Articore Group sees rising profits despite losses in revenue
The parent company of Redbubble and Teepublic, Articore Group, has reported improved profits despite a decrease in revenue in the first quarter of this fiscal year.
Articore Group has posted a 7 per cent decrease in its marketplace revenue to $80.2 million year-on-year.
The company’s gross profit rose 5 per cent to $41.5 million, with its gross margin up 5.7 percentage points to 50.6 per cent.
The company’s EBIT was $800,000, up 6.5 per cent, as compared to the same period last year.
“We’ve delivered our first profitable Q1 in four years with an 11 per cent increase in gross profit after paid acquisition (GPAPA) and a $6.5 million EBIT turnaround – a clear sign that our focus on margins, cash flow, GPAPA, and EBIT is working, even against a backdrop of inflationary pressures and consumer uncertainty,” said group CEO and MD Vivek Kumar.
“We remain on track to deliver our FY26 guidance. MPR decline has stabilised at 6.6 per cent, in line with the prior quarter’s 6.4 per cent.
“Importantly, we are pursuing multiple levers to drive profitable revenue growth – from enhancing customer experience, to introducing new artist fees, and investing in Dashery.
“These results highlight the strength of our disciplined execution and position us to capture significant upside as demand normalises.”
The results come after shareholders Martink Hosking and Richard Cawsey proposed a board spill, which was later rejected.
Comment Manually
You must be logged in to post a comment.
No comments