MySale posts 7 percent rise in FY16 revenues

MySale Group revenues for the financial year to June 30, 2016 rose 7 percent to 252.3 million Australian dollars (193 million dollars) and gross profit increased 21 percent to 66.7 million Australian dollars (51 million dollars) following a 300bp improvement in gross margin to 26 percent.

Commenting on the company’s performance, Carl Jackson, Chief Executive Officer, said, “We have had a very good year in FY16 and saw improved performance throughout the business. Our active customer base returned to growth in the second half of the year, core customer metrics remained robust, average order value increased and both revenue growth and margin improvement accelerated in the second half of the year, delivering full year performance ahead of expectations, despite some currency headwinds during the year. We have now grown our underlying EBITDA in each of the last three half year periods.”

Reported revenues rise across geographies

The improved trading performance combined with the previously reduced overhead base saw the group generate positive underlying EBITDA of 5.5 million Australian dollars (4.2 million dollars) for the year, in contrast to the underlying loss incurred in the previous financial year. Gross profit margin increased 21percent driven by a 300bp increase in gross margin, to 26 percent.

All territories increased revenue and gross profit however it is in the two target growth territories that the group has seen the most notable rates of growth. In South East Asia revenue grew by 20 percent and gross profit increased by over 100 percent. The refocus on the core business instigated in early 2015 is also delivering very good results in the United Kingdom, where the group trades predominately under the Cocosa brand, and following refinement to the operations here, the group had an exceptional year with both revenue and gross profit increasing more than 130 percent.

Australia and New Zealand improved gross profit, by 12 percent and gross margin to 27 percent, while also growing revenue by 3 percent. During the period South East Asia had revenue growth of 20 percent and 117 percent increase in gross profit driven by an almost doubling of the gross margin to 24 percent. Rest of World territory comprises the group’s nascent operations within the United Kingdom, re-launched in the second half of FY2015 and trading predominately under the Cocosa brand. The United Kingdom had a positive first half, as revenue increased by more than 50 percent, but saw a further step up in the second half with a growth rate over 200 percent.

Completes acquisition of three Australian websites

The group completed the acquisition of three Australian online retail websites during the year. The acquisition includes the domain names ‘ OO.com.au’; ‘dealsdirect.com.au’; and ‘topbuy.com.au’ and all associated customer databases, intellectual property, trademarks and goodwill and these websites were integrated to the group’s technology and logistics platform in the fourth quarter of the financial year.

The group also launched a strategic partnership with Sports Direct after the financial year closed. The Sports Direct partnership is for the launch of inventory on the group’s Australian retail websites. This initiative will offer Australian consumers access to sports brands at great prices. Once successfully implemented and developed this Sports Direct partnership may be extended into additional territories of New Zealand and South-East Asia.

Picture:MySale