DGAP-Adhoc: windeln.de SE: Slower recovery of Chinese business delays adjusted EBIT break-even to early 2020

Slower recovery of Chinese business delays adjusted EBIT break-even to early 2020

Munich, November 22, 2018: Since the beginning of the year, windeln.de SE ("windeln.de", "Group" or "Company") has made good progress on the restructuring of the Company and is continuing to do so. However, the Chinese business has not reached previous year levels yet despite improvements in the fourth quarter. In view of this development, the Management Board has resolved to amend its adjusted EBIT guidance, it now expects that adjusted EBIT break-even will be delayed by one year to early 2020 (from early 2019 as previously targeted).

Since the beginning of the year, windeln.de successfully implemented several efficiency and profitability measures, including selling or closing unprofitable businesses, reducing the management team, re-organizing the business departments in all countries and reducing headcount from more than 400 to 218 active full-time equivalents (FTEs) by September 30, 2018. Additionally, a new pricing mechanism, a new search tool, a pregnancy app, a baby starter box and new product categories have been introduced.

The Chinese business was impacted by temporary stricter custom controls and product relaunches in the second and third quarter of this year but has started to gradually improve. In addition to this recovery, the Company pursues a product and channel diversification strategy: windeln.de will add the new category "Beauty", one of the largest and fastest growing categories in cross-border e-commerce in China, as well as further market platforms in 2019. In this context, a second permanent bonded warehouse in China will be opened early 2019. The implementation of these strategic projects will further strengthen the Company's set up toward China and will help the Chinese business to recover to previous year levels. The European business is expected to further improve through category extension, organizational improvements, SG&A cost reductions and the planned relocation of windeln.de's central warehouse in 2020.

Corporate Communications

Sophia Kursawe
Phone: +49 (89) 41 61 71 52 75
email: presse@windeln.de

About windeln.de

windeln.de is one of the leading online retailers for family products in Europe. The Group also operates a successful e-commerce business with products for babies and toddlers for customers in China. The broad product portfolio includes everything from diapers, baby food, children's furniture, toys, clothes and strollers to child car seats. windeln.de was founded in October 2010. The Company has been listed in the Prime Standard of the Frankfurt Stock Exchange since May 6, 2015. For more information, go to https://corporate.windeln.de.

Our shops: www.windeln.de, www.windeln.ch, www.bebitus.es, www.bebitus.pt, www.bebitus.fr, www.windeln.com.cn, windelnde.tmall.hk/