Rocket Internet companies continued on the path towards profitability. For the first nine months 2016, the aggregate adjusted EBITDA margin improved significantly at all selected companies from a weighted average of -34.4% in the first nine months 2015 to -17.5%. The selected companies continued to grow revenues, whilst absolute EBITDA losses decreased by EUR 159 million.
Selected companies in the core sectors Food & Groceries (HelloFresh and foodpanda), Fashion (Global Fashion Group – GFG), General Merchandise (Jumia) and Home & Living (Westwing and Home24) continued to show an increase in aggregate net revenue of 30.6%, reaching EUR 1.58 billion for the first nine months 2016.
HelloFresh, the global fresh meals at home distributor provider, grew by 121.3% and reached EUR 438 million net revenue in 9M 2016, while improving its adjusted EBITDA margin by 11.1 percentage points to -15.1%. GFG increased net revenue by 26.6% to EUR 706 million in 9M 2016, with a clearly improved adjusted EBITDA margin of -14.1%. Dafiti, GFG’s Latin American online fashion retailer, improved its adjusted EBITDA margin from -31.8% in the first nine months 2015 to -7.0% in 9M 2016. Middle Eastern online fashion retailer Namshi has reached breakeven in the first 9M 2016, with an adjusted EBITDA margin of 2.5% for the period. Online Home & Living company Westwing also significantly improved its adjusted EBITDA margin by 20.5 percentage points to -9.2% during 9M 2016.
Rocket Internet and its companies continue to be very well funded, with available cash of
EUR 1.6 billion at Rocket Internet and additionally EUR 1.1 billion at the companies, as of the end of October 2016.
Rocket Internet Group’s 9M 2016 revenue (EUR 40 million) and the consolidated loss (negative EUR 642 million) have respectively been impacted primarily by deconsolidation of subsidiaries and impairment related charges of associated companies (in particular related to GFG), as already disclosed in the H1 2016 results.
Shortly after Rocket Internet’s uplisting to the Prime Standard on September 26, 2016, the Frankfurt Stock Exchange announced Rocket Internet’s inclusion in the SDAX index, effective as of October 14, 2016.
“With the uplisting to the Prime Standard, and the subsequent inclusion in the German SDAX, we achieved one of our stated goals. The operating progress accomplished by our selected companies translates into continued growth and much improved margins,” said Oliver Samwer, Rocket Internet’s CEO.
The Rocket Internet Capital Partners fund held a third close on October 4, 2016, which took total combined commitments to USD 869 million. The USD 127 million incremental commitments were subscribed by third party investors and Rocket Internet (maintaining its 10% stake).
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets. Rocket Internet focuses on five industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Its network of companies operates in a large number of countries around the world with more than 36,000 employees.