DGAP-News: Global Fashion Group S.A.: GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER

2019. augusztus 21., szerda, 08:00





DGAP-News: Global Fashion Group S.A. / Key word(s): Half Year Results/Quarterly / Interim Statement


Global Fashion Group S.A.: GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER


21.08.2019 / 08:00



The issuer is solely responsible for the content of this announcement.



GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER



Luxembourg, 21st August 2019 - Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle destination in growth markets, has delivered strong second quarter and first half results, in line with the guidance set out as part of the recent IPO.



- Net Merchandise Value (NMV) increased 22.7% on a constant currency basis to EUR449m. Revenue growth was 16.5% as Marketplace share expanded to 19% of NMV.



- Active Customers grew by 14.6% to 12.0 million, with NMV per Active Customer up 7.1% to EUR131, underpinned by GFG"s leading customer experience.



- Number of orders grew by 25.4% to 8.9 million and customers are purchasing 8.8% more often at 2.6 times per year.



- Profitability is on track with Adjusted EBITDA margin of (0.9)%.




Christoph Barchewitz and Patrick Schmidt, Co-Chief Executive Officers, said:



"We have had a strong second quarter and made good progress against our strategic priorities. Through our focus on offering inspiring and seamless customer experiences from discovery to delivery, we attracted more customers, who purchased more often, and spent more on a per customer basis. As we scale, we are using our growing operational leverage to translate this growth into improving margins and continue our path to profitability."


GFG continues to be at the forefront of defining what an inspiring customer experience looks like in its markets. In the first half of 2019, GFG"s broad assortment strategy evolved with more exclusive global brand collaborations, further development of the modest fashion segment with another successful Hari Raya festival season in South East Asia, and the launch of a new way of shopping sustainably with THE ICONIC Considered.



Marketplace participation increased to 19% of NMV, up from 14% in Q2 last year, further cementing GFG as the strategic partner of choice for fashion and lifestyle brands in its markets. GFG"s Fashion Services business has developed rapidly, with significant uplift in the number of brands that are now provided with B2B fulfilment services.



Operational developments in the first half of 2019 have enhanced the delivery experience offered in South East Asia and CIS. "Zalora Now", a subscription programme including free next day delivery, was launched in Indonesia, while the own and third party pick-up point network in CIS grew to cover over 12,000 locations. In Brazil, construction of the new fulfilment centre is well-progressed and on track to open in 2020.



Technology innovations focused on app functionality have delivered new levels of customer engagement and strengthened GFG"s app-first approach. Our apps generated 47% of NMV in Q2, up 7 percentage points compared to the same period last year.



Gross margin for Q2 was 41.3% and Adjusted EBITDA margin was (0.9)% in the Quarter. As planned, during the year GFG delivered leverage on marketing, technology and admin costs as the business grew.


GFG has EUR315m of cash on a pro-forma basis to invest in the business, as at 30th June 2019, including net IPO proceeds of EUR186m.



GFG remains confident in its outlook for the year and expects to deliver NMV constant currency growth of 20-23%, and achieving NMV of EUR1.7-EUR1.8bn. Revenue is expected to exceed EUR1.3bn, whilst continuing to make further progress towards Adjusted EBITDA breakeven. Having invested EUR25m in the first half of the year, we now expect 2019 capex to be around EUR80m due to phasing benefits and the results of continuously optimising our ongoing investment plans.





































































































































































































































































































































  Key Performance Indicators          
             
    H1 2018 H1 2019 Q2 2018 Q2 2019  
  NMVEURm 665 790 371 449  
  % Constant Currency Growth 21.9% 22.4% 23.2% 22.7%  
  % EUR Growth 5.9% 18.8% 6.9% 21.1%  
             
  Active Customersm 10.5 12.0 10.5 12.0  
  % Growth 13.8% 14.6% 13.8% 14.6%  
             
  NMV / Active CustomerEUR 131 131 131 131  
  % Constant Currency Growth 7.5% 7.1% 7.5% 7.1%  
  % EUR Growth (1.7%) (0.2%) (1.7%) (0.2%)  
             
  Number of Ordersm 12.5 15.8 7.1 8.9  
  % Growth 19.4% 26.1% 23.1% 25.4%  
             
  Order Frequency 2.4 2.6 2.4 2.6  
  % Growth 5.1% 8.8% 5.1% 8.8%  
             
  Average Order Value EUR 53.2 50.1 52.3 50.5  
  % Constant Currency Growth 2.1% (2.9%) 0.1% (2.2%)  
  % EUR Growth (11.3%) (5.8%) (13.2%) (3.5%)  
             
             
             
  Key Financials          
             
    H1 2018 H1 2019 Q2 2018 Q2 2019  
  Revenue EURm 534.7 603.2 297.8 342.4  
  % Constant Currency Growth 19.6% 15.9% 21.1% 16.5%  
  % EUR Growth 4.7% 12.8% 5.6% 15.0%  
             
  Gross Profit EURm 215.3 239.4 127.7 141.3  
  % Margin of Revenue 40.3% 39.7% 42.9% 41.3%  
             
  Adjusted EBITDA EURm (30.3) (28.8) (2.5) (3.2)  
  % Margin of Revenue (5.7%) (4.8%) (0.8%) (0.9%)  
             
  Capex EURm 14.8 24.6 9.0 12.9  
             
             
  Balance Sheet 30-Jun-18 30-Jun-19 30-Jun-18 30-Jun-19  
             
  Net working capital EURm 29.1 19.9 29.1 19.9  
             

 

 



Further Information



KPI and financial definitions are available in the 2019 Interim Management Report.


To read GFG"s full H1 19 interim management report, please visit: https://ir.global-fashion-group.com/websites/globalfashion/English/1030/publications.html


The report is also available on the officially appointed mechanism for the central storage of regulated information in Luxembourg (OAM) referred to in Article 20 of the Luxembourg Transparency Law.


For further information, please contact:



Investor Relations:

Matthew Price, Chief Financial Officer: investorrelations@global-fashion-group.com



Press contact:

Jovana Lakcevic, Head of PR & Communications: press@global-fashion-group.com



Forward looking information

This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.



About Global Fashion Group

Global Fashion Group is the leading fashion and lifestyle retail destination in Asia Pacific, Latin America and CIS. We connect over 10,000 global, local and own brands to a market of more than one billion consumers through four established e-commerce platforms: THE ICONIC, ZALORA, dafiti and lamoda. Through an inspiring and seamless customer experience enabled by our own technology ecosystem and operational infrastructure, we are dedicated to being the #1 fashion and lifestyle destination in our markets. With 17 offices and 10 fulfilment centres across four continents, GFG proudly employs a dynamic and diverse team with deep local knowledge and expertise. In the first half of 2019, GFG delivered over 15.8 million orders to 12 million active customers. ISIN: LU2010095458.
















21.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Global Fashion Group S.A.

5, Heienhaff

L-1736 Senningerberg

Grand Duchy of Luxembourg
Phone: +352 691 20 56 54
E-mail: investorrelations@global-fashion-group.com
Internet: https://global-fashion-group.com
ISIN: LU2010095458
WKN: A2PLUG
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Tradegate Exchange; Luxembourg Stock Exchange
EQS News ID: 860473





 
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860473  21.08.2019 



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