Greenlit, Fantastic Furniture strengthen, despite Covid impact

31 January 2022

By Robert Stockdill

Greenlit Brands and Fantastic Furniture have overcome “the ongoing headwinds of Covid-19” to deliver strong growth last year, according to CEO Michael Ford.

“The progress we made against our strategic priorities, and the strength of our balance sheet gives us much confidence as we continue to invest and grow our businesses,” he said, releasing the results of the two businesses of Steinhoff International’s Asia Pacific operations.

All of the businesses within the group were both profitable and cashflow positive, reflecting a significant turnaround from the preceding years.

Combined group revenue for the year to December was $1.3 billion, up 8.6 per cent year on year, despite Covid lockdowns impacting store trading hours in both Australia and New Zealand. Online sales surged 17.7 per cent to reach $295.8 million.

Combined EBITDA before extraordinary costs reached $107.3 million, an improvement of 15 per cent over 2020.

Ford, pictured above, said the e-commerce boost reflected the company’s execution of a contemporary, digital-first strategy across all of its brands.

Both Greenlit Brands and Fantastic Furniture ended the year debt-free and with cash reserves of $198.3 million, while the sale of Plush Sofas to Nick Scali resulted in gross proceeds of $110.6 million subsequent to the financial year-end.

Ford said that while Greenlit Brands remained financially independent from its troubled South African parent group Steinhoff International, there was “no deadline for transacting the remaining Australasian businesses”. Meanwhile, the company would continue to implement strategic initiatives and invest in its brands and people, while evaluating strategic options and opportunities.

“The financial and operational strength of Greenlit Brands, underpinned by our suite of iconic brands, all of which are profitable and cash-flow positive, puts us in a strong position to maximise value for our shareholders. We are not in a rush to transact our businesses,” said Ford.

“We continue to evaluate opportunities from a position of strength.”

[This article was reproduced with the permission of Inside Retail.]