DGAP-News: BIKE24 keeps growing amid challenging environment: Solid revenue and earnings performance in Q1 2022 driven by consistent execution of the European expansion strategy

BIKE24 keeps growing amid challenging environment: Solid revenue and earnings performance in Q1 2022 driven by consistent execution of the European expansion strategy

• Group revenues grow by 7% to EUR 61.8 million compared to prior year
• New localized online shops in France and Italy post a significant double-digit sales surge
• Continued strong growth in Spain again
• Number of active customers increases by 10% yoy to 835 thousand
• Full-year 2022 guidance confirmed at the lower end of range

Dresden, May 10, 2022. In a challenging environment, bicycle specialist BIKE24 successfully started into FY 2022 – both operationally and strategically. Compared to the extraordinary Q1 last year - boosted by good weather and Corona-related restrictions in physical retail - the European e-commerce platform increased its consolidated revenue by 7.3% to EUR 61.8 million over the first three months. In particular, the Group's successfully executed internationalization contributed to the growth in revenue: with their localized online shops Spain, France and Italy recorded an average increase of around 68% in business volume. As expected, earnings before interest, taxes, depreciation and amortization adjusted for special effects (adjusted EBITDA) came in at EUR 3.8 million (Q1 2021: 7.3 million).

"The substantial gains in Spain as well as in France and Italy, where we launched our localized shops in early January, are showing that our European expansion is advancing significantly," says Andrés Martin-Birner, co-founder and CEO of BIKE24. "Even in times of economic downturn, our business model is proving successful. Indeed, one reason is that rising fuel costs are prompting more people to use their bikes, further boosting sales of full-bikes, accessories and clothes. We're also pleased that, following some difficult quarters, we have been able to significantly restock our inventory with full bikes."

Q1 shows profitable growth in a challenging environment

BIKE24 generated revenues of EUR 61.8 million in the first three months of 2022. Compared to Q1 2021, this represents an increase of 7.3% (Q1 2021: EUR 57.6 million). The decline in the gross margin to 28.4% was within expectations (Q1 2021: 30.7%) given the strong demand in the comparative period, which benefited from the good weather and Corona-related restrictions in brick-and-mortar retailing combined with limited availabilities.

Substantial investments into the second management level as well as additional one-off expenses for additional temporary workers to compensate for the high level of staff absences due to the pandemic in Q1 2022 caused an increase in the personnel expense ratio by 2.0 percentage points to 10.7%. Consequently, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 3.2 million, representing a year-on-year decline of EUR 2.3 million. At the same time, however, this is also an improvement of EUR 1.7 million against the fourth quarter of 2021. Adjusted for extraordinary items totaling EUR 0.7 million, which mainly concerned non-cash expenses for employee stock option programs, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) came in at EUR 3.8 million after EUR 7.3 million last year (adjusted EBITDA margin 6.2% compared to 12.7% in Q1 2021).

Timm Armbrust, CFO of BIKE24 comments: "The geopolitical and macroeconomic environment has once again become increasingly uncertain over the past weeks. We are currently facing a variety of challenges we haven't seen for decades. All this makes it very hard to assess the effects on consumption in our market segment. However, the very positive development of our steadily growing customer base, which continued unabated in the first quarter, and the significant progress made in our localized online shops prove that our product is being well received in the European markets. Our customers' feedback is extremely positive and with our BIKE24 brand, which is easy to grasp in any language, we can quickly gain a foothold there."

Growth supported by strong customer metrics

The number of active customers as of the reporting date March 31, 2022, was 835 thousand, up 10% on the prior-year closing date. The number of orders increased by 4% to 419 thousand in the period under review. Looking at a rolling twelve-month period, the average number of orders per active customer was virtually flat at 2.12 (previous year: 2.14). The average order volume per year totaled EUR 303, compared to EUR 293 a year earlier. 74.3% of orders in Q1 2022 came from returning customers (Q1 2021: 74.1%).

Full-year 2022 guidance confirmed at the lower end of range

The construction of the new fulfillment center in the Barcelona area designed to expand and streamline deliveries to Southern European customers, is progressing as planned. Due to the war in Ukraine as well as Corona restrictions in China, the economic environment remains under pressure from several different factors, such as raw material shortages and price increases, rising interest rates and supply chain interruptions. As a result of these increased uncertainties, sales and earnings for the full year 2022 are expected to be in the lower end of the guidance range (growth of 10 to 17 percent, adjusted EBITDA margin of 9 to 10 percent).

The complete quarterly report including the consolidated financial statements can be found here:

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

BIKE24's Q1 2022 earnings call for analysts and investors will take place today at 3pm CEST. The link below will take you to the live webcast of the conference:

https://www.c-meeting.com/web3/join/M83CVPWDCR7BJD

Conference language is English. The presentation will be available for download from 1pm onwards.

Unaudited condensed consolidated P&L (adjusted view)

in k€	Q1 2022	Q1 2021	Delta
Revenue and other income
DACH markets	40,392	38,554	5%
Spain (localized)	1,808	1,001	81%
Italy (localized)	957	743	29%
France (localized)	1,407	738	91%
Rest of EEA	11,686	11,806	-1%
Rest of World	5,511	4,722	17%
Revenue	61,761	57,564	7%
Other income	30	46	-35%
Total income	61,791	57,610	7%
COGS (Merchandise, consumables & supplies)	-           44,267	-           39,929	11%
Gross profit	17,524	17,682	-1%
Gross margin	28.4%	30.7%	-2.3pp
Performance marketing costs	-                619	-                142	337%
Selling expenses1	-             5,140	-             4,513	14%
Personnel expenses	-             6,595	-             5,008	32%
Miscellaneous expenses	-             1,979	-             2,504	-21%
EBITDA	3,191	5,515	-42%
EBITDA margin	5.2%	9.6%	-4.4pp
Adjustments	655	1,802	-64%
Adjusted EBITDA	3,846	7,317	-47%
Adjusted EBITDA margin	6.2%	12.7%	-6.5pp
Depreciation/ amortization (excl. goodwill-like items)	-             1,170	-                936	25%
Adjusted EBIT	2,676	6,381	-58%
Adjusted EBIT margin	4.3%	11.1%	-6.8pp
Amortization of goodwill-like items	-             2,484	-             2,484	0%
Adjustments	-                655	-             1,802	-64%
Earnings before interest and taxes (EBIT)	-                463	2,095	-122%
EBIT margin	-0.8%	3.6%	-4.4pp
Finance expense, net	-                312	-             1,102	-72%
Profit / (loss) before tax	-                776	993	-178%
Income tax expense	189	-                322	-159%
Result for the period	-                587	670	-188%

Rounding differences may arise.
1Including impairment loss on trade receivables.

Press contact:
Bettina Fries
E-mail: presse@bike24.net
+49 1722976243

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

About BIKE24
BIKE24 is one of continental Europe's leading e-commerce bike platforms. The online retailer with a focus on the premium segment is the central contact point for the fast-growing community of bicycle enthusiasts and thus promotes green mobility. Founded in Dresden in 2002 by CEO Andrés Martin-Birner, Falk Herrmann and Lars Witt, responsible for Legal & Own Brands, the company has quickly developed into one of continental Europe's leading companies as well as a globally active online retailer in this fast-growing market. The web shop offers customers 77,000 products from more than 800 brands. This gives BIKE24 the widest range of branded products in the sector in continental Europe. The online bike platform is already present with five local web shops in Germany (bike24.de), Austria (bike24.at), Spain (bike24.es), France (bike24.fr) and Italy (bike24.it) in continental Europe. In addition, the international shop (bike24.com) supplies customers all over the world.