OZON HOLDINGS PLC
Ozon announces its unaudited financial results for the second quarter ended June 30, 2023. GMV incl. services grew to RUB 373 billion in Q2 2023 (a year-on-year increase of 118%), driven by rapid growth in orders and a loyal customer base. Sales by third-party sellers grew even faster, showing year-on-year growth of almost 140%, as their share in the marketplace reached 82.6% (6.5 p.p. growth). Based on the current trends and outlook, Ozon is raising its growth guidance for the full-year 2023. The company expects GMV incl. services to grow by 80-90% year-on-year and adjusted EBITDA to remain positive for the full-year 2023.
The number of Ozon orders in April-June 2023 increased by 131% year-on-year to 209 million, with almost a third more active buyers than in the previous year - 39.5 million versus 30.7 million. Order frequency per active user was up 55% year-on-year to 17 orders per year.
Second-quarter revenue was up 61% year-on-year and exceeded RUB 94 billion thanks to an almost twofold increase in services revenue and a rebound in direct sales. Significant growth in the number of third-party sellers and their sales (3P) enabled Ozon to increase its services revenue to RUB 57 billion (up 88% compared to Q2 2022). Revenue from the advertising platform tripled again to RUB 14.9 billion in the reporting period, compared to RUB 4.8 billion the previous year. Revenue from direct sales of goods (1P) increased by 32% compared to Q2 2022, rising to more than RUB 37 billion.
Gross profit was up 13% year-on-year to RUB 10.1 billion. Adjusted EBITDA amounted to RUB 0.1 billion, and the ratio of adjusted EBITDA to GMV incl. services remained virtually unchanged compared to the same period in 2022. The decline relative to the previous quarter's record figure was attributable to the company's strategic investments in growth.
"In the fast-growing online retail market at the current moment it is investment in market share and accelerating growth that ensure the company's sustainability thanks to economies of scale. Favorable prices and the ability to collect orders close to home are important to customers. We are therefore investing in convenience and optimal price of goods to increase customer loyalty to the marketplace on the one hand, and to stimulate third-party sales on the other.
At the same time, against a backdrop of rapid growth, our priority remains operational efficiency. We still expect to see a positive EBITDA for the year. Our development strategy is already showing results today: we see accelerated GMV growth, purchase frequency has increased by 50%, and our customer base continues to grow. Therefore, we will continue investing in development in the third quarter, while keeping the efficiency of all operations in focus," said Igor Gerasimov, Ozon's CFO.
The Company continues to improve operational efficiency through economies of scale, optimization of operational processes, and other measures to improve unit economics. The share of operating expenses in turnover decreased by half - from 9.9% in Q2 2022 to 5.0% in the current reporting period. At the same time, unit economics improved significantly: operating expenses per order, excluding fire-related costs, decreased from RUB 188 in Q2 2022 to RUB 90 in the reporting period.
The loss for the period was RUB 13.1 billion in Q2 2023, compared to RUB 7.2 billion in Q2 2022, which was mainly attributable to unfavorable foreign currency effects and higher financing costs.
Cash, cash equivalents and short-term bank deposits amounted to RUB 74.6 billion as of June 30, 2023, compared to RUB 82.4 billion as of 31 March 31, 2023.
Business Areas
Logistics
As of June 30, 2023, Ozon's total warehouse space increased by 57% year-on-year to over 1.7 million square meters. As of the end of Q2 2023, more than 70% of Russians have Ozon courier delivery available to them or pick-up points located within 10 minutes from their home.
Ozon Global
As of the end of Q2 2023, the range of goods from China and Turkey almost doubled and exceeded 38 million separate products. Daily orders exceeded 38,000 per day in the reporting period. Ozon has a partner delivery service operating in China and Turkey, thanks to which the marketplace managed to reduce delivery times for products from those countries to 11-16 days and 5-10 days, respectively.
Ozon CIS
The company attracts sellers from Belarus, Kazakhstan, Kyrgyzstan and Armenia, and sales are also open to local buyers in these countries. In Q2 2023, Ozon opened a second fulfillment center in Kazakhstan and also launched sales for residents of Kyrgyzstan. In June, the company announced its entry into the Armenian market, where the company's representative office and sorting center are now operating.
Ozon Fintech
In Q2 2023, the Fintech division's revenue exceeded RUB 2 billion. Ozon has expanded its range of B2B and B2C services and introduced a savings account. Ozon Card was once again the most popular way of making payments on the platform. The card is used by more than 25 million shoppers.
The number of Ozon orders in April-June 2023 increased by 131% year-on-year to 209 million, with almost a third more active buyers than in the previous year - 39.5 million versus 30.7 million. Order frequency per active user was up 55% year-on-year to 17 orders per year.
Second-quarter revenue was up 61% year-on-year and exceeded RUB 94 billion thanks to an almost twofold increase in services revenue and a rebound in direct sales. Significant growth in the number of third-party sellers and their sales (3P) enabled Ozon to increase its services revenue to RUB 57 billion (up 88% compared to Q2 2022). Revenue from the advertising platform tripled again to RUB 14.9 billion in the reporting period, compared to RUB 4.8 billion the previous year. Revenue from direct sales of goods (1P) increased by 32% compared to Q2 2022, rising to more than RUB 37 billion.
Gross profit was up 13% year-on-year to RUB 10.1 billion. Adjusted EBITDA amounted to RUB 0.1 billion, and the ratio of adjusted EBITDA to GMV incl. services remained virtually unchanged compared to the same period in 2022. The decline relative to the previous quarter's record figure was attributable to the company's strategic investments in growth.
"In the fast-growing online retail market at the current moment it is investment in market share and accelerating growth that ensure the company's sustainability thanks to economies of scale. Favorable prices and the ability to collect orders close to home are important to customers. We are therefore investing in convenience and optimal price of goods to increase customer loyalty to the marketplace on the one hand, and to stimulate third-party sales on the other.
At the same time, against a backdrop of rapid growth, our priority remains operational efficiency. We still expect to see a positive EBITDA for the year. Our development strategy is already showing results today: we see accelerated GMV growth, purchase frequency has increased by 50%, and our customer base continues to grow. Therefore, we will continue investing in development in the third quarter, while keeping the efficiency of all operations in focus," said Igor Gerasimov, Ozon's CFO.
The Company continues to improve operational efficiency through economies of scale, optimization of operational processes, and other measures to improve unit economics. The share of operating expenses in turnover decreased by half - from 9.9% in Q2 2022 to 5.0% in the current reporting period. At the same time, unit economics improved significantly: operating expenses per order, excluding fire-related costs, decreased from RUB 188 in Q2 2022 to RUB 90 in the reporting period.
The loss for the period was RUB 13.1 billion in Q2 2023, compared to RUB 7.2 billion in Q2 2022, which was mainly attributable to unfavorable foreign currency effects and higher financing costs.
Cash, cash equivalents and short-term bank deposits amounted to RUB 74.6 billion as of June 30, 2023, compared to RUB 82.4 billion as of 31 March 31, 2023.
Business Areas
Logistics
As of June 30, 2023, Ozon's total warehouse space increased by 57% year-on-year to over 1.7 million square meters. As of the end of Q2 2023, more than 70% of Russians have Ozon courier delivery available to them or pick-up points located within 10 minutes from their home.
Ozon Global
As of the end of Q2 2023, the range of goods from China and Turkey almost doubled and exceeded 38 million separate products. Daily orders exceeded 38,000 per day in the reporting period. Ozon has a partner delivery service operating in China and Turkey, thanks to which the marketplace managed to reduce delivery times for products from those countries to 11-16 days and 5-10 days, respectively.
Ozon CIS
The company attracts sellers from Belarus, Kazakhstan, Kyrgyzstan and Armenia, and sales are also open to local buyers in these countries. In Q2 2023, Ozon opened a second fulfillment center in Kazakhstan and also launched sales for residents of Kyrgyzstan. In June, the company announced its entry into the Armenian market, where the company's representative office and sorting center are now operating.
Ozon Fintech
In Q2 2023, the Fintech division's revenue exceeded RUB 2 billion. Ozon has expanded its range of B2B and B2C services and introduced a savings account. Ozon Card was once again the most popular way of making payments on the platform. The card is used by more than 25 million shoppers.
Contacts
Investor Relations
ir@ozon.ru
Press Office
pr@ozon.ru
Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Ozon Holdings PLC ("we", "our" or "us", or the "Company") about future events and financial performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.
These forward-looking statements are based on management's current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Ozon's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the relevant capital markets, negative global economic conditions, the geopolitical crisis surrounding Ukraine and sanctions and governmental measures imposed in response, other negative developments in Ozon's business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Please refer to our Annual Report on Form 20-F for the year ended December 31, 2022 and other filings with the SEC concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While Ozon may elect to update such forward-looking statements at some point in the future, Ozon disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing Ozon's views as of any date subsequent to the date of this press release.
This press release includes "Adjusted EBITDA", a financial measure not presented in accordance with IFRS. This financial measure is not a measure of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, this measure should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of this measure may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See "Presentation of Financial and Other Information" in this press release for a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure.
This press release includes interim financial information for the three and six months ended June 30, 2023 and 2022. The financial information for the three and six months ended June 30, 2023 and 2022 has not been audited by the Company's auditors.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.
Investor Relations
ir@ozon.ru
Press Office
pr@ozon.ru
Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Ozon Holdings PLC ("we", "our" or "us", or the "Company") about future events and financial performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.
These forward-looking statements are based on management's current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Ozon's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the relevant capital markets, negative global economic conditions, the geopolitical crisis surrounding Ukraine and sanctions and governmental measures imposed in response, other negative developments in Ozon's business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Please refer to our Annual Report on Form 20-F for the year ended December 31, 2022 and other filings with the SEC concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While Ozon may elect to update such forward-looking statements at some point in the future, Ozon disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing Ozon's views as of any date subsequent to the date of this press release.
This press release includes "Adjusted EBITDA", a financial measure not presented in accordance with IFRS. This financial measure is not a measure of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, this measure should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of this measure may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See "Presentation of Financial and Other Information" in this press release for a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure.
This press release includes interim financial information for the three and six months ended June 30, 2023 and 2022. The financial information for the three and six months ended June 30, 2023 and 2022 has not been audited by the Company's auditors.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Ozon Holdings plc published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 16:53:09 UTC.
