Westwing Group SE / DE000A2N4H07
09.11.2023 - 08:00:11Westwing returns to growth with fourth profitable quarter in a row
| Westwing Group SE / Key word(s): 9 Month figures 09.11.2023 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement. Topline returned to growth despite a challenging market environment: Gross Merchandise Volume (GMV) in the third quarter of 2023 increased by 5% year-over-year to EUR 107 million. Westwing reported its fourth profitable quarter in a row with an Adjusted EBITDA margin of 3% and an Adjusted EBITDA of EUR 2.4 million in the third quarter of 2023 (EUR +6.8 million vs. Q3 2022). The strategically important share of the Westwing Collection increased by 4 percentage points year-over-year to an all-time high of 48% of Group GMV in the third quarter of 2023. Westwing is refreshing its brand and launched the brand awareness campaign “Live Beautiful” in Germany. Top-line growth is expected to continue in the fourth quarter of 2023; Adjusted EBITDA guidance for the full year 2023 raised as of November 6, 2023. Munich, November 9, 2023 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s No.1 in Beautiful Living e-Commerce, announces its results for the third quarter of 2023. Despite a challenging market environment, Westwing successfully returned to top-line growth and reported a GMV of EUR 107 million in the third quarter of 2023 (Q3 2022: EUR 102 million). Based on Westwing's premium love brand strategy, the strong focus on the exciting Westwing Collection and the successful integration of the Shop and Club offering for customers, GMV per Active Customer[1] increased by 6% year-over-year to EUR 377 in the third quarter of 2023 (Q3 2022: EUR 355). Although the number of Active Customers1 still decreased year-over-year in the third quarter of 2023, it increased quarter-over-quarter for the first time since the pandemic. Revenue in the third quarter of 2023 developed in line with GMV and amounted to EUR 93 million, an increase of 5% year-over-year (Q3 2022: EUR 88 million). In terms of profitability, Westwing reported its fourth profitable quarter in a row. The Company reported an Adjusted EBITDA margin of 3% and an Adjusted EBITDA of EUR 2.4 million in the third quarter of 2023 (Q3 2022: EUR -4.5 million), representing a significant increase of EUR 6.8 million compared to the previous year. Overall, Westwing generated an Adjusted EBITDA of EUR 11.9 million with an Adjusted EBITDA margin of 4% in the first nine months of 2023 (9M 2022: EUR -8.5 million and -3%). The improvement in profitability was driven by an increased share of the high-margin Westwing Collection, strong fulfilment efficiencies and the successful implementation of cost saving initiatives in the G&A area. Westwing maintained negative Net Working Capital despite weaker seasonality and the full repayment of its supplier finance arrangements in the third quarter of 2023. This contributed to positive Free Cash Flow of EUR 3 million in the third quarter of 2023 (Q3 2022: EUR -1 million), an increase of EUR 4 million compared to the previous year. In the first nine months of 2023, the Company generated a Free Cash Flow of EUR 13 million, a very significant improvement of EUR 44 million year-over-year (9M 2022: EUR -31 million). Furthermore, Westwing maintained its strong financial position with net cash of EUR 69 million as of September 30, 2023. The Company's strategic priority of rapidly building up the Westwing Collection to a target of over 50% of the Group total GMV continues to develop positively. The share of the Westwing Collection increased by 4 percentage points year-over-year to an all-time high of 48% of Group GMV in the third quarter of 2023. The main drivers for the successful development are the improved product assortment and increased visibility in all channels. Another strategic initiative – “OneWestwing” – reached an important milestone with OneCart & OneCheckout now live in Germany, Austria and Switzerland. This means that both Shop and Club items can be added to one single cart and one single checkout. This enables a seamless shopping experience across the Westwing Shop and Westwing Club offering. More recently, Westwing presented a redesigned visual identity for the first time since the founding of the Company twelve years ago, including a new logo, a modernized typography and vibrant color palette. The new design is part of the Company’s strategic initiative to clearly position Westwing as the leading European premium brand for Home & Living. The Company's evolution is embodied in the "Live Beautiful" brand awareness campaign recently launched in Germany. As a result, Westwing will continue investing into brand awareness in the fourth quarter of 2023. “We are pleased to report that Westwing has returned to growth despite unfavorable market conditions. At the same time, we achieved the fourth profitable quarter in a row,” says CEO Andreas Hoerning. "Our dedicated emphasis on profitability and operational efficiency has delivered favorable results, enabling us to navigate confidently through a persistently challenging market environment." Outlook 2023 Top-line growth is expected to continue in the fourth quarter of 2023. This quarter will also reflect strategic investments into brand awareness. Based on the recent results and expectations for the fourth quarter of 2023, management raised its Adjusted EBITDA guidance for the full year 2023 as of November 6, 2023. The Company now expects to achieve an Adjusted EBITDA of EUR +13 million to EUR +19 million with a margin of 3% to 4% (previously: in the upper half of the range of EUR +4 million to EUR +13 million with a margin of 1% to 3%). This update is mainly driven by a better outlook for the fourth quarter of 2023 based on stronger than expected preliminary October results. The full year 2023 revenue guidance is confirmed in the upper half of the range of EUR 390 million to EUR 440 million. Webcast and Conference Call Westwing's Q3 2023 earnings call will be streamed live on the Company's Investor Relations website (https://ir.westwing.com ) on November 9, 2023, starting at 10:00am (CET). A replay of the live stream will be available on this page afterwards. For more information, please visit the Westwing Investor Relations website: https://ir.westwing.com
Westwing Group SE Investor Relations E-Mail: ir@westwing.de [1] Active Customer defined as customer who have made a valid order within the last 12 months per end of the respective quarter. 09.11.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com |
| Language: | English |
| Company: | Westwing Group SE |
| Moosacher Straße 88 | |
| 80809 Munich | |
| Germany | |
| Fax: | +49 (89) 550 544 445 |
| E-mail: | ir@westwing.de |
| Internet: | www.westwing.com |
| ISIN: | DE000A2N4H07 |
| WKN: | A2N4H0 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1768891 |
| End of News | EQS News Service |
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