Global Fashion Group S.a. · XETR:GFG
Global Fashion — Q4 2024 Earnings Presentation
41 slides from Global Fashion's earnings presentation, Mar 5, 2025
Slide 1: Q4 & FY 2024 Results Presentation
#1 FASHION & LIFESTYLE DESTINATION IN LATAM, SEA & ANZ Q4 & FY 2024 RESULTS PRESENTATION 5 March 2025
Slide 2: Significant progress across all our 2024 strategic priorities
SIGNIFICANT PROGRESS ACROSS ALL OUR 2024 STRATEGIC PRIORITIES Stabilised NMV trends in our largest markets 1 Achieved growth in LATAM and ANZ in Q4 Improved Gross Margin and inventory efficiency 2 +2.8ppt Gross Margin improvement supported by a healthy 14% aged inventory profile Reduced cost base wh
Slide 3: Q4 2024: Slowest rates of decline for the year in NMV, customers and orders
Q4 2024: DELIVERED SLOWEST RATES OF DECLINE FOR THE YEAR IN NMV, CUSTOMERS AND ORDERS €354m 45.6% 3.8% NMV GROSS PROFIT MARGIN ADJ. EBITDA MARGIN (0.3)% yoy1 +2.0 ppt yoy +3.6ppt yoy 8.0m 5.7m 2.3 ACTIVE CUSTOMERS ORDERS ORDER FREQUENCY (9.2)% yoy (3.7)% yoy (3.3)% yoy (1) Constant currency growth r
Slide 4: FY 2024: Record gross margin and strongest Adj. EBITDA margin since 2021
FY 2024: ACHIEVED RECORD GROSS MARGIN AND STRONGEST ADJ. EBITDA MARGIN SINCE 2021 €1,142m 44.9% (2.8)% NMV GROSS PROFIT MARGIN ADJ. EBITDA MARGIN (7.8)% yoy1 +2.8 ppt yoy +4.1ppt yoy 8.0m 18.3m 2.3 ACTIVE CUSTOMERS ORDERS ORDER FREQUENCY (9.2)% yoy (12.2)% yoy (3.3)% yoy (1) Constant currency growth
Slide 5: Strategic focus areas
STRATEGIC FOCUS AREAS 5 Q4 & FY 2024 RESULTS PRESENTATION
Slide 6: Partnering with top global and local brands for a curated assortment
PARTNERING WITH THE TOP GLOBAL AND LOCAL BRANDS TO OFFER CUSTOMERS A CURATED ASSORTMENT TOP 30 BRANDS / BRAND GROUPS BY NMV 20241 EXCLUSIVE ASSORTMENT 7% own brand share of NMV + Exclusive brand partnerships and collaborations (1) Excludes own brands. 6 Q4 & FY 2024 RESULTS PRESENTATION
Slide 7: Driving customer engagement with an app centric strategy
DRIVING CUSTOMER ENGAGEMENT WITH AN APP CENTRIC STRATEGY APP SHARE OF NMV 2019 2024 Vector Search Size Chart Onboarding New app drove ~50% 92% more downloads yoy Small but meaningful 77% app improvements 66% • Targeted campaigns 53% and app exclusive launches 33% 35% • New features – size personalis
Slide 8: Returning customer base to growth with disciplined marketing investments
RETURNING CUSTOMER BASE TO GROWTH WITH DISCIPLINED MARKETING INVESTMENTS MARKETING SPEND AND CUSTOMER EVOLUTION Marketing Cost % 7.7% 6.9% 7.5% 6.8% 6.8% 6.7% of NMV In Q4/24, both Customer LATAM & ANZ growth New + outpaced churn Reactivated / Churned Customers Customer decline 2019 2020 2021 2022 2
Slide 9: Leveraging our well-invested fulfilment infrastructure
LEVERAGING OUR WELL-INVESTED FULFILMENT INFRASTRUCTURE EXISTING INFRASTRUCTURE PRIMED EXPANDED DELIVERY OPTIONS FOR PROMOTING RESPONSIBLE CUSTOMER FOR FUTURE GROWTH FAST SERVICE AT LARGE SCALE RETURNS BEHAVIOUR RETURN RATES2 Logistics designed for fashion 2019 2024 7 10% local fulfilment centres wit
Slide 10: Progressing as a platform business
PROGRESSING AS A PLATFORM BUSINESS MARKETPLACE FULFILLED BY GFG & CROSS-DOCKING PLATFORM SERVICES1 SHARE OF NMV SHARE OF MARKETPLACE SHIPPED ITEMS SHARE OF REVENUE ~50% +0.6ppt ~45% +3.5ppt +0.4ppt >5% 38% 39% 39% 36% 3% 3% FY/23 FY/24 Goal FY/23 FY/24 Goal FY/23 FY/24 Goal (1) Platform Services def
Slide 11: Driving innovation with machine learning and generative AI
DRIVING INNOVATION WITH MACHINE LEARNING AND GENERATIVE AI WE ALREADY USE AI ACROSS MULTIPLE AREAS OF OUR BUSINESS… SEARCH FUNCTIONS PERSONALISATION OPERATIONS • Image attributes and metadata extraction • Predict trends leveraging sales history • Multi-modal search Targeted promotions and [70]% Occa
Slide 12: Segment results
SEGMENT RESULTS 12 Q4 & FY 2024 RESULTS PRESENTATION
Slide 13: Q4 2024: Two regions returned to growth with significant step up in gross margin
Q4 2024: TWO REGIONS RETURNED TO GROWTH WITH SIGNIFICANT STEP UP IN GROSS MARGIN Change on Q4/23 Q4/24 NMV1 Q4/24 REVENUE1 Q4/24 GROSS MARGIN (€M) (€M) 168 116 48.8% 112 42.8% 42.7% 43.8% 101 70 65 75 47 +2% +8% (20)% +9% +3% +8% (22)% +8% +2.2ppt +1.4ppt +0.5ppt +2.4ppt LATAM LATAM SEA ANZ LATAM LA
Slide 14: FY 2024: Strong gross margin gains across all regions
FY 2024: STRONG GROSS MARGIN GAINS ACROSS ALL REGIONS, PARTIALLY OFFSETTING TOPLINE DECLINES Change on FY/23 FY/24 NMV1 (€M) FY/24 ACTIVE CUSTOMERS (M) 515 3.9 3.5 355 312 272 2.1 1.9 (6)% (2)% (17)% (3)% (11)% (9)% (11)% (3)% LATAM LATAM ex Chile SEA ANZ LATAM LATAM ex Chile SEA ANZ FY/24 GROSS MAR
Slide 15: LATAM: Clear topline and margin turnaround
LATAM: CLEAR TOPLINE AND MARGIN TURNAROUND All figures presented here exclude Chile 2019 2020 2021 2022 2023 2024 2025+ FOCUS AREAS NMV • Continuous development of our GROWTH 16% 21% assortment to drive exclusivity, relevance and efficiency (CONSTANT CURRENCY) • Optimise the ‘Fulfilled by’ Marketpla
Slide 16: SEA: Improving gross margin despite topline declines
SEA: IMPROVING GROSS MARGIN DESPITE TOPLINE DECLINES 2019 2020 2021 2022 2023 2024 2025+ FOCUS AREAS NMV 34% • Strengthen fashion & lifestyle position 27% GROWTH 21% in each of our core SEA markets (CONSTANT CURRENCY) • Optimise marketing across channels and Marketing by GFG services (5)% (15)% (17)
Slide 17: ANZ: Healthy margins in 2024 and Q4 NMV growth drives momentum
ANZ: HEALTHY MARGINS IN 2024 AND Q4 NMV GROWTH DRIVES MOMENTUM FOR 2025 AND BEYOND 2019 2020 2021 2022 2023 2024 2025+ FOCUS AREAS 45% NMV • Enhance efficiency with OWMS GROWTH 16% 16% fulfilment and AI-driven productivity (CONSTANT 5% CURRENCY) • Further strengthen brand and engage target customers
Slide 18: Group results
GROUP RESULTS 18 Q4 & FY 2024 RESULTS PRESENTATION
Slide 19: Slower rate of customer decline driven by higher customer acquisition
SLOWER RATE OF CUSTOMER DECLINE DRIVEN BY HIGHER CUSTOMER ACQUISITION ACTIVE CUSTOMERS ORDER FREQUENCY (M) (X) (9.2)% (3.3)% 8.8 8.0 2.4 2.3 In Q4, LATAM and ANZ’s new & reactivated customers exceeded churned 2023 2024 2023 2024 Note: Active Customers and Order Frequency are rolling 12-month KPIs. 1
Slide 20: In Q4, delivered the lowest rate of NMV decline since 2022
IN Q4, DELIVERED THE LOWEST RATE OF NMV DECLINE SINCE 2022 NMV1 Retail Marketplace ORDERS AVERAGE ORDER VALUE1 (€M) (M) (€) (0.3)% (3.7)% 3.5% 62.1 61.9 369 354 5.9 5.7 38% 38% Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 (7.8)% (12.2)% 4.9% 1,279 1,142 20.8 18.3 61.5 62.5 38% 39% FY/23 FY/24 FY/23 FY/24 FY/
Slide 21: Steady quarterly improvement in revenue trends, gross margin and Adj. EBITDA margin
STEADY QUARTERLY IMPROVEMENT IN REVENUE TRENDS, GROSS MARGIN AND ADJ. EBITDA MARGIN REVENUE1 GROSS PROFIT / MARGIN ADJUSTED EBITDA / MARGIN (€M) (€M) (€M) (1.2)% +2.0ppt +3.6ppt 243 232 106 106 9 0.5 43.6% 45.6% 3.8% 0.2% Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 (8.6)% +2.8ppt +4.1ppt 838 744 (4.7)% 353
Slide 22: Another year of strong cost initiative execution
ANOTHER YEAR OF STRONG COST INITIATIVE EXECUTION WITH AN ONGOING COMMITMENT TO EFFICIENCY COSTS (€M) 2023 2024 23-24 FULFILMENT 202 174 (28) MARKETING 87 76 (11) TECH & ADMIN1 181 165 (16) TECH CAPEX & CASH LEASES2 43 43 (1) Majority driven TOTAL COST BASE 513 458 (56) by cost actions COST BASE Y
Slide 23: Healthy inventory position as a result of disciplined management
HEALTHY INVENTORY POSITION AS A RESULT OF DISCIPLINED MANAGEMENT AND AGED STOCK FOCUS INVENTORY, NET OF PROVISIONS (€M) Aged Inventory (>180 Days % of Gross Inventory) 21% 23% 26% 19% 21% 14% 207 166 132 111 106 96 Jun Dec Jun Dec Jun Dec 2022 2023 2024 Note: All historical figures exclude CIS and A
Slide 24: Nearly €40m improvement in Adj. EBITDA driving NFCF
NEARLY €40M IMPROVEMENT IN ADJ. EBITDA DRIVING NFCF (€M) 2023 2024 PRO-FORMA CASH BALANCE Pro-Forma Cash (€M) Pro-Forma Net Cash Adj. EBITDA (58) (21) FUNDING Cash Lease Costs (20) (19) 397 OPERATIONS (45) Working Capital 48 38 (104) Intangible Capex (24) (26) (26) 222 CAPEX PP&E Capex (4) (4) €124m
Slide 25: Outlook
OUTLOOK 25 Q4 & FY 2024 RESULTS PRESENTATION
Slide 26: FY 2024 results excluding Chile
FY 2024 RESULTS EXCLUDING CHILE In Q1 2025, we commenced the orderly winddown of operations in Chile as the business continued to face a challenging business environment and heightened competition in the post COVID period GROUP FY24 Incl. Chile (As Reported) Excl. Chile (Unaudited) Difference NMV (€
Slide 27: FY 2025 guidance
FY 2025 GUIDANCE All figures presented here exclude Chile FY20241 FY2025 Guidance Unaudited Ex Chile FINANCIAL PRIORITIES (7)% yoy (5) to 5% yoy • Primary objective is to become Adj. EBITDA breakeven despite challenges in predicting topline NMV2 €1.1bn Implies €1.0-1.1bn • Leases around 2024 levels
Slide 28: Our path to positive Adj. EBITDA and breakeven normalised free cash flow
OUR PATH TO POSITIVE ADJ. EBITDA AND BREAKEVEN NORMALISED FREE CASH FLOW 1 PLATFORM TRANSITION 2 MARGIN IMPROVED 3 CAPITAL EFFICIENCY MARKETPLACE share of NMV ~45% GROSS PROFIT ~47% CAPEX ~3% % of Revenue % of Revenue FULFILLED BY GFG & CROSS-DOCKING share of Marketplace ~50% ONGOING COST EFFICIENCY
Slide 29: We are on the right trajectory to NFCF breakeven
WE ARE ON THE RIGHT TRAJECTORY TO NFCF BREAKEVEN ADJUSTED EBITDA / MARGIN % c.6% BREAKEVEN NFCF BREAKEVEN €(21)m €(18)m ADJ. EBITDA €(58)m (2.8)% (2.4)% (6.9)% 2023 2024 2024 ex Chile 2025 GOAL Gross Margin 42% 45% 45% ~47% 29 Q4 & FY 2024 RESULTS PRESENTATION
Slide 30: Q&A
Q&A 30 Q4 & FY 2024 RESULTS PRESENTATION
Slide 31: Appendix
APPENDIX 31 Q4 & FY 2024 RESULTS PRESENTATION
Slide 32: Operating cost ratios
OPERATING COST RATIOS COSTS % OF NMV1 2021 2022 2023 2024 21-24 FULFILMENT 15.3% 15.9% 15.8% 15.2% (0.1)ppt MARKETING 7.5% 6.8% 6.8% 6.7% (0.8)ppt TECH & ADMIN2 10.7% 12.3% 14.2% 14.5% +3.8ppt NMV GROWTH YOY3 20.3% (0.7)% (14.2)% (7.8)% (28.1)% (1) All costs include D&A. (2) Admin costs exclude sha
Slide 33: FX sensitivity
FX SENSITIVITY €M Q4/24 IMPACT AT Q4/23 FX RATES NMV REVENUE ADJ. EBITDA YOY % CHANGE AUSTRALIA (AUD) 1.5 1.1 0.1 1.0% BRAZIL (BRL) (13.8) (8.9) (0.0) (14.5)% OTHER (1.3) 0.1 (0.0) (0.3)% TOTAL (13.5) (7.8) 0.1 (3.1)% FY/24 IMPACT AT FY/23 FX RATES NMV REVENUE ADJ. EBITDA YOY % CHANGE AUSTRALIA (AUD
Slide 34: Adjusted EBITDA reconciliation
ADJUSTED EBITDA RECONCILIATION €M FY/23 FY/24 Adjusted EBITDA (58.3) (20.5) Share-based payment expenses (1.7) 0.7 Impairment of goodwill and other non-financial assets (54.7) (3.3) One-off costs1 (6.3) (0.9) EBITDA (121.0) (24.0) Depreciation and amortisation (57.5) (58.1) Loss before interest and
Slide 35: Issued share capital as of 31 December 2024
ISSUED SHARE CAPITAL AS OF 31 DECEMBER 2024 SHARE INFORMATION EMPLOYEE SHARE OPTION PROGRAMME LONG-TERM INCENTIVE PLAN3 Common shares in Weighted Average Outstanding Total Awards 9,154,398 Type of Share dematerialised form with Exercise Price Call Options2 a nominal value of €0.01 €0.01 157,565 €6.0
Slide 36: Convertible bonds due 2028
CONVERTIBLE BONDS DUE 2028 GFG CONVERTIBLE BONDS ISSUED MARCH 2021 REPURCHASES Issue Size €375.0m (€M) Q2 2022 Q3 2023 Q2 2024 Q3 2024 Status Senior Unsecured Outstanding Maturity 7 Years 279.9 178.3 165.7 54.7 Issue Size Bondholder Put 15 March 2026 Total 95.1 101.6 12.6 111.0 Issuer Call After Yea
Slide 37: Group tax loss carry forwards as at FY 2024
GROUP TAX LOSS CARRY FORWARDS AS AT FY 2024 €M DEC-24 TIME LIMIT TO CARRY FORWARD • Can be carried forward and offset against future taxable income subject to local tax rules and LATAM 355 Predominantly Brazil (indefinitely) limitations • Brazil is the only country with a specific restriction – OPER
Slide 38: Revised definition for Platform Services
REVISED DEFINITION FOR PLATFORM SERVICES PLATFORM SERVICES SHARE OF REVENUE Following a business model definition review, we have revised our Platform Services definition to 4.1% only include service revenue that is not directly related to Retail or 3.2% Marketplace transactions. 2.8% This revision
Slide 39: KPI definitions
KPI DEFINITIONS Number of customers who purchased at least one item after cancellations, rejections and returns ACTIVE CUSTOMERS in the last twelve months EBITDA adjusted for share-based payment expenses, impairment of goodwill and other non-financial assets, ADJUSTED EBITDA Group recharges and asso
Slide 40: Upcoming events
UPCOMING EVENTS DATE EVENT LOCATION 29 April 2025 Q1 2025 Results Virtual 12 May 2025 Equity Forum German Spring Conference Frankfurt 12 June 2025 Annual General Meeting 2025 Luxembourg 14 August 2025 Q2 2025 Results Virtual 5 November 2025 Q3 2025 Results Virtual 40 Q4 & FY 2024 RESULTS PRESENTATIO
Slide 41: Disclaimer
DISCLAIMER Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of simil