Full Year 2024 Sosandar PLC Earnings Call Transcript
Key Points
- Sosandar PLC (LSE:SOS) achieved a significant improvement in gross margin, increasing by 670 basis points to 63.4% in Q1 FY25.
- The company reported a positive swing in profit before tax, moving from a GBP1.3 million loss in H1 FY24 to a GBP1 million profit in H2 FY24.
- Sosandar PLC (LSE:SOS) has a strong cash position with GBP8.3 million, allowing them to self-fund their store rollout program.
- The company successfully reduced inventory by GBP1.5 million, reflecting a strategic focus on full-price sales.
- Sosandar PLC (LSE:SOS) is expanding its retail presence with the imminent launch of its first stores in Chelmsford and Marlow, which are expected to enhance profitability and brand visibility.
- Revenue in Q1 FY25 decreased to GBP8.2 million from GBP11.4 million in the same period last year, primarily due to reduced price promotions.
- The company reported a full-year loss before tax of GBP0.3 million for FY24, despite improvements in H2.
- Sosandar PLC (LSE:SOS) experienced a delay in its store opening program, initially planned for spring 2024, due to challenges in securing the right locations.
- The partnership with The Bay in Canada was terminated due to technical issues with The Bay's marketplace, resulting in a loss of potential international sales.
- There is a risk associated with the ambitious store rollout plan, including the potential for overestimating revenue per store and managing operational costs effectively.
Good afternoon, everyone. Today, we're going to review the results for FY24. However, the main focus of the presentation is to look at our journey to increasing profitability and realizing the full potential of the brand.
So to take you through the agenda for today, we'll take a moment to look at where we are now as a brand. Steve will cover financial results and Q1 trading update, which leads us into our focus on profitability. Within this, we're going to look at margin scale, opening stores, and how stores will enhance margin and expanding the brand further.
Hello, everyone. So just to kick off, I'm just going to summarize the key points that we're going to be covering in the presentation today. We've built a fantastic brand from scratch to achieve well over GBP40 million of turnover selling through multiple channels. We focused on building and growing scale to achieve that
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