Cettire (ASX:CTT) reports 127% growth in sales revenue, shares jump

Highlights:

• Luxury goods retailer, Cettire has reported 127% surge in its sales revenue to AU$209.0 million.
• Statutory gross margin in FY2022, rose to AU$37.4 million; gross margin percentage declined to 17.8%.
• The group has ended the period with a cash balance of AU$22.7 million and zero debt.

Global online retailer, Cettire Limited (ASX:CTT), on Tuesday (30 August 2022), shared its full-year results for the year ended 30 June 2022 (FY22). ASX-listed retailer has also shared its outlook for FY23.

At 10:30 AM AEST, the share price of Cettire was quoted 5.714% up at AU$0.925 apiece. With this, in last five trading sessions, it has gained 20.78%, and in last one month, it has gained 66.07%. However, the year-to-date fall is 74.66%.

Key highlights from FY22 financial update

• In the financial year 2022, the company reported gross revenue of AU$287.8 million, up 131% on the previous year.
• Sales revenue grew 127% to AU$209.9 million.
• Active customers increased by 127% to 260k.
• 50% of the gross revenue was generated from repeat customers.
• Adjusted EBITDA in FY22 was negative to AU$21.5 million. It was driven by investment to scale the platform.
• Statutory net loss after tax during the year increased from AU$251,000 in FY21 to AU$19.1 million in FY22.
• Operating cash flow during the 12 months was negative AU$14.7 million.
• The company entered the FY23 with the cash balance of AU$22.7 million and zero financial debt.

What else happened during the financial year 2022?

The company achieved substantial growth in the global supply chain, and inventory value has surpassed the AU$1 billion mark. The company has added extra direct luxury brand supply relationships to offer a platform to all supply chain members. Dean Mintz, CEO and founder, Cettire, highlighted that in FY22, Cettire reported significant advancements to its technology platform. Now, the company owns a technology stack across its customer’s journey. This offers considerable global growth opportunities.

Another milestone that Cettire achieved is the launch of its mobile application that enhanced user experience and increased the opportunities to retail and engage its customers.

Outlook for FY23

In the coming year, the company would focus on maximising its profitable growth revenue, said Cettire in a statement. Also, the company intends to be EBITDA positive in the next year.

Near-term investment priorities are investment in technology, customer acquisition and building organisational capability.

The company has provided an early look into FY23. The trading momentum was positive during the first half of FY23 as sales revenue in July surged by 67% on prior corresponding period. Also, in August, the sales revenue increased by 67%. In July, the company reported adjusted EBITDA of more than AU$2 million.

Commenting on the FY23 outlook, Mintz said: