Greenlit Brands has reported a robust FY21, with strong online growth and a strong cash flow, despite the struggles of COVID-19.
The retailer reported combined total revenue of $1.3 billion for the APAC Group, which is up 8.6 percent on 2020. Similarly, the Group reported EBIDTA of $107.3 million, representing 15 percent growth on the previous year.
The Group, which houses brands including Fantastic Furniture, Freedom, Snooze and OMF, has further removed itself from debt and now has ‘significant’ cash reserves of $198.3 million and available facilities. In November 2021, Greenlit Brands sold Plush Sofas to Nick Scali for $110.6 million, and has undergone a refresh of its brand to appear more ‘contemporary and vibrant’.
As part of this restructuring, Greenlit Brands has undergone a major redevelopment of its digital business. The business has further refreshed its store network but will continue to put digital as a priority. The preferential treatment of e-commerce comes as its online sales skyrocketed from $60 million to $300 million over the course of four years. E-commerce sales have grown 17.7 percent compared to 2020.
The business restructure included the ownership of the Fantastic Furniture business within the Steinhoff International Group. As a result, Fantastic Furniture will no longer be directed by Greenlit Brands, but all businesses remained members of the APAC Group. The restructure has allowed the APAC Group to remove its outstanding debts in full, which ensures the orderly transition of the business for the preparation of an IPO for Fantastic Furniture in the future.
“Our impressive financial results for 2021 are a testament to the quality of our brands, the capability of our people, and the resilience of our business models against the ongoing headwinds of COVID-19, including COVID-related lockdowns across Australia and New Zealand,” said Michael Ford, CEO of Greenlit Brands. “The progress we made against our strategic priorities, and the strength of our balance sheet gives us much confidence as we continue to invest and grow our businesses.”
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