Rocket: Selected Companies Achieved Further Growth

Berlin / DE. (riag) Rocket Internet SE in FY 2018 reported EUR 45 million of consolidated revenue and a consolidated profit of EUR 196 million, resulting in EUR 1.28 earnings per share (EUR 0.01 earnings per share in FY 2017). As of February 28, 2019, Rocket Internet had a strong available net cash position of EUR 2.0 billion.

The selected companies achieved further revenue growth and overall margin improvement in FY 2018 versus FY 2017. HelloFresh, the leading meal kit company, reported strong year on year revenue growth of 41 percent to EUR 1.3 billion in FY 2018. The adjusted Ebitda margin improved from -8 percent in FY 2017 to -4 percent in FY 2018. In the fourth quarter of 2018, HelloFresh delivered positive adjusted Ebitda in each of its segments and for the group, excluding acquisitions and new ventures. The International segment already delivered positive adjusted Ebitda for the full FY 2018 with EUR 15 million, which corresponds to a margin of 3 percent.

Global Fashion Group, the leading online fashion and lifestyle destination in growth markets, grew group revenue to EUR 1.2 billion in FY 2018, which represents a year on year growth of 19 percent on a constant currency pro-forma basis and 6 percent on Euro basis, due to FX headwinds in several regions. The adjusted Ebitda margin in FY 2018 improved to -4 percent (-9 percent in FY 2017). Net Orders in the period increased by 22 percent compared to the prior year. Active customers increased by 15 percent and Net Merchandise Value on a constant currency basis by 23 percent year on year.

Jumia, the leading pan-African e-commerce platform, grew GMV to EUR 828 million in FY 2018, a 63 percent increase over FY 2017. Jumia’s number of active consumers reached 4.0 million at year-end 2018, compared to 2.7 million active consumers a year prior.

Online Home + Living company Westwing increased revenue by 16 percent year on year to EUR 254 million in FY 2018 and with a 1 percent adjusted Ebitda margin is the first of the selected companies that was marginally profitable for an entire fiscal year. A strong contributor to the financial results was the DACH segment, with 36 percent revenue growth and 4 percent adjusted Ebitda margin in FY 2018.

Home24 grew revenue by 13 percent to EUR 313 million in FY 2018 versus FY 2017. The adjusted Ebitda margin in 2018 decreased from -8 percent in FY 2017 to -13 percent in FY 2018, mainly due to lower than expected operating leverage caused by the weak demand in Europe during April to October 2018 and key investment ramp-up. Brazil was the first region to be profitable on an adjusted Ebitda margin basis for the full year 2018, at approximately 1 percent, on the back of significant growth.

Oliver Samwer, founder and CEO Rocket Internet commented: «2018 has been a year of continuation of the Rocket Internet core strategy. We have incubated new companies as well as invested in new and existing network companies. Four of our selected companies are now publicly listed and have raised funding in capital markets while continuing to grow and overall improve margins.»

For an overview of the detailed FY 2018 Rocket Internet results, please reference the annual report and for the selected companies their respective disclosure.