- Prachi Singh |
Rocket Internet has said that aggregate revenue across the focus sectors food & groceries, fashion, general merchandise and home & living grew by 29 percent from 1.7 billion euros (1.8 billion dollars) in 2015 to 2.2 billion euros (2.3 billion dollars) in 2016. The aggregate adjusted EBITDA margin improved by 16.4 percentage points from -31.3 percent in 2015 to -14.9 percent in 2016, which the company said equates to an absolute EBITDA loss reduction of 234 million euros (254 million dollars).
"In 2016, our selected companies progressed on their path towards profitability, while demonstrating further growth ", said Oliver Samwer, CEO, Rocket Internet in a statement.
Key group companies report positive growth
During the period, Global Style Group (GFG) revenue and net merchandise volume growth across all regions, reaching revenue of over 1 billion dollars (1.08 billion dollars). GFG's adjusted EBITDA margin improved from -26.9 percent in 2015 to -12.5 percent in 2016. The company said, Middle Eastern online fashion retailer Namshi successfully reached breakeven, with an adjusted EBITDA margin of 1.8 percent for the year.
In 2016, online Home & Living companies Westwing and Home24 respectively reduced adjusted EBITDA losses from -49.9 million euros (54 million dollars) to -13.8 million euros (14.9 million dollars) and -75.3 million euros (81 million dollars) to -40.1 million euros (43 million dollars), respectively.
African online platform Jumia, formerly known as Africa Internet Group, completed the rebranding of all services under the Jumia brand in 2016 with a positive impact on traffic and brand awareness. Jumia reduced its adjusted EBITDA losses from -161.3 million euros (175 million dollars) in 2015 to -91.9 million euros (99 million dollars) in 2016.
Rocket Internet said that the group and its companies continue to be very well funded, with an available gross cash position of 1.5 billion euros (1.6 billion dollars) at Rocket Internet and an additional gross cash position of 0.8 billion euros (0.86 billion sollars) at selected companies and regional internet groups, as of the end of March 2017. Rocket Internet Group's cash flow from operating activities improved by 19.8 million euros (21.5 million dollars) to -85.7 million euros (93 million dollars).