Q1 2025 Global Fashion Group SA Earnings Call Transcript
Key Points
- Global Fashion Group SA (XTER:GFG) reported a 1.3% year-over-year increase in NMV on a constant currency basis, marking a top-line turnaround driven by growth in Latam and ANZ regions.
- The company achieved a 2.1% point increase in gross margin, reaching 46%, the highest level to date, due to improved retail margins and stronger marketplace commissions.
- Adjusted EBITDA margin improved by 3.9% points year-over-year, reflecting the effectiveness of strategic initiatives and cost management.
- ANZ region returned to active customer growth, driven by successful marketing campaigns and improved customer engagement efforts.
- The company maintained a strong liquidity position, closing Q1 with €158 million of pro forma cash and €98 million of pro forma net cash.
- The active customer base declined by 5.2% year-over-year in Q1, indicating ongoing challenges in customer retention.
- Order frequency decreased by 2.2% year-over-year, suggesting potential issues in customer engagement or satisfaction.
- The company experienced a negative free cash flow of €61 million for the quarter, attributed to seasonal patterns and increased working capital outflow.
- Southeast Asia region remained challenged, with negative top-line performance as the business focuses on strengthening its market proposition.
- The company faces global uncertainty due to recent US tariffs, impacting consumer sentiment and potentially affecting demand.
Good morning, everyone and welcome to Global Fashion Group's Q1 2025 results presentation.
I'm Helen Hickman, CFO of GFG.
Today I'll provide an overview of our first quarter results followed by a Q&A session where our CEO Christoph Barchewitz will join us.
Starting with a summary of our Q1 performance.
Latam and ANZ continued to drive top line momentum from Q4 last year to deliver our first quarter of group MN growth since the demand downturn began in 2022.
We generated â¬226 million of NMV representing a 1.3% increase year over year on a constant currency basis.
We continued our improving margin trend in Q1 with a 2.1% point increase year over year in a gross margin to reach 46%.
Our adjusted EBITDA margin improved by 3.9% points to negative 7.3%. Our results prove the effectiveness of our strategic initiatives and confirm we are firmly on the right path to deliver a sustainable financial profile.
Let's take a closer look at our group KPIs.
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