The online furniture retailer Westwing has published its preliminary figures for 2018. The Munich-based company reported profits for the first time in 2018.
On October 9 last year, the online furniture store Westwing went public on the Frankfurt Stock Exchange. November The Munich-based company has announced that it will be profitable for the first time in its history in 2018. Westwing appears to be able to meet this target, as the preliminary business figures show.
Strong business in Germany, Austria and Switzerland
EBITDA, or earnings before interest, taxes, depreciation, and amortization, amounted to €3 million in 2018, while sales amounted to €254 million. This results in an EBITDA margin of 1.2 percent. In 2017, sales were €220 million and EBITDA was -€4 million. The margin was -1.8 percent. Sales thus increased by 16 percent, and the EBITDA margin by 3 percentage points. Stefan Smalla, founder and CEO of Westwing, says:
"We are pleased to have grown profitably and achieved our targets in fiscal year 2018. This is thanks to both our high-growth and profitable DACH business and progress in our international markets. We will continue to focus on further enhancing the outstanding Westwing customer experience."
Westwing generated more than half of its revenue in 2018 in Germany, Austria, and Switzerland. Revenue growth there was particularly strong, at 36 percent to €133 million. The EBITDA margin in the DACH region even exceeded 4 percent.
The Italian market, however, developed negatively: Sales there had previously declined by double digits. The company therefore carried out a rebranding there at the beginning of 2018. Excluding Italy, Westwing's sales growth in the 2018 fiscal year was 24 percent.
Westwing also expects increasing sales in 2019
The company attributes its success primarily to its loyal customer base: 81 percent of orders in the 2018 financial year came from existing customers. In total, the company has around 934,000 active customers, who spent an average of €312 in 2018.
The company also expects the Delia Fischer, Stefan Smalla, Tim Schäfer, Matthias Siepe and Georg Biersack with sales growth and an adjusted Ebitda margin at the 2018 level.
