The Cettire Ltd (ASX: CTT) share price has jumped 17% as investors got a good look at the ASX e-commerce share’s FY23 report.
Cettire operates an online store that sells luxury goods globally.
FY23 result
Here are some of the highlights from the 12 months to 30 June 2023:
- Sales revenue soared 98% to $416.2 million
- ‘Delivered’ profit increased 156% to $95.6 million
- Adjusted EBITDA (EBITDA explained) improved $50.8 million to $29.3 million
- Statutory EBITDA came to $25.8 million
- Statutory net profit after tax (NPAT) generated of $16 million
Cettire was pleased to report that its number of active customers (that have bought within the last 12 months) rose by 63% to around 423,000 – the year on year growth actually accelerated from April 2023 to the end of the financial year.
It also said that 58% of gross revenue came from repeat customers, up from 50% in FY22. The average order value (AOV) improved by 6% to $747.
July trading update
Cettire revealed that it has continued to experience a “healthy demand environment” across its geographic footprint, illustrating the “resilience of global luxury spend”.
The company is excited about the structural shift of luxury online spending, which means its addressable market can continue to expand. That may help the Cettire share price rise in the long-term if its market share maintains or grows.
In July 2023, the online retail ASX share saw the active customer growth of 6% compared to the prior corresponding period.
July 2023 sales revenue increased 120% year on year and the adjusted EBITDA profitability “has been maintained”.
Cettire will look to continue localisation initiatives, which it believes will help the next phase of growth. It’s going to look to maximise profitable revenue growth, while self-funding.
Management comments
The Cettire founder and CEO Dean Mintz said:
We are pleased by the early trading in FY24, with all our key markets performing strongly. Cettire is well positioned for another strong year of growth and profitability. We are well advanced in our preparations for China market entry, which remains a very attractive market opportunity and offers significant incremental growth potential.
Final thoughts on the Cettire share price
It has done very well over the past year. If it keeps delivering triple digit sales growth then that should be good news for the profit growth. It’s possible that luxury retail spending will continue to be strong, even if a global downturn happens. I’m not sure now is a great time to buy, with a lot of growth expectations built in. It’s hard to say where the growth ceiling is for the business, but if its margins keep rising then it could keep impressive investors.
