windeln.de announces preliminary figures for fiscal year 2021

• Revenues of EUR 52.1 million (FY 2020: EUR 76.1 million) and adjusted EBIT of EUR -9.4 million (FY 2020: EUR -8.6 million)
• Adjusted EBIT break-even at group level forecast for 2023
• Publication of annual report on April 29, 2022
• Implementation of ordinary capital increase with subscription rights resolved

Munich, March 28, 2022
windeln.de SE ("windeln.de", "Group" or "Company"; ISIN DE000WNDL300 and DE000WNDL318) announces on the basis of preliminary, unaudited figures that consolidated revenues for continuing operations decreased from EUR 76.1 million in 2020 to EUR 52.1 million in 2021. This corresponds to a year-on-year decline in sales of -32%, mainly due to ongoing one-off effects. According to preliminary figures, adjusted EBIT decreased to EUR -9.4 million in 2021 (-18.1% as a percentage of sales) compared to EUR -8.6 million in the full year 2020 (-11.3% as a percentage of sales). Net working capital developed positively and was reduced by EUR 1.2 million to EUR 1.0 million in the reporting period.

Based on preliminary unaudited financial figures, revenue in China decreased by EUR 18.2 million or 32% to EUR 37.9 million (2020: EUR 56.0 million). The decline in revenue is due in particular to the lack of availability of certain products as a result of one-time special effects. For example, the relocation of the Group's main warehouse between March and May 2021 resulted in a restriction of direct deliveries to China. In the second and third quarters, there were again supply shortages due to liquidity-saving measures and an associated reduction in inventory levels in Chinese warehouses until the successful implementation of the capital increase in the third quarter. In addition, due to a lack of air freight capacity, duty-paid shipments from Germany to China had to be discontinued in August. In the traditionally high-growth fourth quarter, a change in the formulation of a product from a key supplier led to supply shortages, limited availability of certain goods, and thus to another significantly low purchasing volume. Taken together, these factors had a significant negative impact on sales performance in the reporting period.

In the Europe segment, revenue from continuing operations decreased by EUR 5.8 million or 29% to EUR 14.2 million (2020: EUR 20.0 million) according to the preliminary, unaudited business figures. The development in Europe is also attributable to the relocation of the Group's main warehouse and the resulting delivery difficulties. In addition, the positive effects on order intake and sales caused by the pandemic in 2020 failed to materialize in the past reporting year. At the end of the fourth quarter of 2021, the loss-making Southern European Bebitus business was discontinued after a sale was no longer feasible.

Matthias Peuckert, CEO and Chairman of the Management Board, states: "Overall, we are not satisfied with the business results achieved in an extremely challenging fiscal year 2021, and we fell short of our expectations. On a positive note, we were able to make further progress with the measures introduced to sustainably reduce costs and increase sales, even if these are not yet directly reflected in the results for the past reporting year. We were able to implement important liquidity-saving measures in the logistics area through the relocation of the main warehouse and achieve significant reductions in personnel and material costs in fiscal year 2021. We are also focusing on differentiated marketing activities in order to expand the existing target group sustainably and in the long term. For example, we have implemented our own WeChat Mini program, and we were also able to hold our own on the newly opened JD.com platform in 2021. Furthermore, we are focused on securing solid financing for the Company. The response so far in the capital increase makes us confident that we are on the right track with the strategic direction of the Company."

For the current fiscal year 2022, the Management Board expects very strong revenue growth and a significant improvement in operating contribution margin as a % of revenues. The Group is targeting improved adjusted EBIT as a % of revenues in 2022. In view of the disruptions to global supply chains and geopolitical tensions, there is currently a great deal of uncertainty both for the economy as a whole and for the business activities of windeln.de SE itself. Based on the current state of affairs, the Management Board expects that the break-even point on the basis of adjusted EBIT will be reached for the first time in 2023. A cash outflow from operating activities in the mid-single-digit million range is planned for fiscal year 2022.

To ensure the Company's solvency in the current fiscal year, the Company today resolved to implement the ordinary capital increase with subscription rights resolved by the Extraordinary General Meeting on January 28, 2022. The share capital is to be increased against cash contributions from EUR 5,522,495.00 by up to EUR 6,730,769.00 to up to EUR 12,253,264.00 by issuing up to 6,730,769 new no-par value bearer shares with a pro-rata amount of the share capital of EUR 1.00 per no-par value share. The subscription price was set at EUR 1.04 per new share, so that the maximum gross proceeds of the capital measure amount to up to approximately EUR 7.0 million. The new shares will carry dividend rights from January 1, 2021. Two investors have entered into commitment agreements with the Company regarding the acquisition of new shares as part of the capital increase, covering a volume of EUR 5.5 million. Quirin Privatbank AG is accompanying the capital increase as issuing bank.

The Company further decided to postpone the date for publishing the results of fiscal year 2021 to April 29, 2022. Background of this decision are pending discussions with the Company's auditor regarding evidence for the assumption of a going concern in the annual financial statements and consolidated financial statements for fiscal year 2021. The Company expects that these discussions can be concluded by the new publication date after implementation of the capital increase and that the auditor will then issue the audit opinion.

 

Corporate Communications

Isabelle Trautmann
Phone: +49 611 2058 55 - 43
Email: investor.relations@windeln.de

About windeln.de

windeln.de is one of the leading online retailers for family products in the German-speaking region. In addition, the company operates a successful e-commerce business with baby and toddler products for customers in China. The broad product range extends from diapers and baby food to children's furniture, toys and clothing, as well as strollers and child car seats. windeln.de was founded in 2010 and has been listed in the Prime Standard of the Frankfurt Stock Exchange since May 6, 2015. For more information, visit https://corporate.windeln.de/.

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