Quarterly Report • Aug 10, 2023
Quarterly Report
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| H1 2023 | H1 2022 | Change | Q2 2023 | Q2 2022 | Change | |
|---|---|---|---|---|---|---|
| Results of operations | ||||||
| Revenue (in EURm) | 204.7 | 214.1 | –4.4% | 101.8 | 103.0 | –1.2% |
| Adjusted EBITDA (in EURm) | 9.5 | –4.0 | 13.5 | 4.4 | –2.3 | 6.8 |
| Adjusted EBITDA margin (in % of revenue) | 4.6% | –1.9% | 6.5pp | 4.4% | –2.3% | 6.6pp |
| Financial position | ||||||
| Free cash flow (in EURm) | 10.1 | –29.8 | 39.9 | 0.2 | –12.8 | 13.0 |
| Cash and cash equivalents (in EURm, as of reporting date) | 76.3 | 63.8 | 12.6 | |||
| Other performance indicators | ||||||
| Westwing Collection share (in % of GMV) | 46% | 38% | 8pp | 46% | 38% | 8pp |
| GMV (in EURm) | 227 | 237 | –4% | 109 | 109 | 0% |
| Number of orders (in k) | 1,308 | 1,557 | –16% | 614 | 685 | –10% |
| Average basket size (in EUR) | 173 | 152 | 14% | 178 | 159 | 12% |
| Active customers (in k) | 1,252 | 1,486 | –16% | |||
| Average orders per active customer in the preceding 12 months |
2.3 | 2.4 | –6% | |||
| Average GMV per active customer in the preceding 12 months (in EUR) |
376 | 349 | 8% | |||
| Mobile visit share (in %) | 79% | 80% | –1pp | 78% | 80% | –2pp |
| Other | ||||||
| Full-time equivalent employees (as of reporting date) | 1,570 | 2,215 | –29.1% |
1
The condensed statement of profit or loss for the second quarter of 2023 shows revenue of EUR 101.8m with almost stable revenue development of –1.2% compared to the corresponding quarter of the previous year (Q2 2022: EUR 103.0m). GMV was on the same level compared to the second quarter of the last year. While the number of orders decreased by 10% to 0.6m (Q2 2022: 0.7m), the average basket size increased strongly by 12% to EUR 178 (Q2 2022: EUR 159). The number of active customers who made at least one order in the last twelve months declined by 16% to 1.3m (Q2 2022: 1.5m). Compared to the first quarter of 2023, it remained nearly stable with a reduction by 1% only.
Our DACH segment showed a revenue reduction by 5.5% in the second quarter of 2023. At the same time the International segment was up by 4.4% in the same period of 2023.
Westwing delivered a good top line result despite a very challenging market environment with only a slight revenue reduction by 1.2% year-over-year. Due to strong contribution margins and cost discipline within all areas the Adjusted EBITDA margin increased by 6.6 percentage points to 4.4% in the second quarter of 2023 (Q2 2022: –2.3%). Adjusted EBITDA in absolute terms amounted to EUR 4.4m (Q2 2022: EUR –2.3m).
1 Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment expenses, Marketing expenses as well as in General and administrative expenses), (ii) restructuring expenses and (iii) the shift in the cost of sales and fulfilment expenses resulting from the capitalization of inbound costs to inventory. We calculate "Adjusted EBITDA" by adjusting EBITDA for these items.
| EURm | H1 2023 | In % of revenue | H1 2022 | In % of revenue |
|---|---|---|---|---|
| Revenue | 204.7 | 100.0 | 214.1 | 100.0 |
| Cost of sales | –101.5 | –49.6 | –110.0 | –51.3 |
| Gross profit | 103.1 | 50.4 | 104.2 | 48.7 |
| Fulfilment expenses | –45.2 | –22.1 | –50.1 | –23.4 |
| Contribution profit | 58.0 | 28.3 | 54.1 | 25.2 |
| Marketing expenses | –18.8 | –9.2 | –21.9 | –10.2 |
| General and administrative expenses | –39.5 | –19.3 | –44.2 | –20.6 |
| Other operating expenses | –3.2 | –1.6 | –1.1 | –0.5 |
| Other operating income | 3.6 | 1.8 | 0.9 | 0.4 |
| Depreciation, amortization and impairments | 9.5 | 4.6 | 8.2 | 3.8 |
| Adjusted EBITDA | 9.5 | 4.6 | –4.0 | –1.9 |
| EURm | Q2 2023 | In % of revenue | Q2 2022 | In % of revenue |
|---|---|---|---|---|
| Revenue | 101.8 | 100.0 | 103.0 | 100.0 |
| Cost of sales | –50.4 | –49.5 | –52.9 | –51.4 |
| Gross profit | 51.4 | 50.5 | 50.1 | 48.6 |
| Fulfilment expenses | –22.1 | –21.7 | –24.2 | –23.5 |
| Contribution profit | 29.3 | 28.8 | 26.0 | 25.2 |
| Marketing expenses | –9.5 | –9.4 | –10.3 | –10.0 |
| General and administrative expenses | –19.8 | –19.5 | –22.1 | –21.5 |
| Other operating expenses | –2.3 | –2.3 | –0.5 | –0.4 |
| Other operating income | 2.1 | 2.0 | 0.4 | 0.4 |
| Depreciation, amortization and impairments | 4.7 | 4.7 | 4.2 | 4.1 |
| Adjusted EBITDA | 4.4 | 4.4 | –2.3 | –2.3 |
Revenue amounted to EUR 101.8m in the second quarter of 2023 and was almost stable with slight negative growth of –1.2% (Q2 2022: EUR 103.0m). The Westwing Collection share increased from 38% of GMV in the previous-year period to 46% in the second quarter of 2023.
In the first half of 2023, revenue was EUR 204.7m, a reduction by EUR 9.5m or 4.4% compared to the same period of the previous year (H1 2022: EUR 214.1m).
2 Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment expenses, Marketing expenses as well as in General and administrative expenses), (ii) restructuring expenses and (iii) the shift in the cost of sales and fulfilment expenses resulting from the capitalization of inbound costs to inventory. We calculate "Adjusted EBITDA" by adjusting EBITDA for these items.
Our gross margin improved by 1.9 percentage points from 48.6% in the second quarter of the previous year to 50.5% in the second quarter of 2023. This increase was primarily driven by adjustments in pricing and a higher Westwing collection share.
Our fulfilment costs as percentage of revenue reduced by 1.7 percentage points from 23.5% in the previous year period to 21.7% in the second quarter of 2023.
As a result, our contribution margin increased from 25.2% in the second quarter of 2022 to 28.8% in the second quarter of 2023. In the first half 2023, the contribution margin amounted to 28.3% (H1 2022: 25.2%).
Marketing expenses in percent of revenue decreased compared to the second quarter of 2022 from 10.0% to 9.4% in the same period 2023. In absolute terms marketing expenses declined by EUR 0.8m to EUR 9.5m. This resulted primarily from a more efficient marketing organization with corresponding savings in personnel costs and other expenses.
In the first half of 2023 marketing expenses amounted to EUR 18.8m or 9.2% of revenue, while they were at EUR 21.9m or 10.2% of revenue in the same period 2022.
In percent of revenue, general and administrative expenses decreased by 2.0 percentage points in the second quarter of 2023 to 19.5% compared to the same period of the previous year (Q2 2022: 21.5% of revenue). This development is primarily driven by the cost savings initiated in the second half of the year 2022. In absolute terms, general and administrative expenses decreased by EUR 2.3m to EUR 19.8m in the second quarter of 2023 (Q2 2022: EUR 22.1m).
In the first half of 2023 general and administration expenses were EUR 39.5m (H1 2022: EUR 44.2m), corresponding to 19.3% of revenue (H1 2022: 20.6%).
The Group's Adjusted EBITDA was positive at EUR 4.4m in the second quarter of 2023, compared to the previous-year result of EUR –2.3m. This corresponds to an increase of the Adjusted EBITDA margin from –2.3% in the second quarter of 2022 to 4.4% in the same period of 2023.
Adjusted EBITDA for the first six months of the year was up by EUR 13.5m to EUR 9.5m (H1 2022: EUR –4.0m) which corresponds to an Adjusted EBITDA margin of 4.6% (H1 2022: –1.9%).
This significantly improved Adjusted EBITDA results from strict margin and cost discipline, while at the same time was supported by a high Westwing Collection share.
Next to share-based compensation expenses in the second quarters 2022 and 2023, Westwing adjusted its EBITDA for restructuring expenses of EUR 1.1m in the second quarter 2022. Due to their non-recurring nature, related expenses are excluded from our Adjusted EBITDA.
The Group's segments are DACH (Germany, Austria and Switzerland) and International (other European markets).
| EURm | H1 2023 | H1 2022 | Change | Q2 2023 | Q2 2022 | Change |
|---|---|---|---|---|---|---|
| Revenue | ||||||
| DACH | 111.1 | 119.2 | –6.7% | 55.3 | 58.5 | –5.5% |
| International | 93.6 | 95.0 | –1.5% | 46.5 | 44.5 | 4.4% |
| Adjusted EBITDA | ||||||
| DACH | 9.4 | 3.6 | 5.7 | 4.3 | 1.3 | 3.1 |
| International | 0.3 | –7.1 | 7.4 | 0.2 | –3.3 | 3.5 |
| Headquarter/reconciliation | –0.2 | –0.6 | 0.4 | –0.1 | –0.3 | 0.2 |
| Adjusted EBITDA margin | ||||||
| DACH | 8.4% | 3.0% | 5.4pp | 7.8% | 2.2% | 5.6pp |
| International | 0.4% | –7.5% | 7.8pp | 0.4% | –7.4% | 7.8pp |
The DACH segment showed a slight revenue reduction in the second quarter 2023, down by –5.5%, while the International segment was up by 4.4% in the same period of 2023.
In the second quarter of 2023 the Adjusted EBITDA margin in the DACH segment increased by 5.6 percentage points to 7.8% (Q2 2022: 2.2%). In the International segment the Adjusted EBITDA margin was slightly positive at 0.4%, thus 7.8 percentage points above the second quarter of 2022 (Q2 2022: –7.4%).
| EURm | H1 2023 | H1 2022 | Change | Q2 2023 | Q2 2022 | Change |
|---|---|---|---|---|---|---|
| Cash flows from operating activities | 13.3 | –24.2 | 37.5 | 1.9 | –10.3 | 12.2 |
| Cash flows from investing activities | –3.1 | –5.6 | 2.5 | –1.7 | –2.5 | 0.8 |
| Cash flows from financing activities | –9.7 | –4.0 | –5.7 | –3.8 | –2.9 | –1.0 |
| Net increase in cash and cash equivalents | 0.4 | –33.8 | 34.2 | –3.6 | –15.7 | 12.0 |
| Effect of exchange rate fluctuations on cash held | –0.1 | 0.2 | –0.2 | –0.1 | 0.1 | –0.1 |
| Cash and cash equivalents at the beginning of the period | 76.0 | 97.4 | –21.4 | 80.0 | 79.3 | 0.7 |
| Cash and cash equivalents as of June 30 | 76.3 | 63.8 | 12.6 | 76.3 | 63.8 | 12.6 |
| Free cash flow | 10.1 | –29.8 | 39.9 | 0.2 | –12.8 | 13.0 |
Cash flows from operating activities strongly improved to EUR 13.3m in the first six months of 2023 compared to EUR –24.2m for the same period in 2022. This development was primarily driven by the significantly better operating result as well as strongly improved net working capital. The operating cash flow includes an investment subsidy of EUR 0.8m for the lease agreement in Bitterfeld for which an alternative lessee was found.
Cash flows from investing activities decreased from EUR –5.6m in the first half of 2022 to EUR –3.1m for the same period in 2023. This was mostly caused by lower investments into internally developed software and office equipment. Additionally, deposit returns of EUR 2.5m for a rent contract were included in the second half of 2022.
As a result of the developments in the operating and investing cash flows described above, the free cash flow for the first half of 2023 was up to EUR 10.1m (H1 2022: EUR –29.8m).
Cash flows from financing activities were EUR –9.7m in the first half of 2023 (H1 2022: EUR –4.0m). This development was mostly driven by the share buy-back, increased payments for lease liabilities as well as the repayment of supplier finance arrangements.
Our net cash balance as of June 30, 2023, remained stable at EUR 76.3m (December 31, 2022: EUR 76.0m).
| June 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| EURm | In % of Total | EURm | In % of Total | |
| Total assets | 217.0 | 100.0 | 228.3 | 100.0 |
| Non-current assets | 79.4 | 36.6 | 82.3 | 36.1 |
| Current assets | 137.6 | 63.4 | 146.0 | 63.9 |
| Total liabilities + equity | 217.0 | 100.0 | 228.3 | 100.0 |
| Equity | 86.8 | 40.0 | 90.1 | 39.4 |
| Non-current liabilities | 41.9 | 19.3 | 45.6 | 20.0 |
| Current liabilities | 88.3 | 40.7 | 92.7 | 40.6 |
As of June 30, 2023, total assets amounted to EUR 217.0m (December 31, 2022: EUR 228.3m).
Non-current assets were down by EUR 3.0m primarily due to the reduction in property, plant and equipment by EUR 3.0m.
The reduced amount of current assets by EUR 8.3m to EUR 137.6m (December 31, 2022: EUR 146.0m) is mainly caused by lower inventories and prepayments on inventories which decreased by EUR 6.0m to EUR 42.8m (December 31, 2022: EUR 48.8m) as well as lower trade and other financial receivables that were down by EUR 2.5m to EUR 10.0m (December 31, 2022: EUR 12.6m).
Equity declined from EUR 90.1m as of December 31, 2022, to EUR 86.8m as of June 30, 2023. This was driven by the negative net result and a higher amount of treasury shares which is deducted from equity.
Non-current liabilities were at EUR 41.9m as of June 30, 2023, which is EUR 3.6m below the amount as of December 31, 2022. This was particularly driven by lower lease liabilities and liabilities for cash-settled share-based compensation.
Current liabilities reduced by EUR 4.4m to EUR 88.3m (December 31, 2022: EUR 92.7m), primarily resulting from EUR 1.8m lower contract liabilities, as well as reductions of refund liabilities by EUR 2.4m and other non-financial liabilities by EUR 1.8m. This was partially offset by EUR 1.4m higher trade payables and accruals.
Despite the very challenging market environment we stabilized our top line in the second quarter of 2023. We significantly improved unit economics and increased the high margin Westwing Collection share comparing to the same period of the last year. Additionally, we have continued to deliver cost savings initiated in the second half of 2022.
Both gross and contribution margins increased in the second quarter of 2023 by 1.9 percentage points and 3.6 percentage points respectively compared to second quarter of the previous year.
As a result of these measures, Westwing achieved a positive Adjusted EBITDA for the third quarter in a row. Free cash flow was positive at EUR 10.1m in the first half year of 2023. Our cash balance stays strong at EUR 76.3m.
Therefore, we are confident to return to revenue growth in the second half of 2023 while at the same time keep margins high and maintain cost consciousness on a reasonable level.
Considering the respective probability of occurrence and the potential impact of the risks described in the 2022 annual report, we identified no risks that might threaten Westwing Group as a going concern.
Based on recent results and the expected return to growth in the second half of 2023, we confirm our full year guidance 2023 that was published in March 2023. Currently we expect to achieve revenue and Adjusted EBITDA in the upper half of the guidance. The full year guidance indicates a revenue between EUR 390m and EUR 440m (with a year-over-year growth rate of –9% to +2%) and an Adjusted EBITDA between EUR +4m and EUR +13m (at an Adjusted EBITDA margin in the range of +1% to +3%) for the fiscal year 2023.
There were no significant events after the balance-sheet date that would have a material impact on Westwing's results of operations, net assets or financial position.
Munich, August 10, 2023
Dr. Andreas Hoerning Sebastian Westrich Chief Executive Officer Chief Financial Officer
for the Period Ended June 30, 2023 (Unaudited)
| EURm | H1 2023 | H1 2022 | Q2 2023 | Q2 2022 |
|---|---|---|---|---|
| Revenue | 204.7 | 214.1 | 101.8 | 103.0 |
| Cost of sales | –102.6 | –110.0 | –50.7 | –52.9 |
| Gross profit | 102.1 | 104.2 | 51.1 | 50.1 |
| Fulfilment expenses | –44.1 | –50.1 | –21.8 | –24.2 |
| Marketing expenses | –18.8 | –22.5 | –9.6 | –11.0 |
| General and administrative expenses | –40.0 | –40.8 | –21.4 | –22.6 |
| Other operating expenses | –3.2 | –1.1 | –2.3 | –0.5 |
| Other operating income | 3.6 | 0.9 | 2.1 | 0.4 |
| Operating result | –0.5 | –9.5 | –1.9 | –7.6 |
| Finance costs | –1.0 | –1.0 | –0.5 | –0.5 |
| Finance income | 0.3 | 0.0 | 0.3 | 0.0 |
| Other financial result | 0.1 | –0.9 | 0.1 | –0.5 |
| Financial result | –0.6 | –1.8 | –0.0 | –1.0 |
| Result before income tax | –1.1 | –11.4 | –2.0 | –8.6 |
| Income tax expense | –0.7 | –1.1 | –0.7 | 0.2 |
| Result for the period | –1.8 | –12.5 | –2.7 | –8.4 |
| Undiluted average number of shares in circulation | 20,370,949 | 20,577,493 | 20,370,949 | 20,577,493 |
| Diluted average number of shares in circulation | 21,259,411 | 21,511,744 | 21,259,411 | 21,511,744 |
| Undiluted earnings per share (in EUR) | –0.09 | –0.61 | –0.13 | –0.41 |
| Diluted earnings per share (in EUR) | –0.08 | –0.58 | –0.12 | –0.39 |
| EURm | H1 2023 | H1 2022 |
|---|---|---|
| Result for the period | –1.8 | –12.5 |
| Other comprehensive income: | ||
| Items that subsequently will be reclassified to the income statement: | ||
| Exchange translation differences of foreign operations | 0.1 | 0.1 |
| Other comprehensive income for the period, net of tax | 0.1 | 0.1 |
| Total comprehensive result for the period | –1.7 | –12.4 |
| EURm | H1 2023 | H1 2022 | Q2 2023 | Q2 2022 |
|---|---|---|---|---|
| Operating Result | –0.5 | –9.5 | –1.9 | –7.6 |
| Adjustments | ||||
| Share-based compensation expenses/(income) | 0.6 | –3.8 | 1.6 | –0.1 |
| Restructuring expenses | – | 1.1 | – | 1.1 |
| Depreciation, amortization, and impairments | 9.5 | 8.2 | 4.7 | 4.2 |
| Adjusted EBITDA | 9.5 | –4.0 | 4.4 | –2.3 |
| EURm | June 30, 2023 | December 31, 2022 |
|---|---|---|
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 50.2 | 53.2 |
| Intangible assets | 23.8 | 23.3 |
| Trade and other receivables | 1.8 | 2.3 |
| Deferred tax assets | 3.6 | 3.6 |
| Total non-current assets | 79.4 | 82.3 |
| Current assets | ||
| Inventories | 37.0 | 45.2 |
| Prepayments on inventories | 5.8 | 3.6 |
| Trade and other receivables | 10.0 | 12.6 |
| Other assets | 8.5 | 8.6 |
| Cash and cash equivalents | 76.3 | 76.0 |
| Total current assets | 137.6 | 146.0 |
| Total assets | 217.0 | 228.3 |
| Equity and liabilities | ||
| Equity | ||
| Share capital | 20.9 | 20.9 |
| Capital reserves | 364.6 | 364.5 |
| Treasury shares | –4.2 | –1.6 |
| Other reserves | 42.6 | 41.7 |
| Retained earnings | –337.7 | –335.9 |
| Other comprehensive income (OCI) reserve | 0.6 | 0.4 |
| Total equity | 86.8 | 90.1 |
| Non-current liabilities | ||
| Lease liabilities | 31.7 | 35.0 |
| Other financial liabilities | 5.8 | 6.1 |
| Provisions | 2.1 | 2.1 |
| Deferred tax liabilities | 2.3 | 2.3 |
| Total non-current liabilities | 41.9 | 45.6 |
| Current liabilities | ||
| Lease liabilities | 10.4 | 9.7 |
| Trade payables and accruals | 35.5 | 34.1 |
| Contract liabilities | 15.3 | 17.0 |
| Refund liabilities | 4.4 | 6.8 |
| Supplier finance arrangements | 7.0 | 7.8 |
| Other non-financial liabilities | 13.2 | 15.1 |
| Provisions | 0.8 | 0.6 |
| Tax liabilities | 1.7 | 1.7 |
| Total current liabilities | 88.3 | 92.7 |
| Total liabilities | 130.3 | 138.3 |
| Total equity and liabilities | 217.0 | 228.3 |
| EURm | H1 2023 | H1 2022 | Q2 2023 | Q2 2022 |
|---|---|---|---|---|
| Result before income tax | –1.1 | –11.4 | –2.0 | –8.6 |
| Adjustments | ||||
| Depreciation and impairment of property, plant and equipment | 6.5 | 5.8 | 3.2 | 3.0 |
| Amortization and impairment of intangible assets | 3.0 | 2.4 | 1.5 | 1.2 |
| Gain on disposal of property, plant and equipment | 0.0 | 0.0 | 0.0 | 0.0 |
| Share-based compensation expenses/(income) | 0.6 | –3.8 | 1.6 | –0.1 |
| Finance income | –0.3 | –0.0 | –0.3 | –0.0 |
| Finance costs | 1.0 | 1.0 | 0.5 | 0.5 |
| Changes in other assets | 0.3 | 3.0 | –0.1 | –0.0 |
| Changes in other liabilities | –1.8 | –0.1 | –1.1 | 0.3 |
| Changes in provisions | –2.1 | –3.0 | –0.2 | –0.5 |
| Operating cash flows before changes in working capital | 5.9 | –6.2 | 3.1 | –4.2 |
| Adjustments for changes in working capital: | ||||
| Changes in trade and other receivables and prepayments | 2.5 | –1.0 | 2.4 | –0.7 |
| Changes in inventories | 6.0 | –0.5 | 4.4 | 4.7 |
| Changes in trade and other payables | –0.4 | –17.5 | –7.3 | –11.7 |
| Cash flows from operating acitivities | 14.1 | –25.2 | 2.6 | –11.9 |
| Tax paid | –0.9 | 1.0 | –0.7 | 1.6 |
| Net cash flows from operating activities | 13.3 | –24.2 | 1.9 | –10.3 |
| Investing activities: | ||||
| Proceeds from sale of property, plant and equipment | 0.0 | 0.0 | 0.0 | 0.0 |
| Purchase of property, plant and equipment | –0.5 | –2.3 | –0.3 | –0.8 |
| Purchase of intangible assets | –3.5 | –5.7 | –1.7 | –2.8 |
| Rent deposits | 0.5 | 2.5 | 0.1 | 1.1 |
| Interest income | 0.3 | 0.0 | 0.3 | 0.0 |
| Net cash flows from investing activities | –3.1 | –5.6 | –1.7 | –2.5 |
| Financing activities: | ||||
| Interest and other finance charges paid | –1.0 | –1.0 | –0.5 | –0.5 |
| Supplier finance arrangements | –0.8 | – | 0.1 | – |
| Payments of lease liabilities | –5.4 | –4.6 | –2.5 | –2.4 |
| Sale of equity instruments | 0.0 | – | – | – |
| Purchase of treasury shares | –2.6 | – | –0.9 | – |
| Contribution right-of-use assets | – | 1.5 | – | – |
| Net cash flows from financing activities | –9.7 | –4.0 | –3.8 | –2.9 |
| Net change in cash and cash equivalents | 0.4 | –33.8 | –3.6 | –15.7 |
| Effect of exchange rate fluctuations on cash held | –0.1 | 0.2 | –0.1 | 0.1 |
| Cash and cash equivalents at the beginning of the period | 76.0 | 97.4 | 80.0 | 79.3 |
| Cash and cash equivalents as of June 30 | 76.3 | 63.8 | 76.3 | 63.8 |
| EURm | Share capital | Share pre mium |
Treasury shares |
Other reserves |
Retained earnings |
Other comprehen sive income (OCI) reserve |
Total equity |
|---|---|---|---|---|---|---|---|
| As of January 1, 2022 | 20.9 | 364.5 | –1.2 | 38.1 | –303.4 | 0.4 | 119.3 |
| Result for the period | – | – | – | – | –12.5 | – | –12.5 |
| Other comprehensive income | – | – | – | – | – | 0.1 | 0.1 |
| Total comprehensive income | – | – | – | – | –12.5 | 0.1 | –12.4 |
| Share-based compensation | – | – | – | 3.0 | – | – | 3.0 |
| As of June 30, 2022 | 20.9 | 364.5 | –1.2 | 41.1 | –315.9 | 0.5 | 109.9 |
| As of January 1, 2023 | 20.9 | 364.5 | –1.6 | 41.7 | –335.9 | 0.4 | 90.1 |
| Result for the period | – | – | – | – | –1.8 | – | –1.8 |
| Other comprehensive income | – | – | – | – | – | 0.1 | 0.1 |
| Total comprehensive income | – | – | – | – | –1.8 | 0.1 | –1.7 |
| Purchase of treasury shares | – | – | –2.6 | – | – | – | –2.6 |
| Share-based compensation | – | 0.0 | – | 0.9 | – | – | 0.9 |
| As of June 30, 2023 | 20.9 | 364.6 | –4.2 | 42.6 | –337.7 | 0.6 | 86.8 |
The Westwing Group SE (referred to as the "Company" or "Westwing") and its subsidiaries (together referred to as the "Group") are one of the leading eCommerce companies in the European home & living sector.
The Company was incorporated in 2011 and is registered at Berlin District Court, Germany, under the number HRB 239114 B. The Company is headquartered in Moosacher Str. 88, 80809 Munich, Germany. As of June 30, 2023, the Group operated in 11 countries (Germany, Austria, Switzerland, Italy, Spain, the Netherlands, France, Poland, Belgium, Czech Republic and Slovak Republic) and consisted of 23 legal companies, all of which are consolidated in these half-year financial statements.
These condensed consolidated interim financial statements for the period from January 1, 2023, to June 30, 2023, were prepared in accordance with IAS 34, Interim Financial Reporting and using the IFRS as adopted by the EU and are unaudited. Accordingly, these condensed consolidated interim financial statements do not include all the information and notes which are necessary for consolidated financial statements in accordance with IFRS and should be read in conjunction with the Group's consolidated financial statements as of and for the year ended December 31, 2022.
Westwing had intended to enter into a new lease agreement starting as of January 2023. However, a decision was taken that this new warehouse is no longer required, and an agreement was reached with the landlord to search for an alternative lessee, which was successful. As a result, Westwing received the agreed EUR 0.8m investment subsidy in June 2023.
While preparing the condensed consolidated interim financial statements for interim reporting purposes in accordance with IAS 34, the management is required to make assessments, estimates and assumptions which affect the application of accounting principles in the Group and the recognition of assets, liabilities, income and expenses. Actual amounts may deviate from these estimates.
The accounting policies and recognition and measurement methods applied in the consolidated financial statements as of December 31, 2022, have been applied without change.
The consolidated interim financial statements have been prepared in millions of euros (EURm). The values in the consolidated interim financial statements have been rounded according to commercial principles. Therefore, the sum of a table may not exactly be the same as the addition of the individual numbers and differences may arise when individual amounts or percentages are added up.
The operating segment information for the reporting period which ended on June 30, 2023 (all amounts are in EURm unless stated otherwise):
| H1 2023 | DACH | International | Headquarter/ Reconciliation |
Group |
|---|---|---|---|---|
| Result before Income Tax | 6.0 | –1.4 | –5.7 | –1.1 |
| Finance costs | 0.8 | 0.2 | – | 1.0 |
| Finance income | –0.3 | –0.0 | – | –0.3 |
| Other financial result | 0.1 | –0.2 | – | –0.1 |
| Operating Result | 6.6 | –1.4 | –5.7 | –0.5 |
| Depreciation and amortization | 2.2 | 1.8 | 5.5 | 9.5 |
| Share-based compensation | 0.6 | – | – | 0.6 |
| Restructuring expenses | – | – | – | – |
| Adjusted EBITDA | 9.4 | 0.3 | –0.2 | 9.5 |
| Adjusted EBITDA margin | 8.4% | 0.4% | – | 4.6% |
| Revenue | 111.1 | 93.6 | – | 204.7 |
| Cash and cash equivalents | 16.9 | 11.1 | 48.3 | 76.3 |
The operating segment information for the reporting period which ended on June 30, 2022 (all amounts are in EURm unless stated otherwise):
| H1 2022 | DACH | International | Headquarter/ Reconciliation |
Group |
|---|---|---|---|---|
| Result before Income Tax | 3.7 | –9.7 | –5.4 | –11.4 |
| Finance costs | 0.8 | 0.2 | – | 1.0 |
| Finance income | – | –0.0 | – | –0.0 |
| Other financial result | 0.6 | 0.3 | – | 0.9 |
| Operating Result | 5.0 | –9.2 | –5.4 | –9.5 |
| Depreciation and amortization | 1.9 | 1.5 | 4.8 | 8.2 |
| Share-based compensation | –3.8 | – | – | –3.8 |
| Restructuring expenses | 0.6 | 0.6 | – | 1.1 |
| Adjusted EBITDA | 3.6 | –7.1 | –0.6 | –4.0 |
| Adjusted EBITDA margin | 3.0% | –7.5% | – | –1.9% |
| Revenue | 119.2 | 95.0 | – | 214.1 |
| Cash and cash equivalents | 16.5 | 8.4 | 38.9 | 63.8 |
Group entities with their registered office in Germany attained revenue to the amount of EUR 158.8m (H1 2022: EUR 160.2m) and reported long-term assets (not including financial instruments) on the balance sheet amounting to EUR 62.6m (June 30, 2022: EUR 66.0m).
Revenue from contracts with customers for the first six months of 2023 comprised of the following:
| Total | 204.7 | 214.1 |
|---|---|---|
| Other revenue | 3.6 | 3.4 |
| Service revenue | 0.5 | 0.4 |
| Revenue from the sale of products | 200.6 | 210.4 |
| EURm | H1 2023 | H1 2022 |
Please refer to the consolidated financial statements as of December 31, 2022, for related party disclosures.
In December 2022, the Supervisory Board and Management Board issued a declaration of compliance for Westwing Group SE in accordance with section 161 of the German Stock Corporation Act (AktG) for fiscal year 2022. It is permanently available in the Investor Relations section on Westwing Group SE's website at https://ir.westwing.com/download/companies/westwing/ CorporateGovernance/Compliance_Declaration_Westwing_Group_SE_2022.pdf.
There were no significant events after the balance sheet date that would have a significant impact on Westwing's future results of operations, financial position and net assets.
Munich, August 10, 2023
Dr. Andreas Hoerning Sebastian Westrich Chief Executive Officer Chief Financial Officer
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated interim financial statements give a true and fair view of the financial position, cash flows and profit or loss of the Group, and the Group interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the opportunities and risks associated with the expected development of the Group.
Munich, August 10, 2023
Dr. Andreas Hoerning Sebastian Westrich Chief Executive Officer Chief Financial Officer
Publication of third quarter results 2023
Westwing Group SE Moosacher Strasse 88 80809 Munich Germany
Press
Certain statements in this communication may constitute forward-looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed on this call due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfillment centers, inaccurate personnel and capacity forecasts for fulfillment centers, hazardous material/conditions in production with regard to Private Labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.
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