About You Holding SE announced a positive first quarter adjusted EBITDA, reaching break-even earlier than expected. For FY 2023/2024, the company has confirmed its full-year guidance.
The group achieved an adjusted EBITDA of 4.2 million euros with a margin of 0.8 percent. Group revenue grew by 0.6 percent to 507.1 million euros.
"In Q1 2023/2024, we managed to reach break-even ahead of plan in what continues to be a challenging market environment. Early strategic and operational measures allowed us to further optimise our inventory, logistics, marketing planning, and hiring. We are now seeing the benefits of these measures as they are starting to take effect and deliver tangible results," stated Tarek Müller, co-founder and co-CEO of About You in a statement.
The group improved profitability in all three reporting segments during the quarter. In the commerce business, the adjusted EBITDA margin in the DACH segment increased to 5.2 percent with an adjusted EBITDA of 13 million euros. Revenue in DACH was up 4.1 percent to 248.8 million euros, with double-digit growth in Austria and Switzerland overall. The German market grew in the single-digit percentage range.
The rest of Europe (RoE) segment improved adjusted EBITDA to negative 12.1 million euros with an increase in the adjusted EBITDA margin to negative 5.3 percent. At 228.8 million euros, the company said, revenue reached the level of the same period last year, with diverging growth rates witnessed in the different European markets stemming from country-specific factors such as inflation, the influence of cost cutting measures, prior-year effects, and the respective markets' maturity.
The B2B segment tech, media, and enabling (TME) increased its adjusted EBITDA margin to 18.2 percent and adjusted EBITDA to 8.8 million euros. Revenue was down 3.5 percent to 48.3 million euros.
Considering the significant improvement in profitability in the first quarter, the group confirms its guidance to reach adjusted EBITDA break-even in FY 2023/2024. Furthermore, About You continues to expect revenue growth in the range of 1 percent and 11 percent year-on-year.