- Prachi Singh |
Rocket Internet has said that the aggregate adjusted EBITDA margin improved from -32 percent in the first half of 2015 to -17 percent in the first half of 2016 and absolute EBITDA losses decreased by 84 million euros (93.6 million dollars).
“The first half 2016 results have shown that Rocket internet´s key portfolio companies continue to progress on their path to profitability”, says Oliver Samwer, CEO of Rocket Internet, adding, “We are on track to meet our profitability targets, with at least three of our key portfolio companies turning profitable until the end of 2017.”
Key financial developments in H1
The key companies in the core sectors food & groceries, fashion, general merchandise, and home & living – HelloFresh, foodpanda, Global Fashion Group (GFG), Jumia, Home24 and Westwing – grew aggregate net revenues on average 32 percent to 1,043 million euros (1,163 million dollars) in H1 2016.
The company said, GFG significantly improved its profitability. Dafiti, GFG’s Latin America´s online fashion retailer, improved its adjusted EBITDA margin from -37 percent in the first half 2015 to -9.6 percent in the first half 2016 and Russian online fashion company Lamoda improved its adjusted EBITDA margin from -16.2 percent to -6.1 percent.
Middle Eastern online fashion retailer Namshi turned profitable at adjusted EBITDA level in H1 2016. Online Home & Living company Westwing also demonstrated further progress on its path to profitability with an adjusted EBITDA margin in the first half year of -8.4 percent compared to -31.7 percent in the first half year 2015.