Cettire Limited

Good morning everyone and thanks for joining today's full year FY26 results call for CETIRE. My name is Sam Wells from NWR and I'm pleased to have joining me from CETIRE today, Founder and Chief Executive Officer, Dean Mintz, as well as Chief Financial Officer, Tim Hume. Both Dean and Tim will spend some time reviewing results released to the ASX this morning, including some notable financial and operational highlights. Following their comments, we will have some time for questions at the end of the call. The audience could submit written questions via the Q&A function at the bottom of your Zoom screen, and time permitting, we'll get to all questions, in some cases combining questions on the same or similar topic. We'd also request that those asking questions please limit yourself to no more than two questions on today's call. We'll aim to have the call wrapped up in 30 minutes, including Q&A. Thanks again, and with that, I'll pass it over to you, Dean.

Thanks, Sam. Good afternoon, everyone, and thank you for joining Satire's results briefing for the 2026 financial year. Before we begin, I'd like to remind you of the disclaimer statement in our ASX result presentation. That disclaimer also applies to this investor call. I'm joined today by our CFO, Tim Hulme, and together we'll take you through the company's results for the year ending 30 June 2026. Today's results are the outcome of our relentless focus on profitable growth with a clear bias towards profit in what remained a tough luxury market. Gross revenue was 953.4 million and sales revenue was 718.4 million. Both were broadly stable year on year. Importantly, excluding the US, sales revenue grew 14% year on year to 420 million. which is a testament to our ability to grow our market share in newer markets. We had 605,000 active customers during the period reflecting a deliberate reduction in paid marketing combined with softer US demand. Repeat customers continue to represent the lion's share of gross revenues now at 68%. Our bias towards profitability saw an adjusted EBITDA at 17.1 million and a year-on-year improvement of 16.7 million. This result clearly demonstrates the benefits of our agile and flexible business model. Our AOV increased 10% year-on-year to 904, reflecting the continued loyalty of our customers and the pass-through of higher US duties in our pricing. We closed the period with 27.9 million in cash and zero financial debt. Against the backdrop of significant headwinds, our team executed exceptionally well. Our strategy to prioritize profitability, maintain cash, and strengthen customer loyalty continued through FY26. This was executed in an environment where demand for luxury goods remained soft. While the luxury industry has experienced a couple of years of softness, when you look across the recent commentary from luxury peers, there's some signs of early stabilization. We're seeing this in our business outside of the US, which increased sales revenue by 14% year-on-year. In the fourth quarter, XUS growth was closer to 25% year-on-year. In constant currency terms, the growth rates are actually materially higher. We also deliberately reduced paid marketing investment and turned our efforts towards enhancing engagement with our existing customers. This drove continued strong contribution of gross sales from repeat customers. On the supply side, engagements with brands and inventory holders has never been stronger. We exited FY26 with record available inventory levels, further strengthening our customer value proposition and minimizing supplier concentration. Localization remains a core strategic priority. Our efforts in the half delivered an uplift in sales from emerging markets representing 44% of gross revenue, up from 37% the same time last year. And from a balance sheet perspective, our Capitalite model continued to deliver resilience with a closing cash balance of 28 million and no financial debt. Turning to slide six, we finished the year with 605,000 active customers. Looking at the year as a whole, new customer ads slowed, reflecting both softer demand and a decision to lower marketing spend. We prioritized our investment towards quality engagement and conversion over volume. However, as we cycled Liberation Day in Q4, the active customer count began to increase again, supported by improving acquisitions and lower churn. The customer growth trends have continued into the financial year. Our average order value increased to 904 with repeat customers spending 994 per order on average compared to 759 for new customers. The increase largely reflects the incorporation of higher duties costs in our pricing. Repeat customers accounted for 68% of gross revenues in line with last year. This continuing loyalty reflects the ongoing attractiveness of our business model to consumers. This loyalty is a key enabler as it helps sustain the business through cycles and underpins long-term profitable growth. This chart once again reflects the benefits of having a strong cohort of loyal customers and our ability to increase our share of wallet over the long term. Our unit economics over the period strengthened primarily driven by customer acquisition costs. Customer acquisition costs declined to $84, reflecting a reduction in paid marketing investment. While this came at a cost to new customer ads, we believe it is prudent to manage marketing spend in line with achieving a reasonable return on that investment. Delivered margin per active customer was $179, a slight reduction on the prior year as we absorbed higher US duties costs. Our localization strategy continued to diversify our revenue base during the period with emerging markets gross revenue increasing by 17% year on year. These strategic markets now represent around 44% of Satirex gross revenue. Established markets, including the US, UK and Australia contracted 13%, primarily driven by the challenges impacting the US. The US now represents approximately 41% of revenues with Australia at 7%. We continue to focus on increasing market share in existing and new markets by focusing on enhancing our capabilities and driving localised initiatives. During the year, we launched Satire in several new markets which are supportive of continued growth in emerging markets. We also announced a partnership with Timor Global to broaden our channel presence in China. This remains on track for launch during Q1 FY27. Our supply chain with hundreds of suppliers continues to grow through the year. Engagement levels remain very high as inventory holders and luxury brands seek new routes to market in this challenging demand environment. Pleasingly, we exited the half with record levels of inventory and grew our published stock product counts by a third year on year. I'll now hand over to Tim.

Thanks, Dean, and good afternoon, everybody. Sales revenue was $718.4 million, down 3% on the prior year. This reflects the impact of US tariff changes and softer demand in the region. Excluding the US, sales revenue grew 14% to $420 million. Gross revenue was $953.4 million, while refund rates remained relatively stable. Currency was a headwind throughout the year, particularly in the second half. On a constant currency basis, the business was slightly up year on year. Delivered margin at 15% of sales was impacted by higher US duties costs being absorbed into our fulfillment cost base. This was partially offset by a decrease in overall promotional activity. In the second half, we accrued tariff refunds as a result of the US Supreme Court decision in relation to IEPA tariffs. This supported delivered margin in the fourth quarter and served to offset the costs incurred for these tariffs in the first three quarters of the year. Paid acquisition expenses were 4.6% of sales revenue and brand investment was modest at $3.3 million. This reflected our deliberate strategy to prioritise profitability. Adjusted EBITDA was $17.1 million, delivering an EBITDA margin of 2.4%. Moving on to the balance sheet, closing cash was $28 million and we continued to have zero financial debt. The movement in cash during the year reflects positive trading and working capital movements, offset by investments in the tech platform and some purchases into the employee share trust in H1. There have been no additional share purchases into the employee share trust in the second half. We have commenced receiving IEPA tariff refunds, but the bulk of this is expected to be received in FY27, supplementing the balance sheet. We continue to invest in the technology platform to develop capability and reinforce our competitive advantage. This resulted in capitalized investments as a proportion of sales revenue being 2.3%. Again, to flag the receivables, we have receivables relating to credits for VAT paid on purchases in Europe. To remind investors, these are statutory receivables that are due and payable. They could be paid at any time. However, we are subject to the timeline of the government to pay out these amounts. The government has been slow to pay and out of caution, we continue to conservatively reclass a large portion of this receivable to non-current. On the sector outlook, importantly, the long-term fundamentals of the sector remain robust, The most recent study on luxury by Bain Altagamma estimates that the personal goods, personal luxury goods market declined by 2% in 2025. However, on the positive side, a rebound is expected in calendar year 26 with a return to modest growth. We are seeing the improvement in fundamentals in our trading and this is supported when looking across to the commentary from other players in our sector. I'll hand you back to Dean now to conclude.