Bike24 Holding AG: Full-bike segment and localized markets with double-digit growth despite difficult market environment; profitability significantly increased compared to previous quarter

Bike24 Holding AG: Full-bike segment and localized markets with double-digit growth despite difficult market environment; profitability significantly increased compared to previous quarter

• Sales in the second quarter at EUR 62.9 million, -6.1 percent compared to the same period last year
• Continued high double-digit growth in full-bike segment and localized markets
• Measures to improve profitability show effect: Adjusted EBITDA margin at 0.9 percent in Q2 2023; a significant improvement compared to Q1 2023 (-4.7 percent)
• CEO Andrés Martin-Birner: "We are clearly steering for profitability in the current market phase"
• Almost 1 million active customers at the end of the second quarter

Dresden, August 10, 2023. Bike24 Holding AG, one of the leading European e-commerce platforms for everything around cycling, generated revenues of EUR 62.9 million in the second quarter of 2023, which corresponds to a decline of 6.1 percent compared to the same quarter of the previous year (EUR 67.0 million). The initiated measures to increase profitability already show effect: The company significantly improved its operating profitability compared to the previous quarter with a positive adjusted EBITDA margin of 0.9 percent (Q1 2023: -4.7 percent). In order to further increase its profitability, the company also plans to focus its marketing activities more strongly on already established markets with higher margin potential in the second half of the year.

Andrés Martin-Birner, founder and CEO of BIKE24, comments: "The measures we have initiated to increase earnings are already having a positive impact on our operating profitability, which proves that we are on the right track. In order to focus on profitability in the current difficult phase, we have decided to concentrate our marketing activities more on the regions that contribute higher margins."

Despite the challenging market environment, the company was able to increase its customer base to 988 thousand active customers as at June 30, 2023 - an increase of +17 percent compared to the previous year (848 thousand). Almost 70 percent of orders came from returning customers, which is evidence of high customer loyalty. The average order value of EUR 137 confirms that high-quality products continue to be in demand. At the same time, the return rate fell slightly to 16.9 percent (previous year: 17.4 percent).

In February 2023, BIKE24 launched localized online shops in the Netherlands, Belgium and Luxembourg. From now on, the revenues in these markets are reported together with the previously existing localized markets Spain, France and Italy in order to better illustrate the operational development in these regions. Prior-year figures have been adjusted accordingly. In H1 2022, sales in the localized markets amounted to EUR 16.0 million, while in H1 2023 they rose to EUR 23.1 million - an increase of +44 percent (Q2: +40 percent). The share of total sales of these markets increased from 12 percent to 20 percent (Q2: 19 percent).

In line with the strategic priorities set during the IPO, the share of total sales of full-bikes increased from 13 percent to 17 percent in the first half of the year. This corresponds to an above-average increase in full-bike sales of +23 percent in this period, and +25 percent in the second quarter.

Adjusted EBITDA was EUR -2.0 million in the first half of 2023 compared to EUR 9.1 million in the same period of the previous year (Q2: EUR 0.6 million compared to EUR 5.3 million in Q2 2022). Adjusted EBITDA margin was -1.7 percent, compared to 7.1 percent in H1 2022 (Q2: 0.9 percent compared to 7.9 percent in Q2 2022).

The ongoing low level of consumer sentiment was a major reason for the development in sales and earnings. This is also reflected in the latest figures from the German E-Commerce Association (bevh), which recorded a -12 percent decline in online sales in the second quarter of 2023.

In addition, due to a cold and wet spring, the cycling season started unusually late, not until mid-May. This is in line with the latest publication of the German Cycling Industry Association (ZIV), which reported a -12 percent drop in sales of e-bikes and a -20 percent drop for bio-bikes for the period up to May 2023.

Taking into consideration that the market will take longer to normalize than originally expected, management adjusted its guidance for the fiscal year 2023 in July. Instead of expected sales growth of 0 to +10 percent, the company now anticipates a decline of -10 to -5 percent, while the adjusted EBITDA margin is now expected to come in between -1 and 1 percent (previously: 0 to 3.5 percent).

BIKE24's Q2 2023 earnings call will take place today at 3pm CEST. The presentation will be available from 10am on the IR website. Please register for the webcast under the following link:

https://montegaconnect.de/event/9m1ut63wjdyv14h33gisv98ueeqciypc

The half-year report including the consolidated interim financial statements can be found here:

https://ir.bike24.com/websites/bike24/English/3000/publications.html

Press Relations:
Olga de Gast
E-mail: presse@bike24.net
+49 151 2705 3924

Investor Relations:
Moritz Verleger
E-mail: ir@bike24.net
+49 151 2414 0166
 

About BIKE24

BIKE24 is one of the leading e-commerce cycling platforms in continental Europe. Focusing on the premium segment, the online retailer is the one-stop shop for the fast-growing community of bike enthusiasts, promoting green mobility. Founded in 2002, it has quickly become a leading e-commerce company in continental Europe and a global player in this fast-growing market. Led by CEO and co-founder Andrés Martin-Birner, the online store now offers customers 77,000 items from more than 800 brands. This gives BIKE24 the broadest range of branded products in the industry in continental Europe. The online bike platform already has a presence in continental Europe with eight local online shops in Germany (bike24.de), Austria (bike24.at), Spain (bike24.es), France (bike24.fr), Italy (bike24.it), the Netherlands (bike24.nl), Belgium (bike24.be) and Luxembourg (bike24.lu). In addition, the international shop (bike24.com) supplies customers all over the world.