American firm Allbirds' revenue at $124.8 mn in H1 FY23

The gross profit for the period was $52 million in H1 FY23, a decline from $60.8 million in the first half of the previous year. The gross margin also contracted to 41.6 per cent from 43.1 per cent. Selling, general, and administrative expenses rose significantly to $89 million, or 71.3 per cent of net revenue, compared to $80.5 million or 57.1 per cent in the first half of FY22, the company said in a press release.

The net loss for the period was $64.1 million in H1 FY23, compared to $51.2 million in H1 FY22, pushing the net loss margin to 51.4 per cent from 36.4 per cent. Adjusted EBITDA loss was $39.9 million, deteriorating from a loss of $33.1 million in H1 FY22, with an adjusted EBITDA margin that declined to minus 32 per cent from minus 23.5 per cent.

In the second quarter (Q2) of FY23, Allbirds also faced challenges with net revenue decreasing 9.8 per cent to $70.5 million compared to Q2 FY22. However, gross profit showed a positive turn, totalling $30.1 million, with a gross margin that increased to 42.8 per cent from 36.1 per cent. SG&A was $46.2 million, or 65.6 per cent of net revenue, compared to $41.7 million or 53.4 per cent in the same quarter of the previous year.

The net loss for Q2 was $28.9 million, slightly improving from $29.4 million in Q2 FY22. The net loss margin was 41.1 per cent, compared to 37.6 per cent. Adjusted EBITDA also improved with a loss of $18.3 million, compared to a loss of $20.8 million in Q2 FY22, and the adjusted EBITDA margin improved to minus 25.9 per cent from minus 26.7 per cent.

“We are pleased to report another quarter of solid progress against our strategic transformation plan,” said Joey Zwillinger, co-founder and CEO. “Most notably, we gained traction across key benchmarks, including reducing inventory levels, lowering operating cash use and exercising cost control. Our teams are laser focused on the four key pillars under our plan, which has us on track to reignite growth, and improve capital efficiency with the goal of driving improved profitability.”

ALCHEMPro News Desk (DP)