Q3 2024 Westwing Group SE Earnings Call Transcript
Key Points
- Westwing Group SE (XTER:WEW) achieved a 3% revenue growth and a 2% GMV growth in Q3 2024, outperforming the declining German online market by 9% to 11% points.
- The DACH segment grew 9% points faster than the German online home and living market, showcasing strong regional performance.
- The company successfully increased its Westwing Collection share to an all-time high of 58% of group GMV, supporting both top line and profitability.
- Westwing Group SE made significant progress in its technology migration to a SaaS-based platform, ahead of schedule, enhancing operational efficiency.
- The company maintained a strong net cash position of EUR63 million with no debt, providing financial stability and flexibility.
- Free cash flow was negative at minus EUR6 million in Q3 2024, primarily due to seasonal inventory increases.
- The transition to a more premium product assortment negatively impacted the top line, particularly in the international segment, with Italy and Spain experiencing declines.
- Increased container costs and pricing pressure on third-party products partially offset the positive margin effects from the Westwing Collection share increase.
- The company anticipates a stronger negative top line impact from the product assortment transition in Q4 2024.
- One-off restructuring expenses related to complexity reduction measures amounted to EUR1.2 million in Q3 2024, impacting profitability.
Good morning, everyone. And thank you for joining us for our earnings call on the third quarter of 2024.
My name is Andreas Hoerning. I'm the CEO of WestWing. I'm hosting the call together with Sebastian Westrich our CFO looking at today's agenda, I will begin by providing key updates on the business, followed by Sebastian who will be presenting the details of WestWing's financial performance.
After our investment highlight summary, we will be happy to take your questions. Let's take a look at West's current state and the key achievements in a good third quarter of 2024. We were able to increase our GMV by 2% and our revenue by 3% year over year in a still declining market. And while shifting to a mostly global and more premium product assortment.
In the DACH segment, we clearly outperformed the market. Our top line grew 9% points faster than German online home and living adjusted EBITDA amounted to EUR4 million or 4% of revenue. This result was driven by an improved contribution
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