Mosaic Brands is expecting to record $17 million EBITDA profit for the 2023 financial year, a $33 million turnaround to $16 million loss recorded last year.
Store-only comparable sales finished the year up 9.6% compared to the previous corresponding period. Online sales, which represent 20% of total turnover, were down 6% but almost entirely on third-party vendor sales.
Mosaic Brands CEO Scott Evans said the retailer had pushed through challenging conditions, including rising costs and an unfavourable US dollar.
“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,” he said. “Our customers are back in-store and staying online.”
While the Group remains cautious for FY24, Evans said it enters the new financial year with its cost base in the strongest position in over four years, as Covid related costs fall.
“As just one example, in the midst of Covid logistics costs rose by approximately $9 million due to container costs – now what would have cost $10,000 per container has fallen back to under $500.”
Store only comparative sales were up 11.9% in the first half of the financial year and up 7.6% in the second half.
Reserve Bank measures to manage inflation have begun to bite, Evans said.
“Our customers are not immune to the inflationary and interest rate pressures in the economy, but neither are they most exposed to them. Clearly Over 50 consumers have become more cautious in the last six months, but they are still spending.”
The Group expects to report total sales of circa $519 million when it reports on its full-year audited result next month, up 6.2% on FY22.
All financial figures are preliminary in nature and are subject to finalisation and review by the company’s auditors. The Group will provide a full update when it posts its full year FY23 audited financial results in August.