* Q3 revenue growth 16 pct vs 37 pct in H1
* CFO sees no imminent macro improvement
* Shares down 4.3 pct
(Adds comments from conference call)
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 million) in the
quarter, less than half the 36.6 percent rise it achieved during
the first half of the year.
GFG is seen as one of Rocket's most likely candidates for an
eventual stock market flotation, along with food delivery
companies Delivery Hero and HelloFresh. However, Rocket has been
under pressure since GFG's valuation was slashed by two thirds
to 1 billion euros in a funding round in April.
Rocket's shares fell 4.3 percent by 1022 GMT, making it the
biggest loser on the German small-cap index
GFG's revenue was hit by macroeconomic challenges in Latin
America, Middle East and Russia, with finance chief Nils
Chrestin predicting no imminent improvement.
"We continue to face quite significant headwinds from the
macro and retail environment that we expect to continue for the
foreseeable future," Chrestin told an analyst call, adding he
hoped for some improvement during 2017 and 2018.
Adjusted earnings before interest, taxes and depreciation
(EBITDA) narrowed to a loss of 32.3 million in the latest
quarter from a loss of 54.0 million euros a year ago. Core
earnings margin improved to negative 12.9 percent from negative
14.8 percent in the first half of 2016.
GFG's Middle East unit Namshi made its first profit in the
quarter with a 2.9 percent adjusted EBITDA margin.
The 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.
Kinnevik held a 35 percent stake in GFG at the end of
September, while Rocket held 20.4 percent as of Sept. 15.
($1 = 0.9408 euros)
(Reporting by Eric Auchard and Emma Thomasson; Editing by
Alexander Smith and Alexandra Hudson)