EQS-News

Westwing ended 2023 with continued profitable growth in Q4 and started well into 2024. Topline outlook remains cautious. - Seite 2

Westwing ended 2023 with a good fourth quarter and delivered on its promises of Adjusted EBITDA profitability for the full year and return to topline growth towards the end of the year.

In the fourth quarter of 2023, Westwing generated Revenue of EUR 131 million, up 2% year-over-year (Q4 2022: EUR 128 million) at 4.5% Adjusted EBITDA margin (EUR 6 million). Group Gross Merchandise Value (GMV) grew 4% in Q4 2023 compared to previous Q4. This growth was based on an increased average GMV per Active Customer, which was up 4% year-over-year. In addition, Westwing continued to grow its number of Active Customers for the second consecutive time quarter-over-quarter, to 1.3 million. The return to growth in 2023 despite the challenging macroeconomic environment marked a turnaround for the business and proved its commercial model.

In the full year 2023, the Company generated Revenue of EUR 429 million, slightly below previous year’s level (FY 2022: EUR 431 million). Given that core markets showed a significant decline in Home & Living online consumer demand, Westwing was able to realise market share gains in 2023.

With regards to profitability, Westwing reported EUR 18 million of Adjusted EBITDA in the full year 2023 (FY 2022: EUR -4 million), corresponding to an Adjusted EBITDA margin of 4.1%. This was driven by Adjusted EBITDA profitability in every quarter of 2023, leading to an Adjusted EBITDA in the upper half of the updated (increased) FY 2023 guidance (Updated FY 2023 guidance: Adjusted EBITDA of EUR 13 million to EUR 19 million). This was achieved by delivering on the promised cost savings as well as improved margins, which allowed the Company to invest into its brand awareness at the same time.

The strong improvements in Adjusted EBITDA and in Net Working Capital led to a positive Free Cash Flow of EUR 30 million in 2023, up EUR 48 million compared to 2022. Westwing ended the year with a Net Cash balance of EUR 82 million.

The financial results were driven by significant progress in all strategic initiatives. The high-margin Westwing Collection continued its upward trajectory and reached an all-time high of 47% of overall GMV in 2023, a 6 percentage points increase year-over-year (FY 2022: 41%), and is well on track to reach the 50%+ strategic target share of Group GMV. Westwing successfully rolled out the “OneWestwing” commercial model to all countries, merging the permanent Shop offering and Club Sales onto one web domain and one app. In addition, Westwing improved its Marketing with the launch of a refreshed premium corporate identity, investments into brand awareness with a “Westwing - Live Beautiful” campaign and optimisation of the full-funnel Marketing approach.