German brand GFG's NMV down 0.4% in Q2 FY25

GFG’s topline momentum was driven by ANZ and LATAM with GFG’s largest regions maintaining positive NMV growth for a third consecutive quarter. LATAM’s Q2 NMV increased 10.2 per cent y-o-y, benefitting from double-digit growth in both Brazil and Colombia, while ANZ’s NMV increased 5.8 per cent y-o-y, driven by high participation in campaign events, enhanced delivery offerings in key cities, and the growing strength of the marketplace offering.

ANZ delivered a second quarter of customer growth with active customers increasing 4.3 per cent y-o-y, exceeding 2 million active customers in Q2. In SEA, NMV declined by 22.5 per cent as the business continued to prioritise profitability while refocusing its fashion & lifestyle assortment in a competitive market, the company said in a press release.

“We have achieved positive Adjusted EBITDA for the group in Q2, with improvement across all our regions in the half, driven by our ongoing cost savings initiatives and a strong topline recovery in two out of three regions. While group NMV and revenue have stabilised, robust growth in LATAM and ANZ, supported by positive customer momentum, has been partially offset by continued challenges in SEA. We remain focused on building sustainable growth and delivering value for our customers and brand partners in all regions,” Christoph Barchewitz, CEO of GFG, said.

All regions delivered gross margin expansion and contributed to the group achieving a record gross margin of 47.7 per cent in the second quarter, increasing 2.9ppts y-o-y. This improvement was driven by stronger retail margins, resulting from lower discount rates and a fresher assortment, and a higher marketplace share. The combined impact of margin expansion and cost reduction initiatives drove a 3.9ppt y-o-y improvement in Adjusted EBITDA margin, reaching 1.8 per cent for Q2.

ALCHEMPro News Desk (RR)