KEY HIGHLIGHTS
Financial overview:
With a continued focus on profitability and cash preservation, the Company achieved its lowest half-year expenditure since listing. This was highlighted by a 34% year-on-year (“YoY”) reduction in EBITDA loss to $2.4m (H1 2023: $3.6m), marking strong execution of the Company’s stated strategy to reduce expenditure and push towards profitability.
Gross margin as a percentage of net sales increased by 4ppt YoY to 53% (H1 2023: 49%). This was despite the negative impact of stock keeping unit (“SKU”) reductions resulting in a cost of goods increase of $0.4m during the period. SKU reductions are part of the continued effort to improve cash flow and profitability by eliminating the lowest performing products.
The Company’s ongoing review of marketing expenditure was another key aspect in the improved cash flow and reduction in losses. As a percentage of net sales, YoY marketing spend decreased by 11ppt to $1.5m. This equated or 31% of net sales (1H 2023 marketing spend: 42% of net sales or $2.2m).
During the period, the Company implemented additional reductions in marketing spend and margin improvements and anticipates that these combined efforts will be realised in the coming months.
Leave a Reply