Ozon Holding PLC announces its unaudited financial resultsfor the first quarter of 2024.
E-commerce
GMV incl. services in the e-commerce segment increased by 88% year-on-year to over RUB 570 billion. The acceleration in GMV growth was driven by the performance of sellers, whose GMV grew at a rate twice in Q1 2024, and they accounted for 85% of Marketplace GMV. In addition, the number of active sellers doubled during the year, reaching 500,000, 80% of whom live in regional markets across Russia.
Ozon continues to invest in the development of its marketplace and logistics infrastructure, with a focus on regional markets, driving a one-third year-on-year increase in the number of active buyers to 49 million, compared with 37 million in Q1 2023. Customer loyalty also rose considerably: as of the end of the quarter, the order frequency per active buyer was 22 orders per year. As a result, the Company delivered 305 million orders in Q1 2024, up 70% from a year earlier.
Marketplace Adjusted EBITDA decreased 40% year-on-year to RUB 3.3 billion due to investments in development and the increasing cost of logistics services. E-commerce revenue rose 24% year-on-year to RUB 112.6 billion thanks to growth in service revenue.
Fintech
The development of B2B and B2C products helped Fintech expand its active user base by 70% year-on-year to 20 million customers, while the segment’s revenue grew around 220% year-on-year to RUB 14.6 billion in Q1 2024. Fintech products in Q1 2024 included both B2B and B2C services: flexible payment schedules, lending products, settlement and cash services, as well as the Ozon Card, term deposits and savings accounts.
Customer deposits and other financial liabilities increased ninefold year-on-year to RUB 75.2 billion as of March 31, 2024, including RUB 67.5 billion in customer deposits.
Loans issued to customers more than quadrupled, from RUB 12.3 billion in Q1 2023 to RUB 50.8 billion as of March 31, 2024.
Thanks to an increase in interest and commission revenue, the segment’s Adjusted EBITDA (equivalent to operating income before depreciation and amortization) in Q1 2024 grew around 150% year-on-year to RUB 5.9 billion. Fintech’s Adjusted EBITDA for FY 2023 amounted to RUB 13.4 billion.
Consolidated Financial Highlights
Ozon’s total revenue rose 32% year-on-year to RUB 123 billion thanks to increased monetization of advertising services and growth in interest revenue. Interest revenue in the Fintech segment grew around 360% year-on-year to RUB 8.1 billion.
Service revenue rose 39% year-on-year to RUB 72 billion, fueled by a 120% increase in advertising revenue, which reached RUB 23.7 billion in Q1 2024.
Revenue from commissions increased by 11% year-on-year in Q1 2024, having slowed in connection with investments in marketplace development and the completion of the transition to an agency model for third-party services rendered to sellers [2].
Gross profit increased by 43% year-on-year in Q1 2024 to RUB 22.3 billion. The Company continues to improve its operational efficiency: total operating expenses as a share of GMV incl. services decreased from 5.2% in Q1 2023 to 4.2% in the current period. As a result of the increase in gross profit, the Company’sAdjusted EBITDA reached a record high of RUB 9.3 billion in Q1 2024, an increase of 16% from the record set in Q1 2023.
Loss for the period was RUB 13.2 billion in Q1 2024, compared with profit of RUB 10.7 billion in Q1 2023, as a result of a one-off gain from the redemption of convertible bonds.
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[1] Fintech revenue includes interest and commission revenues on credit products for B2B and B2C customers, flexible payment schedules and factoring services for sellers, revenue from acquiring services, premium subscriptions, cash and settlement services, and bank card services.
[2] As a result of the transition to an agency model, the revenue from such services is accounted for net of the cost of third-party services, which resulted in a decrease in revenue alongside a corresponding decrease in costs. Gross profit remained unchanged.
[3]Interest revenue includes revenue from interest and commissions on Fintech’s financial assets, which are accounted for at amortized costs using the effective interest method.
Contacts
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Disclaimer
This press release contains forward-looking statements that reflect the current views of Ozon Holdings PLC (“we,” “our,” “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 and are applicable only as of the date on which they are made. 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 ongoing geopolitical crisis, sanctions and governmental measures imposed in various jurisdictions in which we operate and 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 public disclosures of the Company 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 forwardlooking 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 named measures used by other companies, which may be defined and calculated differently. See “Presentation of Financial and Other Information – Use of Non-IFRS Financial Measures” in this press release for a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure.
This press release includes information for the three months ended March 31, 2024, and March 31, 2023. The information for the three months ended March 31, 2024, is derived from the IFRS-based management accounts and has not been audited or reviewed by the Company’s auditors. The financial information for the three months ended March 31, 2023, and the Fintech segment financial information for the year ended December 31, 2023, has not been audited by the Company’s auditors. The information disclosed in this press release is based on the currently available information. 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