Fashion
The Lazada and Zalora parent is paring back its losses after divesting operations in two markets.
With operating losses nearly halved and excluding disposals in India and Southeast Asia, Global Fashion Group (GFG) has reported a 36.3 per cent rise in net revenue.
Backed by Rocket Internet and comprising online fashion retail businesses in emerging markets, GFG says net revenue in constant currency rose 47.5 per cent to 456 million euros (US$512.73 million).
GFG sold interests in Thailand and Vietnam for an undisclosed amount to retailer Central Group in April. It also sold its Indian fashion business Jabong to Flipkart for $70 million in cash in August.
GFG raised 330 million euros in funding from existing investors in July, cutting the holding of Rocket Internet to 20.4 per cent.
The company says adjusted losses before interest, taxes, depreciation and amortisation (EBITDA) narrowed to 67.6 million euros in the first half of this year from 120.5 million euros in the same period last year. The EBITDA margin improved to a negative 14.8 per cent in the first half from minus 33.4 per cent, which the company says was driven by tighter inventory management and cost-cutting.
