Mad Paws (ASX:MPA) Reports Positive Cash EBITDA and Strong Marketplace Growth in 1H FY25
Sydney, Australia – 27 February 2025 – Mad Paws Holdings Limited (ASX:MPA), Australia's leading online pet ecosystem, has reported a positive Cash EBITDA of $0.3 million for the first half of FY25, marking a 172% improvement compared to the prior corresponding period (pcp). This result underscores the company's strong focus on profitability, operational efficiencies, and strategic brand-building efforts.
1H FY25 Financial Highlights:
Group Operating Revenue of $14.7 million, flat on pcp, but up 11% excluding Sash and Waggly.
Marketplace Operating Revenue of $4.8 million, up 12% on pcp.
E-Commerce Revenue of $9.9 million, down 5% on pcp, but up 11% excluding Sash and Waggly.
Segment Operating EBITDA positive at $2.2 million, up 76% on pcp.
Marketplace Cash EBITDA of $2.2 million, with an EBITDA margin of 45.8%.
E-commerce & Subscription Cash EBITDA break-even, improving by $0.5 million.
Operating cash flow of $0.8 million, with a $4.0 million cash balance.
Growth Strategy and Market Positioning Mad Paws continues to strengthen its market leadership by leveraging its proprietary pet data, enhancing customer experience, and optimizing operational efficiencies. The company successfully deployed $2.1 million of Seven West Media (SWM) marketing contra, with $1.9 million remaining for H2 FY25 to further accelerate growth. Despite a 9% year-on-year decline in Google search volume trends, the company's above-the-line marketing campaign has driven higher website sessions and increased new customer acquisition.
CEO Justus Hammer commented: "This half-year has been a defining period for Mad Paws as we navigate challenging market conditions while driving revenue growth and profitability. Our strategic focus on performance initiatives in e-commerce and marketplace segments has yielded strong financial results. We remain committed to further improving EBITDA, leveraging data-driven insights, and maximizing shareholder value."
Operational Efficiencies and Future Outlook
AI-driven automation continues to enhance prescription processing and customer service, reducing costs and improving efficiency.
Pet Chemist revenue grew by 9%, reflecting strong customer retention and demand for core medication products.
Media revenues surged 92%, reaching $0.3 million, highlighting new high-margin growth avenues.
Marketplace transactions increased 5%, while average booking values rose 6%.
