AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

home24 SE

Quarterly Report May 30, 2023

211_10-q_2023-05-30_83160dc7-9ec2-4dbd-93cd-51fe2dff1614.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

Quarterly Statement Q1 2023

At a glance

Non-financial KPIs Unit Q1 2023 Q1 2022 Change
Gross merchandise value in EURm 212.5 204.4 4%
Gross merchandise value, online in EURm 178.3 190.3 –6%
Gross merchandise value, offline in EURm 34.2 14.1 >100%
Gross merchandise value growth at constant currency in % 3% –24% 27pp
Number of orders, online in k 687 645 7%
Average order value, online in EUR 260 295 –12%
Number of active customers, online (as of March 31) in k 1,996 2,058 –3%
Financial KPIs Unit Q1 2023 Q1 2022 Change
Revenue in EURm 143.5 140.2 2%
Revenue growth at constant currency in % 1% –14% 15pp
Gross profit margin in % 49% 43% 6pp
Profit contribution margin in % 34% 26% 8pp
Adjusted EBITDA margin in % 2% –4% 6pp
Earnings per share in EUR –0.37 –0.43 –14%
Cash flow from operating activities in EURm –7.9 –23.8 –67%
thereof from change in net working capital in EURm –9.2 –17.8 –48%
Cash flow from investing activities in EURm –3.1 –9.3 –67%
Cash flow from financing activities in EURm –15.4 –3.3 >100%
Cash and cash equivalents (as of March 31) in EURm 74.0 101.3 –27%

home24 is a leading pure-play home & living e-commerce platform in continental Europe and Brazil. With over 250,000 home & living products in Europe and more than 200,000 articles in Latin America – from accessories to lamps to furniture – home24 offers its currently just under 2.0 million customers the right product for every taste, style and budget.

On its platform, home24 combines a broad, carefully curated range of relevant thirdparty brands with a large number of private labels. In Germany, the Company also sells more than 100,000 other products via its own marketplace.

home24 is headquartered in Berlin and employs more than 2,000 people worldwide. The Company operates in seven European markets (Germany, France, Austria, the Netherlands, Switzerland, Belgium and Italy) and in Brazil under the "Mobly" brand. Since April 1, 2022, the BUTLERS home accessories brand has been part of the Group, with its approximately 100 branches in the DACH region and more than 25 franchise branches in the rest of Europe.

Report on economic position

as of March 31, 2023

Financial Performance of the Group

Simplified Income Statement

In EURm Q1
2023
Q1 2022 Change Change
in %
Revenue 143.5 140.2 3.3 2%
Cost of sales –73.2 –80.0 6.8 –9%
Gross profit 70.3 60.2 10.1 17%
Gross profit margin 49% 43% 6pp
Selling and distribution
costs
–67.1 –60.4 –6.7 11%
Impairment losses on
financial assets
–0.2 –0.9 0.7 –78%
Administrative expenses –16.1 –14.1 –2.0 14%
Other operating income 1.7 0.8 0.9 >100%
Other operating expenses –0.9 –0.3 –0.6 >100%
Operating result (EBIT) –12.3 –14.7 2.4 –16%
Amortization of intangible
assets and depreciation of
property and equipment
and right-of-use assets
15.0 8.1 6.9 85%
EBITDA 2.7 –6.6 9.3 >–100%
Share-based payment 0.2 0.4 –0.2 –50%
Expenses relating to the
planned acquisition of the
Butlers Group
0.3 0.1 0.2 >100%
Adjusted EBITDA 3.3 –6.1 9.4 >–100%
Adjusted EBITDA margin 2% –4% 6pp

In the first three months of financial year 2023, consolidated revenue came to EUR 143.5m, up 2% compared to the prior-year quarter. Adjusted for foreign currency effects, revenue grew 1% y-o-y, with the acquisition of the Butlers Group as of April 1, 2022 having a positive impact.

Revenue less cost of sales results in gross profit. In the first three months of 2023, the Group posted a gross profit of EUR 70.3m after EUR 60.2m in the same period of 2022. This represents y-o-y growth of 17%. The gross profit margin improved by 6 percentage points to 49% compared to March 31, 2022.

Selling and distribution costs comprise the following:

In EURm Q1
2023
Q1 2022 Change Change
in %
Fulfillment expenses –20.6 –23.1 2.5 –11%
Marketing expenses –21.1 –24.4 3.3 –14%
Other selling and distribution
costs
–25.3 –12.9 –12.4 96%
Total selling and distribution
costs
–67.1 –60.4 –6.7 11%
as % of revenue
Fulfillment expenses ratio –14% –16% 2pp
Marketing expenses ratio –15% –17% 2pp

In the first three months of 2023, selling and distribution costs amounted to EUR 67.1m, up 11% compared to the prior-year period. The fulfillment expenses ratio and the marketing expenses ratio improved by 2 percentage points each to 14% and 15%, respectively, compared to the prior-year period. The increase in distribution costs is primarily due to higher other distribution costs, which have almost doubled. This trend was caused by the acquisition of the Butlers Group as of April 1, 2022, which entailed higher depreciation of right-of-use assets from store leases and higher offline personnel costs.

Administrative expenses rose by 14% y-o-y to EUR 16.1m, mainly driven by the Butlers acquisition.

In the first three months of 2023, the adjusted EBITDA margin expanded by 6 percentage points y-o-y to 2%, with adjusted EBITDA improving accordingly from EUR –6.1m to EUR 3.3m. EBITDA was adjusted to exclude share-based payment expenses and expenses arising in connection with the acquisition of the Butlers Group.

Cash Flows

–7.9
–9.2
–23.8
–17.8
15.9
8.6
–3.1 –9.3 6.2
–15.4 –3.3 –12.1
–26.4 –36.4 10.0
99.5 131.1 –31.6
0.9 6.6 –5.7
74.0 101.3 –27.3

Financial Position

In EURm March
31,
2023
Dec.
31,
2022 Change Change
in %
Non-current assets 292.4 297.1 –4.7 –2%
Current assets 205.3 233.7 –28.4 –12%
Total assets 497.7 530.8 –33.1 –6%
In EURm March
31,
2023
Dec.
31,
2022 Change Change
in %
Equity 204.2 216.1 –11.9 –6%
Non-current liabilities 153.5 164.3 –10.8 –7%
Current liabilities 140.0 150.4 –10.4 –7%
Total equity and liabilities 497.7 530.8 –33.1 –6%

The Group generated a negative cash flow from operating activities of EUR –7.9m in the first three months of 2023 (previous year: EUR –23.8m). The negative cash flow from operations was driven by the change in net working capital, which is primarily attributable to the decrease in trade payables and other payables.

Cash outflows from investing activities largely related to investments in internally generated software as well as property and equipment.

The cash flow from financing activities primarily resulted from principal payments on lease liabilities (EUR –8.1m). The Group also repaid a bank loan of EUR 7.5m.

The Group's cash and cash equivalents decreased by EUR 25.5m in the first three months of 2023 and totaled EUR 74.0m as of the reporting date.

The Group's assets /equity and liabilities decreased compared with December 31, 2022. This decrease is mainly due to lower trade and other payables and the repayment of a bank loan.

The decrease in non-current assets is attributable to depreciation and amortization, which was only partly offset by new capital expenditures.

Current assets fell mainly as a result of lower levels of cash and cash equivalents (EUR –25.5m) compared with December 31, 2022. Inventories also contracted slightly compared with the fourth quarter of 2022 (EUR –3.7m).

The EUR 11.9m decrease in equity is mainly due to the loss for the quarter, with currency effects offsetting some of this decrease.

Non-current liabilities declined as a result of repaying a bank loan and making scheduled repayments of lease liabilities.

Current liabilities fell primarily due to trade payables and similar liabilities, which decreased within the scope of ongoing business activities.

Overall, total assets were down slightly by EUR 33.1m, from EUR 530.8m to EUR 497.7m.

Overall Assessment

In what has been a challenging market environment, the Group in the first quarter of 2023 further improved its cost structure and believes it is well positioned for the current financial year. As in the previous year, the focus for financial year 2023 will be on increasing core profitability. The Group will also push ahead with the integration of the Butlers Group.

Events after the Reporting Period

On April 26, 2023, after obtaining approval from the supervisory authorities on April 17, 2023, the takeover of home24 SE by RAS Beteiligungs GmbH, LSW GmbH and SGW-Immo-GmbH, three companies related to the XXXLutz Group ("the bidding consortium") was successfully completed. The bidding consortium already holds around 94% of the voting rights and has confirmed its intention to delist the shares of home24 SE.

COO Brigitte Wittekind will leave the Company at her own request effective May 31, 2023. home24 will not appoint a successor. Instead, her responsibilities will be shared among an extended Executive Team.

No other events of material significance occurred after the closing date.

Berlin, May 30, 2023

Marc Appelhoff Brigitte Wittekind Philipp Steinhäuser

Selected financial information

Consolidated Income Statement

In EURm Q1 2023 Q1 2022
Revenue 143.5 140.2
Cost of sales –73.2 –80.0
Gross profit 70.3 60.2
Selling and distribution costs –67.1 –60.4
Impairment losses on financial assets –0.2 –0.9
Administrative expenses –16.1 –14.1
Other operating income 1.7 0.8
Other operating expenses –0.9 –0.3
Operating result (EBIT) –12.3 –14.7
Finance income 1.8 1.8
Finance costs –3.4 –1.7
Loss before taxes –13.9 –14.6
Income taxes –0.2 0.0
Loss for the period –14.2 –14.6
Loss attributable to:
Owners of the parent company –12.3 –12.6
Non-controlling interests –1.9 –2.0

Consolidated Statement of Financial Position

March 31, 2023 December 31, 2022
30.7 32.1
85.3 86.2
144.7 149.8
26.2 24.8
5.5 4.3
292.4 297.1
76.3 80.0
3.1 2.8
28.5 28.2
3.8 3.9
19.6 19.2
74.0 99.5
205.3 233.7
530.8
497.7
In EURm March 31, 2023 December 31, 2022
Equity
Subscribed capital 33.6 33.6
Treasury shares 0.0 0.0
Capital reserves 58.3 58.3
Other reserves 65.3 64.3
Retained earnings 0.8 12.9
Equity attributable to the owners of the parent company 158.0 169.1
Non-controlling interests 46.2 47.0
Total equity 204.2 216.1
Non-current liabilities
Borrowings 14.1 21.6
Lease liabilities 114.2 118.0
Other financial liabilities 4.7 4.4
Other non-financial liabilities 0.1 0.1
Provisions 8.1 8.1
Deferred tax liabilities 12.2 12.1
Total non-current liabilities 153.5 164.3
Current liabilities
Borrowings 11.0 10.1
Lease liabilities 38.3 37.2
Trade payables and similar liabilities 54.6 66.5
Contract liabilities 17.4 17.4
Income tax liabilities 1.7 2.1
Other financial liabilities 3.7 3.3
Other non-financial liabilities 12.2 12.8
Provisions 1.1 1.1
Total current liabilities 140.0 150.4
Total liabilities 293.5 314.7
Total equity and liabilities 497.7 530.8

Consolidated Statement of Cash Flows

In EURm Q1 2023 Q1 2022
Cash flow from operating activities
Loss before taxes –13.9 –14.6
Depreciation of property and equipment 2.4 1.8
Amortization of intangible assets 3.1 2.3
Depreciation of right-of-use assets 9.5 4.0
Share-based payment expenses 0.2 0.4
Other non-cash income and expenses –0.1 0.0
Change in provisions 0.9 –0.1
Change in net working capital
Change in inventories and advance payments on inventories 3.9 –3.8
Change in trade receivables and other assets –2.1 –1.3
Change in trade payables and other payables –10.9 –16.4
Change in contract liabilities –0.1 3.7
Change in other assets/liabilities –0.6 0.2
Income taxes paid, less reimbursements –0.2 0.0
Cash flow from operating activities –7.9 –23.8
Cash flow from investing activities
Payments to acquire property and equipment –0.8 –3.8
Payments to acquire intangible assets –2.3 –2.8
Payments to grant loans 0.0 –2.7
Cash flow from investing activities –3.1 –9.3
Cash flow from financing activities
Proceeds from bank loans 0.2 0.0
Repayment of bank loans –7.5 0.0
Redemption of lease liabilities –8.1 –3.3
Proceeds from subleases 0.1 0.0
Cash flow from financing activities –15.4 –3.3
Net change in cash and cash equivalents –26.4 –36.4
Cash and cash equivalents at the beginning of the period 99.5 131.1
Effect of exchange rate changes on cash and cash equivalents 0.9 6.6
Cash and cash equivalents at the end of the period 74.0 101.3

Imprint

Contact

home24 SE Otto-Ostrowski-Str. 3 10249 Berlin, Germany

Investor relations Email: [email protected]

Media Email: [email protected]

Consulting, concept & design

Silvester Group, Hamburg www.silvestergroup.com

Legal Disclaimer

This document contains forward-looking statements. These statements reflect the current view, expectations and assumptions of the management of home24 SE and are based upon information currently available to the management of home24 SE. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results and developments to differ materially from the expectations and assumptions described in this document. These factors include, in particular, changes to the overall economic framework conditions and the general competitive environment. Besides, developments on the financial markets and changes of currency exchange rates as well as changes in national and international legislation, in particular tax legislation, and other factors have influence on the future results and developments of the Company. Neither home24 SE nor any of its affiliates assume any kind of responsibility, liability or obligations for the accuracy of the forward-looking statements and their underlying assumptions in this document. Neither home24 SE nor any of its affiliates do assume any obligation to update the statements contained in this document.

This quarterly statement has been translated into English. It is available for download in both languages at www.home24.com. If there are variances, the German version has priority over the English translation.

home24 SE

Otto-Ostrowski-Str. 3 10249 Berlin, Germany Email: [email protected]

Talk to a Data Expert

Have a question? We'll get back to you promptly.