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ShowroomPrivé sees sales increase by 30% in the third quarter
Sales portal ShowroomPrivé announced that its turnover has increased by 8.8% over the past nine months. The showroom saw 19.3% year-on-year sales growth in the second financial quarter (April to June) followed by 30% growth in the third quarter running from July to September.
ShowroomPrivé’s third financial quarter generated net sales of €161.9 million ($189 million) compared to €125 million in the third quarter of 2019.
The business reported a net turnover of €464.7 million for the period from January to September this year compared to €427 million in the same time period a year earlier. This strong performance is mainly due to the “group’s loyal buyer-base” which represents around 80% of sales since the beginning of the year. In addition, the business saw its average order value increase to €44.2 compared to €40.7 a year ago.
“The good performance we achieved in the third quarter confirms and amplifies the recovery in our visible activities since the beginning of the second quarter,” said the business’ management.
“We are reaping the benefits of the very hard work carried out by our teams and management over the past 18 months as part of our 2018 to 2020 performance plan,” said the business. “Building on this trend, we are confident that we will continue to improve our operational profitability. Our EBITDA [earnings before interest, tax, depreciation, and amortisation] for the second half of the year should thus be higher than that of the first half and we estimate that we will be able to end the year 2020 with EBITDA close to €20 million. With the strengthening of our equity we achieved in July and the renewed confidence of our banking partners, we have a solid and lasting financial structure, illustrated by a high cash position.”
ShowroomPrivé has accessible cash funds totalling €112.4 million, to which can be added the cash generated in the first quarter of the year. The business’ gross financial debt stood at €120.8 million with a net financial debt of €8.4 million as of September 30.
With 22 million members, the sales portal generated net sales of €615.6 million in 2019 which was down by 8.4%. The business’ gross margin was down by 23.1% at €187.5 million.
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