📉 Overview of Financials
In the first quarter of 2024, Global Fashion Group (GFG) experienced a 21.1% decrease in revenue compared to last year, totaling 153M USD. This decline includes a currency-adjusted revenue drop of 18.8%. Despite this, GFG's adjusted EBITDA showed some recovery, decreasing to 17.3M USD from last year's 23.4M USD.
📊 Detailed Financial Performance
Further analysis reveals that the Net Merchandise Value (NMV) also declined by 18.6% to 239M USD. When adjusted for currency fluctuations, the decrease stands at 16.5%. The adjusted loss before interest and taxes (EBIT) improved, reducing to 31.7M USD from 38.4M USD.
🔮 Future Projections
Despite the challenging quarter, GFG's management remains optimistic, sticking to its 2024 financial forecasts. They expect a currency-adjusted NMV decline between 5% and 15%, aiming for an EBITDA range of -25M to -45M USD.
🌐 Subsidiary Performance
Subsidiaries like Dafiti, Zalora, and The Iconic, though impacted, continue to play a critical role in GFG's strategy, adapting to market changes and focusing on improving margins and operational efficiency.
Will GFG meet its financial targets in 2024?
