Losses Narrow for Online Gold Jeweler Mene

RAPAPORT… Mene, an online retailer that prices its precious-metal jewelry based on weight, reduced its net loss for 2020 as the average value per order increased.

The company reported a 51% decline in its net loss for the year ending December 31 as the average order value rose 63% to CAD 1,530 ($1,235), the Toronto, Canada-based company said last week. Sales of gold products grew 21%, while platinum jewelry was up 34%. Total revenue jumped 62% to CAD 21.1 million ($17 million).

During the year, the company introduced 180 new products, with sales of new designs accounting for 19% of total revenue.

Revenue for the fourth quarter rose 53% year on year to CAD 7.1 million ($5.7 million), with the net loss narrowing to CAD 76,727 ($69,929) compared to a loss of CAD 3.4 million ($2.7 million) in 2019.

Mene, which began selling to the public in January 2018, manufactures 24-karat gold and platinum jewelry and offers it on its website. Prices change frequently as the per-gram value of gold fluctuates. It also allows customers to sell or exchange their pieces at prevailing market prices.

“Fiscal 2020 was a monumental year for Mene,” said CEO Roy Sebag. “We achieved our goal of CAD 20 million [$16.1 million] in annual revenue and began to transition to an economically sustainable business model. Our business continues to grow rapidly into 2021.”

The jeweler also paid off its CAD 10 million ($8.1 million) debt during the period, it noted.

“This event has improved our balance sheet and establishes a solid foundation for Mene to earn healthy returns on capital in 2021 and beyond,” added Sebag.

Image: Mene jewelry. (Mene)