Rocket Internet posts rise in annual revenue and earnings

Rocket Internet SE, in FY 2018 reported 45 million euros (50.5 million dollars) of consolidated revenue and a consolidated profit of 196 million euros (220 million dollars), resulting in 1.28 euro earnings per share compared to 0.01 euro earnings per share in FY 2017.

Commenting on the company’s full year results, Oliver Samwer, Founder and CEO Rocket Internet said in a statement: “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.”

Select companies under Rocket Internet report revenue growth

The company said, selected companies under its portfolio achieved further revenue growth and overall margin improvement in FY 2018 versus FY 2017. Global Fashion Group grew group revenue to 1.2 billion euros (1.3 billion dollars), up 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 negative 4 percent against negative 9 percent in FY 2017. Net orders in the period increased by 22 percent, active customers increased by 15 percent and net merchandise value on a constant currency basis by 23 percent year on year.

Among other companies, HelloFresh reported revenue growth of 41 percent to 1.3 billion euros (1.4 billion dollars), while adjusted EBITDA margin improved from negative 8 percent in FY17 to negative 4 percent in FY18. 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.

African ecommerce platform Jumia, grew GMV to 828 million euros (930 million dollars), a 63 percent increase over FY17, while Jumia's number of active consumers reached 4 million at year-end 2018, compared to 2.7 million in the prior year.

Online home & living company Westwing increased revenue by 16 percent to 254 million euros (285 million dollars) 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 FY18.

Home24 grew revenue by 13 percent to 313 million euros (351.7 million dollars), while adjusted EBITDA margin decreased from negative 8 percent in FY17 to negative 13 percent in FY18, which the company said was 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 1 percent.

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