Global Fashion Group S.A. (GFG) has updated its outlook for the current financial year as a result of strong trading in Q3. The company said in a statement that it now expects to be profitable with respect to adjusted EBITDA and achieve constant currency net merchandise value (NMV) growth of around 23 percent, delivering 1.9 billion euros NMV and 1.3 billion euros of revenue.
In its outlook statement published on 20 August 2020, GFG previously guided to constant currency NMV growth of 20 percent, delivering 1.9 billion euros NMV and 1.3 billion euros of revenue. GFG expected to approach breakeven with respect to adjusted EBITDA and capex investment of no more than 45 million euros.
The company expects third quarter to be another adjusted EBITDA-profitable and cash flow-positive quarter as a result of strong customer demand. The company added that preliminary results indicate NMV growth on a constant currency basis of over 33 percent, significant growth in LATAM region, while CIS and SEA grew in line, while ANZ grew less quickly than the Group, as a result of inventory shortages, but is expected to report positive growth for Q3. Marketplace continued to be a strong driver of growth with its share of NMV increasing moderately compared to Q2. Adjusted EBITDA profitability in low single digit margin, was enabled by strong gross margin and cost efficiencies.
GFG will publish its third quarter results on November 12, 2020.
Picture:Global Fashion Group website