BIKE24 Reports Improved Profitability and Strategic Growth in Q1 2024

BIKE24 Holding AG, a prominent bike e-commerce platform, announced its financial results for the first quarter of 2024, revealing some significant strategic shifts mid a challenging economic climate. The company reported a decrease in sales by 11% compared to the same period in 2023, totaling EUR 49.3 million. Despite this downturn, BIKE24 achieved a notable improvement in profitability, with adjusted EBITDA losses reducing to EUR -1.5 million from EUR -2.6 million year-on-year.

The company attributes the sales decline primarily to reduced promotional activities, which, inversely, contributed to the improvement in profit margins. Gross profit margin appreciated from 21.6% in Q1 2023 to 25.1% in Q1 2024, a lift bolstered further by gains in the localized markets of Belgium, the Netherlands, and Luxembourg. These markets experienced a bold growth, averaging 95%.

Sales of parts, accessories, and clothing dipped by 13%, while sales of full bikes increased modestly by 2%. The management maintained its forecast for the fiscal year 2024, projecting sales growth between 1% to 5% and an adjusted EBITDA margin from 0.7% to 4.2%. BIKE24's leadership expressed confidence in strengthened demand recovery in latter 2024.

Lastly, the company also underlined its strong liquidity management, with stable cash reserves despite replenishings of seasonal merchandise, preparing for future demands and operational flexibility.