London-based e-commerce company MySale Group has reported weak financial results for the first half of the year. However, the current market volatility has presented some advantages for the company. As physical stores have closed and retailers have struggled to sell offline, MySale has been able to acquire more products and has seen an increase in brands wanting to sell on its marketplace platform. This has resulted in stronger revenues in the last two weeks of March.

In the past six months, MySale’s group revenue plummeted by 43% to A$72 million, while gross profit fell by 50% to A$24.4 million. The gross margin also decreased from 38% to 34%. Despite these figures, there is some positive news as the underlying EBITDA loss was reduced by 38% to A$3.1 million, compared to A$5 million in the previous year.

However, MySale still faces significant challenges in the coming months. CEO Carl Jackson noted that the ongoing financial year’s second half has been affected by poor consumer confidence due to the Australian bushfire crisis and the early supply chain disruptions caused by the Covid-19 pandemic. Due to the uncertainty surrounding the current situation, Jackson refrained from making any predictions about MySale’s future performance until the impact of Covid-19 becomes clearer. He is also adopting a cautious approach and focusing on conserving cash whenever possible.

Jackson emphasized that the company has been implementing significant changes, including a strong emphasis on reducing costs and inventory levels. MySale is currently undergoing a transformation by pivoting its business to become an Inventory Light Marketplace Platform and implementing its ‘ANZ First’ strategy to enhance cash flow and strengthen its balance sheet. Although the transformation is still in its early stages, the company is making progress.

Useful links:
1. MySale Group
2. CNBC
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