Two Romanian mid-sized online retailers, Vivre Deco (home decoration, also operates cross-border) and Elefant Online (diversified, marketplace) reported deep losses in 2021 and the accounting firms reviewing their statements question their ability to continue operations .
Meanwhile, eMAG became Romania’s most valuable brand, overthrowing automaker Dacia – Romania’s biggest exporter, part of the Renault group.
Market concentration, accused by another major online store – CEL (Corsar Online) – before it went bankrupt last year, is putting visible pressure on smaller players. Nevertheless, there are still robust players gaining ground: Altex, with a “hybrid” online and offline (omnichannel) strategy, reported sales growth of 24% to RON 5 billion (just over EUR 1 billion) in 2020. euros). The company has not yet announced its fiscal 2021 results.
Online furniture and decoration retailer Vivre Deco, whose Bucharest Stock Exchange (BVB) listed EUR 10.45 million in bonds maturing in 2025 and 2026, reported a net loss of RON 84.8 million (EUR 17 million) announce in 2021 at a net profit of RON 7.4 million in the previous year, Ziarul Financiar reported.
The auditors question the Group’s ability to continue as a going concern. The company’s operating income reached RON 250 million (EUR 50 million) last year, down 16.7% from 2020, while EBITDA (earnings before taxes, charges, depreciation and amortization) stood at EUR 72.7 million was negative versus positive RON 15.5 million in 2020.
The company estimates that its total operating income will shrink another 20% to RON 196.6 million in 2022.
Another Romanian online retailer, Elefant Online, with RON 17.5 million (EUR 3.5 million) in bonds listed on BVB and maturing in 2026, announced that its losses from 01.01 RON .9 million in 2020 to RON 16.7 million (EUR 3.3 million) in 2021. business magazine.ro reported. Last year, the company’s revenue fell by 2.8% to RON 232.8 million (EUR 46 million), while operating expenses rose by 17.6% to RON 56.2 million.
The consolidated financial statements have been prepared on a going concern basis, the auditors explain – adding that the group’s ability to continue as a going concern depends on the company’s ability to generate sufficient revenues and the financial support of its shareholders.
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