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Rocket Internet’s group firms cut losses on higher revenue

By Prachi Singh

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Management

For the first nine months of 2016, Rocket Internet said that the aggregate adjusted EBITDA margin improved significantly at all selected companies from a weighted average of -34.4 percent in the first nine months 2015 to -17.5 percent. It added that while the companies continued to grow revenues, their absolute EBITDA losses decreased by 159 million euros (169 million dollars).

“With the uplisting to the Prime Standard, and the subsequent inclusion in the German SDAX, we achieved one of our stated goals. The operating progress accomplished by our selected companies translates into continued growth and much improved margins,” said Oliver Samwer, Rocket Internet’s CEO.

Rocket Internet reports EBTDA improvement across companies

Selected companies in the core sectors including HelloFresh and Foodpanda, Global Fashion Group (GFG), Jumia and Westwing and Home24 witnessed an increase in aggregate net revenue of 30.6 percent, reaching 1.58 billion euros (1.67 billion dollars) for the first nine months. GFG net revenue increased by 26.6 percent to 706 million euros (750 million dollars), with an improved adjusted EBITDA margin of -14.1 percent.

Dafiti, GFG’s Latin American online fashion retailer, improved its adjusted EBITDA margin from -31.8 percent in the first nine months of 2015 to -7 percent in 9M 2016. Middle Eastern online fashion retailer Namshi reached breakeven, with an adjusted EBITDA margin of 2.5 percent for the period. Online home & living company Westwing also improved its adjusted EBITDA margin by 20.5 percentage points to -9.2 percent during 9M 2016.

Rocket Internet said that the group and its companies continue to be well funded, with available cash of 1.6 billion euros (1.7 billion dollars) at Rocket Internet and 1.1 billion euros (1.16 billion dollars) at the companies, as of the end of October 2016. The company said that its revenue of 40 million euros (42 million dollars) and the consolidated loss of negative 642 million euros (682 million dollars) were impacted by deconsolidation of subsidiaries and impairment related charges of associated companies, in particular related to GFG.

Picture:Facebook/Dafiti

Rocket Internet