MySale implements action plan after profits fall 35%

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MySale
// MySale profits & sales plunge due to discounting and low value ecommerce import transactions
// Gross profits fell 35% to £15.9 million from £24.6 million
// Group revenue fell 17% to £68 million from £82.1 million

MySale’s profits and sales have plunged due to heavy discounting as well as low value ecommerce import transactions.

It has reported an underlying EBITDA loss of AUD $5 million (£2.7 million) for the six months to December 31.

The online retailer’s gross profits declined by 35 per cent to AUD $29.5 million (£15.9 million) from AUD $45.6 million (£24.6 million).

Group revenue fell 17 per cent to AUD $126 million (£68 million) from AUD $152 million (£82.1 million), while online revenue fell 13 per cent to AUD $120 million (£64.8 milion) from AUD $138 million (£74.5 million).

Pre-tax losses were at AUD $10.2 million (£5.51 million), significantly steeper than the AUD $100,000 (£54,000) loss in the first half of its previous year.

Meanwhile, MySale saw its sales rise by 10 per cent to AUD $9.5 million (£5.1 million) in the UK, while gross profits increased eight per cent to AUD $2.3 million (£1.2 million).

MySale has implemented an action plan in a bid to fight challenges that it may have to face due to changes to product mix and strategy as well as relocation of own-buy inventory.

The Australian retailer also forecasted a cost saving of AUD $14 million (£7.5 million), representing a 20 per cent reduction in operating costs on an annualised basis.

The full benefits of its action plan are due to be released in its full-year financial report for 2020.

“Performance during the first half was disappointing, however we took immediate action to address the issues the group faced,” MySale chief executive Carl Jackson said.

“The changes to product strategy, while still ongoing, will be completed in the second half of the current financial year and should stabilise revenues and improve gross margin.”

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