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Online retail group Takealot, which also owns clothing business Superbalist and Mr Delivery, suffered a loss of $13 million (R223 million) in the six months to end-September.

Takealot is owned by Naspers, which released its half-year results on Wednesday.

READ | Naspers says worst of losses should be behind it after hefty spend

Last year, Takealot narrowed its half-year loss to $2 million in the same period. Analysts speculated that the 11-year-old company might become profitable in this financial year.

But this now looks elusive, as the company’s trading margin widened from -1% to -3%.

In dollars, the group’s sales, or gross merchandise value (GMV), fell from $702 million last year to $700 million (R12 billion). In the year to end-September, the rand weakened by around 20%.

Takealot’s key business, Takealot.com, saw revenue growth of 13% (in rands). First-party retail sales increased by 2%, while its third-party marketplace sales (independent sellers on the platform) increased by 27%.

Its profitability took a hit due to higher fuel prices, investments in new warehouses and discounted clearance of inventory.

Superbalist grew sales, or GMV, by 15%. Superbalist bought a small clothing and textile manufacturing business called G-Ways CMT Manufacturing in Cape Town. Naspers said this would add scale to its private-label business. Other South African clothing retailers, most notably, Mr Price and The Foschini Group, have also moved some of their production to South Africa, to speed up manufacturing and avoid global supply chain disruptions.

Mr D, the Takealot group’s delivery business, increased orders by 9%, with sales (GMV) up 13%.

SOURCE:

Takealot’s loss widens as group is hit by fuel prices, discounted sales | Business (news24.com)