Wesfarmers Online Catch Slumps From $1B Valuation To Just $18M
Catch is still a basket case for Wesfarmers, with revenue falling 28.5% to $524M.
Wesfarmers acquired Catch Group in June 2019 for $230 million in cash since then the business has failed to make a single cent in profit with the online operation bleeding losses while costing the group millions.
As at June 2024 the business reported another $96M loss which was actually down on the $163M loss of 2023.
Once valued at $1 billion dollars Wesfarmers are still investing despite analysts struggling to see any value in the business following the sale of the business by founders Gabby and Hezi Leibovich.
In their latest financials management claimed The Catch result was an improvement on the prior year following actions to reduce costs, clear inventory and shift the focus towards the third-party marketplace”.
The result included $23 million in restructuring costs and a non-cash impairment, and actions are now shifting from remediation to scaling the third-party marketplace and better utilisation of supply chain assets and capabilities.
Last year there was a 50% fall in capital investment with the brand now valued at $18M.