Articore Group (ASX: $ATG) 1H FY24 financial results

Articore Group Limited (ASX: $ATG) has released its half-year financial results for the period ended 31 December 2023. The company reported a notable turnaround with increased gross profit, gross profit after paid acquisition, and operating EBITDA, resulting in positive underlying cash flow. The Group's marketplace revenue for 1H FY24 was $260 million, with a net profit after tax of $5 million, compared to a loss of $30 million in the previous corresponding period.

Executive commentary on 1H FY24 performance

In 1HFY24, Articore Group focused on increasing absolute gross profit after paid acquisition (GPAPA) rather than driving marketplace revenue growth, resulting in a 10% decrease in marketplace revenue compared to the prior period. This strategic shift contributed to the increased gross profit of $111 million, up from $101 million in 1H FY23. The Group achieved a marked turnaround with significantly improved gross profit, GPAPA, and operating EBITDA, reflecting the ongoing focus on improving unit economics and cost discipline.

Summary of 1H FY24 results and outlook

Articore Group's 1H FY24 financial results demonstrate a strategic shift towards maximizing gross profit and achieving positive underlying cash flow. The company anticipates a more moderate decline in marketplace revenue in the second half of FY24, with a continued focus on profitability and positive underlying cash flow. The Group aims to drive profitable revenue growth for each marketplace and maintain cost discipline as it works towards a return to sustainable growth.