EQS-News

elumeo SE: Jewelry retailer defies challenging market conditions in 2023 and lays foun-dation for return to profitable growth in 2024 - Seite 2

The company was able to essentially maintain the revenue level of the previous year at the Group level, generating €45.4 million (2022: €45.8 million). Revenue from the Web distribution channel increased by 8.4% compared to the previous year to €14.5 million. The reason for the unexpectedly positive development was higher growth in sales in the fourth quarter of 2023, facilitated by the allocation of an additional budget for optimizing marketing channels amounting to €0.9 million.

The company's key performance indicator, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), declined significantly. It decreased from €2.2 million to €-0.4 million. Reasons for the unexpectedly sharp decline were investments for further internationalization of the TV distribution channel (€0.6 million), an above-average investment in the Web distribution channel in Q4 2023 (€0.9 million), and the inflation-induced decline in gross profit margin to 50.0% (2022: 54.9%). Operating cash flow improved from €-1.3 million to €-0.1 million due to a variety of individual operational improvement measures.

Florian Spatz, CEO of elumeo SE, stated, "The past fiscal year once again posed significant challenges for our company. Despite a weak consumer climate throughout the year in Germany and a declining market for mail-order trade in watches and jewelry, elumeo was able to hold its ground well and even perform significantly better than the overall market." Spatz attributes elumeo's significant outperformance compared to the market to the unique shopping experience offered by Juwelo. This combines a highly emotional, video-based product presentation with attractive pricing across all price points from €29 to €10,000. This resulted in high customer loyalty and retention, with the number of active customers increasing by 9% in 2023.

The video shopping app Jooli also continued to develop significantly positively in 2023. Since the introduction of Jooli Pay, the number of monthly orders in the Indian market has increased significantly, rising from 202 orders in October 2023 to 1,353 orders in March 2024. Simultaneously, due to a significantly disproportionate increase in average transaction values, gross merchandise value increased from INR 27,366 to INR 407,122 during the same period.