Mosaic Brands has reported a trading rebound for the first half of FY23, with customer spend increasing on an average transaction balance.
The news came as it appointed Spotlight Retail CEO Quentin Gracanin to its board as non-executive director.
Group CEO Scott Evans said increased earnings over the trading period are mitigating costs.
“While not yet at pre-pandemic levels, instore shopping continues to lift on a month-by-month basis, with customers also spending more on an average transaction basis,” Evans said. “This has seen us double our first half EBITDA1 to $15.8 million, despite absorbing a $5.1 million foreign exchange impact from the lower Australian dollar.”
“This result highlights how Mosaic has changed enormously to not only come out the other side of COVID, but to become a stronger and more sustainable business in what is a very different retail environment from just three years ago.”
Evans noted that the average cost of operating stores had reduced by a third from pre-COVID levels, while online sales for the first half were flat.
“Consistent with peer brands, the Group’s only pure-play online retailer, EziBuy has seen sales drop following COVID lockdowns, falling -51% compared to pcp,” he said. “With ongoing operational improvements, trade is expected to start to improve late in the second half and, beyond this, we expect EziBuy to positively contribute to Group earnings.
“We believe our Group strategy positions Mosaic’s 900 plus stores and 14 online businesses, with over six million products, as a true omni-channel retailer,” said Mr Evans.
“And as part of that strategy we will be planning an additional 130 stores throughout 2023, with online expected to reach up to eight million products by the end of the year.”
Meanwhile, Mosaic Brands has appointed Spotlight CEO Quentin Gracanin to the Mosaic Brands Board as a non-executive director at the next meeting on February 22.
Group chairman RIchard Facioni said Spotlight was a significant supporter of Mosaic’s 2021 capital raise in the middle of the COVID pandemic.
“As the turnaround of the Group accelerates, Quentin brings an extensive understanding of retail operations to add to the Board’s existing expertise,” Facioni said. “We welcome Quentin to the Board and look forward to working closely with Spotlight, one of Australia leading retailers, and Quentin to enhance shareholder value.”
Gracanin has been CEO and a Board member at the privately-owned Spotlight Retail for 12 of his 30 years in the retail sector.