Answear.com with sales revenue growth of 42% y-o-y in 2022
Answear.com, a leading e-commerce provider of fashion and home & lifestyle products in the CEE region, has published its results for 2022. The company recorded PLN 973 million in sales revenue, an increase of more than 42% compared to last year. EBITDA was a record PLN 61.8 million and net profit PLN 25.9 million. Despite the challenging macroeconomic conditions, Answear.com continued to pursue its strategic goals, including improving its offer and increasing the share of premium brands in sales.
Difficult macroeconomic conditions and the outbreak of the war against Ukraine did not prevent us from consistently implementing our growth strategy of expanding our product range, increasing sales of premium brands and effectively expanding geographically. We have recorded dynamic growth both in new markets and in those where we have already been present for a long time, which confirms the validity of our actions. In comparison to the competition, which struggles with drops in results or achieves only slight increases, our company recorded a significant progress in sales and financial results - comments Krzysztof Bajołek, CEO of Answear.com.
Last year, Answear.com increased the share of premium brands in its offer, which amounted to 57%, an increase of 5 p.p. compared to 2021. In Q4 alone, by contrast, their share amounted to 60%. Increasing the share of premium brands in the product offer has a positive direct impact on margin growth and the value of AOV, which contributes to better financial results for the company.
In addition to increasing the share of premium brands on offer, earlier this year we signed a preliminary agreement to acquire two new brands, Sneakerstudio and PRM. These are very strong brands in the premium sneaker & streetwear segment, characterised by a relatively high average order value, as well as a unique product offering that reaches the younger generation worldwide - adds Krzysztof Bajołek.
Financial performance is positively influenced by continued growth in foreign markets. In 2022, the newly opened markets of Greece, Cyprus, Croatia and Slovenia accounted for 26% of the y-o-y sales growth of the entire Company. It is also worth noting that the Company recorded a successful return to the Ukrainian market, where it achieved 34% y-o-y growth, despite the suspension of sales following the outbreak of war for more than two months.
Answear.com also increased its marketing budget in the past year to PLN 153.8m, up from PLN 107.8m in 2021. During this time, the Company ran three wide-ranging media campaigns across all markets, including four newly-opened ones.
We consistently strive to increase our marketing budget, which directly influences revenue growth. Answear continues marketing activities in the area of TV and online video, using an interesting and unobvious message, which attracts customers and helps to achieve higher sales increases - adds Jacek Dziaduś, vice-president of Answear.com financial management.