The Otto group improves its profitability at the cost of austerity

Despite the consumer crisis, the Otto Group got through the 2023/24 financial year with a solid result. Ebitda profit before interest, taxes and debts increased significantly to reach 744 million euros. The previous year, it still amounted to 155 million euros. Profitability was reduced by various cost-saving measures, particularly in marketing. However, the turnover of the Hamburg trading group fell by 6% to around 15 billion euros.

Total turnover in Germany amounted to almost 8.5 billion euros, 5.6 percent less than the approximately 9 billion euros in the same period of the previous year. In foreign markets, turnover fell by 6.5%, from 7.2 billion euros to around 6.5 billion euros.

The significant measures taken at portfolio level, in particular the discontinuation during the year of the long-term unprofitable business models of Mytoys and Unigro, led to another significant loss of turnover.

For the Otto Group, it was especially in the platform sector that things went well: the About You Group was able to achieve its annual revenue growth forecasts, with an increase of 1.6% compared to at the same period of the previous year, and profitability for the 2023/24 financial year. The e-commerce group achieved adjusted Ebitda breakeven despite an uncertain market environment.

The marketplace business with external partners, launched by subsidiary Otto in 2020, continues to grow dynamically. According to the group, the investments in the transformation into a platform have borne fruit. The growth rate of sales volume on the online store and application offering increases by 2%.

The sales volume of external partners increased by approximately 50%. In the past financial year, Otto was also able to increase the number of marketplace partners by 33% to more than 6,500. A third of the platform’s turnover now comes from marketplace activities.

The brand concepts segment, which includes the Crate and Barrel, Bonprix and Witt groups as well as Sheego, recorded a decline in turnover of 8.5% to 5.3 billion euros on a comparable basis.

We must highlight the development of the Witt group which, despite difficult market conditions, saw its turnover increase by 1.5% and improve its profitability.

At Crate and Barrel, on the other hand, high mortgage interest rates in the United States and the resulting decline in the number of real estate purchases, as well as the reduced need for new installations, had a negative impact on the figure business. However, Crate and Barrel was also able to significantly improve its results.

In the smaller distributor segment, which includes Manufactum and Limango, among others, turnover fell by 8.7% on a comparable basis to around 2 billion euros.