(AOF) – Despite a sharp increase in costs (transport, minimum wage, raw materials, etc.), Spartoo’s adjusted EBITDA improved in the first half of 2023, getting closer to balance, at -0.3 million d ‘euros. The group posted an operational loss of 3.1 million euros in the first half of 2022. This development reflects in particular the proactive policy of allocating marketing investments according to their profitability, with a sharp drop in the cost of acquiring new customers. by 38% to 11 euros compared to 18 euros in the first half of 2022.
Spartoo posted a net loss for this half-year of 2 million euros, compared to a loss of 4.6 million euros a year ago.
The commercial margin stood at 28.9 million euros over this period, or 39.7% of turnover, compared to 41.4% in the first half of 2022.
In the first half of 2023, Spartoo’s business volume amounted to 101.6 million euros compared to 104.3 million euros in the first half of 2022 (-2.6%).
As of June 30, 2023, Spartoo had cash of 7.6 million euros.
“We are aiming for positive free cash flow for the 2023 financial year despite a back-to-school season which has proven to be complicated,” declared Boris Saragaglia, co-founder and Chairman and CEO of Spartoo.
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Sector sheet – Internet
An increasingly competitive online search for Google
Google has dominated online search for more than two decades. It earns more than half of its revenue from advertising on its search engine. The second player, Bing, owned by Microsoft, remains far behind, with less than 9% of the global market. However, Bing benefits from a huge advantage: Microsoft’s results do not depend closely on the performance of its search engine, but rather on its sales of software and services to businesses with its Azure branch. The group can therefore be more agile and take risks. Other serious competitors are gaining strength. Amazon’s search engine for finding products shows a jump in advertising revenue. Likewise, the TikTok application is increasingly used by young people to search for information.
Find out more about the “mass distribution” sector
Two major challenges for the sector
The turnover of distribution brands increased by 6.6% in the third quarter of 2022 according to the IRI panelist. Such a performance had not been recorded since the confinements of 2020. However, since the end of September, volumes have declined following the increase in prices. The results of French players, rather spared until now, should therefore suffer. Moreover, in the United States, Walmart and Target have issued warnings about their results.
Another challenge: logistical disorganization. According to NielsenIQ data, the out-of-stock rate increased further on the shelves to reach 5.8% at the end of October. This represents a shortfall of 3.5 billion euros since the start of the year. According to Système U, these disorders have never been observed for more than fifty years. The reasons are multiple: both climatic, geopolitical, logistical, inflationary, and also linked to the behavior of consumers, who stock certain items. On the other hand, the strike in the refineries seems to have had little impact because the brands managed to organize themselves.