The e-commerce group Global Fashion Group SA (GFG) suffered significant losses in sales and a triple-digit million loss in the 2023 financial year. This emerges from the current annual report that the parent company of the online platforms Dafiti, Zalora and The Iconic published on Thursday.
Accordingly, group sales from continuing operations – i.e. excluding the contributions from the Dafiti Argentina division, which was discontinued at the end of September – amounted to 838.0 million euros last year. This corresponded to a decline of 21.6 percent compared to 2022. Adjusted for exchange rate changes, revenue fell by 18.0 percent. The net merchandise value (NMV) fell by 17.7 percent (-14.2 percent adjusted for currency effects) to 1.28 billion euros.
Despite extensive cost-cutting measures, the group continued to be deeply in the red. The loss before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects rose by 37.8 percent to 58.3 million euros. However, due to lower financing costs, the net loss from continuing operations only grew by 2.9 percent to 179.9 million euros.
The reported net loss attributable to shareholders, which also includes the earnings contributions from the activities that have since been discontinued, fell by 9.1 percent to 178.4 million euros.
For 2024, management expects a currency-adjusted decline in NMV of five to 15 percent given the continued difficult market conditions. The forecast range for EBITDA adjusted for special effects is -25 to -45 million euros.