MySale reports positive trading for 1H21
In an update for the six-month period to 31 December 2020, (MYS ) reported positive trading momentum with group EBITDA for the period coming in ahead of management expectations.
The international online retailer reported group EBITDA for the 1H21 period at A$2.5m, an improvement of A$6,1m from a previous A$3.6m loss in the prior year period.
Group revenues were A$63.3m - a 14% increase on the prior year period, excluding discontinued channels - which it said reflects the changes made to its operating model and an increasing focus on its "ANZ First" strategy and inventory light marketplace platform.
Gross margins increased by 37.9% (1H20 34%) with ongoing focus on operating and overhead costs, which has allowed the business ‘to deliver strong operational leverage.’ By period-end cash was A$15.8m while the group continues to operate on a debt free basis.
The Group said it has continued to make ‘significant progress’ with its operational KPIs, increasing the number of monthly new brand partners during the period by 31%.
The company told investors that this was underpinned by a 45% increase from US, UK and European partners, and providing them with a valuable counter seasonal platform solution.
Shares in MySale have soared by over 385% in value since the beginning of April 2020 to open 1.69% higher this morning at 8.95p following the announcement.
Looking ahead, while the impact of the COVID-19 pandemic in ANZ has not been as severe as in other countries, the broader consumer and economic outlook ‘remains uncertain.’
Notwithstanding this uncertainty, the Group cited that it has ‘a robust balance sheet and is operating on a cash generative and debt free basis, with a strong underlying cash position.’
Furthermore, the Board said it is confident that the business will continue to make progress executing its strategy over the second half of the year.
"We have made excellent progress in the last six months and are beginning to see the benefits of our "ANZ First" strategy come through,” said Carl Jackson, CEO of MySale.
He added, “The Board remains very confident about the Group's attractive positioning as an off-price specialist, with a clear customer offering built around MYSALE Solutions.
We remain focussed on executing our strategy and scaling the number of brand partners we work with on the platform, as well as selectively increasing the amount of high margin, own stock inventory by adopting a disciplined test and repeat strategy."
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