Global Fashion Group turns profitable in 2020
1 Mar 2021
Global Fashion Group S.A. (GFG) has announced its target of becoming a 10 billion euros NMV business in the next seven to nine years. In the fourth quarter, GFG delivered NMV of 594.5 million euros, up 28.9 percent driven by accelerated customer acquisition and a significant increase in orders across all markets. In fiscal 2020, GFG’s NMV increased by 25.7 percent to 1,958.2 million euros with adjusted EBITDA of 16.4 million euros and a margin of 1.2 percent.
Commenting on the trading update, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said in a statement: “FY 2020 was GFG’s first profitable year, on an adjusted EBITDA basis. We are well positioned for the next phase of growth and to deliver on our ambition towards becoming a 10 billion euros NMV business in the next 7-9 years.”
GFG witnesses strong growth in active customers
GFG now has 16.3 million active customers, up 24.6 percent, with 2.1 million new customers shopping across GFG’s platforms in the fourth quarter alone. NMV per active customer was up modestly reflecting the significant number of new customers.
The company added that marketplace NMV increased by 89 percent with participation of 32 percent and still more brand partners working with this channel to reach GFG’s enlarged customer base. SEA, CIS and LATAM each saw NMV growth of more than 30 percent along with strong improvements in gross margin across every region, driven by a near 25 percent increase in active customers and a small increase in NMV/active customer.
Growth in ANZ continued to recover, with NMV up 18.2 percent, driven by improved inventory levels and its biggest ever day on Black Friday, along with strong December sales. GFG had 13.3 million orders in the quarter, up 28.8 percent, with a marginal improvement of average order value.
GFG expects to grow NMV by 25 percent in 2021
In 2021, GFG expects to grow NMV by over 25 percent, delivering 2.3-2.4 billion euros in NMV, and around 1.5 billion euros of revenue, all on a constant currency basis.
GFG expects Adjusted EBITDA to improve modestly on 2020. The company further said that these forecasts assume no significant deterioration in the Covid-19 impact across the regions GFG or its suppliers operate in.
Image:Global Fashion Group,Brunswick Group