Answear.com maintains high growth rate. After three quarters of 2022. EBITDA grows by 35% and revenue by 44%

Answear.com, a leading e-commerce provider of fashion and home décor products in the CEE region, summarizes the three quarters of 2022. The company's revenues amounted to PLN 609 million, up 44% year-on-year, while EBITDA rose 35% year-on-year to over PLN 38 million. Consistent implementation of the strategy to improve the product offer and increase the share of premium brands allows Answear.com to successfully maintain a dynamic growth rate despite the challenging market environment.

- Behind us is another period in which we prove that Answear.com is a business with healthy foundations, able to maintain attractive growth rates in a demanding market. I am pleased that we are managing to perform very well on both revenue and margin levels. We are consistently pursuing our strategy of expanding our offerings and increasing the share of premium brands. Thanks to this, we reach a customer who is relatively more resistant to downturn and economic turbulence – comments Krzysztof Bajołek, CEO of Answear.com.

It is worth noting the Company's successful return to the Ukrainian market. In the 9-month period of 2022. Answear.com achieved 16.7% growth in this market, despite the fact that sales were halted for more than two months in the first half of the year.

- Our strategy is to expand abroad and consistently launch new markets, but it is worth emphasizing that we owe such good growth dynamics to our "old" markets, where we have - over the years - developed a very strong position. Of course, the new markets are already contributing to our results, and will certainly be an additional fuel for growth in future periods – adds Krzysztof Bajołek.

In the past period, Answear.com continued to implement marketing activities. During the three quarters, the Company conducted wide-ranging TV and VOD media campaigns, making Answear visible in all markets. These ended with great success and increased brand awareness. As a result, after nine months of this year, marketing costs increased y-o-y. by 0.9 p.p. to 14.6% of online sales.

After 9 months of this year, the Company's EBITDA amounted to PLN 37.3 million, while normalized EBITDA (by ESOP valuation and one-time expenses related to aid to Ukraine), reached PLN 42.9 million. This means EBITDA profitability of 6.1% and 7.0%, respectively. In turn, gross margin in the nine-month period increased by 34 % y-o-y. to PLN 246.3 million, and the average order value, improving the profitability of the transaction, rose to over PLN 300.

- Despite increased marketing spending, the Company's margins look very solid after three quarters of this year. At the EBITDA and gross margin level, we are growing by more than 30% year-on-year. Margin % in the third quarter was influenced by summer sales, which is a normal situation in the fashion market, but it is worth remembering that we are now in the fourth quarter, which is a harvest period in our industry. We hope that it will be so this year as well – says Jacek Dziaduś, CFO of Answear.com.