- Prachi Singh |
European online retailer, Showroomprivé said in a statement that its revenue rose around 3 percent to 672 million euros (761 million dollars), driven by France, where sales increased by 5 percent, and in a lesser measure by the business of the group internationally, where revenues rose 1 percent. The revenue on a like for like basis grew by 1.3 percent when compared to 2017. The company added that annual growth is rising despite a difficult consumer environment in November and December. In the fourth quarter, the group posted growth of 2.6 percent.
Commenting on the results, Thierry Petit and David Dayan, Co-founders and Co-CEO’s of Showroomprivé said: “Being backed up by enhanced capital, thanks to the complete success of the increase in capital supported by the reference shareholders, amongst which Carrefour, and completed at year end, Showroomprivé takes on 2019 with confidence and ambition.”
Review of Showroomprivé’s full year results
The company added that the growth of the revenue in 2018 was stimulated by the increase in the average revenue per buyer, and an increase in the average basket size. The group’s buyer base also expanded by addition of 1.1 million new buyers in 2018 and average revenue per buyer grew by 4 percent, reaching 176 euros. Showroomprivé further said that the growth of the group is supported by mobile, which now generates 85 percent of the traffic and more than two thirds of the net revenue or 68 percent, an increase of 6 points in comparison to last year’s 62 percent.
The company’s EBITDA of the group amounted to 5.1 million euros (5.7 million dollars), despite an EBITDA loss of 0.8 million euros in the first half, driven by the rebound in profitability in the second half with an EBITDA of 5.9 million euros up nearly 4 million euros compared to the second half 2017. The EBITDA margin reached 0.8 percent over the year, a drop of 1.2 points when compared to 2017, but 1.7 percent over the second half of the year increasing by 1.1 point in comparison with the same period last year. The group's tax benefit decreased by 15 percent to 2.3 million euros. As a result, the company said, group's net loss was 4.4 million euros (4.9 million dollars), impacted by the losses posted in the first half. In the second half of the year, net profit amounted to 2.1 million euros.