MGO Global Announces 2022 Year-End Financial Results

Rhea-AI Summary

MGO Global Inc. (NASDAQ:MGOL) reported a 19% revenue increase to $1,048,012 for the year ended December 31, 2022, primarily from The Messi Brand collections. DTC revenues rose to $941,581, while gross profit margin improved to 68%.

However, net losses escalated 185% to $2,582,946, or $0.25 per share, due to rising costs from IPO preparations and royalties to Leo Messi Management. Following an IPO that raised $8,625,000, MGO aims to expand its brand portfolio and enhance its market position.

Positive

• 19% revenue growth to $1,048,012, driven by The Messi Brand.
• DTC sales increased to $941,581.
• Gross profit margin improved to 68%.
• Successfully raised $8,625,000 from IPO.

Negative

• Net loss increased 185% to $2,582,946, or $0.25 per share.
• Rising legal and consulting costs associated with IPO preparation.

Company Leadership to Host Corporate Update Via Audio Webcast Tomorrow Afternoon

MIAMI, FL and BUENOS AIRES, ARGENTINA and LONDON UK and NEW YORK, NY / ACCESSWIRE / April 3, 2023 / MGO Global Inc. (NASDAQ:MGOL), operator of The Messi Store, ("MGO" or the "Company" or "MGO Global"), today announced its financial results for the full year ended December 31, 2022.

Financial Highlights for the 12-Month Periods Ended December 31, 2022 and December 31, 2021

• Revenues increased 19% to $1,048,012 from $880,340. One hundred percent of revenues was from the sale of The Messi Brand collections of apparel, accessories and homewares, with $941,581 stemming from MGO's direct-to-consumer ("DTC") digital commerce channel, The Messi Store; and $106,431 from the Company's wholesale channel. This compared to DTC revenues of $778,571 and wholesale revenues of $101,769 in the prior year.
• Gross profit margin on sales rose to 68% from 55%.
• After factoring higher expenses due primarily to the legal, accounting and specialty consulting costs associated with the Company's lead-up to and preparation for its Initial Public Offering completed in January 2023, coupled with higher royalty expense paid to Leo Messi Management in 2022, net loss attributable to MGO stockholders in 2022 climbed 185% to $2,582,946, or $0.25 loss per share, up from $906,326, or $0.09 loss per share in 2021.

For more detailed information on MGO's 2022 financial results, please refer to the Annual Report filed on Form 10-K with the U.S. Securities and Exchange Commission, accessible at www.sec.gov or on MGO's website, www.mgoglobalinc.com.

MGO launched 2023 on strong financial footing after raising gross proceeds of $8,625,000 from its successful Initial Public Offering completed on January 18, 2023. In connection with the IPO, the Company's common stock commenced trading on The Nasdaq Capital Market under symbol "MGOL" on January 13, 2023.

Commenting on the results and subsequent events, Maximiliano Ojeda, Co-Founder, Chairman and CEO of MGO, stated, "Ginny Hilfiger and I founded MGO on the belief that we could build a next-generation lifestyle brand portfolio company capable of bringing to life digitally native brands with unique DNA and identities that speak to and align with consumers and the values they hold true. Our first brand development initiative, The Messi Store, has proven to be a labor of love, blood, sweat and tears, bootstrapped over three years, but now gaining momentum as a respected, premium lifestyle brand inspired by one of the most iconic sports legends in human history - Leo Messi. Through the process of creating the collections that now define The Messi Store and development of our tech-powered DTC brand-building platform, we believe we are now poised and ready to begin accelerating growth of our business through expansion of our portfolio of brands and through expansion of the unique brands we create, license or acquire."

"With a strong balance sheet to support our defined growth objectives, matched by an amazing force of talented industry experts that now comprise the MGO team and board of directors, we have reason to believe that 2023 will prove to be a watershed year for our Company and we couldn't be more excited about proving through our actions and ongoing financial performance just how serious we are about winning," concluded Ojeda.

Corporate Update Webcast

As a reminder, MGO's leadership will host the Company's 2022 Year-End Corporate Update via audio webcast beginning at 4:30 PM Eastern Time on Tuesday, April 4, 2023. To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2957/47799. If you have any difficulty connecting to the webcast, please contact Dodi Handy, Director of Communications at MGO, at 407-960-4636. A replay of the webcast will be available on the Company's website at https://www.mgoglobalinc.com/investor-relations/ within 24 hours following the conclusion of the live webcast.

About MGO Global Inc.

Founded in October 2018 and headquartered in Florida with remote employees and specialty contractors in London, New York and Latin America, MGO Global is a performance-driven lifestyle brand portfolio company focused on direct-to-consumer (DTC) digital commerce. Guided by its deep understanding of data analytics, personality-driven trust and algorithm-driven marketing and distribution, coupled with its leadership's track records of success and industry relationships and expertise, in late 2018, the Company launched its first DTC brand - The Messi Store, which offers a premium line of functional and sporty casual wear, accessories and homewares inspired by legendary pro soccer player Leo Messi and created by Ginny Hilfiger. 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 business and The Messi Brand 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, the effects of the spread of Coronavirus (COVID-19) 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, successfully managing and perpetuating the Company's licensing rights with Leo Messi Management, 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: dhandy@mgoteam.com

SOURCE: MGO Global

View source version on accesswire.com:
https://www.accesswire.com/747219/MGO-Global-Announces-2022-Year-End-Financial-Results

FAQ

What are MGO Global's financial results for 2022?

MGO Global reported a 19% revenue increase to $1,048,012 for 2022, with a gross profit margin of 68%. However, the net loss rose to $2,582,946.

What led to the increase in MGO Global's net loss?

The net loss increased due to higher expenses from IPO preparations and royalties to Leo Messi Management.

How much did MGO Global raise from its IPO in January 2023?

MGO Global raised $8,625,000 from its IPO, which was completed on January 18, 2023.

What were the revenue contributions from different channels for MGO Global?

MGO Global's revenues were primarily from DTC sales at $941,581 and wholesale revenues of $106,431.

What is the future outlook for MGO Global after its IPO?

MGO Global aims to expand its brand portfolio and believes 2023 will be a significant year for growth.