Answear.com with more than 4x year-on-year EBITDA growth in Q1 2023
Answear.com, a leading e-commerce provider of fashion, home & lifestyle and outdoor products in the CEE region, summarises its first quarter results. In the period under review, Answear.com continued its strong growth despite the challenging market environment. Revenues increased by 52 percent year-on-year to more than PLN 271 million, EBITDA more than quadrupled to more than PLN 15 million, while net profit reached more than PLN 3 million, compared to a loss last year.
We are pleased with our results for the quarter. The growth rates achieved confirm that we remain one of the fastest growing fashion e-commerce platforms in Europe. The market environment is challenging, especially for new entrants. We, on the other hand, have built a strong brand, have efficient operations, are well diversified geographically and are pursuing a strategy of gradually increasing the share of premium brands in our offer. All this allows us to look to the future with optimism - commented Krzysztof Bajołek, CEO of Answear.com.
In Q1 2023. Answear.com continued to increase the share of premium brands in its offer, which at the end of the last quarter reached 59% vs. 54% last year. This directly led to an increase in the average order value, which after Q1 2023 stood at PLN 335, an increase of PLN 20 compared to the whole of 2022. Foreign expansion assumptions also went according to plan, with new markets accounting for 9.4% of sales in the first three months of 2023.
The reconstruction of the Ukrainian market deserves special mention. After the temporary suspension of sales due to the war, we have resumed operations in Ukraine and become the local leader in fashion e-commerce. This is confirmed by very attractive growth of more than 3.5 times the turnover - adds Krzysztof Bajołek.
During the quarter, the Company also began the process of acquiring the ZCP (organized part of the Company) of the Fashion Trends Group, which includes the Sneakerstudio and PRM brands. With this acquisition, Answear.com will expand its business into new segments and customer groups - particularly Gen Z and customers interested in premium and luxury products. The company also sees numerous synergies based on mutual strengths, combining the unique offerings of the acquired brands with Answear.com's operational efficiencies, technology and logistics facilities. On May 11 this year. The EGM approved to finance the acquisition entirely with Answear.com shares.
Growing revenues allowed the Company to increase its marketing budget to PLN 40.5 million in the first quarter of 2008, compared to PLN 28.5 million in the same period of the previous year. During the reporting period, the Company conducted an extensive media campaign, including in newly opened markets. The Company's effective marketing continued to contribute to sales growth and brand awareness.
We are constantly striving to increase our marketing budget, which has a direct impact on sales growth. Answear continues its marketing activities with an interesting and non-obvious message, which attracts customers and allows the brand to be written in the public's consciousness - summarizes Jacek Dziaduś, Vice President of the Management Board for Finance of Answear.com.