- Prachi Singh |
In the first quarter, Global Fashion Group (GFG) delivered net merchandise value (NMV) of 271.7 million euros (303 million dollars) representing a growth of 35.2 percent in euro terms and 16.9 percent on a constant currency and pro-forma basis. The Adjusted EBITDA margin showed a year-over-year improvement of 11.1 percentage points to reach an adjusted EBITDA margin of 12.5 percent for Q1 2017 and reduced losses by nearly 30 percent.
Total net revenue of the group for the quarter was 265.3 million euros (296 million dollars) representing growth of 34.7 percent on a euro basis and 17.6 percent on a constant currency pro-forma basis, against a back drop of challenging trading environments.
Financial highlights of the regional businesses
GFG said, Lamoda achieved strong NMV and net revenue growth on a constant currency basis of 31.5 percent and 37.3 percent, respectively, driven by the continued roll out of the marketplace model, further focus on broadening its reach to under-represented segments, and continued roll out of key new international and local brands.
Dafiti, the company said, delivered Q1 NMV and net revenue growth on a constant currency basis of 5.1 percent and 1.8 percent, respectively, supported by marketplace business consolidation in Brazil. The region also achieved a significant Q1 gross profit margin improvement of 3.4 percentage points to 41.9 percent.
At Namshi, NMV and net revenue continued to grow on a constant currency basis by 8.7 percent and 8.5 percent for Q1. The company added that despite a continued challenging retail environment, Namshi managed to maintain a strong gross profit margin of 50.1 percent for Q1 2017.
Zalora and The Iconic delivered positive NMV and net revenue growth on a constant currency and pro-forma basis of 20.3 percent and 20.5 percent, respectively, with a gross profit margin increase of 2.3 percentage points to 40.7 percent.