUR 1.7 million (Q1 2020: EUR 1.5 million). Higher personnel expenses and other administrative expenses are due to the set-up of a new team in China since the second quarter of 2020.
Adjusted EBIT decreased to EUR -3.5 million in Q1 2021 compared to EUR -2.4 million in Q1 2020.
Capital increase in March 2021 generates gross issue proceeds of EUR 1.4 million
The Group's cash and cash equivalents decreased by EUR 3.5 million over the first quarter to EUR 5.0 million as of March 31, 2021 (December 31, 2020: EUR 8.5 million). The negative operating cash flow of EUR 4.8 million had a significant impact on this development. This was offset by a gross cash inflow of EUR 1.4 million from the capital increase carried out in March.
Matthias Peuckert, CEO of windeln.de, comments: "The further capital increase carried out in March will enable us to drive forward our growth projects in 2021. We are also continuously working on further measures to improve our financial position and finance our planned growth. Looking at the year as a whole, we are targeting significant revenue growth and an improvement in adjusted EBIT in 2021. In this context, the successful launch of our flagship store at BabyTree was already an important step towards strengthening our market position."
Successful second virtual Annual General Meeting
In 2021, windeln.de again took advantage of the opportunities granted by the legislator in view of the coronavirus pandemic and held this year's Annual General Meeting on May 14, 2021 in virtual form. 75.25% of the Company's share capital was represented. The Annual General Meeting expressed its confidence in the members of the Executive Board and the Supervisory Board for the 2020 financial year. KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, was appointed as auditor of the financial statements and consolidated financial statements for the fiscal year 2021. The term of office of all Supervisory Board members ended at the close of this year's Annual General Meeting. In the Supervisory Board elections, Clemens Jakopitsch, Maurice Reimer and Christian Reitermann were re-elected to the Supervisory Board. The Annual General Meeting also approved the remuneration system for the Supervisory Board and the Management Board, as well as a new Authorized Capital 2021. Based on this resolution, a further capital increase to improve the company's financing situation and for the implementation of planned growth projects is under review.
Selected key figures for the first quarter of 2021
|Q1 2021||Q1 2020|
|Revenues (EUR million)||14.6||14.9|
|Operating contribution (EUR million)||0.6||1.6|
|In % of revenues|
|Adjusted EBIT (EUR million)||-3.5||-2.4|
|In % of revenues||-23.6||-16.3|