Rocket Internet SE’s (“Rocket Internet”, “the Company”) key portfolio companies have taken further significant steps towards profitability in the first half of 2016. As a result, the aggregate adjusted EBITDA margin improved from -32% in the first half of 2015 to -17% in the first half of 2016 and absolute EBITDA losses decreased by EUR 84 million.
The key companies in the core sectors Food & Groceries, Fashion, General Merchandise, and Home & Living – HelloFresh, foodpanda, Global Fashion Group (“GFG”), Jumia, Home24 and Westwing – grew aggregate net revenues on average 32% to EUR 1,043 million in H1 2016.
Highlights of the key companies’ development in the first half of 2016 include: HelloFresh, the leading global fresh meals at home provider, continued to show attractive growth with net revenue improving by 159% in H1 2016. GFG significantly improved its profitability. Dafiti, GFG’s Latin America´s online fashion retailer, improved its adjusted EBITDA margin from -37% in the first half 2015 to -9.6% in the first half 2016 and Russian online fashion company Lamoda improved its adjusted EBITDA margin from -16.2% in the first half 2015 to -6.1% in the first half 2016. Middle Eastern online fashion retailer Namshi turned profitable at adjusted EBITDA level in H1 2016. Online Home & Living company Westwing also demonstrated further progress on its path to profitability with an adjusted EBITDA margin in the first half year 2016 of -8.4% compared to -31.7% in the first half year 2015.
As announced on September 1st, 2016, special items, in particular impairments at GFG, weighed on the consolidated IFRS results of Rocket Internet in the first half of 2016. Overall, the consolidated loss for the first half of 2016 was EUR 617 million. As a result of deconsolidation effects, group revenues in the first half of 2016 decreased to EUR 29 million compared to EUR 71 million in first half of 2015.
Rocket Internet announces today that it has expanded its existing convertible buyback program. Rocket Internet may spend an additional EUR 85 million on convertible buybacks until 30 September 2017. The initial buyback program resulted in a buyback volume (nominal) of EUR 164 million as of September 20, 2016, almost completing the initially announced buyback program.
“The first half 2016 results have shown that Rocket internet´s key portfolio companies continue to progress on their path to profitability”, says Oliver Samwer, CEO of Rocket Internet. “We are on track to meet our profitability targets, with at least three of our key portfolio companies turning profitable until the end of 2017.”