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• Its revenue was up 90% year-on-year to 63.6 billion roubles
Russian e-commerce website Ozon (NYSE: OZON) posted its results for the first quarter of fiscal 2022, reporting an increase in the number of orders and revenue.
The growth in revenue could not, however, reflect in its earnings as the e-commerce giant posted a loss of 19.1 billion roubles ($293.7 million).
Its revenue was up 90% year-on-year to 63.6 billion roubles and gross merchandise value (GMV) - a measure of online transactions volumes - jumped 139% to 177.4 billion roubles.
Evolving e-commerce
The pandemic pushed for an increase in the volume of online orders prompting the company to invest heavily in setting up fulfillment centres and delivery services. The glitch in this grand plan came in when the company witnessed free cash flow turn negative to ward off supply chain interruptions.
Untouched by Western sanctions, Ozon said Russian capital controls and the ever-transforming regulations were restricting it from diverting funds from its Russian subsidiaries, creating the risk that it will have insufficient liquidity at the required time.
Ozon assured the investors of its plans to sign an agreement with bondholders on restructuring by year-end. “It is important to understand that a possible technical default on bonds does not mean insolvency of the company,” Ozon said on Friday.
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Source: Ozon