Q4 2024 Westwing Group SE Earnings Call Transcript
Key Points
- Westwing Group SE (XTER:WEW) achieved a 4% revenue growth year-over-year, reaching EUR444 million, despite a challenging market environment.
- The company delivered an adjusted EBITDA of EUR24 million, marking a 1 percentage point improvement in margin year-over-year.
- Westwing successfully implemented a SaaS-based technology platform across all countries, enhancing customer experience with a newly designed website and app.
- The Westwing Collection share grew by 8 percentage points year-over-year to 55%, contributing to higher average basket sizes and improved unit economics.
- Westwing maintained a strong net cash position of EUR69 million at the end of 2024, with no debt other than IFRS 16 lease obligations.
- The switch to a more premium product assortment negatively impacted the active customer base and top-line growth, particularly in the second half of 2024.
- The International segment experienced a 3% revenue decline in Q4 2024 due to changes in the product assortment.
- Marketing expenses increased by 2.2 percentage points in 2024, driven by continued brand marketing investments.
- The company anticipates a slightly negative to stable top-line development in 2025, with ongoing top-line losses from the premium product assortment change.
- Westwing's expansion into new countries and offline stores will incur ramp-up costs, impacting short-term profitability.
Good morning, everyone. And thank you for joining us for our earnings call on the full year 2024. My name is Andreas Hoerning. I'm the CEO of Westwing. I'm hosting the call together with Sebastian Westrich, our CFO.
Looking at today's agenda, I will begin by providing key updates on our business for 2024, after which, Sebastian will share the details of Westwing's financial performance. I will then outline the next phase of our path to full value creation, and Sebastian will present the financial implications of it, including our guidance for 2025. After our investment highlight summary, we will be happy to take your questions.
Let's take a look at Westwing's key achievements in 2024. I'm pleased to report that we managed to deliver on all our financial commitments in a challenging market. We were able to increase revenue by 4% year over year and delivered an adjusted EBITDA of EUR24 million, both at the upper end of our guidance. Free cash flow was at EUR9 million, including our restructuring
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