Ozon Reports Second-Quarter 2024 Financial Results

August 5, 2024 – Ozon Holdings PLC (hereafter referred to as “we”, “us”, “our”, “Ozon”, “the Company”, or “the Group”) today announces its unaudited financial results for the three and six months ended June 30, 2024.

Second-Quarter 2024 Operating and Financial Highlights

Group

Total revenue increased by 30% YoY to RUB 122.5 billion, driven by 86% growth in advertising revenue and a fourfold increase in interest revenue in Q2 2024.
Adjusted EBITDA decreased by RUB 0.7 billion YoY to negative RUB 0.7 billion, due to significant growth investments and unprecedented labor cost inflation, offset by a positive impact from Fintech. Adjusted EBITDA as a percentage of GMV incl. services remained broadly flat YoY.
Loss for the period was RUB 28.0 billion in Q2 2024, compared with a loss of RUB 13.1 billion in Q2 2023, mainly due to a significant increase in finance costs and higher depreciation and amortization expenses.
Net cash generated from operating activities increased fourfold YoY to RUB 41.8 billion in Q2 2024, as a result of favorable working capital movements.

E-commerce

E-commerce revenue increased by 21% YoY to RUB 109.7 billion in Q2 2024, bolstered by strong growth in advertising revenue.
E-commerce adjusted EBITDA decreased to negative RUB 6.5 billion in Q2 2024, compared with negative RUB 2.4 billion in Q2 2023, due to labor cost inflation and marketing initiatives.
GMV incl. services increased by 70% YoY to RUB 633.2 billion, despite a high base of 118% YoY growth in Q2 2023. The growth in GMV incl. services was augmented by 60% YoY growth in the number of orders.

The number of active buyers¹ increased by 30% YoY to 51.1 million as of June 30, 2024, and order frequency grew by 40% YoY to 24 orders per year, as a result of our investments in enhancing user experience, including product and delivery.

Fintech

Fintech revenue increased by 206% YoY to RUB 18.4 billion in Q2 2024, driven by strong growth in both interest and service revenue due to the development of our B2B and B2C credit and transaction product suite.
Fintech adjusted EBITDA increased by 136% YoY to RUB 5.9 billion, fueled by growth in interest and service revenues.
Loans to customers² increased to RUB 58.0 billion as of June 30, 2024, compared with RUB 22.2 billion as of June 30, 2023, as a result of the expansion of our credit operations.
Customer deposits³ increased significantly to RUB 94.4 billion as of June 30, 2024, compared with RUB 9.5 billion as of June 30, 2023, due to a growing Ozon Card customer base and an increasing number of deposit accounts.
In Q2 2024, the number of Fintech active users⁴ increased by 74% YoY to 24.0 million. In addition, our expanded B2C product offering included Ozon Card – the top payment method on our Marketplace, Ozon Installment, deposit and savings accounts and the “cash on card” service. The B2B product suite comprised of loans for business development, cash and settlement services and factoring.

The following table sets forth a summary of the key operating and financial information for the three and six months ended June 30, 2024, and June 30, 2023. The information for the three and six months ended June 30, 2024 and 2023 has not been audited by the Company’s auditors. Since January 1, 2024, following the expansion of our Fintech segment, we have presented interest revenue separately from other types of revenue in the Interim Condensed Consolidated Statements of profit or loss and other comprehensive income. Furthermore, we also presented expected credit losses on Fintech financial assets separately from cost of revenue. We have also introduced other changes to the presentation of the statements of profit or loss and other comprehensive income, the statement of financial position, and statement of cash flows. The corresponding amounts for the three and six months ended June 30, 2023 and as of December 31, 2023 were reclassified accordingly. Please refer to note 2.2 of our Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2024.

See also the “Presentation of Financial and Other Information – Use of Non-IFRS Financial Measures” section of this press release for a definition of the non-IFRS measures and a discussion of the limitations of their use, and for reconciliations of the non-IFRS measures to applicable IFRS measures. See the definitions of metrics such as GMV incl. services, number of orders, number of active buyers, share of Marketplace GMV and number of active users of Fintech in the “Presentation of Financial and Other Information – Key Operating Measures” section of this press release.

Second-Quarter 2024 Consolidated Financial Highlights

Total revenue increased by 30% YoY, driven by service and interest revenue. Service revenue increased by 30% YoY due to strong growth in advertising revenue. Deceleration in the growth of marketplace commissions was largely attributed to transitioning to an agency model in last- mile delivery and acquiring services from Q4 2023, and additional investments in platform growth.

Gross profit increased by 59% YoY in Q2 2024 and remained broadly flat as a percentage of GMV incl. services, despite our growth investments and high labor cost inflation.

Operating expenses grew by 56% YoY, driven by our marketing and advertising campaigns launched in Q2 2024. Total operating expenses as a percentage of GMV incl. services decreased by 0.4 p.p. YoY to 4.5% in Q2 2024. This was a result of operating leverage and cost discipline, especially in general and administrative expenses. Provision for expected credit losses on Fintech financial assets increased by RUB 1.2 billion YoY to RUB 1.5 billion due to the expansion of Fintech’s credit operations.

Net finance expense more than doubled YoY in Q2 2024, as a result of an increase in our interest-bearing liabilities and higher borrowing costs on our debt linked to the Bank of Russia key rate¹⁰. This in part resulted in a RUB 14.9 billion YoY increase in the loss for Q2 2024.

Net cash generated from operating activities increased to RUB 41.8 billion in Q2 2024, compared with RUB 10.4 billion in Q2 2023, as a result of the positive contribution made by Fintech customer deposits, trade payables and liabilities to marketplace sellers and customers.¹¹

Net cash used in investing activities increased by 136% YoY to RUB 16.6 billion, mainly driven by capital expenditures of RUB 17.4 billion in Q2 2024. As of June 30, 2024, our total warehouse footprint has increased by more than 1 million square meters – 65% YoY, and exceeded 2.8 million square meters.

Net cash used in financing activities increased by 86% YoY to RUB 24.0 billion in Q2 2024, primarily as a result of repayment of RUB 21.7 billion of short-term borrowings.

Cash and cash equivalents amounted to RUB 164.7 billion as of June 30, 2024 and included RUB 113.3 billion held by credit institutions within the Fintech segment, compared with RUB 165.7 billion and RUB 81.4 billion as of March 31, 2024, respectively.

Full-Year 2024 Outlook

Based on the current trends and outlook, Ozon expects its GMV incl. services to grow by approximately 70% in FY 2024 compared with FY 2023, and adjusted EBITDA to be positive for FY 2024.¹²

Risks and Uncertainties Related to the Current Environment

As the global and economic consequences of the current geopolitical crisis continue to evolve in a manner that is unpredictable and beyond the Company’s control, it is difficult to accurately assess the full impact of this crisis on the Company’s business and the results of its operations.

The United States, the European Union, the United Kingdom and other jurisdictions imposed severe sanctions targeting companies and businesspersons with links to Russia, as well as export and import restrictions. In response, Russia designated a number of states, including the United States, all European Union member states and the United Kingdom, as unfriendly and introduced a number of economic measures in connection with their actions, as well as economic measures aimed at ensuring financial stability in Russia. These sanctions, along with regulatory countermeasures taken by the Russian authorities, have had a significant, and in many cases unprecedented, impact on companies operating in Russia.

At various times over the last two decades (and in some cases to this day), the Russian economy has experienced significant GDP volatility, high levels of inflation, increases in, or high, interest rates, sudden price drop in oil and other natural resources, and instability in the local currency market.

Please refer to our Annual Report for the year ended December 31, 2023 and our Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2024, and other public disclosures concerning factors that could impact the Company’s business and the results of operations.

View the Full Press Release and Consolidated Financial Statements

About Ozon

Ozon is a multi-category e-commerce platform operating in Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia, Uzbekistan, China and Turkey. Our fulfillment and delivery infrastructure enables us to provide our customers with fast and convenient delivery via couriers, pickup points or parcel lockers. Our extensive logistics footprint and fast-developing marketplace platform help entrepreneurs sell their products across 11 time zones and offer our customers a wide selection of goods across multiple product categories. Ozon is committed to expanding its value-added services, including in fintech and other verticals such as Ozon Fresh online grocery delivery. For more information, please visit https://corp.ozon.com.

Contacts

Investor Relations

ir@ozon.ru

Press Office

pr@ozon.ru

Disclaimer

This press release contains forward-looking statements that reflect the current views of Ozon Holdings PLC (“we”, “our”, “us”, or the “Company”) about future events and financial performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements and are applicable only as of the date on which they are made.

These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Ozon’s actual results, performance or achievements to be materially different from the expectations expressed or implied by the forward-looking statements. Such factors include conditions in the relevant capital markets, negative global economic conditions, the ongoing geopolitical crisis, sanctions and governmental measures imposed in various jurisdictions in which we operate and other developments negatively impacting Ozon’s business or unfavorable legislative or regulatory developments. We therefore caution you against relying on these forward-looking statements, and we qualify all of our forward-looking statements with these cautionary statements. Please refer to our Annual Report for the year ended December 31, 2023 and our Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2024, as well as other public disclosures of the Company concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Ozon may elect to update such forward-looking statements at some point in the future, Ozon disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing Ozon’s views as of any date subsequent to the date of this press release.

This press release includes “Adjusted EBITDA,” a financial measure not presented in accordance with IFRS. This financial measure is not a measure of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, this measure should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company’s presentation of this measure may not be comparable to similarly named measures used by other companies, which may be defined and calculated differently. See “Presentation of Financial and Other Information – Use of Non-IFRS Financial Measures” in this press release for a reconciliation of this non-IFRS measure to the most directly comparable IFRS measure.

This press release includes information for the three and six months ended June 30, 2024, and June 30, 2023. The information for the three and six months ended June 30, 2024 and 2023 has not been audited by the Company’s auditors. The information disclosed in this press release is based on currently available information.

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.