Showroomprivé H1 revenues decline by 21.3 percent

Showroomprivé (SRP Group), net sales for the first six months were down 21.3 percent to 305.4 million euros.

The company said in a release that decline in activity is linked to a macroeconomic and geopolitical context marked by an increasingly pronounced reduction in household purchasing power, as well as the persistent disruption in production and supply capacities in Asia.

Commenting on the trading results, François de Castelnau, group deputy CEO and chief financial officer, said: “Amid a difficult market environment for the e-commerce sector, net revenue declined by 21.3 percent. Thanks to the focus on operational efficiency over the last few months and years, our business model has become more agile, thus enabling us to adapt quickly to market changes and generate a positive EBITDA of 11.2 million euros over the H1 2022, which represents a margin of 3.7 percent.”

The company added that positive performance by the travel & ticketing segment was partially offset by the decline in certain segments, particularly fashion due to IFRS recognition of travel revenues.

The company saw an increase in the average basket size of 9.1 percent bolstered by the enhancement and premiumization of the offering. SRP Media posted strong performance and continued to generate high profitability. Beauté Privée net revenues continued to suffer from the platform migration.

EBITDA for the period of 11.2 million euros declined from 33 million euros reported in the first half of 2021 and increased from 7 million euros in H1 2020. Gross margin was 39.1 percent versus 40.6 percent in H1 2021 and 37.1 percent in H1 2020. EBITDA margin of 3.7 percent was lower than 8.5 percent recorded in H1 2021.

Net income declined to 1.6 million euros compared to 20.6 million euros in H1 2021 and negative 6.6 million euros in H1 2020.

Commenting on the outlook, David Dayan, co-founder and CEO of Showroomprivé, added: “The first half of the year was marked by a challenging market environment, in line with the trend observed at the end of last year. This environment is persistently uncertain. As we expected a recovery in the second half of the year, the long-awaited rebound seems to require more time and effort.”