EQS-Adhoc
Global Fashion Group S.A.: REPORTS PRELIMINARY Q3 RESULTS AND UPDATES ITS GUIDANCE FOR FULL YEAR 2023
- GFG reports Q3 results: 19% decrease in NMV, 25% decrease in revenue.
- GFG updates guidance for full year 2023: NMV decrease of 16-18%.
- GFG closes operations in Argentina, revises guidance to reflect lower demand trends.
EQS-Ad-hoc: Global Fashion Group S.A. / Key word(s): Miscellaneous GLOBAL FASHION GROUP REPORTS PRELIMINARY Q3 RESULTS AND UPDATES ITS GUIDANCE FOR FULL YEAR 2023 |
Luxembourg, 26 October 2023 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, announces its preliminary financial results for
the third quarter and updates its guidance for the full year 2023.
Based on preliminary Q3 2023 results, GFG expects decreases of 19% in NMV and 25% in Revenue, both on a constant currency basis, and a (10)% Adjusted EBITDA margin for the quarter. NMV decreased
23% in LATAM, 17% in SEA and 18% in ANZ. Following the €102 million repurchase of its outstanding convertible bond, GFG closed the third quarter with €350 million pro forma cash and €158 million
net pro forma cash. The net position excludes the convertible bond liability and third party borrowings.
During Q3, GFG closed its operations in Argentina in view of the challenging macro environment. The Argentinian business is now classified as a discontinued operation under IFRS 5 and is excluded from the results. Argentina made up 4% of NMV and 3% of Revenue in H1 2023. We are revising our guidance to remove Argentina and to reflect lower demand trends continuing throughout the upcoming peak trading season.
For the full year 2023, GFG now expects an NMV decrease of 16-18% on a constant currency basis which equates to c.€1.2-1.3 billion in NMV, c.€0.8 billion of revenue, an Adjusted EBITDA margin of
(9)-(7)% and c.€30 million in Capex. In GFG’s guidance published on 26 July 2023, the Company estimated an NMV decrease of 10-15%, c.€1.3-1.4 billion in NMV, and c.€0.9 billion of Revenue, an
Adjusted EBITDA margin of (8)-(6)% and c.€30 million in Capex.