Showroomprivé to chase 1.1 bn euros revenue target by 2020

In 2016, 10 years after its creation, Showroomprivé said, the company continued to outperform the e-commerce market with over 20 percent of growth. Announcing mid-term roadmap, the group said, it targets to generate 1.1 billion euros (1.15 billion dollars) in revenues by 2020, and revenues between 690 million and 720 million euros (726 to 758 million dollars), a growth of 28 percent to 33 percent in FY17. EBITDA margin is expected to be above 6 percent for 2017 and above 7.5 percent in 2020.

Commenting on the results, Thierry Petit and David Dayan, Co-Founders and Co-CEOs of Showroomprivé stated in a media statement, “We are proud to report very strong results for this first full fiscal year as a listed company. This very strong performance allows us to set new ambitious financial targets for 2017 and beyond, with the objective to double our revenues and reach over 1 billion euros by 2020.”

Showroomprivé revenues jump 21.9 percent

The company said 21.9 percent increase in Group revenues to 540 million euros (568 million dollars) was mainly driven by France, where net internet revenues rose by 22.6 percent. International revenues were up by 13.4 percent, with contribution of Saldi Privati in the last two months of the year. Net sales on a comparable perimeter were be stable, with the organic growth in H2 offsetting the decrease in H1.

In the fourth quarter, the Group had revenues of 194.6 million euros (204 million dollars), representing a growth of 27.1 percent compared to 2015 and 21.6 percent excluding Saldi Privati.

Showroomprivé said, revenues growth in 2016 was driven by both an increase in the number of buyers and the average revenue per buyer. The company saw 3.7 million new members and 1.2 million new buyers in 2016. The number of buyers in 2016 exceeded 3.2 million, an increase of close to 13 percent. Average revenue per buyer increased 6 percent to reach 160 euros (168 dollars).

The Group’s growth remains underpinned by the mobile segment, which now accounts for 77 percent of traffic and 55 percent of net revenues, which represents an increase of 7 points against 48 percent last year.

EBITDA increased by 19.1 percent to reach 28.3 million euros (29.8 million dollars). Excluding Saldi Privati, it grew more than revenues to reach 28.8 million euros (30 million dollars), a growth of 21.5 percent against 2015) with an EBITDA margin of 5.4 percent. Profitability in France reached 7.5 percent in 2016 but remained negative other markets due to significant marketing and pricing investments, creation of local sourcing teams and Saldi Privati integration.

Showroomprivé acquires Beauteprivee

The company has also announced that it has signed an agreement for the acquisition of Beauteprivee, the French leading online flash sales player specialized in cosmetics, beauty and well-being products and services.

The company, founded in 2007 by Xavier Chauvin and Frederic Bille with the support of Voyageprive’s founders including Denis Philipon, reported IFRS net sales of 19 million euro (20 million dollars) in 2016, up more than 40 percent versus the previous year. Its EBITDA margin exceeded 7 percent. Showroomprivé expects to benefit from the expertise of Beauteprivee’s team to strengthen its position on the online flash sales market of cosmetics and well-being products.

Picture:Showroomprivé