Q2 2026 Bike24 Holding AG Earnings Call
Speaker #1: Good morning, ladies and gentlemen, and a warm welcome to today's H1 2026 earnings call of the Baekhyun Svanridge Holding AG. I'm delighted to welcome the CEO, Andrés Martín Berna, and CFO, Silvio Aichorst, who will guide—give us an update on the results in a moment.
Speaker #1: Following the presentation, we will move on to our Q&A session. So, I would say, let's jump straight in. Andrés? The stage is yours.
Speaker #2: Thank you very much. Good morning, everyone, and welcome to Baek24's Q2 2026 earnings call. Thank you for joining us today. My name is Andrés Martín Berna.
Speaker #2: I'm the CEO and founder of Baek24. On the call with me today, again, is Silvio Aichorst, our Chief Financial Officer. We will start to walk you through the key developments of the second quarter and the first half of 2026.
Speaker #2: Before we conclude with your questions, please also note that the presentation is available on our investor relations website. Today's call is structured in 4 parts.
Speaker #2: I will start with a general update on Q2 and first half years, overall performance, Silvio will then move into the detailed business update and our financial performance.
Speaker #2: Followed by our outlook for the remainder of the year, and finally, we will take your questions. Let us start with Q2 at a glance.
Speaker #2: Baek24 continued its profitable growth trajectory in a challenging and price-sensitive market environment. Group revenue increased by 20.1% year over year, to 96.1 million euro, while adjusted EBITDA improved by 15.8% to 5.9 million euro.
Speaker #2: This means we continued to grow strongly while also keeping profitability at a solid level. Our growth was broad-based. Localized markets again outperformed, growing by 29.7% to 21.
Speaker #2: Region grew by 17.2% to 66.4 million euro. We also took the next step in our European expansion, with new localized web shops launched in Denmark and Slovenia, at the end of June, followed by Ireland in July.
Speaker #2: On the product side, Baek, that means part accessories and clothing, remained the main growth driver. Baek increased by 22.3% to 78.9 million euro. Full bikes also continued to grow, with revenue up 11% to 17.2 million euro, resulting in around 9,100 bikes assembled and shipped through our workshop.
Speaker #2: In addition, we introduced our collect-and-ride option at the end of Q2 in our web shop, enabling customers to collect fully assembled bikes from selected distribution partners in 7 different locations in Germany, which might also serve as local service and support points.
Speaker #2: Finally, we deliberately built inventory to secure availability for the second half of the year. Inventory increased to 91.6 million euro, while the inventory to sales ratio remained almost unchanged at 28.8%.
Speaker #2: Underlying that the stock buildup is in line with our growth. With this overview, I would now like to hand over to Silvio, who will take you through the business and financial details.
Speaker #3: Thank you, Andrés. as well, I will start with the business update. As Andrés already explained, the quarter was characterized by a strong demand, improved product availability, and continued traction from our localized market approach.
Speaker #3: The most relevant point is that growth was not driven by one isolated factor. We saw positive momentum across categories: regions, end-customer cohorts. Turning to the category view, group revenue grew from 18 million euro to 90.6 million euro in Q2.
Full bikes also continue to grow, with revenue up 11% to €17.2 million, resulting in around 9,100 bikes assembled and shipped through our workshop.
Speaker #3: The strongest absolute contribution came from Baek, which increased by 14.4 million euro, to 78.9 million euro, supported by strong demand for electronics, and bike service products.
In addition, we introduced our Collect and White option at the end of Q2 in our web shop, enabling customers to collect fully assembled bikes from selected distribution partners in seven different locations in Germany, which might also serve as local service and support points.
Speaker #3: This confirms that the core assortment remains the backbone of our business, with a proportion of 82.1% compared to 80.6% last year. Bike revenue increased from 15.5 million euro to 17.2 million euro.
Finally, we deliberately built inventory to secure availability for the second half of the year.
Inventory increased to €91.6 million, while the inventory-to-sales ratio remained almost unchanged at 28.8%, underlying that the stock build-up is in line with our growth.
Speaker #3: Growth in full bikes was somewhat below pack growth, but still positive in a very competitive market. Gravel and road bikes showed particularly encouraging demand, and bikes remain an important contributor to customer relevance and basket size.
With this overview, I would now like to hand over to Sylvio, who will take you through the business and financial details.
Thank you, Andres, and good morning from my side as well.
Speaker #3: Looking at the regional split, the picture remains very consistent with our strategy. GSA, meaning Germany, Switzerland, and Austria, is still our largest region, and delivered solid growth of 17.2%, reaching 66.4 million euro in the quarter.
I will start with the business update, as Andrs already explained. The quarter was characterized by strong demand, improved product availability, and continued traction from our localized markets approach.
Speaker #3: This shows that our core markets continue to perform well despite overall market environment. At the same time, our localized markets grew significantly faster. Increasing by 29% 29.7% to 21.5 million euro.
The most relevant point is that growth was not driven by one isolation; it is all positive momentum across categories, regions, and customer cohorts.
Turning to the category view, group revenue grew from €18 million to €90.6 million in Q2.
Speaker #3: This confirms the traction of our platform strategy and the value of local customer experience. Rest of Europe also grew by 29.7% to 7.4 million euro, while the rest of the world declined in line with our focus on Europe and attractive customer economics.
The strongest absolute contribution came from PE, which increased by €14.4 million, to €78.9 million, supported by strong demand for electronics and bike service products.
This confirms that the core assortment remains the backbone of our business, with a proportion of 82.1% compared to 80.6% last year.
Speaker #3: In short, GSA provides scale and profitability, while localized markets provide an important incremental growth trajectory. Looking at the customer's KPIs, we continue to see a solid and high-quality customer base.
Bike revenue increased from €15.5 million to €17.2 million.
Gross in full bikes was somewhat below PACOs but still positive in a very competitive market.
Speaker #3: Active customer reached 1,244,000 on the last 12 months basis, up 21.7% year over year. Orders increased by 22.3% in Q2, while the average order value remained broadly stable at 143 euro.
Gravel and road bikes showed particularly encouraging demand, and bikes remain an important contributor to customer relevance and basket size.
Looking at the regional splits, the picture remains very consistent with our strategy.
Speaker #3: Importantly, repeat customers' behaviors remained strong. The share of orders from recurring customers increased to 71.2%, and the return rate improved to 17.1%. Down 1.7 percentage points year over year.
TSA, meaning Germany, Switzerland, and Austria, is still our largest region and delivered solid growth of 17.2%, reaching €66.4 million in the quarter. This shows that our core markets continue to perform well despite the overall market environment.
Speaker #3: For us, these KPIs are important because they show that growth is not only coming from more customers, but also from a healthy level of engagement among existing customers.
At the same time, our localized markets grew significantly faster.
Increasing by 29%, from €21.5 million to €39.7 million.
Speaker #3: The regional customer picture shows two complementary effects. Localized markets are driving customer acquisition, with active customers up strongly by 31.5%, while GSA continues to provide a large and valuable base with 343,000 customers, with a very resilient average revenue per customer of 109.3 euro, up by 4.8%.
This confirms the traction of our platform strategy and the value of a local customer experience.
Rest of Europe also grew by 29.7% to €7.4 million, while the rest of world declined in line with our focus on Europe and attractive customer economics.
In short, GSA provides scale and profitability by localized markets and provides an important incremental growth trajectory.
Speaker #3: This balance is important for a sustainable growth profile. On the next slide, we will show you the development of our inventory. Inventory remains a central operational lever.
Looking at the customer's kpis.
Speaker #3: At the end of June, inventory stood at 91.6 million euro, up 26.9% year over year. The increase was deliberate, and is intended to secure high availability for the second half of the year.
We continue to see a solid and high-quality customer base active. Customers reached 1,244,000 on a last twelve months basis, up 21.7% year-over-year.
Increased by 22.3% in Q2, while the average order value remained broadly unchanged.
Stable at 143 Euro.
Importantly.
Repeat customers behaviors, remain strong.
Speaker #3: A need that had already become apparent in July. At the same time, the quality of inventory improved meaningfully. Aged stock, older than 12 months, decreased from 40 million euro to 6.3 million euro, a reduction of 55%.
The share of orders from recurring customers increased to 71.2%, and the return rate improved to 17.1%.
Speaker #3: More importantly, the inventory buildup remained almost stable in relation to the size of the business. The inventory-to-sales ratio stood at 28.8% at the end of June, almost unchanged versus 28.7% in the prior year period.
Down 1.7 percentage points year over year for us. These KPIs are important because they show that growth is not only coming from more customers.
But also from a healthy level of engagement among existing customers.
Speaker #3: From a mixed perspective, inventory is also shown our category focus: pack remained the largest component at 66.2 million euro, while bike inventory increased to 25.5 million euro, reflecting our strategy focus on growth in the full bike category.
The regional customer picture shows two complementary effects: localized markets are driving customer acquisition, with active customers up strongly by 31.5%, while GSA continues to provide a large and valuable base with 343,000 customers and a very resilient average revenue per customer of €109, up by 4.8%.
This balance is important for a sustainable growth profile.
Speaker #3: Let us now turn to the income statement. In the first half-year 2026, net sales increased by 20.8% to 167.1 million euro. Gross profit rose by 20.7% to 44.3 million euro.
On the next slide, we will show you the development of our inventory.
Inventory remains at an essential operational level. At the end of June, inventory stood at 91.6% year-over-year.
Speaker #3: With gross margin remaining stable at 26.6%. Contribution profit, meaning gross profit, less performance marketing costs and selling costs, increased by 18.6% to 27.3 million euro, in the first half-year.
The decrease was deliberate and is intended to secure high availability for the second half of the year.
A need that had already become apparent in July.
At the same time, the quality of inventory improved meaningfully.
Speaker #3: Adjusted EBITDA improved by 35.7% to 7.7 million euro, which means the adjusted EBITDA margin increased from 4.1% to 4.6%. In Q2, specifically, revenue increased strongly to 96.1 million euro, gross profit rose to 26.3 million euro, and adjusted EBITDA reached 5.9 million euro.
H stock older than 12 months decreased from €40 million to €6.3 million, that’s a deduction of 55%.
More importantly, too, inventory buildup remained almost stable in relation to the size of the business.
The inventory-to-sales ratio stood at 28.8% at the end of June, almost unchanged compared to 28.7% in the prior-year period.
Speaker #3: Looking at the cost structure, as a percentage, of revenue, gross profit remained stable in the first half at 26.6%. In Q2, gross margin was 27.4%, slightly below the prior year level of 27.7%.
From a mixed perspective, inventory also shows how the category Focus pack remained the largest component at €66.2 million, while bike inventory increased to €25.5 million, reflecting our strategy to focus on growth in the full bike category.
Speaker #3: Mainly reflecting the promotional environment and continued price pressure in parts of the market. Performance marketing increased as a percentage of revenue, reflecting our continued investment in customer acquisition and market share.
Let us now turn to the income statement.
In the first half of 2026, net sales increased by 20.8% to €167.1 million. Gross profit rose by 20.7% to €44.3 million.
Speaker #3: Selling costs were broadly stable in the first half-year as a percentage of revenue, but slightly higher in Q2 due to higher carrier costs and the changing country mix.
With gross margin remaining stable at 26.6%.
Contribution profit, meaning gross profit, less performance marketing costs and selling costs.
Speaker #3: At the same time, personal expenses and Michelin's income expenses improved as a percentage of revenue. The key message is that bike 24 delivered growth and improved earnings at the same time.
Speaker #3: This demonstrates the operating leverage in the model even though capacity buildup and temporary staffing are still required to support strong order growth. Turning now to cash flow and net leverage.
Increased by 18.6% to €27.3 million in the first half year. Adjusted EBITDA improved by 35.7% to €7.7 million.
Which means the adjusted AVDA margin increased from 4.1%.
To 4.6%.
Speaker #3: The main effect in cash flow of Q2 was primarily driven by the intentional inventory buildup to secure availability and support growth in the second half of the year.
In Q2 specifically, revenue increased strongly to €96.1 million, cost profits rose to €626.3 million, and adjusted EBITDA reached €5.9 million.
Speaker #3: EBITDA contributed 5.9 million euro, while the development of the trade-driven capital and other operating cash flow items led to a negative free cash flow of 8.5 million euro.
Looking at the cost structure as a percentage.
Our revenue gross profit remains stable in the first half at 26.6%.
Speaker #3: At the same time, stronger profitability over the last 12 months combined with a slight improvement in net debt from minus 16.7 million euro to minus 15.2 million euro resulted in a clear reduction in net leverage, from 2.1 times to 1.1 times year over year.
In Q2, the cross margin was 27.4%, slightly below the prior level of 27.7%, mainly reflecting the promotional environment and continued price pressure in parts of the market.
Performance marketing increased as a percentage of revenue.
Speaker #3: Overall, we continue to finance our growth in a disciplined way, investing in availability and future scaling, by keeping our financing position under close control.
Reflecting our continued investment in customer acquisition and market share.
Selling costs are broadly stable in the first half of the year as a percentage of revenue.
But slightly higher in Q2 due to higher carrier costs and the changing country mix.
Speaker #3: To summarize again, bike 24 continued to gain market share while investing in future growth. Revenue growth of around 20% in Q2 clearly outpaced the broader market environment.
At the same time, personnel expenses and miscellaneous income expenses improved as a percentage of revenue.
The key message is that Bike24 delivered growth and improved earnings at the same time.
Speaker #3: Availability remains a competitive advantage. The stock buildup was intentionally quality-driven and aligned with expected demand. From a profitability perspective, adjusted EBITDA increased both in Q2 and in the first half-year.
This demonstrates the operating leverage in the model, even though capacity build-up and temporary staffing are still required to support strong order growth.
Speaker #3: We are seeing operating leverage while still investing in marketing, fulfillment, in localized markets, and operational capacity. Overall, we have created a clear foundation for continued profitabil growth.
The main effect in cash flow for Q2 was primarily driven by the intentional inventory build-up to secure availability and support growth in the second half of the year. Abda contributed €5.9 million by the development of the trade volume, capital, and other operating cash flow items. This led to a negative free cash flow of €8.5 million.
Speaker #3: With that, let me hand over to Andres, who will share our outlook for the quarters to come.
Speaker #1: Looking ahead, we remain confident in our strategy and our ability to grow profitably in a challenging market environment. The market is still characterized by uncertainty, at the same time we see opportunities from market stabilization high availability structural weaknesses of some competitors, and the continuing demand for cycling products across Europe.
At the same time, stronger profitability over the last 12 months, combined with a slight improvement in net debt from minus €16.7 million to minus €15.2 million, was sold as a clear reduction in net leverage.
from 2.1 times to 1.1 times year over year.
Overall, we continue to finance our growth in a disciplined way.
Investing in availability and future scaling by keeping our financing position under close control.
To summarize again, bike 24.
Speaker #1: Based on our strong first half-year performance, current developments, and the basis we have created for the second half-year, we confirm our full-year 2026 guidance.
We continued to gain market share while investing in future growth. Revenue growth of around 20% in Q2 clearly outpaced the broader market environment.
Speaker #1: We continue to expect revenue in the range of 318 million euro and 332 million euro, corresponding to growth of 10% to 15% year over year, and an adjusted EBITDA between 16 million euro and 20 million euro, implying an adjusted EBITDA margin of approximately 5% to 6%.
Availability remains a competitive advantage. The stock build-up was intentional.
Quality-driven and aligned with expected demand.
From a profitability perspective, adjusted EBITDA increased both in Q2 and in the first half of the year.
Speaker #1: As always, this outlook is subject to the unusual risks and uncertainties including macroeconomic developments as outlined in our half-year report. Before we move to Q&A, let me briefly point out the upcoming dates on our financial calendar.
We are seeing operating leverage while still investing in marketing, fulfillment, localized markets, and operational capacity.
Overall, we have created a clear foundation for continued profitable growth and visibility for Pro.
With that, let me hand over to Andres, who will share our outlook for the quarters to come.
Speaker #1: We will attend Hamburg Investor's Day on August 26, followed by the Burenberg and Goldman Sachs German Corporate Conference in Munich on September 22, and the European Midcap Conference on September 30, 2026 in Paris.
Looking ahead, we remain confident in our strategy and our ability to grow profitably in a challenging market environment.
Speaker #1: Our Q3 2026 results are scheduled for November 12. With that, we have reached the end of our prepared remarks. Thank you for your attention, we are now happy to take your questions.
The market is still characterized by uncertainty. At the same time, we see opportunities from market stabilization, high availability, structural weaknesses of some competitors, and the continued demand for cycling products across Europe.
Speaker #2: Yes, thank you so much for your presentation. We will now move on to our Q&A session. For dynamic conversation, please ask your questions in person via audio line by raising your hand.
Based on our strong first half-year performance, current developments, and the basis we have created for the second half-year, we confirm our full-year 2026 guidance.
Speaker #2: To do so, please click on the raise hand button you see below. If you have dialed in by phone, please use the key combination Starkey9 followed by Starkey6 to unmute yourself.
Speaker #2: If you're not able to speak freely today, you can also place your questions in our chat box and I will read them out loud for you.
We continue to expect Revenue in the range of 318 million euro in 332 million euro, corresponding to growth of 10 to 15% year-over-year and an adjusted FDA between 16 million euro and 20 million euro implying an adjusted EPA margin of approximately 5 to 6 billion.
Speaker #2: With that said, we have already received a raised hand by Mr. Schmidt. You may unmute yourself now. I just sent you an invitation.
Speaker #4: Yes, thank you. And hello. Ingo Schmidt speaking from Montega. First of all, congratulations on the strong performance in the first half. And then I have two quick questions.
As always, this outlook is subject to the usual risks and uncertainties, including macroeconomic developments as outlined in our half-year report.
Before we move to the Q&A, let me briefly point out the upcoming dates on our financial calendar.
Speaker #4: First, on your geographic expansion, you recently launched in Denmark, Slovenia, and Ireland. Could you give us an update on how these new markets are performing so far?
We will attend the Hamburg Investors event. We will stay on August 26th.
Speaker #4: Are you planning to add more specific countries in the coming quarters or do you now feel that you cover all of Europe sufficiently? And second question on profitability.
Followed by the Berenberg and Goldman Sachs German Corporate Conference in Munich on September 22nd, and the European Midcap Conference on September 30th, 2026, in Paris.
Our Q3 2026 results are scheduled for November 12th.
Speaker #4: Given the positive scaling effects we are seeing, what main levers do you plan to use to further improve the EBITDA margin going forward and what would be a realistic target level for 2027 and beyond?
With that, we have reached the end of our prepared remarks.
Thank you for your attention. We are now happy to take your questions.
Speaker #4: Thank you.
Speaker #1: Okay, maybe I catch the first questions regarding to the start of our localization in Denmark, Slovenia, and Ireland. The first thing I think it's good to know for you, we start, yeah, I would say a little bit late.
Yes, thank you so much for your presentation. We will now move on to our Q&A session for dynamic conversation. Please ask your questions in person via the audio line by raising your hand to do so. Please click on the raised hand button you see below.
Speaker #1: For launching these three markets, so that's why it's a little bit too early to be fair. But we see strong development in sales. This is what we can say today.
If you are dialed in by phone, please use the key combination: star key 9, followed by star key 6, to unmute yourself. If you're not able to speak freely today, you can also place your questions in our chat box, and I will read them out loud for you.
With that said, we have already received a raised hand from Mr. Schmidt. You may unmute yourself now; I just sent you an invitation.
Thank you, and hello. English with speaking from Montega.
Speaker #1: And yeah, and we have to, yeah, as we always do, invest a little bit more in marketing so the penetration for these countries just started.
First of all, congratulations on the strong performance in the first half.
And then I have two quick questions.
Speaker #1: one for the question is that for us, these three markets are very interesting for us because road bikers, gravel bikes, and this is a little bit our bike 24 CNA is very important market there.
First, on your geographic expansion: You recently launched in Denmark, Slovenia, and Ireland. Could you give us an update on how these new markets are performing so far?
More specific countries in the coming quarters, or do you now feel that you cover all of Europe sufficiently? And, uh, second question on profitability. Uh, given the positive scaling effect we are seeing—
Speaker #1: And many, many enthusiast customers. That's why we decided for these three countries. And the next thing is that we think that when we look to maybe more localization, I think it could be a better decision when you see our market shares in all the countries we localized, that it could be more interesting to invest a little bit more in the existing localized markets and not to launch yeah, I would say small and also smaller countries.
But which main levers do you plan to use to further improve the EBITDA margin going forward, and what would be a realistic target level for 2027 and beyond? Thank you.
Okay, maybe I'll catch the first questions, uh, regarding the, um, uh, start of our localization in Denmark, Slovenia, and Ireland.
Speaker #1: Yeah, this I think it would be more interesting for you. For us.
Speaker #3: Regarding gross margin, then I will take this question from you, Mr. Schmidt. Thank you very much. As you know, and as we said also last year and this year as well, we are focusing not particularly on gross margin, even though we have this in focus, but we were focusing on more on gross profit.
Um, the first thing I think it's good to know for you, we start. Um, yeah, I would say a little bit late, uh, for launching these these 3 markets. Um, so that's why it's a little bit too early to um, to be uh, to be fair. Um, but we see um a strong development in sales, this is what we can say today.
and um,
and um, yeah and we have to yeah, as we always do invest a little bit more in marketing and so depend penetration of for these countries just started
Speaker #3: And this is very want to grow even more also in the future. And we see also there operating leverages, of course, and to improve this margin.
And, um, I think the second one for the question is that, um, for us, these three markets?
Speaker #3: And opportunities to improve as well lay in our product mix. That we can slightly adjust in our favors and of course, we continuously looking also to try to lift up prices where possible.
Yeah, are very, um, um, interesting for us because I wrote bikers, gravel bikes. And, you know, this is a little bit our Bike24 DNA, it's very important, uh, a market there.
Speaker #3: Yeah. But like I said, at the beginning, I think also we can increase our gross margin, but the target is difficult to predict. Since we are more focusing on increasing our profit in absolute terms.
And many, many enthusiast customers. That's why we, um, um, decided on these three countries.
Speaker #4: Okay, perfect. Thank you very much. And all the best for the rest of the year. And see you at the end of August in Hamburg.
And the next thing is that we think that, um, when we look to maybe more localization, I think it could be a better decision. When you see our market shares in all the countries, we...
Speaker #3: Yes.
Speaker #2: Thank you so much, Mr. Schmidt. We're moving on to our next question. By Mr. von Spee, I just sent you an invitation to unmute yourself.
Um, we localized that it could be more interesting to invest a little bit more in the existing localized markets and not to, uh, launch—yeah, I would say—small and also smaller countries. Yeah, this, I think, would be more interesting for you, for us.
Speaker #5: Does it work?
Speaker #2: Yes, we hear you.
Speaker #5: Thank you very much for taking my question. Congratulations. To both of you, Mr. Andres, your colleagues. I remember well when I was sitting in your office let's say three, four years ago, much more difficult situation.
Regarding gross margins—and I will take this question from your message. Thank you very much.
Speaker #5: And my questions are a little bit all linked together. First of all, return ratio. I saw on LinkedIn that you work with Bike Metrics, which sounds really very exciting.
Um, as you know and as we said also last year and this year as well, we are focusing not particularly on gross margin, even though we have this in focus, but we are focusing more on gross profit. And this is very important—I want to grow even more also in the future. And we see also there, um, operating leverages, of course, and aim to improve this margin.
Um, and, um, opportunities to improve for, as well, lay in, you know, our product mix.
Speaker #5: Where actually when you can really find the fitting part for your bike. That should have positive impact on your return ratio. So could you elaborate on that a little bit?
Uh, that we can slightly adjust in our favorites. And of course, we are continuously looking also to try to lift up prices, um,
You know, where possible, you know?
Speaker #5: Then aging stock, it's a tremendous how you reduce that. And that's certainly because of your big effort you made with SAP I think unfortunately you never present enough what you have done there.
But like I said at the beginning, I think also we can increase our gross margin, but the target is difficult to predict since we are more focused on increasing our profit in absolute terms.
Okay, perfect. Thank you very much, and all the best for the rest of the year.
Speaker #5: And what the effects will be of that. Having successfully introduced SAP and then in this difficult market, markets are how they are. But shouldn't this be the case that you would all what you have done the last years, SAP, reducing return ratios?
Thank you, and see you at the end of August in Hamburg. Yes.
Thank you so much, Mr. Schmidt. We're moving on to our next question from Mr. Funchi. I just sent you an invitation to unmute yourself.
Speaker #5: In the end, you should profit out of it. In the end, you should be the guy who still can survive with extreme competitive pricing.
Speaker #5: That's actually the broad questions I have.
Speaker #1: Okay, maybe I catch the first question. So yes, I think it's important for our customers especially as you know, we have many, many enthusiast customers on our platform to find the right part for their bike.
That works. Yes, we hear you. Thank you very much for taking my question. Congratulations to both of you, Mr. Andres, and your colleagues. I remember well when I was sitting in your office, let's say three or four years ago, it was a much more difficult situation. And my questions are a little bit...
All linked together—first of all, return ratio.
Speaker #1: So that's why the cooperation with Bike Matrix x is very interesting for us. And especially for our customers. And we see it as a yeah, as a benefit for them.
Speaker #1: In customer experience. And that's why we see a slightly lower return rate in especially in parts in the first half of this year. But the main thing is, yeah, is still the high return rate in closing.
Speaker #1: And this is what we where we are also have ideas that customer find I think the right size for maybe the shirt or jersey or the yeah, that's what I think the I think a little bit the more important thing for Bike 24.
That having successfully introduced sap.
and then, um,
Um, in this difficult market—markets are how they are—but shouldn't it be the case that, with all that you have done in the last years, say, reducing return ratios, in the end you should profit out of it?
Speaker #1: But to be honest, Bike Matrix is technically very sophisticated and very interesting for us. And we see slightly better return rate than last year.
In the end, you should be the guy who can still survive with it.
Um, extreme competitive pricing. That's actually the broad question.
Speaker #1: So I think we and our customers benefit from this.
Speaker #3: And Emmanuel, can I ask you to repeat your questions regarding?
I have. Okay. Maybe I I catch the first question. So um, yes. I think it's it's important for, for our, for our customers.
um,
um,
Speaker #5: Yeah, yeah, SAP. I mean, you used the aging of the stock from 14 to six months. And in my I don't know, daydreaming, I would say that is also mainly because you have introduced SAP.
Especially as, you know, we have many, many end users and customers on our platform.
Speaker #5: I think two years ago or 18 months ago, and that that should be one of the already big result of that. And I think you should much more emphasize and presentation that you have built up this SAP.
I think the riot part for their bike. So that's why the cooperation with bite mics is very interesting for us and especially for our customers and we see it as a yeah, as a benefit for them, uh, in customer experience. And that's why we we see a slightly lower.
Speaker #5: What not many of your competitors have done.
A return rate in in, especially in Parts in, in the first half of this year, um, but the main thing is, is, yeah, is is um, still um, the high return rate in?
Speaker #3: Yes. I mean, generally speaking is we have some advantages from SAP. They lay but more in the procurement and how fast we can procure or reorder products.
In closing. And this is what we, um, where we are also have ideas. Um,
Um, that a customer finds. I think the, the right—
Speaker #3: In regards to the aging, I mean, as you might at least understand, we should have been or we should be able also to see our age stock before SAP.
Speaker #3: And this is what we also monitored. That we build up more aged inventories or aged stock was driven by the markets in 23 and 24.
Um, the right size for maybe the shirt, or just say what the, the, yeah. Um, that's what I think. I think a little bit, the more important thing for, for Bike24. But, uh, to be honest, um, Bike Motox is, is technically very sophisticated and very interesting for us, and we see—
Um, slightly better.
Speaker #3: Currently, of course, we can monitor them, but we could we were also able to monitor this before. And we did it. Of course, we need to be ahead of our stocks that we have.
Return rate lower than last year, so we, I think we, and our customers benefit from that.
Speaker #3: We need to know what's there. That we now have reduced it. It's an ability that we okay, we created 24 where we are focusing and this is what we also telling to the markets regularly.
Speaker #3: That we really focusing on being more competitive also in our pricing. And this is what we also do when it comes to how we monitoring our products.
Speaker #3: And of course, we have certain life cycles in products. Different products have different life cycles. And we have products that turn faster. Which we monitor closely, but we have also long tail that are intended to stay a little bit longer.
And a man can I can I ask you to repeat your questions regarding your Google the sap? I mean you have you used the Aging of the stock from 14 to 6 months? Um, and um, in my uh I don't know daydreaming, um I I would say that is also mainly because you have introduced sap, I think, 2 years ago, or 18 months ago and that, that should be 1 of the already big results of that. And, and I think you should
Much more emphasized in the presentation that you have built up to SAP. What not many of your competitors have done? Yes. I mean, generally speaking, we have some advantages from SAP.
Speaker #3: And this is how we also manage our stock or how we keep stocking.
Speaker #5: And maybe the last point was how do you see your position in this difficult market, which is what you mentioned in the statements. Still very price competitive.
Um, delay, but more in the procurement and how fast we can procure, uh, or reorder products in regards to the aging. I mean, as you might—
At least, understand, we should have been—or we should be—able also to see our H stock before SAP. And this is what we also monitored.
Speaker #5: Where do you see your company set up what you have done the last years to compete in this market?
Speaker #1: I think we did many, many good decisions in the last two and three years. Yeah, a part is of course introduction of SAP and it's also that we have now lower obsolete stock and we have now fresh stock and yeah, we invested a lot in technology especially as you also asked for Bike Matrix.
Speaker #1: This is all many, many of small points I think is the tailwind we have from the I would say from our customers. Because as you know, the market is not is solid, is I would say stable, but it's not too much tailwind from the market.
Uh, that we build up um um more aged inventories or h stock was um yeah driven by the markets in 23 and 24. Currently, of course, we can monitor them but we could, we were also able to monitor this before and we did it because we need to be ahead of our stocks that we have, you know, we need to know what's there. Um, that we now have reduced that it's um, it's an ability that we okay, we created, um, 24, you know, where we focusing, and this is what we, what we are also telling, you know, to the market regularly that you really focusing on, um, being more competitive for also in our, in our pricing,
And this is what we also do when it comes to how we are monitoring our products. And, of course, we have certain life cycles in products. Different product groups have different life cycles. Yeah.
Speaker #1: And also not from consumer sentiment. So we gain market shares from yeah, we have to say it from our competitors. And I think we have the right assortment.
Speaker #1: We have a good pricing. We have a good availability. And this also is a yeah, is our we have very often told you it's our secret sauce.
And we have products that turn faster, which we manage more closely. But we also have long tail products that are intended to stay a little bit longer. And this is how we also manage our stock, or why we keep stocking here.
Speaker #1: Yeah, now it's not too big secret, but it's I think all of these we master, we handle very good. And this is why we were able to grow faster than the market in the last 18 months.
And maybe the last point was, how do you see your position in this difficult market—which, as you mentioned in the statement, is still very price competitive?
Where do you see your company set up, and what have you done in the last years to compete in this market?
Speaker #5: Yeah, thank you.
Speaker #2: Thank you very much, Mr. Von Spee. We have another raise in hand by Mr. Specht. I just sent you an invitation to unmute yourself.
I think we did—we made many, many good decisions in the last two or three years.
Speaker #2: I can see that you're dialing in by phone. So please press star key six to do so.
Speaker #5: And can you.
Speaker #2: We just could hear you for a second. Now you're gone again, but I can see that you unmuted yourself.
Speaker #4: Yes, hello, good morning.
Speaker #2: Good morning.
Speaker #4: I have three follow on if I may. The first one on the logistics side, we noticed let's call it revitalization of the Barcelona hub, which currently forms a burden in the ramp up phase.
Part is, of course, introduction of of sap. And it's also that we that we have now lower obsolete stock and we have now fresh stock. And yeah, we we we invested a lot in technology. Um yeah, especially also. As as you also asked for bike markets, it's all many. Many of small points I think is is the is the detail. When we we have from the, I would say from our customers uh, because uh, as you know, the market is not
Speaker #4: Can you give us some idea how we should look at it in the midterm? Is Barcelona a tool to bring down the, let's say, cost per unit or per parcel down over time?
Is, is solid, is is I would say stable, but it's not too much table from the market, and also not from consumer sentiment. So we, so we gain market shares from? Yeah. Yeah. We have to say it from our competitors.
Speaker #4: Or will it be just working side by side with Dresden on similar economics? And then also on the logistics, shipping side, do you see options to, let's say, roll over rising costs to your end customers?
And I think we have, we have the right. Assortment we have a good pricing. We have a good availability. And this also is a. Yeah, is our. We we have very often told you it's our secret Source. Yeah. Now, it's not not too big. Uh, uh, secret but, uh,
I think all of these, we mastered, we handled very well, and this is why we were able to grow faster than the market in the last 18 months.
Speaker #4: Second point is on the inventory side. I noticed a reversal of impairments was roughly a million euro. Is more to come or the option of more to come as you are driving down the amount of aged inventory further?
Thank you.
Thank you very much, Mr. Fee. We have another raised hand by Mr. Space. I just sent you an invitation to unmute yourself. I see that you're dialing in by phone, so please press star *6 to do so.
Speaker #4: And then finally, the elephant in the room, the guidance. For sure, the. Leads the top line guidance looks very conservative now having delivered the first half year sales results.
We could hear you for a second, but now you're gone again. However, I can see that you've unmuted yourself.
Speaker #4: So what holds you back from increasing at least the sales outlook for the full year?
Speaker #1: Maybe I can start with your Barcelona question. So of course, it was a part and is still a part of our story where we what we introduced during our IPO that localization is a big part of our strategy.
Yes, hello, good morning, good morning. I have uh 3 follow on. If I met the first 1 on the logistics side, we we noticed, let's call it. Revitalization of the Barcelona Hub, which currently is forms a, a burden in the ramp up phase but can you give us some some idea how we should look at it in the midterm? Um is Barcelona a tool to to bring down the let's say CS per unit or per pass parcel down over time.
Or, um, will it be? Let's just—working side by side with great, on similar, um, economics.
Speaker #1: So Barcelona is our second warehouse and we see that we need it. We saw that around 250 to 300 million, we have here the capacity limit in Dresden.
And then, um, also on the logistics shipping sites. Do you see options?
To, um, let's say, roll over rising costs to your end customers.
Speaker #1: And the Barcelona warehouse has almost the same size. So we are it was a good investment when you see that we are our guidance regarding to sales is above the 300 million now.
Second point is, um, on the inventory side. I noticed the reversal of impairments with roughly €1 million.
is, um, more to come or the option of more to come, um, as you, uh, are driving down, um, the amount of each inventory further,
Speaker #1: So we need Barcelona for our growth. It's an important part of our strategy. So we need this and it's clear the closer you are to your customers, the shipping costs are less or lower than so we yeah, it's a big and important cost point for us.
And then finally, um, the elephant in the room—the guidance, for sure. The, at least the topline guidance, looks very conservative. Now, having...
Um, you delivered the first half-year sales results. So what holds you back from increasing, at least, the sales outlook for the full year?
Speaker #1: And that's why we yeah, it's important also for the coming quarters. To ship more and to build up our capacities from Barcelona.
Speaker #3: Regarding cost to roll over to customers.
Speaker #1: Yeah, this is yeah, second part of your question was rising the rising cost for shipping because of the higher gas prices in Europe or in the world.
And maybe I can start view your Barcelona question. So um, of course, uh, is it was a part and is still a part of our, uh, story where we, what we introduced during our IPO that localization is a is a big part of our strategy. Uh, so Barcelona is a, ya is our second warehouse and, and
Speaker #1: We check it. It's a part of our strategy, but we have to look how competitors do the prices for shipping and we will check it.
Speaker #1: And when we see opportunities, then we will do it. It's clear.
Speaker #3: Regarding the second question from you, this is related to the inventory and yeah, the aged stock that we decreased and whether you see more potential there also from releasing write-offs.
Speaker #3: I mean, the biggest part we released last year, you know, regarding the write-offs and the reduce the also in the second half of last year, we reduced our inventory stock materially to around about 7 million.
Speaker #3: So we now reduced a little bit more but since we define also the age stock, also then 12 months, we surely have some certain levels that we will keep.
We see that we needed. Yeah, we saw that um around 250 to 300 million. We have here the capacity limit in in dressing and um and the Barcelona Warehouse has yeah, almost the same size. So, um, we are it was a good investment when we when you see that we are our guidance regarding to sales is above the, the 300 million. And now so we need Barcelona for uh, for our growth. It's a, it's an important part of our strategy. So we need this and it's it's clear. Um, the closer you are to your customers. The shipping costs are are less or lower than than um, so we we we yeah, it's it's a big and important cost point for us.
It's important, also for the coming quarters.
Um, to ship more and to build up our capacities from Barcelona.
Speaker #3: As we as this is also our strategy to have a long tail and provide to our customers also longer for longer time parts that might be needed for their bikes.
Speaker #3: And then we coming to the third questions.
Speaker #1: Yeah, I start with the guidance regarding to the sales. So as you know, and also many, many news in the last two weeks of our market, so we see and this is not a secret consolidating is a part of in our industry today and we see yeah, I would say a significant opportunities to gain additional new customers and to expand our market shares.
Regarding um, costs to hold over to customers. Yeah, this is uh, yeah, second part of your question was Rising. Uh um devising costs for shipping um because of the higher higher gas prices in in Europe or in the world and we check it. Uh it's it's a part of our strategy but we have to look how competitors
Uh, are the prices for shipping—and we will check it, and when we see opportunities, then we will do it.
Clear.
Regarding the second question from you, this is related to the inventory and, um,
Speaker #1: And that's why it's a big focus for us to push revenues in this, I would say, yeah, what I also mentioned that we see some weaknesses of competitors and that's why we I would say, yeah, we take this opportunity especially in pushing sales.
Speaker #3: Yeah. Maybe on the earnings side, I see something here. Yeah, also there we think that we remain within the guidance. Yeah. Of course, this reflects on the one hand side, our product mix and also our regional development as we explained today.
Yeah, the h stock that we decreased and was so you see more potential there also from, um, releasing write-offs. I mean, the the the biggest part we released last year, you know, regarding the write-offs and the USD. Um, also in the second half of last year we reduced our inventory stock, um, materially to know around about 7 million. So, we now reduces a little bit more.
But, um, since we define also the age stock other than 12 months, we surely have...
Speaker #3: Yeah. Particularly in areas where we have very intensified price competition and very high price sensitivity. Yeah. And at the same time, we also invest in customer acquisition.
Um, yeah, there are certain levels that we will keep, um, as we, uh, as this is also our strategy to have a long tail and provide to our customers. Also, um,
Longer for a longer time, uh, parts that might be needed for their bikes.
Speaker #3: I see from us, you could see from our marketing costs and we also invest in our structural capabilities. As you also asked regarding Barcelona, as an example, yeah, which we bring technical to the same level as in Dresden.
And then we're coming to the third question, sir? Yeah. Maybe I'll start with the guidance regarding this. So, as you know, and also as covered in many news items in the last two weeks about our market, um,
Speaker #3: And of course, we boost that investments. We also prepare ourselves for future growth already. And then for some more also last year, as I just said in the second question, so we also had significant production and aged inventories.
So we see, uh, and this is not a secret, consolidating is a part of—of...
our industry today, and we see—yeah, I would say—a significant opportunity to gain additional new customers and to expand our market shares.
Speaker #3: Which of course had then lower product costs and positively impacted yeah, the A margin. And so at the end, as I said, we expect to be within the guidance range at the end of the year regarding earnings.
And that's why it's a big focus for us.
to push revenues in this, I would say
Speaker #3: Yeah.
Yeah, what I also mentioned uh, that we see some weaknesses of of, of competitors and that's why we, I would say, yeah, we we take, we take this opportunity, especially in pushing, and pushing sales.
Speaker #4: Okay. Thank you a lot. Maybe one additional one before we go back into the line. On the tech side, you've become a net tax payer in the second quarter thing we have not seen for a while.
The earnings side. I say something. Yeah.
There, we think that we remain within the guidance. Yeah.
Um,
Speaker #4: Do you believe or expect to remain net tax payer or could there be changes in the upcoming quarter?
Of course, this reflects, on the one hand, our product mix and also our regional development, as we explained today. Yeah.
Speaker #3: I know we think that we will become tax payer. Of course, we can use make use of our tax losses carry forward. Yeah, that will be used.
Particularly in areas where we have very intensified price competition.
And, um, very high price sensitivity. Yeah.
Speaker #3: And on the other side, we have amortizations. As you know, from our brands and customer, relationships, yeah, that are not what that we have not from the tech side.
At the same time, we also, you know, invest in customer acquisition, and you see from us—you could see from our marketing costs and...
Speaker #3: Yeah. And that's why we have also positive income. For tax purposes. Yeah.
We also invested in our structural capabilities. As you also asked regarding Barcelona as an example—yeah, we bring technical to the same level as, interestingly, other locations.
and um,
Speaker #4: Thanks a lot.
And of course, we boost the investments. We also prepare ourselves for future growth already.
Speaker #2: Thank you so much for your questions. We have one more risen hand by Mr. Michaels. You may unmute yourself now.
Speaker #5: Thank you. Congratulations on the numerous strong KPIs, gentlemen. I have a few questions, maybe I'll go through one by one to make it easier.
And then, furthermore, also last year, as I just stated in the second question, we also had a significant reduction in aged inventories.
Um, which of course had then lower product costs and that positively impacted, um,
Speaker #5: Could you give us more detail or color on the better and weaker better and weaker localized markets? What do you see in the localized markets or is it pretty much across the board similar growth?
Yeah, the even the a margin. And so at the end um, as I said, we expect to be within the guidance range at the end of the year for regarding in earnings. Yeah.
Speaker #1: Similar growth. Yeah, it's today we don't see there any I would say very, very weak region in Europe. So we in all regions in Europe on I would say in almost all countries, we have double digit growth rates in Q2 and also in the first half of this year.
Okay, maybe 1 additional 1. Before we go back into the line, on the text side, you you have become a net tax payer um, in the second quarter. Uh the thing we have not seen for a while you believe uh or expect to remain net tax payer or could there be changes in the upcoming quarter.
No, no, we think that we will become taxpayers, of course. Um,
Speaker #1: There's slightly differences, but it's not we see a whole tailwind from all markets and as also from our home market.
We can make use of our tax losses, carry forward. Yeah, that will be used. And on the other side, we have amortizations, as you know, from our brands and customer...
Speaker #5: That's great. On the full bike side, could you give us explain maybe why it seems to be a little bit more slower and talk about trends?
relationships—yeah, that are not, um,
That's what we have noted from the text side. Yeah, and that's why we also have a positive income.
For tax purposes.
Thanks a lot.
Speaker #5: You did say that road and gravel are doing well. Any other thoughts about full bikes, the slowness of the market? If it is slow or capacity constraint on assembling them and getting them out, what's that more color on what's going on with full bikes?
Thank you so much for your questions. We have one more raised hand by Mr. Michaels. You may unmute yourself now.
Speaker #1: Yeah. I think the first part of to answer your question is that the bike revenues the share is yeah, almost 20%. It's a little bit less than 20%.
Thank you. Congratulations. On the numerous strong kpis gentlemen. Uh, I have a few questions. Maybe I'll go through 1 by 1 to make it easier. Uh, could you give us more uh detail or color on the better and a weaker better? And weaker localized markets. What do you see? Uh, in the localized markets? Or is it pretty much across the board similar growth?
Speaker #1: And yeah, when you see the whole market, so our market share and bikes is very, very small. So that's why the focus is important, as you know, it's also a part of our strategy to have yeah, a good development and good growth in for full bikes.
Similar like yours. Yeah, it's—it's today. We don't see there any, uh, I would say, very, very weak, uh, region in Europe. So,
In all regions in Europe, and I would say in almost all countries, we have double-digit growth rates in Q2 and also in the first half of this year.
Speaker #1: But one quarter is a little bit a small time a short time for I would say for full picture. And when we see the first weeks of July and also starting August, we had much better results than in Q2.
Um, yeah, there are slightly different differences, but it's not. You see a whole tailwind from all markets and also from our home market.
Speaker #1: So that's why I think this is also a part of our question. And the second thing is that we grow have or that we grew in units in the first half of 24%.
That's great on the full bike side. Uh, could you give us, uh, explain maybe why it seems to be a little bit more slow? Uh, and talk about, um, trends — you did say that road and gravel are doing well. Uh,
Speaker #1: So you see it's also a product mix part. And that's why we feel very comfortable today and I think we will have better growth in the Q3 also in the part of the top line.
Any other thoughts about full bikes the slowest of the market? If it is slow or capacity constraint on on, on, assembling them and getting them out? What what, what's that more color on? What's going on with full bikes? Yeah, I think the first part of
your question is,
Speaker #3: Got it. Great. Thanks.
The bike revenues, the share is almost 20%. It's a little bit less than 20%.
Speaker #5: On the bike market, in reading your report that was published this morning, a lot of some good detail on the bike market for last year for the industry that you write about.
And, um, and yeah, when you see the whole market, so our market share in bikes is very, very, very small. So, um, that's why, um,
Speaker #5: It was kind of surprised to see how negative it was. Do you see any signs and could you comment on them of the industry going from negative growth to perhaps a more stable?
The focus is important. Uh, as you know, it's also a part of our strategy to have
Um, yeah, good development and good growth in—for full bikes.
Speaker #1: It's really difficult because as you know, we are focusing on enthusiasts. There we see much more yeah, it's our focus. And enthusiasts market, I would say, is improving and is better than the whole market.
But, uh, one quarter is a little bit—a small time, a short time, I would say, for a full picture.
and um,
Um, and when we see the first weeks of July and also starting August.
Uh, we had much better results than in Q2, so that's why I think this.
Speaker #1: I think the negative impact is especially for the retail market, especially also in e-bikes, in where the demand is, I would say, is yeah, still lower than last year.
Speaker #1: But especially in the market where we are or where bike 24 is, we see a slightly better market and we see there a little tailwind for us.
this is also a part of our of our question. And the second thing is that we uh grow grow have or that we grew in units in the first half of class 24%. So you see it's it's also a product mix uh part. Um
And that's why we feel very comfortable today.
Um and I think we we will have better growth in the um in the Q3 also um in the part of the Top Line.
Speaker #1: That's why for the whole market, we are not so negatively impacted.
Speaker #5: Got it. I guess you could say that the e-bike market grew tremendously thanks to new riders who were stuck at home and during COVID, right?
Got it, great, thanks. Um, uh, the bike Market in reading your, uh, report that was published this morning and a lot of details, some good detail on the bike market for last year, for the industry that you write about. Uh, it's kind of surprised to see how how negative it was.
Speaker #5: And it was a one-off big bubble and that bubble has been is still just being digested by the not the enthusiast market, but more the just the general market.
Uh, do you see any signs—and could you comment on them—of the industry going from negative growth to perhaps something more stable?
Speaker #5: So that's how you get this I get it. Thanks so much. Thanks for answering the questions. Appreciate it. Good to see you, gentlemen.
It's, it's a diff—it's really difficult because…
Speaker #1: Thank you.
You know, we are focusing on enthusiasm there. We see much more...
Speaker #2: Thank you very much, Mr. Michaels. We have not received any further risen hands nor any questions in our chat box. So I would say we therefore come to the end of today's earnings call.
Yeah, uh, it's our focus. And Tuesdays, the market I would say is, um,
Speaker #2: Thank you for joining. And this lively conversation. Should further questions arise at a later time, please feel free to contact Investor Relations. A big thank you also to Andreas for your presentation.
Is improving and is better than the whole Market. I think the the negative impact is especially for, for the, for the retail markets, especially also in e-bikes in in
Speaker #2: And to you, Silvio, as well. I would say I wish you all a lovely remaining week and with this, I hand over again to Andreas for some final remarks.
Um, um, where the demand is, I would say, is yes, still lower than last year, but especially in the market where we are,
Speaker #1: Yeah, thank you again for joining us today and for your continued interest in bike 24. We appreciate your trust and look forward to keeping you updated on our progress over the coming quarters until then.
Or, where by '24 is, we see a slightly better market, and we see there a little tailwind for us.
Um, that's why for the whole market, we are not so negatively impacted.
Speaker #1: Yeah, we wish you also all the best for today and yeah, have a good day. Bye-bye. See you.
say that the ebike market,
It grew, uh, tremendously, thanks to new, uh, writers who were stuck at home and went to write. And, and, and it was a one-off big bubble, and that bubble has been, uh, is still just being digested by not the enthusiast market, but more the general market. So that's how you get this. I got it. Thanks so much. Thanks for answering the questions. Appreciate it. Good to see you, gentlemen. Thank you.
Thank you very much, Mr. Michaels. We have not received any further written hands, nor any questions in our chat box.
So, I would say we therefore come to the end of today's earnings call. Thank you for joining and for this lively conversation. Should further questions arise at a later time, please feel free to contact Investor Relations. A big thank you also to Andres for your presentation, and, uh,
And to you as well. Um,
I would say, I wish you all a lovely remaining week, and with this, I hand over again to Andres for some final remarks.
Yeah, thank you again for joining us today and for your continued interest in Bike24. We appreciate your trust and look forward to keeping you updated on our progress over the coming quarters. Until then,
Uh, yeah, we wish you also, uh, all the best for today. And yeah, have a good day. Bye-bye. See you.
Sure.
