Bike24 Holding AG: Successful second quarter – return to profitability and sales growth

Bike24 Holding AG: Successful second quarter - return to profitability and sales growth

• Return to profitability: adjusted operating profit of EUR 2.7 million compared to EUR 0.6 million in the same period of the previous year
• Growth in the core market: significant increase in sales in the DACH region of 8% with overall sales growth of 1.5%
• Increase in profitability per customer: Increase of 28.5%, due to higher gross margin and improved cost structure

Dresden, August 8, 2024 - Bike24 Holding AG, one of Europe's leading e-commerce platforms for bicycles, generated an adjusted operating profit of EUR 2.7 million (adjusted EBITDA margin: 4.2%) and growth in Group sales of 1.5% to EUR 63.8 million in the second quarter of 2024. This growth was driven in particular by the positive development in the DACH region. The Full-bike segment made a significant contribution to revenue growth.

In the course of the moderate growth in Group sales, profitability per order increased considerably: the contribution margin per customer increased by 28.5%. The main drivers were an improved cost structure and an easing of market prices in the "Parts, Accessories and Clothing" segment in the second quarter, which currently accounts for almost 80% of Group sales, enabling BIKE24 to increase its gross margin by 1.8 percentage points to 27.7% in the second quarter.

In addition, the company succeeded significantly in reducing inventories compared to the same period of the previous year (Q2 2024: EUR 71.9 million vs. Q2 2023: EUR 90.5 million) while significantly improving profitability.

The general upward trend in the second quarter of 2024 is also reflected in the results for the first half of the year: despite the slight decline in sales of 4.3 %, an operating profit of EUR 1.2 million (adjusted EBITDA margin: 1.1%) was achieved overall on an adjusted basis, following an operating loss of EUR 2 million in the same period of the previous year.

Timm Armbrust, CFO of BIKE24, comments: "We are satisfied with the results achieved in the first half of the year and proud to have generated a significant adjusted operating profit again in a persistently difficult market environment. These results, together with the greatly improved business results in the second quarter, reinforce the path we have taken of cost discipline and focusing on our core customer group of "enthusiasts". This allows us to start the second half of the year with confidence. Furthermore, BIKE24 will continue to focus on a customer-oriented, broad product segment, high availability and outstanding logistics in the second half of the year."

BIKE24 therefore expects the upward trend to continue despite the challenging economic conditions and is therefore sticking to its forecast for the 2024 financial year, which envisages revenue growth of between 1% and 5% and an adjusted EBITDA margin of 0.7% to 4.2%.

BIKE24's Q2 2024 earnings call will take place today at 3pm CEST. The presentation will be available from 1pm on the IR website. Please register for the webcast under the following link:

https://montegaconnect.de/event/6141qrwq8zb5k3dfdxt63ccyv1pdo1f8

Unaudited condensed consolidated P&L (adjusted view)

                                in k€  Q2 2024  Q2 2023 Delta    H1 2024  H1 2023 Delta Revenue and other income               DACH markets 44,314 40,886 8.4%   76,297 76,128 0.2% Localized markets (PY adjusted) 11,233 12,213 -8.0%   21,687 23,064 -6.0% Rest of EEA (PY adjusted) 6,775 7,219 -6.2%   11,797 13,375 -11.8% Rest of World 1,501 2,580 -41.8%   3,313 5,597 -40.8% Revenue 63,823 62,897 1.5%   113,094 118,164 -4.3% Other income 73 35 106.9%   175 75 134.9% Total income 63,896 62,933 1.5%   113,269 118,238 -4.2% COGS (Merchandise, consumables & supplies) -46,208 -46,673 -1.0%   -83,170 -90,045 -7.6% Gross profit 17,689 16,260 8.8%   30,099 28,193 6.8% Gross margin 27.68% 25.80% + 1.9 pp   26.60% 23.80% + 2.8 pp Performance marketing costs -730 -885 -17.5%   -1,411 -1,625 -13.1% Selling expenses¹ -5,326 -6,097 -12.6%   -9,750 -11,344 -14.1% Personnel expenses -6,986 -6,909 1.1%   -13,934 -13,380 4.1% Miscellaneous expenses -2,686 -3,007 -10.7%   -5,733 -6,109 -6.1% EBITDA 1,961 -638 -407.4%   -730 -4,266 -82.9% EBITDA margin 3.10% -1.00% + 4.1 pp   -0.60% -3.60% + 3.0 pp Adjustments 721 1,210 -40.4%   1,940 2,265 -14.4% Adjusted EBITDA 2,683 572 369.0%   1,210 -2,001 -160.5% Adjusted EBITDA margin 4.20% 0.90% + 3.3 pp   1.10% -1.70% + 2.8 pp Depreciation/ amortization (excl. goodwill-like items) -1,910 -1,493 28.0%   -3,790 -2,863 32.4% Adjusted EBIT 772 -921 n/a   -2,580 -4,864 n/a Adjusted EBIT margin 1.20% -1.50% + 2.7 pp   -2.30% -4.10% +1.8 pp Amortization of goodwill-like items -2,381 -2,484 -4.1%   -4,762 -4,969 -4.2% Adjustments -721 -1,210 -40.4%   -1,940 -2,265 -14.4% Earnings before interest and taxes (EBIT) -2,330 -4,616 n/a   -9,282 -12,098 n/a EBIT margin -3.70% -7.30% + 3.6 pp   -8.20% -10.20% + 2.0 pp Finance expense, net -961 -974 -1.3%   -2,509 -4,084 -38.6% Profit / (loss) before tax -3,291 -5,590 n/a   -11,791 -16,182 n/a Income tax income / (expense) 1,043 2,824 n/a   3,681 3,367 n/a Result for the period -2,248 -2,766 n/a   -8,110 -12,815 n/a Rounding differences may arise.               ¹Including impairment loss on trade receivables.                
                Customer KPIs               Active customers (LTM)  -   -   -    902,818 988,014 -8.6% Number of orders 450,000 469,268 -4.1%   794,295 863,786 -8.0% Average order value  140 135 3.8%   141 137 3.0% Orders returning customers 68.70% 70.60% -1.90%   68.30% 70.10% -1.80% Return rate 17.70% 16.20% +1.5pp   17.20% 16.90% +0.3pp

 

The half-year financial 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: 
E-Mail: ir@bike24.net 
 

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.

 

Forward-looking statements

Certain statements contained in this release may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements can generally be identified by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", or "target" or the negative of these words or other variations of these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that are inherently subject to significant risks, uncertainties and contingencies that are subject to change. The company gives no assurance and will give no assurance that a forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations and prospects may differ materially from those projected or forecasted in the forward-looking statements. Subject to applicable law, neither the company nor any other person intends, or assumes any obligation, to update, review, revise or conform any forward-looking statements contained in this announcement to actual events or developments, whether as a result of new information, future developments or otherwise.

 

Alternative performance indicators

In addition to the key performance indicators prepared in accordance with IFRS, BIKE24 presents alternative performance indicators such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT and free cash flow, which are not part of the accounting standards. These key figures should be seen as a supplement to, but not a substitute for, the disclosures prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or other generally accepted accounting principles. Other companies may use different definitions for these terms.