ROUNDUP 2: Westwing looks a little more skeptical into the future – course sags
(New: course reaction and quotes from conference calls)
MUNICH (dpa-AFX) – The global supply chain problems are causing concern for the online furniture retailer Westwing (Westwing Group) and are making them look somewhat more pessimistic about the year as a whole. The SDAX-listed company announced in Munich on Thursday that the development will lead to lower gross and profit margins until at least the first half of 2022. This can only be partially offset by higher prices.
The more cautious profit forecast did not go down well on the stock market. On the more cautious news, the share slumped steeply shortly after the start of trading and widened the loss to around 15.6 percent.
“The freight costs from Asia and China to Europe are currently five to eight times higher than usual,” said CFO Sebastian Säuberlich in a conference call. For 2021, the lower end of the previous range for adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of 42 to 55 million euros should now be reached, Westwing said. The forecast is subject to the risk of further adjustment due to the globally impaired supply chains, it said. In the first nine months, the adjusted Ebitda was 30 million euros. In 2020 Westwing had reported 50 million.
The higher costs made themselves felt in the third quarter. Operationally, the company slipped slightly into the red. The bottom line is that Westwing reported a shareholder deficit of 8.7 million euros after a profit of 2.4 million a year earlier.
In addition to the considerable increase in container sea freight costs, there has also been an increase in the costs of warehousing and warehouse processing, caused by disruptions in the supply chain with delivery peaks from suppliers and higher inventories. That has an effect of about two percentage points on the operating result, said Säuberlich in the conference call. On the other hand, he does not see a specific shortage of goods.
Compared to the same period in the previous year, the group increased sales in the third quarter by 4.7 percent to 103.2 million euros. In the first nine months, the proceeds are now 373.4 million euros. On the other hand, extrapolated to the year, the board of directors is sticking to the goal of increasing sales to between 510 and 550 million euros. Compared to the previous year, this would correspond to growth of 18 to 27 percent.
Analyst Volker Bosse from Baader Bank was unimpressed by the adjusted forecast. The online furniture retailer had solid results in the third quarter, he wrote. Bosse sees Westwing on the trail towards annual goals./ngu/mne/jha/tav/eas