Selected companies show improvement in growth and profitability in 2017

Rocket Internet SE’s selected companies showed continued revenue and GMV growth and demonstrated progress on their way towards profitability in 2017. Aggregate revenue across the selected companies in the focus sectors Food & Groceries, Fashion, General Merchandise and Home & Living grew by 28% from EUR 2.06 billion in 2016 to EUR 2.64 billion in 2017, while the aggregate adjusted EBITDA margin improved by 5 percentage points from -15.4% in 2016 to -10.3% in 2017. The absolute EBITDA loss was reduced by EUR 44 million.

HelloFresh, the leading meal kit company, reported strong revenue growth of 52% to EUR 904.9 million in 2017 and improved the adjusted EBITDA margin from -13.8% in 2016 to -7.7% in 2017. Delivery Hero, the leading online food ordering and delivery marketplace, grew revenue year on year by 60% to EUR 544.2 million in 2017. Both companies, HelloFresh and Delivery Hero, went public in 2017. With a combined market capitalization of more than EUR 8 billion at the end of 2017, they rank among the most successful IPOs in Europe last year and show thier ability to create value for Rocket Internet and its co-investors. Rocket Internet reduced its economic ownership in Delivery Hero in a number of transactions to 8% as of March 31, 2018.

In the past year, Global Fashion Group (“GFG”) increased revenue by 23.5% to EUR 1.1 billion in 2017, while the adjusted EBITDA margin improved from -14.7% in 2016 to -8.9% in 2017.

Online Home & Living company Westwing´s adjusted EBITDA margin improved from -5.5% in 2016 to -1.9% in 2017, while revenue grew by 6.2% to EUR 265.8 million. As in Q4 2016, Westwing´s adjusted EBITDA was positive in Q4 2017. Home24 increased full year revenue by 13.1% to EUR 275.7 million, while the adjusted EBITDA margin improved from -16.5% in 2016 to -7.9% in 2017, despite increased marketing expenses and investments in process automation and systems.

Jumia, the leading online platform in Africa, grew revenue to EUR 93.8 million in 2017. Gross merchandise volume on the platform grew by 41.8% to EUR 507.0 million in 2017, driven by strong total order growth to 8.3 million orders in 2017.

“2017 was a very successful year for Rocket Internet with the IPOs of Delivery Hero and HelloFresh, as well as a number of successful company exits, including the sales of Goodgame Studios and Affinitas and the sale of the final Lazada tranche to Alibaba”, says Oliver Samwer, CEO of Rocket Internet. “We delivered on our promise to create and crystalize value for our investors and to further improve the profitability of our selected companies.”

Rocket Internet and its companies continue to be well funded, with an available gross cash position of EUR 2.7 billion at Rocket Internet and an additional gross cash position of EUR 0.5 billion at selected companies and regional internet groups, as of the end of March 2018. Rocket Internet continues to evaluate private funding and other funding alternatives for its companies.

Rocket Internet Group’s FY 2017 revenue of EUR 36.8 million declined compared to FY 2016 revenue of EUR 50.4 million primarily due to deconsolidation, sales and dis-continuation of previously fully consolidated subsidiaries. The consolidated loss amounted to EUR -6.0 million in 2017 compared to EUR -741.5 million in 2016. Earnings per share reached break-even level with EUR 0.01 per share in 2017.

For an overview of the detailed FY 2017 results for Rocket Internet SE and selected companies, please see the appendix on our website.

For more information:
Tel.: +49 30 300 13 18 68
Email: media@rocket-internet.com