AI Terminal
Westwing Group SE
Quarterly Report • Aug 8, 2024
488_10-q_2024-08-08_254c2fc7-e7a4-4a11-824f-de3df37aee52.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
WESTWING
Live Beautiful.
HALF-YEAR REPORT
Westwing at a Glance
Q2 2024 HIGHLIGHTS
- Revenue up 4\% year-over-year to EUR 106m in a market environment that remained challenging.
- Gross margin increased by 0.4 percentage points year-over-year to $50.6 \%$ and the contribution margin by 1.8 percentage points to $30.6 \%$.
- Adjusted EBITDA margin was $3.7 \%$, a decline of 0.7 percentage points year-over-year, as Westwing continued to invest in brand awareness.
- The Westwing Collection share rose by 7 percentage points year-over-year to 53\% of GMV (Q2 2023: 46\%).
- Active customers grew by $2 \%$ compared to the same period of the previous year.
- Average basket size increased by $11 \%$ year-over-year to EUR 198.
- Restructuring of operations in Italy and Spain and the related switch to a largely global product assortment completed in Q2 2024 as planned.
- Westwing entered the Portuguese market - the first market expansion since 2014 and the first country to operate on Westwing's new, largely Software-as-a-Service based platform.
KEY FIGURES (UNAUDITED)
| H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change | |
|---|---|---|---|---|---|---|
| Results of operations | ||||||
| Revenue (in EURm) | 214.7 | 204.7 | $4.9 \%$ | 106.0 | 101.8 | $4.1 \%$ |
| Adjusted EBITDA (in EURm) | 10.2 | 9.5 | 0.7 | 3.9 | 4.4 | $-0.6$ |
| Adjusted EBITDA margin (in \% of revenue) | $4.7 \%$ | $4.6 \%$ | $0.1 p p$ | $3.7 \%$ | $4.4 \%$ | $-0.7 p p$ |
| Financial position | ||||||
| Free cash flow (in EURm) | $-3.0$ | 10.1 | $-13.1$ | $-7.3$ | 0.2 | $-7.6$ |
| Cash and cash equivalents (in EURm, as at reporting date) | 71.9 | 76.3 | $-4.4$ | |||
| Performance indicators | ||||||
| Westwing Collection share (in \% of GMV) | $52 \%$ | $46 \%$ | $6 p p$ | $53 \%$ | $46 \%$ | $7 p p$ |
| GMV (in EURm) | 239 | 227 | $5 \%$ | 114 | 109 | $5 \%$ |
| Number of orders (in thousands) | 1,254 | 1,308 | $-4 \%$ | 578 | 614 | $-6 \%$ |
| Average basket size (in EUR) | 191 | 173 | $10 \%$ | 198 | 178 | $11 \%$ |
| Active customers (in thousands) | 1,282 | 1,252 | $2 \%$ | |||
| Average orders per active customer in the preceding 12 months | 2.2 | 2.3 | $-5 \%$ | |||
| Average GMV per active customer in the preceding 12 months (in EUR) | 385 | 376 | $2 \%$ | |||
| Mobile visit share (in \%) | $81 \%$ | $79 \%$ | $2 p p$ | $81 \%$ | $78 \%$ | $3 p p$ |
| Other | ||||||
| Full-time equivalent employees (as at reporting date) | 1,440 | 1,570 | $-130$ |
REPORT ON ECONOMIC POSITION
1.1 FINANCIAL PERFORMANCE OF THE GROUP ${ }^{1}$
The condensed statement of profit or loss for the second quarter of 2024 showed a year-over-year revenue increase of $4.1 \%$ to EUR 106.0 m (Q2 2023: EUR 101.8m). GMV rose by $5 \%$, from EUR 109 m in Q2 2023 to EUR 114m in the same period of 2024. The number of orders decreased by $6 \%$ to 0.6 m (Q2 2023: 0.6m), but the average basket size grew significantly, climbing 11\% to EUR 198 (Q2 2023: EUR 178). The number of active customers placing at least one order in the last twelve months increased by $2 \%$ to 1.3 m (Q2 2023: 1.3m).
Our DACH segment reported strong revenue growth of $8.2 \%$ in Q2 2024. The International segment declined by $0.7 \%$ in the same period due to the restructuring of our operations in Italy and Spain and the associated switch to a mostly global product assortment.
Westwing continued to deliver revenue growth in a still challenging market. Despite further investments in brand awareness, our higher gross and contribution margins and cost discipline meant that the Adjusted EBITDA margin fell only slightly year-over-year in the second quarter of 2024, to 3.7\% (Q2 2023: 4.4\%). In absolute terms, Adjusted EBITDA amounted to EUR 3.9m (Q2 2023: EUR 4.4m).
[^0]
[^0]: 1 Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based payments and (ii) restructuring expenses. Adjusted EBITDA is calculated by adjusting reported EBITDA for these items.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR Q2 2024
ON AN ADJUSTED BASIS ${ }^{2}$ (UNAUDITED)
| EURm | Q2 2024 | In \% of revenue |
Q2 2023 | In \% of revenue |
|---|---|---|---|---|
| Revenue | 106.0 | 100.0 | $\mathbf{1 0 1 . 8}$ | $\mathbf{1 0 0 . 0}$ |
| Cost of sales | -52.4 | -49.4 | -50.7 | -49.8 |
| Gross profit | 53.6 | 50.6 | $\mathbf{5 1 . 1}$ | $\mathbf{5 0 . 2}$ |
| Fulfillment expenses | -21.2 | -20.0 | -21.8 | -21.4 |
| Contribution profit | 32.4 | 30.6 | $\mathbf{2 9 . 3}$ | $\mathbf{2 8 . 8}$ |
| Marketing expenses | -13.3 | -12.6 | -9.5 | -9.4 |
| General and administrative expenses | -20.4 | -19.2 | -19.8 | -19.5 |
| Other operating expenses | -1.5 | -1.4 | -2.3 | -2.3 |
| Other operating income | 1.1 | 1.1 | 2.1 | 2.0 |
| Depreciation, amortisation and impairments | 5.5 | 5.2 | 4.7 | 4.7 |
| Adjusted EBITDA | 3.9 | 3.7 | $\mathbf{4 . 4}$ | $\mathbf{4 . 4}$ |
Revenue
Revenue for the second quarter of 2024 increased by $4.1 \%$ to EUR 106.0m (Q2 2023: EUR 101.8m). The Westwing Collection share rose from $46 \%$ of GMV in the prior-year period to an all-time high of $53 \%$ in Q2 2024.
Revenue in the first half of 2024 was EUR 214.7m, an increase of EUR 10.0m or $4.9 \%$ compared to the prior-year period (H1 2023: EUR 204.7m).
Contribution Margin
The gross margin improved by 0.4 percentage points, rising from $50.2 \%$ in the prior-year period to $50.6 \%$ in the second quarter of 2024. The increase was mainly driven by the continued expansion of our high-margin Westwing Collection and partially offset by pressure on third party market prices and higher container costs.
Fulfilment costs as a percentage of revenue declined by 1.4 percentage points from $21.4 \%$ in the prioryear period to $20.0 \%$ in the second quarter of 2024. These developments were mainly driven by efficiency gains.
As a result, our contribution margin increased from $28.8 \%$ in the second quarter of 2023 to $30.6 \%$ in the second quarter of 2024. The contribution margin for the first half of 2024 was $31.2 \%$ (H1 2023: $28.3 \%)$.
Marketing Expenses
Q2 2024 marketing expenses increased to $12.6 \%$ of revenue, up from $9.4 \%$ in the same period of the previous year. Expressed in absolute terms, they rose by EUR 3.8 m to EUR 13.3 m . This increase was primarily driven by continued investment in brand awareness in Germany.
H1 2024 marketing expenses amounted to EUR 27.2m or $12.7 \%$ of revenue, compared to EUR 18.8m or $9.2 \%$ in the same period of 2023 .
General and Administrative Expenses
Expressed as a percentage of revenue, general and administrative expenses decreased by a slight 0.2 percentage points year-over-year to $19.2 \%$ in the second quarter of 2024 (Q2 2023: 19.5\%). Stated in absolute terms, they rose by EUR 0.6 m to EUR 20.4 m in the second quarter of 2024 (Q2 2023: EUR 19.8m). The increase was mostly driven by the cost of Westwing's ongoing technology transformation. Among other things, this resulted in a temporary increase in amortisation due to the shortened useful lives of components of the legacy technology platform.
In the first half of 2024, general and administration expenses were EUR 40.2m (H1 2023: EUR 39.5m). This corresponds to $18.7 \%$ of revenue (H1 2023: 19.3\%).
Adjusted EBITDA
Adjusted EBITDA for the Group was EUR 3.9m in the second quarter of 2024, compared to EUR 4.4m in the same period of the previous year. This corresponds to an Adjusted EBITDA margin of $3.7 \%$ in Q2 2024 (Q2 2023: 4.4\%). The slight decline was largely driven by higher investment in brand awareness, which was partly offset by an improved margin and better cost discipline.
Adjusted EBITDA for the first six months of the year was up EUR 0.7m to EUR 10.2m (H1 2023: EUR 9.5m). This corresponds to an Adjusted EBITDA margin of 4.7\% (H1 2023: 4.6\%).
In addition to its adjustments for share-based payments in the second quarters of 2023 and 2024, Westwing adjusted its EBITDA for restructuring expenses of EUR 0.5m in Q2 2024. These expenses were mainly due to the restructuring of our operations in Italy and Spain. The related expenses are excluded from our Adjusted EBITDA due to their non-recurring nature.
1.2 SEGMENT INFORMATION
The Group has two segments: DACH (comprising Germany, Austria and Switzerland) and International (other European markets in which Westwing is present). The International segment has included the new market of Portugal since May 2024.
CONSOLIDATED SEGMENT RESULTS (UNAUDITED)
| EURm | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | ||||||
| DACH | 119.9 | 111.1 | 8.8 | 59.8 | 55.3 | 4.5 |
| International | 94.7 | 93.6 | 1.2 | 46.2 | 46.5 | $-0.3$ |
| Adjusted EBITDA | ||||||
| DACH | 6.2 | 9.4 | $-3.2$ | 2.7 | 4.3 | $-1.6$ |
| International | 4.1 | 0.3 | 3.8 | 1.1 | 0.2 | 0.9 |
| HQ/reconciliation | $-0.1$ | $-0.2$ | 0.1 | 0.1 | $-0.1$ | 0.1 |
| Adjusted EBITDA margin | ||||||
| DACH | $5.1 \%$ | $8.4 \%$ | $-3.3 p p$ | $4.5 \%$ | $7.8 \%$ | $-3.3 p p$ |
| International | $4.3 \%$ | $0.4 \%$ | 4.0 pp | $2.5 \%$ | $0.4 \%$ | 2.1 pp |
Segment Revenue
The DACH segment recorded revenue growth of $8.2 \%$ in the second quarter of 2024, while the International segment saw a slightly negative change ( $-0.7 \%$ ) in the same period. The negative development was driven by the restructuring of our operations in Italy and Spain and the associated switch to a mostly global product assortment.
Segment Adjusted EBITDA
The Adjusted EBITDA margin for the DACH segment declined by 3.3 percentage points to $4.5 \%$ in the second quarter of 2024 (Q2 2023: 7.8\%), driven by continued investments in brand awareness in Germany. The Adjusted EBITDA margin for the International segment was positive at 2.5\% - 2.1 percentage points higher than in the prior-year period (Q2 2023: 0.4\%).
1.3 FINANCIAL POSITION AND CASH FLOWS
CASH FLOWS (UNAUDITED)
| EURm | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Cash flows from operating activities | 1.4 | 13.3 | $-11.8$ | $-9.6$ | 1.9 | $-11.5$ |
| Cash flows from investing activities | $-4.4$ | $-3.1$ | $-1.3$ | 2.3 | $-1.7$ | 3.9 |
| Cash flows from financing activities | $-6.6$ | $-9.7$ | 3.1 | $-2.6$ | $-3.8$ | 1.2 |
| Net change in cash and cash equivalents | $-9.6$ | 0.4 | $-10.0$ | $-10.0$ | $-3.6$ | $-6.3$ |
| Effect of exchange rate fluctuations on cash held | 0.0 | $-0.1$ | 0.1 | 0.0 | $-0.1$ | 0.1 |
| Cash and cash equivalents at the beginning of the period | 81.5 | 76.0 | 5.5 | 81.9 | 80.0 | 1.9 |
| Cash and cash equivalents as at 30 June | 71.9 | 76.3 | $-4.4$ | 71.9 | 76.3 | $-4.4$ |
| Free cash flow | $-3.0$ | 10.1 | $-13.1$ | $-7.3$ | 0.2 | $-7.6$ |
Cash flows from operating activities amounted to EUR 1.4 m for the first six months of 2024, compared to EUR 13.3 m in the same period of the previous year. This change was primarily driven by the net loss for the period, payments for restructuring expenses and changes in working capital. The latter were mainly due to the seasonal build-up of inventories, whereas the change in net working capital for the same period of the previous year benefited from the reduction of excess inventories.
Cash outflows from investing activities increased from EUR -3.1m in the first half of 2023 to EUR -4.4m in the same period in 2024. This change was mainly due to the cash outflow for the lease deposit for one of our largest warehouses in Poznan, Poland.
The above-mentioned changes in operating and investing cash flows led to free cash flow for the first half of 2024 of EUR -3.0m (H1 2023: EUR 10.1m).
Cash flows from financing activities were EUR -6.6m in the first half of 2024 (H1 2023: EUR -9.7m). This change was mostly driven by the lower share buy-back volume. In addition, there was no cash outflow from supplier finance arrangements in H1 2024, since the use of this instrument was discontinued in the fourth quarter of 2023.
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
| 30 June 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| EURm | \% | EURm | \% | |
| Total assets | 197.7 | 100.0 | 203.4 | 100.0 |
| Non-current assets | 66.8 | 33.8 | 67.0 | 32.9 |
| Current assets | 130.9 | 66.2 | 136.4 | 67.1 |
| Total equity and liabilities | 197.7 | 100.0 | 203.4 | 100.0 |
| Equity | 69.6 | 35.2 | 75.0 | 36.9 |
| Non-current liabilities | 36.4 | 18.4 | 36.7 | 18.1 |
| Current liabilities | 91.7 | 46.4 | 91.7 | 45.1 |
Total assets amounted to EUR 197.7m as at 30 June 2024 (31 December 2023: EUR 203.4m).
Non-current assets were stable at EUR 66.8m (31 December 2023: EUR 67.0m).
The EUR 5.5 m decrease in current assets was mainly driven by cash and cash equivalents, which declined by EUR 9.6 m to EUR 71.9 m ( 31 December 2023: EUR 81.5m), plus a EUR 6.4 m drop in prepayments on inventories, which amounted to EUR 0.7m (31 December 2023: EUR 7.1m). This was largely offset by a EUR 11.1 m increase in inventories.
Equity declined from EUR 75.0m as at 31 December 2023 to EUR 69.6m as at 30 June 2024. The decrease was driven by the net loss for the period and by the increase in the number of treasury shares, which are deducted from equity.
At EUR 36.4m, non-current liabilities were almost unchanged as at 30 June 2024 (31 December 2023: EUR 36.7m).
Current liabilities remained stable at EUR 91.7m overall. Trade payables and accruals increased by EUR 4.7 m , but this change was offset by a decline of EUR 2.1 m in refund liabilities and of EUR 4.0 m in other non-financial liabilities.
Overall Assessment of the Group's Economic Position
Westwing continued to deliver good results in the second quarter of 2024, recording year-over-year revenue growth of $4 \%$ and positive Adjusted EBITDA of EUR 3.9m despite market conditions that remained challenging.
These results prove the strength and potential of Westwing's commercial model. The Company will continue to transition along its 3 -step plan to unlock Westwing's full value potential by building a lean platform that will enable the business to scale with operating leverage going forward.
1.4 REPORT ON RISKS AND OPPORTUNITIES
After examining the probability of occurrence and potential impact of the risks described in the 2023 Annual Report, we did not identify any going-concern risks for the Westwing Group.
1.5 OUTLOOK
We confirm our guidance for full-year 2024 that we published in our 2023 Annual Report. We expect revenue of between EUR 415m and EUR 445m, growth of $-3 \%$ to $+4 \%$, and an Adjusted EBITDA in the range of EUR 14m to EUR 24m, resulting in an Adjusted EBITDA margin of $3 \%$ to $5 \%$.
1.6 EVENTS AFTER THE BALANCE SHEET DATE
There were no significant events after the balance sheet date that could materially impact Westwing's future financial performance, financial position or cash flows.
Munich, 8 August 2024
| Dr Andreas Hoerning | Sebastian Westrich |
|---|---|
| Chief Executive Officer | Chief Financial Officer |
2
CONSOLIDATED FINANCIAL STATEMENTS AND SELECTED NOTES
for the Period Ended 30 June 2024 (Unaudited)
2.1 CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| EURm | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
|---|---|---|---|---|
| Revenue | 214.7 | 204.7 | 106.0 | 101.8 |
| Cost of sales | $-105.3$ | $-102.6$ | $-52.4$ | $-50.7$ |
| Gross profit | 109.4 | 102.1 | 53.6 | 51.1 |
| Fulfillment expenses | $-43.3$ | $-44.1$ | $-21.3$ | $-21.8$ |
| Marketing expenses | $-27.4$ | $-18.8$ | $-13.4$ | $-9.6$ |
| General and administrative expenses | $-42.5$ | $-40.0$ | $-21.3$ | $-21.4$ |
| Other operating expenses | $-3.2$ | $-3.2$ | $-1.5$ | $-2.3$ |
| Other operating income | 2.6 | 3.6 | 1.1 | 2.1 |
| Operating profit/loss | $-4.3$ | $-0.5$ | $-2.8$ | $-1.9$ |
| Finance costs | $-0.8$ | $-1.0$ | $-0.4$ | $-0.5$ |
| Finance income | 0.9 | 0.3 | 0.7 | 0.3 |
| Net other finance costs | $-0.0$ | 0.1 | 0.0 | 0.1 |
| Net finance costs | 0.1 | $-0.6$ | 0.3 | $-0.0$ |
| Profit/loss before tax | $-4.2$ | $-1.1$ | $-2.5$ | $-2.0$ |
| Income tax expense | $-0.7$ | $-0.7$ | $-0.5$ | $-0.7$ |
| Consolidated profit/loss for the period | $-4.8$ | $-1.8$ | $-3.0$ | $-2.7$ |
| Average number of shares in circulation, undiluted | 20,040,134 | 20,370,949 | 20,040,134 | 20,370,949 |
| Earnings per share (in EUR); undiluted (=diluted) | $-0.24$ | $-0.09$ | $-0.15$ | $-0.13$ |
2.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the Periods 1 January to 30 June 2024 and 2023
2.3 RECONCILIATION OF ADJUSTED EBITDA
| EURm | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
|---|---|---|---|---|
| Operating profit/loss | $-4.3$ | $-0.5$ | $-2.8$ | $-1.9$ |
| Adjustments | ||||
| Share-based payments | $-0.0$ | 0.6 | 0.7 | 1.6 |
| Restructuring expenses | 3.2 | - | 0.5 | - |
| Depreciation, amortisation and impairments | 11.2 | 9.5 | 5.5 | 4.7 |
| Adjusted EBITDA | 10.2 | 9.5 | 3.9 | 4.4 |
2.4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EURm | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 44.2 | 44.6 |
| Intangible assets | 18.3 | 19.3 |
| Trade receivables and other financial assets | 2.9 | 1.6 |
| Deferred tax assets | 1.5 | 1.5 |
| Total non-current assets | 66.8 | 67.0 |
| Current assets | ||
| Inventories | 39.2 | 28.1 |
| Prepayments on inventories | 0.7 | 7.1 |
| Trade receivables and other financial assets | 10.2 | 12.1 |
| Other assets | 8.9 | 7.6 |
| Cash and cash equivalents | 71.9 | 81.5 |
| Total current assets | 130.9 | 136.4 |
| Total assets | 197.7 | 203.4 |
2.4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EURm | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Equity and liabilities | ||
| Equity | ||
| Share capital | 20.9 | 20.9 |
| Capital reserves | 364.7 | 364.6 |
| Treasury shares | $-6.0$ | $-5.3$ |
| Other reserves | 42.5 | 42.4 |
| Retained earnings | $-353.2$ | $-348.3$ |
| Foreign exchange reserve | 0.7 | 0.6 |
| Total equity | 69.6 | 75.0 |
| Non-current liabilities | ||
| Lease liabilities | 25.6 | 25.5 |
| Other non-current financial liabilities | 5.5 | 6.0 |
| Provisions | 2.1 | 2.1 |
| Deferred tax liabilities | 3.1 | 3.1 |
| Total non-current liabilities | 36.4 | 36.7 |
| Current liabilities | ||
| Lease liabilities | 11.7 | 11.2 |
| Trade payables and accruals | 40.7 | 35.9 |
| Contract liabilities | 20.2 | 19.3 |
| Refund liabilities | 4.4 | 6.6 |
| Other non-financial liabilities | 12.3 | 16.3 |
| Tax liabilities | 1.1 | 0.9 |
| Provisions | 1.2 | 1.5 |
| Total current liabilities | 91.7 | 91.7 |
| Total liabilities | 128.1 | 128.4 |
| Total equity and liabilities | 197.7 | 203.4 |
2.5 CONSOLIDATED STATEMENT OF CASH FLOWS
| EURm | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
|---|---|---|---|---|
| Profit/loss before tax | $-4.2$ | $-1.1$ | $-2.5$ | $-2.0$ |
| Adjustments for: | ||||
| Depreciation and impairment of property, plant and equipment | 6.4 | 6.5 | 3.0 | 3.2 |
| Amortisation and impairment of intangible assets | 4.8 | 3.0 | 2.4 | 1.5 |
| Gain on disposal of property, plant and equipment | 0.1 | 0.0 | 0.0 | 0.0 |
| Share-based payments | $-0.0$ | 0.6 | 0.7 | 1.6 |
| Financial income | $-0.9$ | $-0.3$ | $-0.7$ | $-0.3$ |
| Finance costs | 0.8 | 1.0 | 0.4 | 0.5 |
| Changes in other assets | $-0.6$ | 0.3 | 0.2 | $-0.1$ |
| Changes in other liabilities | $-4.3$ | $-1.8$ | $-3.8$ | $-1.1$ |
| Changes in provisions | $-2.4$ | $-2.1$ | $-0.5$ | $-0.2$ |
| Operating cash flows before changes in working capital | $-0.2$ | 5.9 | $-0.8$ | 3.1 |
| Adjustments for changes in working capital: | ||||
| Changes in trade and other receivables and prepayments | 1.8 | 2.5 | 3.3 | 2.4 |
| Changes in inventories | $-4.8$ | 6.0 | $-0.9$ | 4.4 |
| Changes in trade and other payables | 5.6 | $-0.4$ | $-10.1$ | $-7.3$ |
| Cash flows from operating activities | 2.5 | 14.1 | $-8.5$ | 2.6 |
| Tax paid | $-1.1$ | $-0.9$ | $-1.0$ | $-0.7$ |
| Net cash flows from operating activities | 1.4 | 13.3 | $-9.6$ | 1.9 |
| Investing activities: | ||||
| Proceeds from sale of property, plant and equipment | 0.2 | 0.0 | 0.2 | 0.0 |
| Purchase of property, plant and equipment | $-0.7$ | $-0.5$ | 2.7 | $-0.3$ |
| Purchase of intangible assets | $-3.7$ | $-3.5$ | $-1.8$ | $-1.7$ |
| Lease deposits | $-1.0$ | 0.5 | 0.4 | 0.1 |
| Interest income | 0.9 | 0.3 | 0.7 | 0.3 |
| Net cash flows from investing activities | $-4.4$ | $-3.1$ | 2.3 | $-1.7$ |
| Financing activities: | ||||
| Interest and other finance charges paid | $-0.8$ | $-1.0$ | $-0.4$ | $-0.5$ |
| Supplier finance arrangements | - | $-0.8$ | - | 0.1 |
| Payments of lease liabilities | $-5.4$ | $-5.4$ | $-2.4$ | $-2.5$ |
| Sale of equity instruments | 0.0 | 0.0 | - | - |
| Purchase of treasury shares | $-0.7$ | $-2.6$ | $-0.1$ | $-0.9$ |
| Contribution of right-of-use assets | 0.3 | - | 0.3 | - |
| Net cash flows from financing activities | $-6.6$ | $-9.7$ | $-2.6$ | $-3.8$ |
| Net change in cash and cash equivalents | $-9.6$ | 0.4 | $-10.0$ | $-3.6$ |
| Effect of exchange rate fluctuations on cash held | 0.0 | $-0.1$ | 0.0 | $-0.1$ |
| Cash and cash equivalents at the beginning of the period | 81.5 | 76.0 | 81.9 | 80.0 |
| Cash and cash equivalents as at 30 June | 71.9 | 76.3 | 71.9 | 76.3 |
2.6 CONSOLIDATED STATEMENT OF CHANGES OF EQUITY
Attributable to the owners of the Company
| EURm | Share capital | Capital reserves | Treasury shares | Other reserves | Retained earnings | Other comprehensive income (OCI) reserve | Total equity |
|---|---|---|---|---|---|---|---|
| As at 1 January 2023 | 20.9 | 364.5 | $-1.6$ | 41.7 | $-335.9$ | 0.4 | 90.1 |
| Profit/loss 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 payments | - | 0.0 | - | 0.9 | - | - | 0.9 |
| As at 30 June 2023 | 20.9 | 364.6 | $-4.2$ | 42.6 | $-337.7$ | 0.6 | 86.8 |
| As at 1 January 2024 | 20.9 | 364.6 | $-5.3$ | 42.4 | $-348.3$ | 0.6 | 75.0 |
| Profit/loss for the period | - | - | - | - | $-4.8$ | - | $-4.8$ |
| Other comprehensive income | - | - | - | - | - | 0.0 | 0.0 |
| Total comprehensive income | - | - | - | - | $-4.8$ | 0.0 | $-4.8$ |
| Purchase of treasury shares | - | - | $-0.7$ | - | - | - | $-0.7$ |
| Share-based payments | - | 0.1 | 0.0 | 0.1 | - | - | 0.2 |
| As at 30 June 2024 | 20.9 | 364.7 | $-6.0$ | 42.5 | $-353.2$ | 0.7 | 69.6 |
2.7 SELECTED NOTES
2.7.1 Information on the Company and the Group
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). It is headquartered in Moosacher Str. 88, 80809 Munich, Germany. As at 30 June 2024, the Group operated in 12 countries (Germany, Austria, Switzerland, Italy, Spain, the Netherlands, France, Poland, Belgium, the Czech Republic, the Slovak Republic and Portugal) and consisted of 21 legal entities, all of which are consolidated in these half-year financial statements.
2.7.2 Basis of Preparation of the Financial Statements
These condensed consolidated interim financial statements for the period from 1 January 2024 to 30 June 2024 were prepared in accordance with IAS 34, Interim Financial Reporting using the IFRSs as adopted by the EU, and are unaudited. Consequently, they do not include all the information and notes which are necessary for consolidated financial statements in accordance with the IFRSs and should be read in conjunction with the Group's consolidated financial statements as at and for the year ended 31 December 2023.
When preparing the condensed consolidated interim financial statements for interim reporting in accordance with IAS 34, the management is required to make assessments, estimates and assumptions affecting the application of the accounting principles in the Group and the recognition of assets, liabilities, income and expenses. Actual amounts may deviate from these estimates.
The accounting principles and policies used in the consolidated financial statements as at 31 December 2023 have been applied without change.
The consolidated interim financial statements have been prepared in millions of euros (EURm). The figures given in the statements have been rounded in line with commercial practice. This means that the sum given for a table may not be exactly the same as the figure arrived at by adding the individual figures, and that differences may arise when individual amounts or percentages are totalled.
2.7.3 Segment Information
Operating segment information for the reporting period ending on 30 June 2024 (all amounts in EURm unless stated otherwise):
| H1 2024 | DACH | International | HGI/ Reconciliation |
Group |
|---|---|---|---|---|
| Profit/loss before tax | 4.0 | $-0.8$ | $-7.5$ | $-4.2$ |
| Finance costs* | 0.6 | 0.1 | - | 0.8 |
| Financial income* | $-0.7$ | $-0.1$ | - | $-0.9$ |
| Net other financial income/finance costs | 0.0 | 0.0 | - | 0.0 |
| Operating profit/loss | 3.9 | $-0.7$ | $-7.5$ | $-4.3$ |
| Depreciation and amortisation | 2.1 | 2.0 | 7.1 | 11.2 |
| Share-based payments* | $-0.0$ | 0.0 | - | $-0.0$ |
| Restructuring expenses | 0.1 | 2.8 | 0.3 | 3.2 |
| Adjusted EBITDA | 6.2 | 4.1 | $-0.1$ | 10.2 |
| Adjusted EBITDA margin | $5.1 \%$ | $4.3 \%$ | - | $4.7 \%$ |
| Revenue | 119.9 | 94.7 | - | 214.7 |
| Cash and cash equivalents | 16.0 | 11.8 | 44.1 | 71.9 |
- Includes headquarters costs not allocated to the segments and therefore reported in the DACH segment.
Operating segment information for the reporting period ending on 30 June 2023 (all amounts are in EURm unless stated otherwise):
| Profit/loss before tax | DACH | International | Reconciliation | Group |
| Finance costs* | 6.0 | $-1.4$ | $-5.7$ | $-1.1$ |
| Financial income* | 0.8 | 0.2 | - | 1.0 |
| Net other financial income/finance costs | -0.3 | -0.0 | - | -0.3 |
| Operating profit/loss | 0.1 | -0.2 | - | -0.1 |
| Depreciation and amortisation | 6.6 | $-1.4$ | $-5.7$ | $-0.5$ |
| Share-based payments* | 2.2 | 1.8 | 5.5 | 9.5 |
| Restructuring expenses | 0.6 | - | - | 0.6 |
| Adjusted EBITDA | - | - | - | - |
| Adjusted EBITDA margin | $8.4 \%$ | $0.3 \%$ | -0.2 | 9.5 |
| Revenue | 111.1 | 93.6 | - | 4.6\% |
| Cash and cash equivalents | 16.9 | 11.1 | 48.3 | 76.3 |
- Includes headquarters costs not allocated to the segments and therefore reported in the DACH segment.
Group entities with registered offices in Germany generated total revenue of EUR 181.8m (H1 2023: EUR 158.8m) and reported non-current assets (not including financial instruments) of EUR 53.3m in their statements of financial position (30 June 2023: EUR 62.6m).
2.7.4 Revenue Analysis
Revenue from contracts with customers for the first six months of 2024 was composed of the following:
| EURm | H1 2024 | H1 2023 |
|---|---|---|
| Revenue from the sale of products | 210.0 | 200.6 |
| Service revenue | 0.7 | 0.5 |
| Other revenue | 3.9 | 3.6 |
| Total | 214.7 | $\mathbf{2 0 4 . 7}$ |
2.7.5 Balances and Transactions with Related Parties
Please refer to the consolidated financial statements as at 31 December 2023 for related party disclosures.
2.7.6 Corporate Governance
The Supervisory Board and Management Board issued its declaration of compliance for Westwing Group SE in accordance with section 161 of the German Stock Corporation Act (AktG) for fiscal year 2023 in December 2023. The declaration is permanently available on the Investor Relations section of Westwing Group SE's website at https://ir.westwing.com/download/companies/westwing/CorporateGovernance/Compliance_Declaration_Westwing_Group_SE_2023_ENG.pdf.
2.7.7 Events After the Balance Sheet Date
There were no significant events after the balance sheet date that could materially impact Westwing's future financial performance, financial position or cash flows.
Munich, 8 August 2024
| Dr Andreas Hoerning | Sebastian Westrich |
|---|---|
| Chief Executive Officer | Chief Financial Officer |
RESPONSIBILITY STATEMENT BY THE MANAGEMENT BOARD
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, 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 for the remaining financial year.
Munich, 8 August 2024
Dr Andreas Hoerning
Chief Executive Officer
Sebastian Westrich
Chief Financial Officer
FINANCIAL CALENDAR
7 NOVEMBER 2024
Publication of the results for G3 2024
CONTACT DETAILS
CONTACT
Westwing Group SE
Moosacher Strasse 88
80809 Munich
Germany
INVESTOR RELATIONS
PRESS
CONCEPT, DESIGN AND REALIZATION
3st kommunikation,
Mainz, Germany
DISCLAIMER
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 in these statements due to a number of factors. These include, without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous materials/production conditions with regard to private labels, insufficient innovation capabilities, inadequate data security, insufficient market knowledge, strike risks and changes in competition levels.
WWW.WESTWING.COM