BIKE24 Begins 2024 with Significantly Improved Profitability

BIKE24, a leading bike e-commerce platform in Germany, has entered 2024 with a strategic focus on enhancing profitability. Despite an 11% decrease in sales during the first quarter, dropping to EUR 49.3 million from EUR 55.3 million in Q1 2023, the company has achieved notable improvements in gross profit and EBITDA.

Key Financial Highlights

• Sales: EUR 49.3 million in Q1 2024, down 11% year-on-year.
• Adjusted EBITDA: Improved to EUR -1.5 million from EUR -2.6 million in Q1 2023.
• Gross Profit: Increased by 4%, with a gross margin of 25.1% compared to 21.6% in Q1 2023.
• Localized Market Growth: Belgium, the Netherlands, and Luxembourg saw average sales growth of 95%.

Strategic Market Insights

BIKE24’s decision to reduce promotional activities positively impacted profitability. Despite lower overall sales, the company saw improved gross margins and higher end-market prices, particularly in parts, accessories, and clothing (PAC segment).

Regional Performance

The DACH region remained BIKE24’s largest market, contributing 65% of sales at EUR 32.0 million. Sales of full bikes increased by 2%, now accounting for 19% of total sales. The newly localized markets of Belgium, the Netherlands, and Luxembourg achieved impressive growth, with Belgium and the Netherlands outperforming expectations.

Inventory and Cash Management

Inventories remained stable at EUR 71.0 million as of March 31, 2024, despite seasonal merchandise buildup. Cash and cash equivalents also held steady at EUR 18.3 million. CFO Timm Armbrust emphasized the company’s cautious liquidity management, ensuring flexibility to reorder products as demand rises.

Positive Outlook for 2024

CEO Andrés Martin-Birner expressed satisfaction with the start of 2024, noting significant improvements in profitability across most product segments. He highlighted the increase in end-market prices and reduced promotional activities as key factors.

Despite ongoing macroeconomic challenges, BIKE24 expects a return to growth with improved profitability in the second half of 2024. The company’s full-year forecast remains unchanged, projecting sales growth of 1% to 5% and an adjusted EBITDA margin of 0.7% to 4.2%.

Conclusion

BIKE24’s strategic focus on enhancing profitability, combined with strong performance in localized markets and stable financial management, positions the company for a positive trajectory in 2024. The company remains confident in its ability to navigate economic challenges and capitalize on market opportunities in the coming months.