MELBOURNE: Articore Group Ltd (ASX: ATG), operator of global online marketplaces Redbubble and TeePublic, posted its first positive fourth-quarter EBIT in five years, driven by aggressive cost-cutting and operational consolidation.
The company reported a fourth-quarter gross profit margin of 49.7%, up 430 basis points year-on-year, and a 410 basis point improvement in GPAPA margin to 31.0%. Underlying cash flow reached $2.5 million, a $6 million turnaround from the prior corresponding period.
CEO Vivek Kumar attributed the performance to the unification of marketplace operations under a single executive team, which began in October 2024. “This is a clear signal that our turnaround strategy is gaining momentum,” Kumar said during the FY25 results webcast.
TeePublic continued to outperform, with a 1% increase in MPR and a 47% rise in operating EBITDA. Redbubble’s MPR fell 19%, but operating EBITDA remained stable due to improved unit economics and a 17% reduction in operating expenses.
Articore invested $3.4 million in Dashery, a new platform enabling creators to launch branded storefronts. The initiative aims to re-engage high-value creators and tap influencer-driven sales.
Looking ahead, the Group expects FY26 EBIT between $2 million and $8 million, and underlying cash flow of $5 million to $12 million. A strategic review of capital structure is underway.
Articore ended FY25 with $28.4 million in cash, down from FY24 due to timing of payables and a share buy-back program.