Mosaic Brands has taken on a $59 million credit facility with CommBank, following its $32 million capital raise in October, in an effort to complete a “reset” of the group after a particularly difficult trading period.
Year-to-date total sales are down 6.6 per cent – an improvement on the 10 per cent fall observed in September – though online sales are up 25 per cent, and recent acquisition Ezibuy’s sales are up 19 per cent.
According to chairman Richard Facioni, with stores around Australia now allowed to open and customers able to shop again, the business’ second half is expected to be much stronger.
“This strengthening of our balance sheet is the final piece in our reset of the Group, which has seen us navigate our toughest ever trading period while focusing on delivering a strong post-lockdown rebound in profitability,” Facioni said.
Mosaic chief executive Scott Evans agreed, stating that, should the second half be able to trade unimpeded, earnings growth will accelerate due to the foundational changes the business has made over the past few months as shoppers wake from hibernation.
“Although the first four months [of FY22] were exceptionally challenging due to the significant store closures we incurred and the impact this had on customer sentiment, post opening the group has regained positive momentum,” said Evans.
“Although this momenutm will not offset the losses incurred from Covid lockdowns, which impacted up to 65 per cent of our stores, the group expects a positive EBITDA for the first half.”