DGAP-News

Westwing reports very strong Q3 2020 results based on a continued accel-erated shift towards eCommerce; 66% revenue growth and 11% Adj EBITDA margin - Seite 2

Driven by this growth momentum, Westwing realized very strong financial results in the third quarter of 2020. Revenue grew by 66% year-over-year to EUR 99m and the Adj EBITDA margin improved by 18%pts to 10.9% (Q3 2019 -7.1%). The improvement in profitability was driven by continued high gross margins and efficient fulfillment operations, resulting in very strong contribution margins. In addition, significant operating leverage on general & administrative costs was generated based on the recent topline development. This strong Adj EBITDA profitability has been achieved while marketing investments were at 7.8% of revenues in the third quarter 2020 (Q2 2020 5.4%). As a result of the improved profitability, Free Cash Flow was positive at EUR 7m during the seasonally weak summer quarter (Q3 2019: EUR -5m), bringing the Free Cash Flow for the first nine months in 2020 to EUR 23m
(9M 2019: EUR -30m). Subsequently, the last twelve-months Free Cash Flow margin stands at 9% and the net cash position increased to EUR 92m as of September 30, 2020 (December 31, 2019: EUR 73m).

Amid an escalating COVID-19 situation in Europe, health and safety of its customers, teams, and partners remain Westwing's number one priority. Warehouses operate at highest hygiene standards and effective distancing measures to ensure a safe delivery to customers and provide a safe work environment for Westwing's frontline workers. Furthermore, Westwing continues to proactively manage the COVID-19 related risks on the supply side and in its operations, such as minimizing the risk of a forced warehouse closure due to a COVID-19 outbreak, or mitigating risks of capacity restrictions from freight carriers due to the general online shift.

"We are extremely proud of the strong performance and results the whole Westwing team continues to deliver in these unprecedented times.", says Westwing CEO and Founder Stefan Smalla. "Our current focus is and continues to be the health and safety of our customers, employees, and partners. At the same time, we take all necessary steps and investments, in line with our long-term profitable growth strategy, to remain in a strong position during this time of accelerated home & living ecommerce adaption."