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MySale H1 revenues rise 8 percent but gross profit down

By Prachi Singh

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MySale Group in its interim results for the six months ended December 31, 2014 said that its revenue increased 8 percent. Revenue in South-East Asia increased over 30 percent; in ANZ, over 3 percent. The company reported gross profit of 28.3 million Australian dollars (22.1 million dollars) and gross profit margin of 23 percent compared to 27.9 percent in 2013.

Intake product gross margin increased to 40 percent but underlying EBITDA loss stood at 11.4 million Australian dollars (8.9 million dollars). The online company witnessed 862,000 active members representing an increase of 14 percent year-on-year with over 47 percent rise in Asia and over 7 percent in ANZ. Mobile channel now represents 55 percent of orders compared to 48 percent last year.

The period under review also witnessed a successful launch of new websites in United Kingdom and Hong Kong and launch of Cocosa premium branded website in ANZ and United Kingdom. It also completed partnership development with Sports Direct, which is now ready for launch in the second of this fiscal. The management expects the company to breakeven EBITDA in the second half of the year.

Commenting on the results, Carl Jackson, Chief Executive, said, “During the first half, we focused on the growth of the business and member acquisition. As we now have a membership base of more than 15 million we were able to take action to reduce marketing and promotional costs and capitalise on our international product mix and larger membership. The underlying business is strong and the actions taken in December position the group to benefit from anticipated margin growth in the second half.”

“Our partnership with Sports Direct Group has been finalised with inventory now in our distribution centres allowing us to target the lucrative ANZ sportswear market. We will continue to pursue opportunities to provide new channels of distribution in new markets,” Jackson added.

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