Catch Group has released its financial results for the 2017 financial year, posting revenue of $306 million and earnings of $16 million (EBITDA). This follows a series of diversification initiatives launched by the company.
Co-founder of Catch Group, Gabby Leibovich, says the Group’s focus over the past 12 months to dramatically build out its offer by expanding into new categories, including the acquisition of Pumpkin Patch earlier this year, is resonating with customers by building Catch into a one-stop destination site for great brands at unbelievable prices.
“We will continue to differentiate ourselves from other online retailers by having products no one else has, at amazing prices. We are a product company first and foremost and a key focus for the year ahead is to rapidly expand our offer into new categories to ensure we meet the every need of Aussie shoppers.”
“Whether this is through entering into exclusive distribution agreements with up and coming brands, building out a new business, or acquisitions such as Pumpkin Patch. We have strong cash reserves in place to fund our growth and expansion into new categories and markets,” says Leibovich.
The Group also reported a growth in customer numbers for FY17, with close to one million active customers added to its five million plus consumers, and almost 100,000 members of Club Catch, the group’s loyalty program.
The company has been busy this year launching a series of new initiatives that fits into its diversification strategy, including the launch of Catch Marketplace in June, unveiling its new travel business Bon Voyage, and, earlier this month Catch also confirmed its plans to expand offline and open its first retail outlet in Melbourne by the end of the year, with more to potentially follow.
Leibovich says Catch isn’t done yet. It will continue to focus on diversifying its categories and will be looking towards further acquisition of local and international brands. “With our state of the art warehouse and logistics capacity, ready for more action, we are looking for further acquisitions of Australian brands, plus entering into exclusive distribution agreements with up and coming brands from around the world.”
Catch Group’s positive financial results exclude revenues from its newly launched Catch Marketplace, which is seeing sales revenue increase by over 25% week-on-week. Approximately 200 top-selling brands and an additional 25,000 new SKUs have already been added to the site, with one million additional SKUs to be added by Christmas from curated and selected marketplace sellers alone.
The swift growth of Catch Marketplace has resulted in the Group predicting a marketplace sales target of $50m for FY 2017/18. Since launching Catch Marketplace, the company have expanded into a number of new categories such as top-brand computers, outdoor equipment, musical instruments, furniture, sporting equipment and video games.
“We are currently in the process of onboarding over 300 suppliers and based on the demand we are seeing, we are aiming to generate over $50 million this financial year on our marketplace alone, with $100 million being our medium-term target that we believe is certainly achievable considering our amazing weekly growth,” says Leibovich.
About Catch Group
Catch Group is one of Australia’s largest diversified e-commerce groups comprising online stores Catch, Scoopon, GroceryRun, Mumgo, Pumpkin Patch and BonVoyage. Founded in 2010 by entrepreneurial brothers Gabby and Hezi Leibovich, the Group built its reputation as a destination to shop for great brands at competitive prices.