BIKE24 continues growth path in fiscal year 2022 – international markets and full-bike sales are pillars of success

BIKE24 continues growth path in fiscal year 2022 – international markets and full-bike sales are pillars of success

• Group sales grew by 4.5 percent to EUR 261.5 million (2021: EUR 250.2 million), adjusted EBITDA margin reaches 3.7 percent
• Localized markets Spain, France and Italy record above-average sales growth of more than 160 percent
• Strong development in full-bike sales with an increase of almost 40 percent
• Number of active customers grew by more than 16 percent to 954 thousand (2021: 821 thousand)
• Guidance for 2023: Sales growth of 0 to +10 percent and positive adjusted EBITDA margin of 0 to 3.5 percent despite continuing economic uncertainty

Dresden, March 30, 2023. The consistent implementation of BIKE24’s internationalization strategy is paying off in economically difficult times. The e-commerce platform for everything around cycling, which is one of the European market leaders, achieved revenue growth of +163 percent in the three localized markets Spain, France and Italy during 2022. Overall, group revenues rose by +4.5 percent to EUR 261.5 million in a year characterized by challenges, coming in at the upper end of the updated guidance corridor. In addition to the international markets, full-bike sales also developed very positively and contributed 13 percent to Group revenue (2021: 10 percent).

"Despite the depressed consumer sentiment that affected many retailers - online and offline - we were able to achieve a satisfactory result. In particular, the second half of the year brought us another significant increase," reports Andrés Martin-Birner, co-founder and CEO of BIKE24. "With the launch of three additional localized online stores in the Benelux region in February of this year, we are now even more broadly positioned. This makes us less dependent on developments in individual markets."

After Spain, where BIKE24 has been active with a localized online store since 2020, the company launched online stores in France and Italy at the beginning of 2022. In total, the e-commerce platform generated sales of EUR 28.3 million in the three countries during 2022, an increase of +163 percent. The strongest growth market was France, where sales rose by +279 percent to EUR 12.3 million. Since the end of last year, the southern European markets have been successively supplied from the new logistics center in Barcelona.

Full-bike sales also developed very positively during 2022. Supply chains challenges eased quicker than expected in this segment, allowing BIKE24 to draw on a well-stocked warehouse once again. This contributed to the company's +38 percent increase in sales of traditional bikes and e-bikes. The share of full-bike sales as a percentage of total sales increased by 3 percentage points to 13 percent. The PAC-segment with parts, accessories and apparel again accounted for the largest share of sales at 87 percent (2021: 90 percent).

Overall results remain robust

In an economically challenging environment, BIKE24's group revenues increased by 4.5 percent to EUR 261.5 million in fiscal year 2022 (2021: EUR 250.2 million), with an adj. EBITDA margin of 3.7 percent (2021: 12.2 percent). BIKE24 thus reached the upper end of the updated guidance corridor of -5 to +5 percent revenue growth. The DACH region once again proved to be the largest market with a 66 percent share of sales or EUR 171.6 million (2021: EUR 170.2 million). The company divides its international markets into three segments: The countries with localized online stores Spain, France and Italy accounted for 11 percent of sales, other European markets for 16 percent and the rest of the world (since 2021 including the UK) for 7 percent.

The significant increase in the number of active customers also had a positive impact on sales, growing by +16.2 percent to 954 thousand in the reporting period (2021: 821 thousand). While the average shopping cart increased by +1.6 percent to EUR 143 (2021: EUR 140), there was a slight decline in order frequency per customer, with an average of 1.9 orders per year (2021: 2.2 orders). 70.5 percent of orders came from returning customers (2021: 74.8%).

"Our customer base has grown strongly in recent months, especially due to a significant increase in new customers in Southern Europe. This shows that we are filling a gap internationally with our product portfolio," explains Timm Armbrust, CFO at BIKE24. "Our new logistics center in Barcelona is in the ramp-up phase and enables us to supply our customers in Southern Europe even faster. By localizing our offering in Belgium, the Netherlands and Luxembourg, we are addressing one of the most bike-savvy target groups in Europe: We expect significant growth thanks to the precisely tailored approach to customers in these markets as well."

Cycling megatrends remain intact

The positive development in demand for bicycles and related accessories is continuing in the long-term despite the uncertain economic situation. Megatrends such as the mobility transition, high fuel prices and the desire for more exercise in everyday life continue to drive the popularity of traditional bikes and e-bikes. However, BIKE24 as well as the German Cycling Association do not expect the overstock-situation to ease for the industry until the second half of 2023.

For the 2023 financial year, BIKE24's management expects revenue growth of between 0 and +10 percent year-on-year, accompanied by a positive adjusted EBITDA margin of 0 to 3.5 percent. In line with the forecasted industry trend, a significantly stronger development is expected for both revenue and margins in the second half of the year.
 

The full annual report including the consolidated financial statements can be found here:

https://ir.bike24.com/websites/bike24/English/3000/publications.html#annual

BIKE24's FY 2022 earnings call will take place today at 3pm CEST. The presentation will be available from 1pm. The following participation options are available:

Webcast: https://www.c-meeting.com/web3/join/M83CVPWDCR7BJD

Phone: Dial-in possible after registration via link.