DGAP-News

windeln.de SE: windeln.de posts 21% revenue growth in fiscal year 2016; Q4 improved - Seite 2

"The regulatory change in China and the introduction of a new ERP system made 2016 a difficult financial year for us. We are therefore not satisfied with 2016. However, the positive developments in the second half of 2016 show us that we are on the right track to improving our customers' shopping experience, to continually increasing our revenues and to creating efficient cost structures," explains Alexander Brand, co-founder and Management Board member of windeln.de.

Implemented strategic and operational measures already taking some effect

The company is making good progress implementing the measures defined by the STAR program to promote revenues growth and improve profitability. Significant steps taken in fiscal year 2016 include opening the Tmall global shop, discontinuing the Shopping Clubs segment, relaunching Nakiki as ready-to-ship online shop and outsourcing customer service. At the same time, the measures implemented, such as the reduction of the number of brands, had an impact on sales. The gross profit margin in the fourth quarter of 23.6% was lower due to Christmas business promotions in China and costs associated with a purchasing project. Gross profit from sales of the continuing divisions rose by 22% from the previous year to EUR 51.8 million. The gross profit margin of 26.6% saw a slight rise over the previous year's figure of 26.5% despite full consolidation of the acquired feedo and bebitus business with yet lower gross margins.

Adjusted EBIT of EUR -26.7 million for continuing operations (2015: EUR -9.3 million) reflected European expansion, the regulatory change in China and the introduction of the new ERP system. The adjusted EBIT margin amounted to -13.7%. The adjusted EBIT margin in the fourth quarter managed to improve on the three preceding quarters to -12.9%. This was achieved by lower fulfilment costs, lower marketing and lower other SG&A costs as percentage of revenues.

Konstantin Urban, co-founder and management board member of windeln.de, explains: "We achieved important milestones in the further development of windeln.de in 2016. Discontinuing our Shopping Club business and focusing on our business model is now behind us. With the relaunch of Nakiki as online shop, we were able to expand our target audience to families with older children through select products, especially in the areas of children's clothes and toys." One-time expenses of around EUR 2 million in connection with discontinuing the Shopping Club were in the realm of expectation.