MPA.ASX: Quarterly Activities/Appendix 4C Cash Flow Report

Quarterly Activities/Appendix 4C Cash Flow Report

Stock	Mad Paws Holdings Ltd (MPA.ASX)
Release Time	30 Jan 2025, 8:40 a.m.
Price Sensitive	Yes

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Mad Paws Reports Positive Cash EBITDA and Operating Cash Flow

Key Points

Group Operating Revenues of $7.7 million, up 2% on pcp
Marketplace Operating Revenue of $2.8 million, up 16% on pcp
Group Cash EBITDA positive of $0.3 million for the quarter, +328% on pcp

Full Summary

Mad Paws Holdings Limited (ASX:MPA) reported its December 2024 Quarterly results, including the Appendix 4C and Activities Report. The company achieved positive Cash EBITDA of $0.3 million for the quarter, a 328% improvement compared to the prior corresponding period. This milestone also positions the Mad Paws Group as Cash EBITDA positive for the first half of FY25. Group Operating Revenues increased 2% on pcp to $7.7 million, with Marketplace revenue up 16% and Ecommerce revenue down 4% (up 10% excluding Waggly and Sash). The company's above-the-line brand campaign launched in August 2024 has driven strong growth momentum in the Pet Services marketplace, with GMV increasing at a mid-teen percentage rate compared to 6% in the 24 weeks prior. The Ecommerce segment also sustained positive momentum, with Pet Chemist experiencing another strong quarter. Mad Paws remains focused on aligning the group and its segments on key priorities to maximize future opportunities, including further deployment of the remaining $1.9 million media budget, cross-selling and customer acquisition, and improving efficiencies in the Pet Chemist business.

Guidance

The company expects robust growth as it approaches the next growth period leading up to Easter, supported by the improvement in customer sentiment. After achieving its first positive EBITDA in Q2 FY25 and a positive overall EBITDA for H1 FY25, Mad Paws is focusing on aligning the group and its segments on key priorities to maximize future opportunities.

Outlook

Mad Paws aims to accelerate its growth further and fully utilize its remaining media budget of $1.9 million. The company is also focused on leveraging data and a centralised CRM to provide personalised offers and solutions for customers, expanding into new social channels, and improving efficiencies in the Pet Chemist business through automation and process enhancements.