FRANKFURT Nov 23 Revenue growth at emerging
markets-focused retailer Global Fashion Group (GFG), which is
backed by investors Kinnevik of Sweden and Germany's
Rocket Internet, slowed in the third quarter, although
its losses narrowed.
GFG said on Wednesday net revenue in constant currency terms
rose by 16 percent to 250 million euros ($266 mln) in the
quarter, less than half the 36.6 percent rise it achieved during
the first half of the year.
The retailer is one of three Rocket investments, along with
food delivery companies Delivery Hero and HelloFresh, that the
ecommerce investor has cited as having the highest potential for
eventual stock market listings.
Kinnevik held a 35 percent stake in GFG at the end of
September, while Rocket held 20.4 percent as of Sept. 15.
Revenue was hit by macroeconomic challenges in Latin
America, Middle East and Russia, GFG said in a statement.
However, adjusted earnings before interest, taxes and
depreciation narrowed to a loss of 32.3 million in the latest
quarter from a loss of 54.0 million euros in the third quarter
of 2015. Core earnings margin improved to negative 12.9 percent
from negative 14.8 percent in the first half of 2016, it said.
These results excluded businesses GFG divested including its
struggling Jabong unit in India and operations in Thailand and
Vietnam. This boosted its cash balance to 284 million euros in
the third quarter from 64.3 million euros a year earlier.
Net merchandise value rose to 255.2 million euros in the
third quarter from 192.1 million euros in the year-ago quarter.
($1 = 0.9408 euros)
(Reporting by Eric Auchard; Editing by Alexander Smith)