The start-up blacksmith Rocket Internet from Berlin keeps an eye on the profit zone for certain holdings after further reduced losses in 2017. “For 2018, we expect further progress,” said CEO Oliver Samwer on Friday. Specifically, he did not want to commit himself, however, from what time which money should contribute to the coffers.
“Most companies are strong enough to formulate their own goals.” The past year has been very successful, emphasized Samwer. Rocket had failed to reach the goal of bringing three of his companies to profitability.
HelloFresh and Delivery Hero want in the black
The cooking box sender HelloFresh and the food delivery service Delivery Hero announced in recent weeks that they want to hit the black in the current business this year. Both companies have been listed since last year. According to media reports, the furniture retailer Home24 and the African retailer Jumia go public, but Samwer did not want to comment on that.
For further investments Rocket are according to his information 2.7 billion euros available, further capital of 0.5 billion euros lie in holdings. Where the money should flow, the company founder left open. “We keep looking for opportunities.” CFO Peter Kimpel added, measured in terms of capital, staff, locations and experience is better equipped than ever.
Loss reduced by more than 12 percent in 2017
The holdings HelloFresh, Global Fashion Group, Jumia, Westwing and Home24 increased their total turnover in 2017 compared to the previous year by 28 percent to 2.64 billion euros. In the current business, they made a loss of 315 million euros, 44 million euros less than in 2016 (earnings before interest, taxes, depreciation and amortization, EBITDA).
Rocket Internet establishes companies or invests in young companies, especially in commerce and services. The most well-known example is fashion retailer Zalando, who made the leap into profit in 2014. So far, Rocket has been waiting for another success of this magnitude in vain. In March, Rocket had risen to MDax. Major shareholders are the brothers Marc, Oliver and Alexander Samwer.
Overall, Rocket had 89 subsidiaries at the turn of the year, 35 less than a year earlier. The sales of Rocket Internet SE itself fell from € 50.4 million to € 36.8 million after disposals of equity investments. The loss amounted to 6 million euros, compared to 741.5 million euros in the previous year. Among other things, the extreme decline was due to the sale of shares in Delivery Hero and online retailer Lazada.
The share price of Rocket Internet SE declined on Friday. After early gains, the stock slipped by just under two and a half percent into the min. However, at just over € 25, the paper is still significantly higher than a year ago, but remains far from the issue price of € 42.50 from October 2014.