DGAP-News: BIKE24 Holding AG / Key word(s): Quarter Results/Quarterly / Interim Statement
BIKE24 keeps growing amid challenging environment: Solid revenue and earnings performance in Q1 2022 driven by consistent execution of the European expansion strategy
Dresden, May 10, 2022. In a challenging environment, bicycle specialist BIKE24 successfully started into FY 2022 – both operationally and strategically. Compared to the extraordinary Q1 last year - boosted by good weather and Corona-related restrictions in physical retail - the European e-commerce platform increased its consolidated revenue by 7.3% to EUR 61.8 million over the first three months. In particular, the Group's successfully executed internationalization contributed to the growth in revenue: with their localized online shops Spain, France and Italy recorded an average increase of around 68% in business volume. As expected, earnings before interest, taxes, depreciation and amortization adjusted for special effects (adjusted EBITDA) came in at EUR 3.8 million (Q1 2021: 7.3 million).
"The substantial gains in Spain as well as in France and Italy, where we launched our localized shops in early January, are showing that our European expansion is advancing significantly," says Andrés Martin-Birner, co-founder and CEO of BIKE24. "Even in times of economic downturn, our business model is proving successful. Indeed, one reason is that rising fuel costs are prompting more people to use their bikes, further boosting sales of full-bikes, accessories and clothes. We're also pleased that, following some difficult quarters, we have been able to significantly restock our inventory with full bikes."
Q1 shows profitable growth in a challenging environment
BIKE24 generated revenues of EUR 61.8 million in the first three months of 2022. Compared to Q1 2021, this represents an increase of 7.3% (Q1 2021: EUR 57.6 million). The decline in the gross margin to 28.4% was within expectations (Q1 2021: 30.7%) given the strong demand in the comparative period, which benefited from the good weather and Corona-related restrictions in brick-and-mortar retailing combined with limited availabilities.
Substantial investments into the second management level as well as additional one-off expenses for additional temporary workers to compensate for the high level of staff absences due to the pandemic in Q1 2022 caused an increase in the personnel expense ratio by 2.0 percentage points to 10.7%. Consequently, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 3.2 million, representing a year-on-year decline of EUR 2.3 million. At the same time, however, this is also an improvement of EUR 1.7 million against the fourth quarter of 2021. Adjusted for extraordinary items totaling EUR 0.7 million, which mainly concerned non-cash expenses for employee stock option programs, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) came in at EUR 3.8 million after EUR 7.3 million last year (adjusted EBITDA margin 6.2% compared to 12.7% in Q1 2021).
Timm Armbrust, CFO of BIKE24 comments: "The geopolitical and macroeconomic environment has once again become increasingly uncertain over the past weeks. We are currently facing a variety of challenges we haven't seen for decades. All this makes it very hard to assess the effects on consumption in our market segment. However, the very positive development of our steadily growing customer base, which continued unabated in the first quarter, and the significant progress made in our localized online shops prove that our product is being well received in the European markets. Our customers' feedback is extremely positive and with our BIKE24 brand, which is easy to grasp in any language, we can quickly gain a foothold there."
Growth supported by strong customer metrics
The number of active customers as of the reporting date March 31, 2022, was 835 thousand, up 10% on the prior-year closing date. The number of orders increased by 4% to 419 thousand in the period under review. Looking at a rolling twelve-month period, the average number of orders per active customer was virtually flat at 2.12 (previous year: 2.14). The average order volume per year totaled EUR 303, compared to EUR 293 a year earlier. 74.3% of orders in Q1 2022 came from returning customers (Q1 2021: 74.1%).
Full-year 2022 guidance confirmed at the lower end of range
The construction of the new fulfillment center in the Barcelona area designed to expand and streamline deliveries to Southern European customers, is progressing as planned. Due to the war in Ukraine as well as Corona restrictions in China, the economic environment remains under pressure from several different factors, such as raw material shortages and price increases, rising interest rates and supply chain interruptions. As a result of these increased uncertainties, sales and earnings for the full year 2022 are expected to be in the lower end of the guidance range (growth of 10 to 17 percent, adjusted EBITDA margin of 9 to 10 percent).
The complete quarterly report including the consolidated financial statements can be found here:
BIKE24's Q1 2022 earnings call for analysts and investors will take place today at 3pm CEST. The link below will take you to the live webcast of the conference:
Conference language is English. The presentation will be available for download from 1pm onwards.
10.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
BIKE24 Holding AG
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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