4th Nov 2024 15:48
(Alliance News) - E-commerce firm Samarkand Group PLC announced a decrease in revenue amid a restructuring in its China distribution operation, though profit rose as costs fell.
Samarkand said its growing portfolio of owned brands grew "strongly" year-over-year, though China related revenue declined as they company "focused on a smaller portfolio of third-party brands".
Samarkand's revenue in the six months to September 30 fell 22% to GBP6.3 million from GBP8.1 million a year ago.
It swung to pretax profit of GBP26,893 from a loss of GBP3.1 million in the same period a year prior.
Selling and distribution expenses fell 30% to GBP2.0 million, while administrative expenses were around 66% lower at GBP1.5 million.
The cross-border e-commerce company, focused on connecting Western brands with China, said it is undergoing a shift in strategy focusing more on owned brands while being more selective with third-party brands.
The company, owner of brands such as Napiers the Herbalists and Zita West, saw a 14% increase in revenue in the Brand Ownership offering to GBP4 million from GBP3.6 million a year ago, while revenue from third-party brands decreased by 57% to GBP1.8 million from GBP4.1 million a year ago.
In the UK, Samarkand's portfolio of owned brands reported a 64% increase in revenue for the half year.
Chief Executive Officer David Hampstead said: "As a result of growth in our owned brands and reduction in China sales, the group is now less dependent on the China market with UK and ROW sales accounting for over 60% of revenues... Our immediate focus is to continue to grow our portfolio of owned brands profitably."
Shares in the company were flat in London at 4.0 pence per share.
By Eva Castanedo, Alliance News reporter
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