In the 2023/24 financial year, the Otto Group managed to perform relatively well in a highly challenging market environment, making significant progress in its operating results. Notably, EBITDA increased by 155 million euros to 744 million euros compared to the same period last year, indicating that the group's temporary focus on profitability and liquidity has paid off.
Photo: Otto Group
The past year was marked by a persistently tense macroeconomic and geopolitical environment, high interest and inflation rates, and a sustained decline in consumer sentiment in the Otto Group's core markets. Consequently, the Otto Group's total revenue fell by 6% to 15 billion euros on a comparable basis. In Germany, overall revenue amounted to just under 8.5 billion euros, down 5.6% from the previous year's figure of around 9 billion euros. International sales decreased by 6.5%, from 7.2 billion euros to approximately 6.5 billion euros.
In addition to the subdued consumer sentiment, the deliberate focus on profitability and liquidity management impacted revenue performance. This was partly due to significant savings in the marketing budget and reduced customer contact. Systematic portfolio measures, such as discontinuing the unprofitable Mytoys and Unigro, also contributed to the noticeable drop in sales.
The Otto Group's focus on profitability and liquidity has proven effective, as evidenced by the year-on-year increase in EBITDA by around 155 million euros to 744 million euros. Without the costs from discontinuing Mytoys and Unigro, the increase in EBITDA would have been even greater. The significant operational improvement in profitability is driven by strict cost programs across many Group companies, leading to more efficient cost structures, including supply chains and marketing.
Future prospects and AI focus
Alexander Birken, Chairman of the Executive Board and CEO of the Otto Group, states, 'We used the crisis to make the Otto Group fit for the future, and we succeeded. We have managed to focus on the key challenges and implemented robust portfolio measures. Last but not least, we can now work with a different, more efficient cost structure. This puts us in an excellent position to achieve sustainable competitive success with our business models and to take advantage of any market tailwind.'
More information:
Otto Group
www.ottogroup.com