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FY23: Mosaic Brands swings to profitability

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By Published On: July 21, 20230 Comments

Mosaic Brands was among the hardest hit companys by lockdowns, but FY23 results are in and the company is thriving.

Mosaic Brands, which operates Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads and Beme brands has reported its (unaudited) FY23 results.

Mosaic Brands expects a circa $17m EBITDA profit for FY23 – a $33m turnaround to the prior financial year EBITDA loss of $16m. The Group expects to report total sales of circa $519m when it reports on its full-year audited result next month, up 6.2 percent on FY22.

Earlier this year, the company appointed administrators to online marketplace EziBuy. It purchased a majority stake in the Kiwi company in 2019 and turned the struggling business around to profitability and purchasing it completely in mid 2022. However, sales plunged by over 50 percent last year and Mosaic Brands made the decision to drop EziBuy in April. “The extent of EziBuy’s sales decline, particularly in the context of the group’s wider positive portfolio of online performance, prompted the board to conduct a strategic review of its operating and cost structure,” Mosaic stated in an ASX release.

“Having considered the results of that review, the board determined that it was in the group’s best interests as a whole that the EziBuy business be restructured.”

Online sales are down overall for the company, dropping 6 percent YoY – almost entirely on third-party vendor sales. Online sales represented approx. 20 percent of total turnover with Mosaic Brands’ bricks and mortar stores picking up the slack. Store-only comparable sales finished the year up 9.6 percent on the previous corresponding period

In January, the company announced plans to open 130 new bricks and mortar stores throughout the year as a result of the sales boom and growing demand.

“As one of the most impacted retailers throughout the Covid pandemic, it is great to see it well and truly in the rear-view mirror,” said Mosaic Brands CEO Scott Evans. “Our customers are back in-store and staying online,” he added.

“In the midst of Covid logistics costs rose by approx. $9m due to container costs – now what would have cost $10,000 per container has fallen back to under $500,” said Mr Evans.

“Our customers are not immune to the inflationary and interest rate pressures in the economy, but neither are they most exposed to them,” said Mr Evans. “Clearly Over 50 consumers have become more cautious in the last six months, but they are still spending,” he added.

The Group will provide a full update when it posts its full year FY23 audited financial results in August.

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About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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