New Stand Flagpoles' Business Helps to Achieve 411% in Year-Over-Year Revenue Growth
MIAMI, FL, NEW YORK, NY AND LONDON, UK / ACCESSWIRE / April 3, 2024 / MGO Global Inc. (NASDAQ:MGOL), a digitally-native, lifestyle brand portfolio company, ("MGO" or the "Company" or "MGO Global"), today announced its financial results for the year ended December 31, 2023.
Maximiliano Ojeda, Co-Founder, Chairman and CEO of MGO Global, stated, "I am pleased to report that we finished 2023 on a strong note, with our new Stand Flagpole business delivering solid revenue performance and The Messi Store demonstrating notable double-digit growth. With the recently disclosed assignment of our global license agreement for the Messi Brand, we succeeded in unleashing untapped value in the investments we've made to date in the brand's development by materially strengthening our balance sheet with the $2,000,000 in proceeds received from the assignee and eliminating the minimum guaranteed payment obligation under the license on a going forward basis. Looking ahead, we believe that we are steadily advancing towards our goal of delivering additional value creation for our shareholders through our focus on other potential brand-building initiatives with the same promising, high growth profile and potential to yield superior financial results as Stand Flagpoles."
Full Year 2023 Financial Highlights
- For the year ended December 31, 2023, total revenues rose 411% to $5,359,875 from $1,048,012 posted for the prior year.
- Stand Flagpoles, which was launched in March 2023, contributed $3,668,927 in revenues. There was no revenue generated from the Stand Flagpoles business in 2022.
- Sales from The Messi Store increased 61% to $1,690,949 in 2023 from $1,048,012 in 2022.
- Gross profit climbed 371% to $3,346,780, representing a 62% gross profit margin, for 2023 as compared to $710,381 in gross profit and a gross profit margin of 68% for the previous year.
- Total operating expenses were $10,729,640 - up 220% from $3,349,346 on a comparable year-over-year basis. The increase was primarily due to higher marketing and e-commerce expenses, coupled with payroll & independent contractor expenses related to the launch of the Stand Flagpole brand. The increase was also impacted by non-cash stock-based compensation expense for stock options and restricted stock units and an increase in legal, accounting and specialty consulting expenses associated with public company overhead expenses due to the Company completing its Initial Public Offering in mid-January 2023.
- For the year ended December 31, 2023, net loss attributable to MGO stockholders was $7,143,404, or $0.51 loss per share, compared to a net loss attributable to MGO stockholders of $2,582,946, or $0.25 loss per share.
For more detailed information on MGO's 2023 financial performance, please refer to the Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on MGO's website at www.mgoglobalinc.com.
About MGO Global Inc.
MGO Global is actively engaged in building a portfolio of independent, digitally native, lifestyle brands, which are unique and differentiated, yet all defined by distinctive, high-quality products and a shared commitment to delivering high-touch customer experiences across its ecommerce and wholesale channels. MGO is currently comprised of two business units: Americana Liberty, which markets a growing, high-end line of thoughtfully curated home and outdoor products, including Stand Flagpoles; and MGO Digital, which leverages data analytics, advanced technology-enabled marketing and our leadership's industry relationships and expertise to identify, incubate and introduce to market new, authentic lifestyle brand concepts. For more information on MGO Global, please visit www.mgoglobalinc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its businesses and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
FOR MEDIA AND INVESTOR RELATIONS
MGO Global Inc.
Dodi Handy, Director of Communications
Phone: +1 407-960-4636
Email: [email protected]
SOURCE: MGO Global