Strong double-digit growth rates in localized markets and full-bike segment but ongoing weak consumer sentiment in core markets during FY 2023

Bike24 Holding AG: Strong double-digit growth rates in localized markets and full-bike segment but ongoing weak consumer sentiment in core markets during FY 2023

• Group sales decreased by 22 percent to EUR 47 million during Q4 2023 and by 13 percent to EUR 226 million during FY 2023
• Focus on full-bike segment remains growth driver: Full-bike sales up 25 percent during FY 2023 and now accounting for 19 percent of total sales
• Localized markets grew 18 percent with Benelux outperforming (+41 percent) during FY 2023
• Adj. EBITDA margin at -1.3 percent due to exceptionally high inventory write-downs and a heavily promotional environment especially beginning of the year
• 2024 guidance: Sales growth of between 1 and 5 percent with an adj. EBITDA margin of 0.7 to 4.2 percent

Dresden, March 22, 2024. Bike24 Holding AG (BIKE24) recorded a revenue decline of 13 percent to EUR 226 million during FY 2023, a year with unprecedented challenges for the cycling industry. Double-digit growth rates for the full-bike segment as well as the localized markets could not offset the depressed consumer sentiment in the core markets DACH throughout the year. Albeit sequentially improving margins toward the end of the year, an ongoing heavily promotional environment and exceptionally high inventory write-downs resulted in an adjusted EBITDA margin of -1.3 percent for FY 2023.

“During the more than 21 years I am working in the cycling industry we have never seen challenges like this before – not only for us but for the industry as a whole. With margins being on unusually low levels, I am confident that we have reached the bottom and both demand as well as prices will recover. The positive development of full-bike sales shows that cycling remains highly popular throughout Europe and that the megatrends are still intact. We have grown every year since the foundation of BIKE24 and I am confident we will return to growth at some point”, says Andrés Martin-Birner, co-founder and CEO of BIKE24.

During FY 2023, the decline of 19 percent in the PAC (parts, accessories and clothing) segment was partly offset by strong growth of 25 percent in the full-bike segment. By geography, the Benelux markets (+41 percent) outperformed all other localized markets which recorded a combined growth of 18 percent during FY 2023. This encourages BIKE24 to continue its successful internationalization in order to provide customers throughout Europe with access to a unique product range.

The exceptionally high inventory write-downs are due to the current market situation and had a significant impact on gross margin, which came in at 24.2 percent for the full year (FY 2022: 26.3 percent). In particular, write-downs amounted to 6.5 percent of total inventory during FY 2023 versus 3.2 percent during FY 2022. This high amount is a result of heavy overcapacities across certain product categories during 2023.

In addition to the write-downs, the ongoing and proactive realignment of the procurement policy led to an inventory decrease of 15 percent to EUR 71.3 million versus December 2022 (EUR 84.3 million) as well as a decrease of 16 percent versus September 2023 (EUR 84.8 million) and thus reached a comfortable level by the end of the year. Cash and cash equivalents decreased 18 percent to EUR 18.4 million versus December 2022 (EUR 22.4 million) but increased 9 percent versus September 2023 (EUR 16.9 million) due to disciplined cost control and effective reduction of overcapacities in certain product categories.

Given a significant deterioration of market conditions in 2023 and ultimately an expected negative impact on BIKE24’s future cash flows, the company decided to record a full impairment of EUR 56.8 million on goodwill to account for the new environment.

On March 15, 2024, the existing loan agreement was extended again until April 30, 2025 at slightly modified conditions. The interest margin was left largely unchanged. The initial interest rate is 6.75 percent plus Euribor and will be reviewed for the first time on March 31, 2024 based on the net gearing ratio for the first quarter then ended.

For the financial year 2024, the management of BIKE24 expects revenue growth of between 1 and 5 percent compared to the previous year, with a positive adjusted EBITDA margin of between 0.7 to 4.2 percent. In line with the forecasted industry trend, a significantly stronger development in both revenue and margin is expected for the second half of the year.

The full annual report including the consolidated financial statements can be found here:

https://ir.bike24.com/websites/bike24/English/3000/publications.html

Today at 3:00 pm CET the FY 2023 Earnings Call of BIKE24 will take place. The following participation option is available:

https://montegaconnect.de/event/6cid4e8ikcru8eirb1a3r5n2ylnvn4q8
 

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.