MySale GMV up 36% as it scales marketplace platform
International online retailer MySale saw its gross merchandise value climb by 36% to A$86.7 million in the six months to 31 December 2021 after it made progress in scaling up its marketplace platform.
As a result of a changing sales mix and growth of the marketplace channel, the retailer’s total revenues declined by 6% to $59.7 million in the period.
Meanwhile, gross profit came in at A$24.9 million as gross margins improved to 41.8% to mark an increase of 370 basis points. However, supply chain volatility in the retailer’s second quarter impacted broader profitability, which meant that underlying EBITDA was A$1 million compared to $2.5 million at the same time in the prior year.
In line with the company’s strategy, its management took the decision to invest in additional own-buy inventory in the period. However, delays in stock deliveries prior to Christmas and subdued demand driven by the spread of the Omicron variant meant that inventory built up to a higher level than expected. As such, the inventory balance at 31 December 2021 was A$6.1 million versus A$2.6 million a year earlier.
MySale said it is considering a number of strategic financing options to manage its working capital, including reducing the A$6.1 million inventory balance of which over 65% is fully paid.
Kalman Polak, MySale chief executive, said: “The new management team has continued to scale our marketplace platform, which is complemented by our own-stock channel. The group has worked hard to navigate recent headwinds in lower consumer demand driven by the impact of the Omicron variant and supply chain challenges. The group’s increased inventory position is of a of high quality. Notwithstanding these challenges, we remain confident and are well positioned to capitalise on the long-term opportunity for the group.”
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