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MySale returns to profitability in FY21

The group said it has made ‘excellent’ progress in scaling its new marketplace seller platform, providing access for more than 200 brands and partners

Online retailer MySale has welcomed a period of ‘excellent progress’ in the full-year ended 30 June 2021, returning to profitability with underlying EBITDA ahead of market expectations at A$4.2m (£2.3m),  A$6.9m (£3.7m) from the A$2.7m (£1.4m) loss in FY20.

While core revenue rose by 14%, group total revenue fell by 4% to A$125.6m (£67.4m), slightly down from A$131.0m (£70.3m) in FY20,in line with management expectations. Nonetheless, gross profit increased to A$46.3m (£24.9m) from A$43.9m (£23.6m) the prior year. 

The group said it has made “excellent” progress in scaling its new marketplace seller platform, providing access for more than 200 brands and partners focussed on fashion, beauty and home branded merchandise. 

It said that it now expects this growth will “accelerate at pace”, with marketplace revenues expected to increase “significantly” in FY22, to become its largest channel. 

Having reduced its cost base and simplifying the business, it also expects “further operational efficiencies” in FY22 as it scales the business whilst delivering cost savings in its distribution centre.

Though it “remains cautious” on the full-year outlook, its board expects FY22 group revenues to be materially ahead of current market expectations, driven by this accelerated growth in marketplace revenues. 

Carl Jackson, CEO of MySale, said: “I am pleased to report that our successful completion of the strategic initiatives outlined in June 2019 has resulted in the Group delivering an underlying EBITDA of A$4.2m. 

“We have delivered strong improvements in gross margin as we increase our own-stock inventory channel, adopting a “test and repeat” strategy. We have also maintained strict control of our cost base and anticipate further operational efficiencies as we continue to scale the business.” 

He added: “Given the uncertainty associated with the pandemic, we remain cautious about FY22, however, the progress made over the last year gives us confidence in our ability to build a substantially larger business and deliver our ambition to be the leading ANZ off-price fashion, beauty and homewares marketplace platform. 

“This will be underpinned by capitalising on our large customer base and attractive long-term fundamentals.”

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