DGAP-News

windeln.de AG: windeln.de Extends Growth in Europe, German Shop Segment as expected Impacted by Regulatory Changes in China and New ERP System in Second Quarter

DGAP-News: windeln.de AG / Key word(s): Half Year Results
windeln.de AG: windeln.de Extends Growth in Europe, German Shop Segment as
expected Impacted by Regulatory Changes in China and New ERP System in
Second Quarter

24.08.2016 / 07:00
The issuer is solely responsible for the content of this announcement.

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windeln.de Extends Growth in Europe, German Shop Segment as expected
Impacted by Regulatory Changes in China and New ERP System in Second
Quarter

- windeln.de grows by 35% year-on-year in first half of the year

- As announced earlier, second-quarter earnings impacted by regulatory
changes in China and migration of ERP system; adjusted EBIT margin of
-15.3% in first half of the year

- Following discontinuation of the shopping clubs business, "nakiki" to
become an online platform for products for children up to the age of
eight years old

Munich, Germany, August 24, 2016. windeln.de AG, Europe's leading online
retailer for baby and children's products, grew by 35% year-on-year in the
first half of the year, with revenues of EUR 101.6 million. Revenues from
continuing operations (not including the Shopping Clubs segment) likewise
increased by 35% to EUR 91.9 million.

In particular, windeln.de experienced strong growth in other European
countries in the first half of the year. With revenues of EUR 26.0 million,
the International Shops segment consisting of feedo, bebitus, pannolini and
windeln.ch already accounted for approximately a quarter of total revenues
in the first six months of the year. "We are engaged in very attractive
markets in Eastern and Southern Europe with very strong further growth
prospects," says Alexander Brand, co-founder and board member of
windeln.de. "The set of measures that we announced in July supports our
strategy of sustainable company growth and increasing profitability. Our
foreign subsidiaries play an important role in that regard."

The German Shop segment, which also handles business to Chinese customers,
recorded revenues of EUR 66.0 million in the first half of the year; this
amounts to year-on-year growth of 2%. While business in Germany increased
slightly, Chinese customers' concerns regarding changes in import
regulations in the second quarter led to declining sales. Revenues in China
in the first six months remained relatively unchanged year-on-year. This is
in line with the expectations communicated in May. Some of the new import
regulations were subsequently already suspended in June. In order to also
meet local demand in China in the future, windeln.de launched its own
windeln.de shop on the Tmall platform operated by Alibaba early August.