Global Fashion Group revenues up 26.4 percent, cross 1 bn euro mark
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Management
Global Fashion Group (GFG) delivered net merchandise value (NMV) in excess of 1 billion euros (1.06 billion dollars) representing a growth of 30.3 percent on a constant currency and pro-forma basis. The company also achieved an improvement in profitability compared to 2015 of 14.4 percentage points to reach an adjusted EBITDA margin of 12.5 percent in 2016. Total net revenue of the group also exceeded 1 billion euro mark representing growth of 26.4 percent on a constant currency pro-forma basis.
Q4 adjusted EBITDA reached 8.9 percent of net revenue and gross profit margin increased by 2 percentage points to 42.4 percent. The remaining 12 percentage point improvement in adjusted EBITDA margin, GFG said, was driven by efficiency gains across GFG’s fulfilment operations, marketing investments, and fixed cost structure in line with its path to profit initiatives. In absolute terms, adjusted EBITDA losses reduced year on year by over 40 percent for the group.
Marketplaces under GFG performed well during FY16
GFG said, Lamoda reported positive NMV and net revenue growth on a constant currency basis of 40.4 percent and 39.6 percent for FY 2016 and 41.5 percent and 41.8 percent for Q4 2016, respectively, despite a weak retail environment and strong macroeconomic headwinds that have resulted in pricing investments.
The marketplace maintained strong gross profit margins of 39.5 percent for FY 2016 and 41 percent for Q4 2016. Adjusted EBITDA improved by 9.7 million euros (10.3 million dollars) in FY 2016 but declined by 0.5 million euros (0.53 million dollars) in Q4 2016. Despite this, the company said, adjusted EBITDA margins improved by 6.5 percentage points to 8.1 percent and 2.5 percentage points to 6.4 percent respectively.
NMV and net revenue like-for-like growth on a constant currency basis at Dafiti was 15.1 percent and 9.8 percent for the FY 2016 and 10.9 percent and 8.3 percent for Q4 2016, respectively, despite the challenging macroeconomic environment in Brazil and Argentina.
Gross profit margin improvement was 4.5 percentage points to 43.4 percent for FY 2016 and 1.6 percentage points to 43.4 percent for Q4 2016. Adjusted EBITDA improved by 45.1 million euros (48.1 million dollars) in FY 2016 and 6.1 million euros (6.5 million dollars) in Q4 2016, which led to stronger adjusted EBITDA margins, with improvements of 19.2 percentage points to 6 percent and 7.9 percentage points to 3.7 percent respectively.
Namshi’s NMV and net revenue growth on a constant currency basis was 25.9 percent and 26.1 percent for FY 2016 and 3.6 percent and 4.7 percent in Q4 2016, respectively, despite the depressed macroeconomic environment in Saudi Arabia. The company maintained a strong gross profit margin of 52.9 percent for FY 2016 and 51.9 percent for Q4 2016. Reaching profitability for FY 2016, the company posted an adjusted EBITDA of 2.5 million euros (2.6 million dollars), an improvement by 4.2 million euros (4.4 million dollars) in comparison to FY 2015. Adjusted EBITDA also improved by 0.3 million euros (0.32 million dollars) in Q4 2016 which led to stronger adjusted EBITDA margins, an improvement of 3.4 percentage points to 1.8 percent and 0.9 percentage points to 0.3 percent in FY 2016 and Q4 2016 respectively.
Zalora & The Iconic reported NMV and net revenue growth at constant currency and pro-forma basis of 43.1 percent and 35.6 percent for FY 2016 and of 30.9percent and 26.6 percent for Q4 2016 Gross profit margin developed 4.6 percentage points to 39.5 percent for FY 2016 and 4.9 percentage points to 43.4 percent in Q4 2016. Adjusted EBITDA improved by 35.3 million euros (37.7 million dollars) in FY 2016 and 12.3 million euros (13.1 million dollars) in Q4 2016, which has led to improved adjusted EBITDA margins by 22.5 percentage points to 21.1 percent and by 22.7 percentage points to 12.1 percent respectively.
GFG appoints Cynthis Gordon as the board Chairman
The company has also announced the appointment of Cynthia Gordon as new Chair of the Board of Directors effective today. The statement said, Gordon brings extensive experience in building and leading consumer facing businesses across several of GFG’s regions. She is proposed to join the board of Kinnevik in May and is currently a member of the board of Tele2, and was until February 2017 CEO of the Africa Division at Millicom.
Prior to joining Millicom in 2015, she spent three years at MENA and Asia Pacific telecommunications company Ooredoo as chief commercial officer, and also spent nine years at Orange as cice president, Business between 2001 and 2006, and cice president, partnerships and emerging markets between 2009 and 2012. Between 2007 and 2009, she was chief commercial officer at the Russian/Eastern European communications company MTS.
Also on February 23, 2017, GFG announced a strategic partnership with one of the Philippines’ oldest and largest conglomerates, the Ayala Group. Ayala invested to take a 49 percent ownership in Zalora Philippines.
In shortPicture:Facebook/Dafiti