BIKE24 starts into 2024 with significantly improved profitability

BIKE24 starts into 2024 with significantly improved profitability

• Sales of EUR 49.3 million in the first quarter (-11% compared to Q1 2023), adjusted EBITDA at EUR -1.5 million (Q1 2023: EUR -2.6 million) 
• Gross profit increased by 4% despite lower sales (gross margin: 25.1% compared to 21.6% in Q1 2023)
• Growth in the localized markets Belgium, the Netherlands and Luxembourg remains strong with average sales growth of 95%
• Return to growth with improved profitability expected for the second half of 2024
• Forecast for the full year confirmed: Sales growth of between 1% and 5% and adjusted EBITDA margin of 0.7% to 4.2%

Dresden, May 2, 2024. BIKE24 started into a challenging year 2024 as expected. In a persistently uncertain economic environment, the bike e-commerce platform recorded a 11% sales decline in the first quarter to EUR 49.3 million after EUR 55.3 million in the previous year quarter. This was due to a significant reduction in promotional activities compared to the previous year, which in turn had a positive impact on profitability. Management is therefore confirming its forecast for the full year 2024 with sales growth of between 1% and 5% and an adjusted EBITDA margin of 0.7% to 4.2%.

"In the current macroeconomic environment, we have made a satisfactory start into 2024. We have reduced promotional activities and were thus able to significantly improve our profitability in most product segments. We are also seeing increasing end-market prices again, particularly for parts, accessories and clothing," reports Andrés Martin-Birner, co-founder and CEO of BIKE24.

Cautious consumer sentiment impacts overall sales and earnings

In the first three months of 2024, BIKE24 generated sales of EUR 49.3 million. The 11% year-on-year decline (Q1 2023: EUR 55.3 million) is primarily due to the continued subdued consumer sentiment. The DACH region remained the largest market with a 65% sales share of EUR 32.0 million (Q1 2023: EUR 35.2 million).

While sales of parts, accessories and clothing (PAC segment) fell by 13%, sales of full-bikes increased by 2% and now account for 19% of total sales (Q1 2023: 16%).

The Belgian, Dutch and Luxembourg markets localized at the beginning of 2023 recorded average growth of 95% to EUR 4.2 million, with Belgium (+115%) and the Netherlands (+104%) outperforming again. It also confirms the success of the playbook already used for the previous localizations and promises considerable growth potential for the future.

Despite lower sales, gross profit increased by 4% to EUR 12.4 million, which is attributable to improved end-market prices and fewer promotional activities. The gross margin was 25.1% compared to 21.6% in the same quarter of the previous year, an improvement of 3.6 percentage points.

Adjusted earnings before interest, taxes, depreciation and amortization (adj. EBITDA) improved by EUR 1.1 million to EUR -1.5 million in the first quarter of 2024, compared to EUR -2.6 million in the same quarter of the previous year. The adjusted EBITDA margin was therefore -3.0% (Q1 2023: -4.7%). The one-off expenses mainly relate to the costs for the extension of the syndicated loan agreement and the ongoing SAP implementation.

Inventories remained stable at EUR 71.0 million as at March 31, 2024, compared to EUR 71.3 million as at December 31, 2023, despite the build-up of seasonal merchandise which usually happens during the first quarter. The company's forward-looking procurement policy had a positive effect on cash and cash equivalents, which also remained stable at EUR 18.3 million as at March 31, 2024 compared to December 31, 2023 (EUR 18.4 million).

"As previously already communicated, we are acting very cautiously about our liquidity management. Although inventories were replenished with seasonal goods during the first quarter, we have managed to keep our cash and cash equivalents stable. This allows us to continue to act flexibly and to reorder selected product categories when demand picks up," explains Timm Armbrust, CFO of BIKE24.

Forecast for the full year 2024 confirmed

Despite ongoing macroeconomic challenges, the company is confident that demand will recover, particularly in the second half of 2024, alongside increased margins. The company's forecast, which assumes sales growth of between 1% and 5% and a positive adjusted EBITDA margin of 0.7% to 4.2%, remains unchanged.

BIKE24's Q1 2024 earnings call will take place today at 3:00 pm CEST. The corresponding presentation will be available on the IR website from 1:00 pm CEST. Please register via the following link:

https://montegaconnect.de/event/5a9dfa1w3sysmx4n4257vb6acft19945
 

Press Relations:
Olga de Gast
E-Mail: presse@bike24.net
+49 151 2705 3924

Investor Relations:
Moritz Verleger
E-Mail: ir@bike24.net
+49 151 2414 0166

About BIKE24

BIKE24 is one of the leading e-commerce cycling platforms in continental Europe. Focusing on the premium segment, the online retailer is the one-stop shop for the fast-growing community of bike enthusiasts, promoting green mobility. Founded in 2002, it has become a leading e-commerce company in continental Europe and a global player in this fast-growing market. Led by CEO and co-founder Andrés Martin-Birner, the online store now offers customers 77,000 items from more than 800 brands. This gives BIKE24 the broadest range of branded products in the market in continental Europe. The online bike platform has a presence 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.

Notes

Certain statements contained in this release may constitute forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," or "aim," or the negative of these words or other variations of these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that, by their nature, are subject to significant risks and uncertainties and contingencies that are subject to change. The Company does not and will not give any assurance that any forward-looking statement will be achieved or will prove to be accurate. Actual future business, financial condition, results of operations and prospects may differ materially from those projected or anticipated in the forward-looking statements. Subject to applicable legal requirements, neither the Company nor any other person intends to update, review, or revise any forward-looking statements in this release to reflect actual events or developments, whether as a result of new information becoming available, new developments occurring in the future or otherwise, nor does it undertake any such obligation.