Wittchen (WTN) Q1 2025 earnings summary

Executive summary

• Revenue increased by 0.8% year-over-year to 93.8m PLN in Q1 2025, with online sales rising to 57% of total revenue and a 10% increase in product volume sold.

• Net profit decreased by 13.3% year-over-year to 4.2m PLN, mainly due to price pressure, higher costs, and weaker B2B and international sales.

• The company continued cost optimization, especially in online and international operations, and reduced the number of active marketplaces.

• No significant post-balance sheet events or changes in group structure occurred.

• International sales share fell to 19% from 21% a year ago, impacted by currency effects and weaker demand in Germany and Czechia.

Financial highlights

• Revenue: 93.8m PLN (+0.8% y/y); Gross margin: 62.0%; EBIT: 3.9m PLN (-42.7% y/y); Net profit: 4.2m PLN (-13.3% y/y); EBITDA: 11.8m PLN (-16.3% y/y).

• SG&A costs rose 3.4% y/y but remained below inflation; cost as % of sales increased to 57.2%.

• Inventory increased 21% y/y to 136.6m PLN, mainly due to expanded luggage and apparel assortment.

• Net cash from operations was -12.0m PLN, compared to 10.8m PLN in Q1 2024, mainly due to working capital changes.

• Cash at period end was 8.3m PLN, down from 16.3m PLN at year-end 2024.

Outlook and guidance

• Focus on improving marketing effectiveness, optimizing marketplace network, and expanding product range.

• Management expects continued cost pressure from inflation, labor, and transport, as well as currency volatility.

• Planned 2025 capex is 14.3m PLN, with 7m PLN for new/modernized stores and 5.5m PLN for IT/e-commerce.

• Plans to grow sales in new foreign stores, adapt to local preferences, and prepare logistics for a new investment in 2026.

• Risks include weaker consumer demand, supply chain disruptions, and intensified competition from Asian platforms.