elumeo SE: elumeo increases sales and gross profit in the third quarter
elumeo increases sales and gross profit in the third quarter * elumeo back on track to growth in its core market * Development in the area of eCommerce continues to be positive * Restructuring of activities in the United Kingdom
Berlin, 17 November 2016 - elumeo SE, a leading electronic retailer of gemstone jewelry in Europe, released its results for the third quarter and for the first nine months of 2016 today.
At EUR 18.5 million, revenue in the third quarter of 2016 was significantly (25.9%) higher than in the same quarter of the previous year (Q3 2015: EUR 14.7 million), which was characterised by one-off effects. The sales figures of EUR 53.7 million for the nine-month period of 2016 are at the same level as in the previous year (EUR 54.2 million).
Revenue in the eCommerce area rose from EUR 3.1 million in Q3 2015 by 93.5% to EUR 6.0 million in Q3 2016. Furthermore, the new program scheme in the German TV business has met with great customer acceptance and enabled the company to achieve a significant 23.6% increase in revenue from EUR 8.9 million in the third quarter of 2015 to EUR 11.0 million in the third quarter of 2016.
At 43.5% in the third quarter of 2016, the gross profit margin was at the same level of the previous year's period. With a gross profit margin of 37.9%, TV activities in the UK in particular exerted great pressure on earnings. The gross profit margin on TV in Germany, on the other hand, which amounted to 50.6%, developed positively. Gross profit thus increased from EUR 6.4 million in the third quarter of 2015 to EUR 8.0 million in the third quarter of 2016. With respect to the first nine months of 2016, gross profit amounted to EUR 23.8 million, which is only 9.5% below the same period of the previous year (EUR 26.3 million), while the gross profit margin decreased from 48.5% to 44.3% by nine-month comparison.
The main reason for the sharp decline in the gross profit margin in the UK is the significant drop in the British pound against the Thai baht. The resulting cost increases for the products could not be passed on to customers.
elumeo SE will restructure its business in the UK in light of this development and close unprofitable areas of its business by the end of the year. From the restructuring of the activities in the UK elumeo SE expects the Group's EBITDA to be slightly negative impacted in the fourth quarter of 2016.
Due to the positive development of the other divisions, the strain because of the exchange rate decline in Great Britain in the third quarter was partly offset. Total segment EBITDA in the third quarter was thus significantly higher than in the same quarter of the previous year, which was adversely affected by one-off effects, and improved from EUR -3.1 million to EUR -1.5 million. Nevertheless, segment EBITDA still declined from EUR -1.1 million to EUR -5.2 million. The total EBITDA corresponds to adjusted EBITDA in the reporting period. In the third quarter of 2016, a total Group result of EUR -2.4 million was posted after EUR -5.1 million in the third quarter of 2015 (first 9 months of 2016: EUR 8.6 million, first 9 months of 2015: EUR -3.6 million).
The complete Group figures for the third quarter and for the first nine months of 2016 are available on the Internet at: http://www.elumeo.com/ir/publications.
About elumeo SE: The elumeo Group, which has its headquarters in Berlin, is a leading European online retailer of high-quality gemstone jewelry, which the Group mainly produces itself in Thailand. The publicly traded company elumeo offers its customers in Europe coloured gemstone jewelry at comparatively low prices via a number of electronic distribution channels (including television, the Internet, smart TV and a smartphone app). Its distribution model relies exclusively on direct sales. For instance, the elumeo Group operates home-shopping TV channels in Germany, the UK and Italy, and online stores in Germany, the UK, Italy, France, the Netherlands, Spain, Belgium and the USA. Lower cost items are marketed to customers worldwide via the Hong Kong-based "New York Gemstones" online stores. Furthermore, the company now also offers a full line of jewelry on schmuck.de.
The elumeo Group's product range includes jewelry made from a variety of different gemstones, with some of the pieces designed partly by the customers themselves. The Group is also represented in the market for high-end gemstone jewelry with its premium brand AMAYANI and sells the KAT FLORENCE jewelry line.
The elumeo Group was founded in Berlin, Germany, and Chanthaburi, Thailand, as a joint venture in 2008 and has grown very successfully ever since. In 2014, the companies that comprised the Group underwent a formal merger to bundle the operating business under the holding company elumeo SE. The elumeo Group employs approximately 1,100 people at five different locations worldwide.
Contact: elumeo SE Investor Relations Alexander Enge Erkelenzdamm 59/61, 10999 Berlin Phone: +49 30 69 59 79-231 Fax: +49 30 69 59 79-650 e-mail: email@example.com http://www.elumeo.com
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Language: English Company: elumeo SE Erkelenzdamm 59/61, Portal 3b 10999 Berlin Germany Phone: +49 30 69 59 79-0 Fax: +49 30 69 59 79-20 E-mail: firstname.lastname@example.org Internet: www.elumeo.com ISIN: DE000A11Q059 WKN: A11Q05 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange End of News DGAP News Service