// MySale sees 36% increase in gross merchandise value
// The retailer said it has made progress in scaling its marketplace platform
MySale reported an increase in the gross value of its goods by 36% to A$86.7m (£45.7m) in the six months to December 31, 2021.
The increase comes after the Australian online retailer made progress in scaling its marketplace platform.
Due to the changing sales mix and market channel growth, the retailer’s total revenue fell 6% to A$59.7m (£31.5m) during the of the period.
READ MORE: MySale revenue plummets as commercial director takes on CEO role
Gross profit was A$24.9 million (£13.1 million) as gross margins improved to 41.8%, marking an increase of 370 basis points.
However, the retailer’s second quarter supply chain volatility impacted wider profitability, meaning underlying EBITDA was A$1m (£527,177) vs. 5 million Australian dollars (1.3 million pounds sterling) in the same period the previous year.
In line with company strategy, management made the decision to invest in additional self-purchased inventory during the period.
However, delays in stock deliveries before Christmas and weak demand due to the release of the Omicron variant caused stocks to rise to a higher level than expected.
MySale said it is considering a number of strategic financing options to manage its working capital.
“The new management team has continued to evolve our marketplace platform, which is complemented by our own equity channel,” MySale Managing Director Kalman Polak said.
“The group has been working hard to weather recent headwinds of lower consumer demand due to the impact of the Omicron variant and supply chain challenges.
“The group’s increased inventory position is of high quality. Despite these challenges, we remain confident and are well positioned to capitalize on the long-term opportunity for the group.
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