Zalando Se · XETR:ZAL
Zalando — Zalando Se Ord — Q1 2024 Earnings Presentation
16 slides from Zalando's earnings presentation, May 7, 2024
Slide 1: Zalando Q1/24 Earnings Call
Zalando Q1/24 Earnings Call May 7, 2024 Dr. Sandra Dembeck (CFO)
Slide 2: Executive summary
Zalando Q1/24 Executive summary 01 Returned to growth in the first year of our ecosystem strategy GMV growth of +1.3% after thee quarters of muted growth in a challenging environment. Growth accelerated by +4pp compared to Q4/23 02 Continued adjusted EBIT margin expansion Adjusted EBIT margin up +1.
Slide 3: In Q1, we returned to GMV growth and continued our margin expansion
Zalando Q1/24 Group performance In Q1, we returned to GMV growth and continued our margin expansion 1 2 Group GMV Group revenue Group adjusted EBIT (in EUR m) (in EUR m) (in EUR m, margin in % of revenue) 1.3% (0.6)% 1.3pp (0.0)% 1.3% 3,227 3,270 2,256 2,241 28 (1) Q1/23 Q1/24 Q1/23 Q1/24 Q1/23 Q1/2
Slide 4: B2C segment driving GMV growth and adjusted EBIT margin expansion
Zalando Q1/24 B2C Segment B2C segment driving GMV growth and adjusted EBIT margin expansion 1 1 2 B2C GMV B2C revenue B2C adjusted EBIT (in EUR m) (in EUR m) (in EUR m, margin in % of revenue) 1.3% (1.9)% 1.4pp (0.2)% 1.1% 3,227 3,270 2,068 2,028 23 (5) Q1/23 Q1/24 Q1/23 Q1/24 Q1/23 Q1/24 4 1 Gross
Slide 5: GMV per active customer continued to increase driven by higher average basket size
Zalando Q1/24 B2C Segment GMV per active customer continued to increase driven by higher average basket size Active customers Average orders per 1 (3.0)% (L12M in millions) active customer 1 (L12M in #) 5.1 4.9 (3.3)% 5.4% Average basket size 2 after returns 1 (L12M in EUR) 57.3 60.4 51.2 49.5 2.2%
Slide 6: B2B segment outperformed the group revenue growth rate driven by ZEOS fulfillment
Zalando Q1/24 B2B Segment B2B segment outperformed the group revenue growth rate driven by ZEOS fulfillment 1 2 B2B revenue B2B adjusted EBIT (in EUR m) (in EUR m, margin in % of revenue) 13.4% 0.3pp 2.2% 2.5% 215 190 4 5 Q1/23 Q1/24 Q1/23 Q1/24 6 1 Q1/24 contains EUR 1.7m | Q1/23 EUR 2.1m reconcili
Slide 7: Increased group profitability through improved gross margin and reduced fulfillment costs
Zalando Q1/24 Group P&L Increased group profitability through improved gross margin and reduced fulfillment costs Costs and margin Q1/23 Q1/24 YoY ∆ (in % of revenue) Improved inventory management in our retail business and higher partner business share in B2C Gross profit 37.9% 38.2% 0.3pp Favorabl
Slide 8: Continued inventory reduction resulted in improvement of net working capital
Zalando Q1/24 Net working capital Continued inventory reduction resulted in improvement of net working capital Net working capital (end of Q1) (in EUR m and % of annualized revenue) EUR m Q1/23 Q1/24 YoY ∆ 9 Improved inventory Inventories 2,058 1,584 (23.0)% management 0.1% Trade receivables 738 762
Slide 9: Cash and cash equivalents increased year-over-year to EUR ~2.3 billion
Zalando Q1/24 Cash position Cash and cash equivalents increased year-over-year to EUR ~2.3 billion in EUR m 3 Free cash flow EUR (162)m (102) (83) (47) Q1 as inbound quarter for t/o EUR 59.5m CAPEX, primarily new season stock consisting of investments in logistics infrastructure and tech 2,533 2,302
Slide 10: Reiterating our full year 2024 guidance
Zalando Q1/24 Outlook Reiterating our full year 2024 guidance In 2024 we return to growth, continue to increase profitability and invest in future growth Guidance 2024 GMV 0% - 5% Growth Revenue 0% - 5% 1 Profitability Adjusted EBIT 380 - 450 (in EUR m) Capex (in EUR m) 250 - 350 Cash Net working ca
Slide 11: Key takeaways
Zalando Q1/24 Key takeaways 01 Returned to growth in the first year of our ecosystem strategy GMV growth of +1.3% after thee quarters of muted growth in a challenging environment. Growth accelerated by +4pp compared to Q4/23 02 Continued adjusted EBIT margin expansion Adjusted EBIT margin up +1.3pp
Slide 12: Q&A
Zalando Q1/24 Q&A 12 12
Slide 13: Appendix
Zalando Q1/24 Appendix 13 13
Slide 14: Issued share capital
Zalando Q1/24 Share information Issued share capital Share information (as of Mar 31, 2024) Type of shares Ordinary bearer shares with no-par value (Stückaktien) Stock exchange Frankfurt Stock Exchange Market segment Regulated Market (Prime Standard) Index listings DAX Total number of shares outstan
Slide 15: Zalando Investor Relations Team
Zalando Q1/24 Investor Relations Zalando Investor Relations Team Patrick Kofler Dorothee Schultz Andrea Frese Director of IR Manager ESG IR Senior Manager IR Patrick.Kofler@zalando.de Dorothee.Schultz@zalando.de Andrea.Frese@zalando.de Team contact T: +49 3020 9681 584 Zalando SE Valeska-Gert-Straße
Slide 16: Disclaimer
Zalando Q1/24 Disclaimer Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these fo