Ellies has published its interim financial results for the six month period ending 31 October 2020, which show that the company’s turnaround strategy is working well.
Revenue increased year-on-year by 1.9% to R656.7 million, while EBITDA increased by an impressive 1,261.3% to R33.4 million.
Profit after tax and headline earnings per share were also much higher than last year, increasing by 143% and 181.6% respectively, while operating expenses were reduced by 13.2% compared to the same period last year.
“Over the last year, the focussed efforts of the Ellies Board and leadership team, at the centre of some of the toughest business conditions the country has ever faced, have started to show results,” said Ellies CEO Shaun Prithivirajh.
He attributed Ellies’ impressive performance to measures which were put in place as part of the company’s turnaround strategy.
“As we noted in our year-end results, becoming more efficient has been a key pillar of our turnaround strategy,” said Prithivirajh.
“Historically, the company has been poor on inventory management and as a result, our warehousing and distribution functions are now managed by a third-party warehousing and logistics provider. We have already seen significant improvements, and this is reflected in our current financials.”
Another key factor in these results was Ellies’ commitment to streamlining its product portfolio to ensure that only its profitable products remained on the market, while identifying key growth areas where it has added new products and solutions to its portfolio.
“One of our key strategic growth areas is alternative energy solutions, specifically solar,” said Prithivirajh.
“We have developed innovative solar solutions for both residential and commercial markets and have seen sound growth in this space.”
Prithivirajh added that Ellies’ leadership team is satisfied with how the company’s turnaround strategy is taking shape.
“As a leadership team we are pleased with the company’s performance over the last six months that shows strong improvements despite very challenging economic conditions,” he said.
“We are confident that the turnaround strategy is on track to create a sustainable and profitable business for all our stakeholders.”