EQS-News

Correction of a release from 06/03/2024, 08:00 CET/CEST - GLOBAL FASHION GROUP REPORTS Q4 & FY 2023 RESULTS - Seite 2

In LATAM, NMV declined 12.4% yoy where the focus remained on strengthening the customer proposition in an inflationary and competitive market. SEA focused on its controllable levers and exceeded the Group’s longer term platform goals with Marketplace participation at 50% and Platform Services revenue share of 12% in FY 2023. This drove SEA’s Gross Margin increase of 1.1ppt to 43.3%, even with an NMV decline of 18.0% in Q4. ANZ also improved Gross Margin by 1.5ppt to reach 46.4% in Q4. This was achieved despite a challenging market still recovering from higher cost-of-living, which led to a 12.6% decline in NMV.

GFG’s focus on the expansion of its platform business and implementation of cost-saving actions culminated in year-on-year improvements for both Gross Margin and Adjusted EBITDA in Q4. Each region also delivered Gross Margin improvements which contributed to the Group’s Gross Margin increasing 0.9ppt yoy to 43.6%. Despite fixed cost deleverage from lower volumes, GFG achieved an Adjusted EBITDA margin of 0.2%, improving 2.1ppt yoy.

GFG successfully delivered on its cost-saving initiatives resulting in significant reductions to the Group’s total cost base encompassing fulfilment, marketing, technology and administrative costs and office and fulfilment centre leases. GFG also maintained its inventory and working capital discipline resulting in a 32% yoy inventory reduction on a constant currency basis and a €33m Normalised Free Cash Flow in Q4. GFG closed 2023 with a strong cash position of €396.5m Pro-Forma Cash and €206.3m Pro-Forma Net Cash.¹

By taking decisive action throughout 2023, GFG has built a stronger foundation for 2024 with a leaner cost structure, healthy inventory and robust balance sheet. GFG is committed to its ongoing efficiency programme to ensure it is well positioned to navigate various scenarios and capitalise on future growth opportunities.

In 2024, GFG expects to deliver a 5-15% decrease in NMV on a constant currency basis, implying €1.1-1.2 billion in NMV. Adjusted EBITDA is expected to be €(25)-(45) million. This guidance reflects ongoing market challenges which have been observed in similar topline trends in the first two months of 2024 compared to Q4 2023.