DGAP-News: Westwing Group AG / Key word(s): Annual Report
30.03.2021 / 08:00
The issuer is solely responsible for the content of this announcement.

Westwing reports strong 2020 results: EUR 433 million revenue at
62% growth and profitability of EUR 50 million Adj EBITDA

The fourth quarter concluded a very successful year 2020 for Westwing with revenue growing by 62% to EUR 433 million; revenue growth accelerated to 76% in the fourth quarter of 2020Strong profitability of EUR 50 million Adj EBITDA at 11.5% Adj EBITDA margin in 2020, based on Westwing's scalable business platform and strong unit economicsBased on Westwing's best-in-class cash conversion, the strong profitability resulted in EUR 40 million Free Cash Flow at 9.1% Free Cash Flow margin in 2020Q1 2021: Westwing started very strong into 2021 with expected revenue growth of c. 100% in the first quarter and an expected Adj EBITDA margin of around 14-15%Outlook 2021: Continued strong growth and profitability; revenue of EUR 510-550 million (18-27% growth) at EUR 42-55 million Adj EBITDA (8-10% Adj EBITDA margin) expected

Munich, March 30, 2020 // Westwing, the leader in inspiration-based Home & Living eCommerce in Europe, today announced the results for the financial year of 2020.

Results for 2020

Based on an accelerated Home & Living eCommerce adoption, Westwing delivered a very successful year 2020. Westwing was able to leverage the accelerated Home & Living eCommerce adoption with revenues growing by 62% to EUR 433 million in 2020 (2019: EUR 267 million). In the fourth quarter of 2020, revenue growth accelerated even further to 76% compared to the same quarter last year and led to the strongest quarter in Westwing's existence at EUR 156 million in revenue (Q4 2019: EUR 88 million). This growth was driven by both existing customers with higher repurchase rates as well as a strong new customer acquisition. As a result, the number of Active Customers having made at least one order in the past twelve months increased to 1.5 million per end of 2020 compared to 0.9 million Active Customers at the end of 2019. On another positive note, the elevated growth levels were recorded across the whole country portfolio. The DACH segment reported a revenue growth of 60% in 2020, while the International segment was growing at 64%.

Alongside this strong growth, Westwing has proven how its unique business model combines scalability, attractive contribution margins, and a uniquely efficient marketing model to generate very strong profitability. In 2020, Westwing realized an Adj EBITDA of EUR 50 million (2019: EUR -10 million) at 11.5% Adj EBITDA margin, a very strong improvement of 15.4% pts compared to the previous year. In the seasonally strongest fourth quarter, an Adj EBITDA of EUR 26 million was realized (Q4 2019: EUR 3m) corresponding to an Adj EBITDA margin of 16.5%.

Based on this strong profitability and best-in-class cash conversion, as Westwing operates with a negative net working capital and low capex ratios, Westwing was able to generate substantial positive cash flows. The Free Cash Flow for 2020 amounted to EUR 40 million (2019: EUR -22 million) resulting in a very attractive Free Cash Flow margin of 9.1% (2019: -8.3%). The net cash balance increased by EUR 32 million to EUR 105 million per end of 2020 (end of 2019: EUR 73 million).

This strong profitability and cash generation was also driven by the positive development of Westwing's strategically important Private Label business. The Private Label share increased to an all-time high of 28% in the fourth quarter (+3 percentage points year-over-year), clearly showing the path towards the strategic target of 50% Private Label share.

"2020 has been a very successful year for us in which we were able to prove how well the unique business model of Westwing is working at scale.", says Westwing CEO and Founder Stefan Smalla. "Not only did we grow strongly by 62% to EUR 433 million in revenue. We are also, in a relatively early stage for an eCommerce business, now highly profitable and cash-generating with EUR 40m of positive Free Cash Flow in 2020. I am extremely proud of the team for this incredible achievement and how it helped our customers to create beautiful homes by delivering more than 4 million orders in those unprecedented times. At the same time, Westwing is still at the beginning and last year gave us only a glimpse of the massive opportunity ahead of us. The eCommerce adoption in our Home & Living market will remain dynamic as we continue to follow our mission: To inspire and make every home a beautiful home."

Outlook for 2021

Westwing realized a very strong start into 2021, with revenue expected to grow by c. 100% in
Q1 2021 compared to Q1 2020. Also, contribution margins continue to be very healthy, resulting in an expected Adj EBITDA margin of around 14-15% for the first quarter.

For the full year 2021, Westwing expects continued strong growth and profitability, with revenues of EUR 510-550 million (18-27% growth) and EUR 42-55 million Adj EBITDA (8-10% Adj EBITDA margin).

Westwing's Annual General Meeting will take place as a virtual event on August 5, 2021.

For further information, please visit Westwing's investor relations website at: ir.westwing.com

About Westwing
Westwing is the leader in inspiration-based Home and Living eCommerce in Europe with EUR 433m of revenue in 2020. Through its 'shoppable magazine', Westwing inspires its loyal home enthusiast customers with a curated product selection and combines that with gorgeous content. With unparalleled loyalty, Westwing is generating more than 79% of orders from repeat customers. Westwing's mission is: To inspire and make every home a beautiful home. The company was founded in 2011 and is headquartered in Munich. Westwing went public on the Frankfurt Stock Exchange in October 2018 and is active in eleven European countries.

Disclaimer
Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and the Company undertakes no obligation to update or revise these statements. The Company's actual results may differ materially and adversely from any forward-looking statements discussed in this press release due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels

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