EQS-News: Bike24 Holding AG: Revenue and earnings growth continue in the third quarter

Bike24 Holding AG: Revenue and earnings growth continue in the third quarter

 

• Robust profitability: adjusted operating profit of +2.5 million euros
• Growth in all key European markets: Sales up 3% in the DACH region, 6% on average in the localised markets and 13% in the rest of Europe
• Increase in full-bike sales to a new all-time high

 

Dresden, November 6, 2024 - Bike24 Holding AG, one of Europe's leading bicycle e-commerce platforms, generated an adjusted operating profit of EUR 2.5 million in the third quarter of 2024 (adjusted EBITDA margin: +4.0%) and consolidated revenue growth of 2.9% to EUR 62.9 million. This growth was driven by the positive development in all key European markets. Both the full-bikes segment and the PAC (parts, accessories, clothing) segment recorded sales growth.

Despite the ongoing macroeconomic challenges, BIKE24 remains confident about the medium and long-term megatrends in the outdoor and bicycle market, which are also reflected in the results for the third quarter.

BIKE24 reports revenue growth of +2.9% to EUR 62.9 million for the third quarter of 2024 (Q3 2023: EUR 61.1 million, 9M 2024: -1.8% to EUR 176 million). In addition to a 3% increase in sales in the DACH region, the localised markets accounted for a total of EUR 12.2 million (Q3 2023: EUR 11.5 million), corresponding to growth of +6%, which is mainly due to the above-average development in the Benelux markets. Revenue in the rest of Europe also increased again for the first time since the first quarter of 2022 by +13%. Despite ongoing challenges in the full-bike segment, revenue here rose by +6% to EUR 13.4 million, a new all-time high, thanks to the large brand portfolio and attractive price points.

The gross margin rose slightly by 0.3 percentage points to 27.5% in the third quarter (9M: 26.9% after 25.0% in the same period of the previous year) due to adjustments to the pricing strategy.

Adjusted for non-recurring effects totalling EUR 0.7 million (9M: EUR 2.7 million), which primarily relate to expenses for the SAP implementation, earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) amounted to EUR 2.5 million compared to EUR 2.4 million in the same quarter of the previous year (9M: EUR 3.7 million after EUR 0.4 million). This corresponds to an adjusted EBITDA margin of 4.0% for the third quarter (Q3 2023: 3.9%).

Inventories were reduced to EUR 67.2 million (September 2023: EUR 84.8 million) and are therefore on track to reach a comfortable level by the end of the year. Cash and cash equivalents increased to EUR 18.3 million (September 2023: EUR 16.9 million) due to disciplined cost control and a reduction in trade working capital, while the bank loan was repaid by EUR 6.0 million as planned in the first nine months of the financial year.

Timm Armbrust, CFO of BIKE24, comments: "Our concentrated focus on our core customer group of "enthusiasts" in all European markets, flanked by strict cost discipline, has once again led to good revenue and earnings results following an already successful second quarter. In a persistently difficult market environment, a sustainable return to profitability will remain our top priority in the coming quarters." 

BIKE24 therefore expects the upward trend to continue despite the challenging economic conditions and is therefore sticking to its forecast for the 2024 financial year, which envisages sales growth of between +1% and +5% and an adjusted EBITDA margin of +0.7% to +4.2%, though sales growth is likely to be at the lower end of the forecast.

BIKE24's Q3 2024 earnings call will take place today at 3 pm. The corresponding presentation will be available on the IR website from 1 pm. Please register under the following link:

https://montegaconnect.de/event/z7mzigi2n1hnhnk4022dlr1vv34t5g5u

 

Condensed consolidated P&L (adjusted view)
 

in k€	Q3 2024	Q3 2023	Delta		9M 2024	9M 2023	Delta
Revenue and other income
DACH markets	42,237	41,134	2.7%		118,535	117,262	1.1%
Localized markets	12,280	11,539	6.4%		33,968	34,603	-1.8%
Rest of EEA	6,854	6,090	12.5%		18,650	19,465	-4.2%
Rest of World	1,505	2,355	-36.1%		4,818	7,952	-39.4%
Revenue	62,876	61,118	2.9%		175,970	179,282	-1.8%
Other income	81	36	125.2%		256	111	130.7%
Total income	62,957	61,154	2.9%		176,226	179,393	-1.8%
COGS (Merchandise, consumables & supplies)	-45,668	-44,554	2.5%		-128,838	-134,600	-4.3%
Gross profit	17,289	16,600	4.1%		47,388	44,793	5.8%
Gross margin	27.5%	27.1%	+ 1.9 pp		26.9%	24.9%	+ 2.8 pp
Performance marketing costs	-656	-861	-23.8%		-2,068	-2,487	-16.9%
Selling expenses¹	-5,644	-5,406	4.4%		-15,395	-16,750	-8.1%
Personnel expenses	-6,600	-6,248	5.6%		-20,534	-19,628	4.6%
Miscellaneous expenses	-2,609	-2,254	15.7%		-8,341	-8,363	-0.3%
EBITDA	1,780	1,831	-2.8%		1,050	-2,435	-143.1%
EBITDA margin	2.8%	3.0%	+ 4.1 pp		0.6%	-1.4%	+ 3.0 pp
Adjustments	745	573	30.1%		2,685	2,837	-5.4%
Adjusted EBITDA	2,525	2,404	5.0%		3,735	403	826.8%
Adjusted EBITDA margin	4.01%	3.9%	+ 3.3 pp		2.1%	0.2%	+ 2.8 pp
Depreciation/ amortization (excl. goodwill-like items)	-1,415	-1,460	-3.1%		-5,208	-4,323	20.5%
Adjusted EBIT	1,110	943	n/a		-1,473	-3,920	n/a
Adjusted EBIT margin	1.8%	1.5%	+ 2.7 pp		-.8%	-2.2%	+1.8 pp
Amortization of goodwill-like items	-2,381	-2,484	-4.1%		-7,140	-7,453	-4.2%
Adjustments	-745	-573	30.1%		-2,685	-2,837	-5.4%
Earnings before interest and taxes (EBIT)	-2,016	-2,114	n/a		-11,298	-14,211	n/a
EBIT margin	-3.2%	-3.5%	+ 3.6 pp		-6.4%	-7.9%	+ 2.0 pp
Finance expense, net	-839	-1,090	-23.0%		-3,349	-5,174	-35.3%
Profit / (loss) before tax	-2,856	-3,204	n/a		-14,647	-19,386	n/a
Income tax income / (expense)	877	1,008	n/a		4,558	4,375	n/a
Result for the period	-1,979	-2,196	n/a		-10,089	-15,011	n/a
Rounding differences may arise.
¹Including impairment loss on trade receivables.
Customer KPIs
Active customers (LTM)	-	950,893	-		908,041	950,893	-4.5%
Number of orders	438,559	432,650	1.4%		1,232,817	1,296,379	-4.9%
Average order value	142	136	3.8%		142	137	3.%
Orders returning customers	68.2%	69.7%	-1.5%		68.3%	70.0%	-1.7%
Return rate	19.3%	17.3%	+1.5pp		17.9%	17.0%	+0.3pp

 

Press Relations:
E-Mail: presse@bike24.net

 
Investor Relations:
E-Mail: ir@bike24.net
 

 

About BIKE24

BIKE24 is one of the leading e-commerce bicycle platforms in Europe. The online retailer focussing on the premium segment is the central point of contact for the rapidly growing community of bicycle enthusiasts and thus promotes green mobility. Founded in 2002, it has quickly developed into a leading e-commerce company in continental Europe and a global player in this rapidly growing market. Under the leadership of CEO and co-founder Andrés Martin-Birner, the online shop now offers customers 77,000 items from more than 800 brands. This means that BIKE24 has the widest range of branded products in the industry in continental Europe. The online bicycle platform is already present in continental Europe with eight local online shops in Germany (bike24.de), Austria (bike24.at), Spain (bike24.es), France (bike24.fr), Italy (bike24.it), The Netherlands (bike24.nl), Belgium (bike24.be) and Luxembourg (bike24.lu). In addition, the international shop (bike24.com) supplies customers all over the world.

 

 

Forward-looking statements

This document contains forward-looking statements that relate to our future business performance and future financial performance and to future events or developments affecting Bike24 Holding AG and its subsidiaries (together "BIKE24"). These statements can be recognised by formulations such as "expect", "want", "anticipate", "intend", "plan", "believe", "aim", "estimate", "will" and "predict" or similar terms. We may also make forward-looking statements in other reports, prospectuses, presentations, documents sent to shareholders and press releases. In addition, from time to time, our representatives may make forward-looking statements verbally. Such statements are based on current expectations and certain assumptions of BIKE24 management and concern circumstances, many of which are beyond BIKE24's control. They are therefore subject to a large number of risks, uncertainties and factors which are described in publications - in particular in the chapters on the internal control and risk management system and opportunities and risks in the annual report and the corresponding chapters in the half-year financial report - but are not limited to these. If one or more of these risks or uncertainties materialise, force majeure events such as pandemics occur or underlying expectations, including future events, do not occur or occur later or assumptions are not fulfilled, the actual results, performance or achievements of BIKE24 may differ materially (either negatively or positively) from those expressed or implied in the forward-looking statements. Unless otherwise required by law, BIKE24 assumes no obligation and does not intend to update or revise these forward-looking statements in light of developments which differ from those anticipated.

 

Alternative performance indicators

In addition to the key figures prepared in accordance with IFRS, BIKE24 presents alternative performance measures, e.g. adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, free cash flow, which are not part of the accounting standards. These key figures should be seen as a supplement to, but not a substitute for, the disclosures prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or other generally accepted accounting principles. Other companies may use different definitions for these terms.