The CMO Group, a London-listed online retailer, has announced that it expects to meet full-year market expectations for earnings before interest, taxes, depreciation, and amortization (EBITDA). However, the company anticipates a decline in revenue compared to the previous year.
According to the company’s statement on Thursday, it is projected that EBITDA will reach market expectations of £2.5 million ($3.2 million), while revenue is expected to fall to approximately £80 million. This is lower than the reported revenue of £83.1 million in 2022.
CMO Group had previously expressed caution in May due to the challenging macroeconomic situation and the uncertainty surrounding the recovery of consumer confidence. In response, the company outlined strategic priorities that included cost reductions, margin improvements, and adjustments to slower sales growth.
The first-half revenue for CMO Group stood at £36.9 million, representing a 12% decline compared to the previous year on a like-for-like basis. However, it showed a 15% increase relative to pre-pandemic levels on a like-for-like basis. The company is optimistic about a return to revenue growth in the second half.
“We have made significant progress in achieving the strategic objectives and actions outlined for 2023 in our last results. These efforts have led to improved margins and, combined with overhead efficiencies, are expected to result in better profitability in the second half,” stated Chief Executive Dean Murray.
As of 0838 GMT, shares remained flat at 22.5 pence.