Ozon reports positive EBITDA for second consecutive quarter
Ozon announces its unaudited financial and operational results for Q3 2022. The Company achieved a positive adjusted EBITDA of RUB 1.6 billion, while Ozon Marketplace turnover more than doubled in a year.
Financial highlights During Q3 2022, the Company’s turnover (GMV including services and net of returns) increased by 74% year-on-year to RUB 188.1 billion, while turnover on the Ozon Marketplace (sales by third-party sellers) increased by 104% year-on-year to RUB 147.1 billion. For the nine months of 2022, the Company’s turnover grew by 98% year-on-year to RUB 536.2 billion.
Gross profit was up 2.4x year-on-year to RUB 36.6 billion in Q3 2022. Adjusted EBITDA remained positive for the second consecutive quarter and amounted to RUB 1.6 billion in Q3 2022, compared to negative RUB 11.3 billion for the same period last year. This was driven by the benefits of scale, efficiency gains and cost optimization.
Net loss for Q3 2022 amounted to RUB 20.7 billion, of which RUB 10.8 billion was a one-off expense related to recognition of losses sustained in connection with a fire incident at the Company’s fulfillment center in the Moscow region. Excluding the one-off expense, net loss decreased by 29% year-on-year to RUB 9.9 billion.
Ozon reported positive free cash flow of RUB 0.9 billion in Q3 2022, compared to negative RUB 14.6 billion in Q3 2021. Cash, cash equivalents and short-term deposits as of September 30, 2022 remained flat in foreign currency equivalent at USD $1.1 billion relative to the Company’s cash position as of June 30, 2022.
Sellers, customers and infrastructure In Q3 2022, Ozon achieved strong growth in order frequency – an important indicator for e-commerce. Annual order frequency increased by 56% year-on-year to 11.7 orders per customer, or the equivalent of approximately one order per active customer per month. The number of active customers expanded to 32.7 million (+54% year-on-year). Both factors led to the number of orders nearly doubling (+91%) year-on-year to 107.5 million in Q3 2022.
The number of active sellers – those who are not only registered on the Marketplace but have made a sale within the last 12 months – exceeded 180,000. This is more than a three-fold increase compared to Q3 2021. The Company has been successfully attracting medium and small businesses in the regions, as well as self-employed entrepreneurs, to its platform. The Marketplace share in Ozon Group’s turnover reached 78%, which implies that sellers account for nearly RUB 80 out of every RUB 100 of turnover on Ozon.
The Apparel category (including clothing, footwear and accessories), which has been a key focus for Ozon in 2022, grew by nearly 4x year-on-year in Q3 2022 by number of SKUs. This category now accounts for nearly one-third of items on the platform – or 43 million SKUs out of a total assortment of more than 150 million SKUs.
As of September 30, 2022, the size of Ozon’s branded pick-up network, including pick-up points and parcel lockers, exceeded 23,000 locations. The Company’s total logistics space expanded to more than 1.2 million square meters. In Q3 2022, warehouse space growth was supported by the expedited launch of a fulfilment center in Pushkino in the Moscow region and a new logistics hub in Nizhny Novgorod.
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 U.S. capital markets, negative global economic conditions, potential negative developments in the COVID-19 pandemic, 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, 2021 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 certain non-IFRS financial measures not presented in accordance with IFRS, including but not limited to Contribution (Loss)/(Profit), Adjusted EBITDA and Free Cash Flow. These financial measures are not measures of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures 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 these measures 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 certain of these non-IFRS measures from the most directly comparable IFRS measure.
This press release includes interim financial information for the three and nine months ended September 30, 2022 and 2021. The quarterly information has not been audited by the Company’s auditors.
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