MySale reports drop in H1 revenue and underlying profit

MySale has reported a drop in revenue and underlying profit in the first half of the year as the Australian retail group was hit by supply chain disruption.

While the group’s gross profit in the six months to December 31 increased by 3 percent to 24.9 million Australian dollars, supply chain volatility in the second quarter impacted broader profitability, resulting in a 60 percent drop in underlying EBITDA to 1 million Australian dollars.

The group’s revenue fell 6 percent to 59.7 million Australian dollars during the period. It said this was partially linked to a changing sales mix as it scaled its off-price marketplace platform, which is expected to become its largest sales channel.

The retailer’s gross merchandising volume (GMV) increased 36 percent to 86.7 million Australian dollars in the first half, up from 63.8 million Australian dollars a year earlier.

Looking ahead, the group said it maintains a “cautious” approach to its full-year outlook.

MySale CEO Kalman Polak said in a statement: “The new management team has continued to scale our marketplace platform, which is complemented by our own-stock channel. The group has worked hard to navigate recent headwinds in lower consumer demand driven by the impact of the Omicron variant and supply chain challenges.

“The group’s increased inventory position is of a high quality. Notwithstanding these challenges, we remain confident and are well-positioned to capitalise on the long-term opportunity for the group.”