// MySale records rise in gross merchandise value by 36%
// The retailer said it made progress in scaling up its marketplace platform
MySale has reported a rise in its gross merchandise value by 36% to AUD $86.7 million (£45.7 million) in the six months to 31 December 2021.
The increase comes after the Australian online retailer made progress in scaling up its marketplace platform.
As a result of a changing sales mix and growth of the marketplace channel, the retailer’s total revenues declined by 6% to AUD $59.7 million (£31.5 million) in the period.
READ MORE: MySale revenues drop as chief commercial officer takes CEO role
Gross profit came in at AUD $24.9 million (£13.1 million) as gross margins improved to 41.8% to mark an increase of 370 basis points.
However, supply chain volatility in the retailer’s second quarter impacted broader profitability, which meant that underlying EBITDA was AUD $1 million (£527,177) compared to AUD $2.5 million (£1.3 million) at the same time in the prior year.
In line with the company’s strategy, its management took the decision to invest in additional own-buy inventory in the period.
However, delays in stock deliveries prior to Christmas and subdued demand driven by the spread of the Omicron variant meant that inventory built up to a higher level than expected.
MySale said it is considering a number of strategic financing options to manage its working capital.
“The new management team has continued to scale our marketplace platform, which is complemented by our own-stock channel,” MySale chief executive, Kalman Polak said.
“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 of high quality. Notwithstanding these challenges, we remain confident and are well positioned to capitalise on the long-term opportunity for the group.”
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