SOCIAL CHAIN AG in the 1st Quarter of 2021: Revenue grows by 41 percent to EUR 70 million
SOCIAL CHAIN AG in the 1st Quarter of 2021: Revenue grows by 41 percent to EUR 70 million
- Preliminary figures Q1 2021: revenue increases to EUR 70.4m (Q1 2020: EUR 49.7m)
- 2021 revenue forecast increased from EUR 320m to EUR 350m
- Wanja S. Oberhof, CEO Social Chain AG: “Our growth strategy in Social Commerce remains sustainable. We will also grow strongly in the second quarter and are aiming for a quarterly revenue of around EUR 100m for the first time.”
The Social Chain AG started its 2021 financial year with a
strong growth in revenue. In the first three months, the Social Commerce company generated revenues of EUR 70.4m (all figures preliminary, pro forma consolidated). Compared to the 1st quarter in 2020, a surge of 41 percent (Q1 2020: EUR 49.7m). EBITDA (adjusted) also significantly recovered from minus EUR 3.4m to minus EUR 1.0m. For the current 2nd quarter, Social Chain AG expects quarterly revenue in the range of EUR 100m for the first time and a clearly positive EBITDA. Based on the successful business performance to date, Social Chain AG is increasing its revenue forecast for the 2021 financial year from EUR 320m to EUR 350m. Social Chain AG will consequently generate organic growth of around 50 percent compared to 2020 (EUR 230m).
The Social Commerce verticals with the highest revenue, “Food” (+52%) and “Home & Living” (+50%), are performing particularly well compared to the same quarter last year. After the Corona-related volatility, social media marketing returned to a steady growth rate (+14%) in 2020 overall. Due to investments in new business areas – specifically in the LINKS tech platform and the expansion of the US business – EBITDA remained slightly negative in the 1st quarter of 2021.
Wanja S. Oberhof, CEO Social Chain AG: “Our Social Commerce growth strategy remains sustainable. We will also grow significantly in the second quarter and aim to achieve a quarterly revenue of around EUR 100m for the first time. Our EBITDA will turn clearly profitable in the second quarter. The encouraging business performance of Social Chain AG has led us to raise our previous revenue target for 2021 to EUR 350m. I am convinced that we will maintain this growth rate also after Corona.”
According to Oberhof, Social Chain AG is also well positioned for the e-commerce world after Corona:
“Our ecosystem of owned brands, reach, creative marketing and technology makes us extremely resilient, especially due to our great flexibility. Social Commerce can identify consumer needs quickly and efficiently, develop products and distribute them directly to its own customer base. With an increasingly broad range of brands and products, we add value to people’s lives in many key areas. Our company structure is also aligned with this focus, with four Social Commerce verticals: Food, Home & Living, Beauty, and Fitness.”
The Social Chain AG: Social Commerce on a global scale
Social Chain AG is reshaping the world of brands and commerce. Our strategy and our actions are “Digital first – direct to customer”: from branding to marketing to direct sales of our products in the categories Food, Home & Living, Beauty, and Fitness. Our online shops are the most efficient points of sale for our Direct-to-Consumer brands. More than 70 percent of Direct-to-Consumer sales are performed by our owned and operated online shops. Our communities, with over 86 million followers worldwide, inspire our customers and amplify our brand messages. We manage the expansion of our Social Commerce system of communities, brands, digital points of sale and logistics via our integrated proprietary technology platform: LINKS which analyses interests, purchase intentions and product satisfaction along the entire digital customer journey.
The Social Chain AG’s headquarters are in Berlin, with additional locations in Munich, London, Manchester, New York, San Diego and Los Angeles. The company employs a total of around 720 people. The Social Chain AG shares are traded on XETRA and several German stock exchanges.