home24 reports positive adjusted EBITDA in Q2 and continues to deliver on key strategic projects and strengthening profitability

• Despite the negative consumer environment, home24 reached revenues of EUR 152 million in Q2 (-9% year-on-year, -12% in constant currency). Thus, revenues are still significantly above the level of Q2 2019 with +86%.
• In the first half of the year, revenues amounted to EUR 292 million (-10%, -13% in constant currency).
• Adjusted EBITDA margin for Q2 2022 at +1% is positive in contrast to market trends, in H1 it is -2%.
• Butlers integration is progressing successfully.
• Launch of a curated marketplace on home24 website increases sales potential without tying up additional capital.
• Customer loyalty program "homeClub" for home24 and Butlers successfully launched.
• More precise sales guidance for FY 2022: sales growth (in constant currency) of -7% to +3% expected; EBITDA guidance confirmed (adjusted EBITDA margin of +1% to +5%).

BERLIN, AUGUST 16, 2022 - As previously signaled, home24 SE ("home24", "the Company") improved both its revenue and earnings figures in the second quarter of 2022 compared to the first quarter of 2022. Despite the continued extremely negative consumer sentiment in the home24 geographies and rising inflation rates, the company generated revenues of EUR 151.9 million in the second quarter of 2022. This represents a 12% decline in sales at constant currency, compared to the strong sales growth of +41% in Q2 2021. In Europe, revenues amounted to 122.8 million euros (-11.2% in constant currency compared to Q2 2021), while in Latin America the company achieved 29.2 million euros (-14.2% in constant currency compared to Q2 2021). In Q2 financials include Butlers for the first time post closing on April 1, 2022.

For the first half of 2022, revenues totaled EUR 292.1 million (-13% at constant currency compared to Q2 2021). The Europe segment contributed revenues of EUR 236.3 million (-13% compared to Q2 2021) and Latin America EUR 55.8 million (-11% at constant currency compared to Q2 2021).

The adjusted EBITDA margin was  positive in the second quarter at +1%, in contrast to market trends. For the first half of the year, the figure was -2%. Driven by strict cost management, flexible marketing expenses and positive earnings contributions from Butlers, home24 expects a further margin improvement during the course of the year.

The curated marketplace launched in June 2022 will also provide further momentum. By adding the offerings of third-party vendors, home24 is expanding its range to around 250,000 items without building up additional inventory. Both the added marketplace and Butlers' offerings primarily feature accessories and smaller-scale items that make home24 less dependent on the large furniture segment, increase purchase frequency and strengthen customer loyalty. The recently launched "homeClub," a loyalty program for home24 and Butlers customers, also serves this goal.

"We achieved our profitability target in the second quarter - despite a year-on-year decline in sales. We managed this primarily through disciplined steering and adjusted marketing expenses, as even without the acquisition of Butlers our European business would have been adjusted EBITDA positive. In view of the continuing negative consumer sentiment in all our major markets, we remain focused  on the strategic initiatives that we can control ourselves: We are continuing the integration of Butlers step by step and engaging our customers online and offline with offers for their homes that require lower spending. In addition, we are continuing to drive forward the expansion of the marketplace, which started off quite promisingly. At the same time, we are constantly improving the digital shopping experience and our service offering. This further strengthens our positioning as a reliable provider offering fast delivery times and attractive value for money, especially for our own brands," comments CEO Marc Appelhoff.

The long-term trend of a growing market share of online furniture retail compared to stationery retail remains intact in home24's view, even if it is currently overshadowed by the macroeconomic environment. This is also reflected in the company's strong long-term growth: over the past three years, sales have grown by c. 86% in constant currency from Q2 2019 to Q2 2022.

The outlook for the full year 2022 is specified by home24 to now currency-adjusted revenue growth of -7% to +3%. Adjusted EBITDA margin is still expected to be in the range of +1% to +5% due to disciplined marketing management and forward-looking cost management. 

KEY FIGURES AT A GLANCE

ABOUT HOME24

home24 is a leading pure-play home & living e-commerce platform in Continental Europe and Brazil. With over 250,000 home & living products in Europe and more than 200,000 articles in Latin America, home24 offers a unique selection of large and small furniture pieces, garden furniture, mattresses and lighting. This curated, broad assortment offers a significant value-for-money value proposition to customers. home24 is headquartered in Berlin and employs around 3,000 people worldwide. The Company is active in seven European markets: Germany, France, Austria, the Netherlands, Switzerland, Belgium and Italy. home24 is also active in Brazil under the Mobly brand. The group also includes the lifestyle brand Butlers with 100 stores in the DACH region and additional 25 in the rest of Europe. home24’s product range consists of numerous brands, including a large number of private labels. home24 is listed on the Frankfurt Stock Exchange (ISIN DE000A14KEB5). Mobly’s stock is traded on the Brazilian Novo Mercado of B3 (ISIN BRMBLYACNOR5). For more information, please visit the Company’s website at www.home24.com.

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Legal Disclaimer:

This publication contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the Company’s management. Forward-looking statements contain no guarantee for the occurrence of future results and developments and are associated with known and unknown risks and uncertainties. Due to various factors, actual future results, developments and events may differ materially from those described in these statements; neither the Company nor any other person accepts any responsibility whatsoever for the accuracy of the opinions or underlying assumptions contained in this publication. The Company assumes no obligation to update the forward-looking statements contained in this publication.