DGAP-News

windeln.de AG: windeln.de Continues Growth in the First Quarter - China Impacts Outlook

DGAP-News: windeln.de AG / Key word(s): Quarterly / Interim Statement
windeln.de AG: windeln.de Continues Growth in the First Quarter - China
Impacts Outlook

24.05.2016 / 07:00
The issuer is solely responsible for the content of this announcement.

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windeln.de Continues Growth in the First Quarter - China Impacts Outlook

- Revenues grow by 46% year over year in the first quarter; number of
active customers increases to more than one million

- Adjusted EBIT margin of -14.8% influenced by lower growth rates in
China and one-time effects

- Slower growth after regulatory changes in China weighs on full-year
outlook


Munich, Germany, May 24, 2016. windeln.de AG, Europe's leading online
retailer for baby, toddler and children's products, achieved EUR 52.1
million in revenues compared to the same quarter of 2015, a 46% increase.
Strong growth in Europe, particularly from the further business expansion
in markets outside Germany, contrasted with lower growth rates growth in
China. The number of active customers increased to more than one million in
the first quarter, and also the number of orders rose in comparison to the
fourth quarter.

At EUR 12.2 million, the European business outside Germany (International
Shops), which was emphasized through the acquisitions of feedo and bebitus
and the launch of the Italian online shop pannolini.it in the previous
year, made a large contribution with a share of around 21% of total
revenues in the first quarter. At EUR 34.8 million, the German Shop,
through which Chinese business is also handled, recorded an increase of 13%
over the same quarter of 2015. The Shopping Clubs (nakiki.de and nakiki.it)
saw revenues rise by 43% to EUR 5.1 million. Revenues in the German-
speaking region (DACH) grew by 25% year over year.

Adjusted EBIT margin below prior year as expected

Gross profit improved to EUR 14.9 million (prior year: EUR 9.1 million)
resulting in a gross margin of 28.6% (prior year: 25.6%) showing the
continuous increase in gross margin. As expected, the adjusted EBIT margin
of -14.8% was lower than in the previous year (prior year: -3.6%). This was
mainly due to lower growth for the Chinese business in the first quarter
(+11% compared to prior year), the consolidation of feedo, bebitus and
pannolini.it which were not yet consolidated in the previous year, internal
and external costs in connection with introducing the new ERP system and
costs related to relocating the bebitus warehouse in Spain.

New import regulation results in consumer reluctance in China

Despite good growth in the first quarter, windeln.de has adjusted the