Solid revenue and earnings performance in Q1 2022 driven by consistent execution of the European expansion strategy

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
10.05.2022 / 07:30
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BIKE24 keeps growing amid challenging environment: Solid revenue and earnings performance in Q1 2022 driven by consistent execution of the European expansion strategy

  • Group revenues grow by 7% to EUR 61.8 million compared to prior year
  • New localized online shops in France and Italy post a significant double-digit sales surge
  • Continued strong growth in Spain again
  • Number of active customers increases by 10% yoy to 835 thousand
  • Full-year 2022 guidance confirmed at the lower end of range

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 significantly advancing,” 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. 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% . Accordingly, 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 is mainly concerned with 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).

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