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- Bike Exchange (BEX) focuses its operations on optimising its cost expenditure during the June quarter, as it works to achieve profitability during FY24
- The company records 52 per cent higher cash outflows from the previous quarter of $4.7 million
- Bike Exchange sees continued growth in Europe, with North American operations delivering a 305 per cent revenue increase
- The company finishes the quarter with $4.89 million in cash and cash equivalents and expects to save over $5.5 million from restructuring the business
- Shares are trading 9.52 per cent higher today at 2.3 cents each at 3:26 pm AEST
Bike Exchange (BEX) focussed its operations on optimising its cost expenditure during the June quarter, as it works to achieve profitability during FY24.
The company recorded 52 per cent higher cash outflows from the previous quarter of $4.7 million.
This occurred due to its increased spending on product manufacturing and operating costs of $11.98 million.
Customer receipts lifted 24 per cent to $12.51 million from the previous quarter, driven by seasonally favourable conditions for European e-commerce and Kitzuma as well as the inclusion of Columbia for a full quarter.
BEX saw continued growth in Europe, with North American operations delivering a 305 per cent revenue increase.
Meanwhile, global website traffic slipped 27 per cent as the world returns to pre-COVID-19 conditions.
Looking ahead, Bike Exchange plans to advance its activities in regards to strategic partnerships, reducing operating costs, integrating Kitzuma, and replicating its EU model.
The company finished the quarter with $4.89 million in cash and cash equivalents.
Whilst this was estimated to only last through one quarter, it expects to reduce costs and has received additional capital in July from a capital raise.
In FY23, BEX expects to save over $5.5 million from a restructure and aims to achieve profitability in FY24.
Shares were trading 9.52 per cent higher today at 2.3 cents each at 3:26 pm AEST.
