Ann: FY24 Results Commentary, page-2

Impressive to see gross margins almost doubling on products which I assume would be due to their refurbishment business taking off. Although I'm frustrated by the few updates we get, they do seem to excel at adapting to market conditions. Also very happy to see gross profit up 29%.

I'm looking forward to seeing the evolution of this refurbishment business, it seems to already be taking off in a space that doesn't appear to have much competition in Australia (currently typing this on my refurbished laptop). The current economic climate was briefly touched on as a driver for increased refurbished sales, but according to Statista estimates, refurbished consumer electronics was estimated to be the refurbished consumer goods category which generated the highest revenue in 2022 by a considerable margin, at roughly 55.6 billion U.S. dollars. This is forecast to rise 188% to about 120 billion U.S. dollars in 2026. Additionally, younger consumers are showing an increased trend of making more considered purchases, with environmental impact strongly influencing these decisions. More than four-fifths (80%) of consumers say they are willing to pay more for sustainable produced or sourced goods (PWC).

In saying all this, the combination of lower cost goods with a lower enviromental footprint seems to be a winner that is likely to only grow in popularity and normality. I'm honestly really happy this is a space they're moving into more and look forward to see future updates focused more on this aspect of the business.