Made.com warns supply issues set to continue

(Sharecast News) - Made.com reported a surge in first-half sales on Tuesday, but warned that supply issues were expected to continue into 2022.
The online furniture retailer, posting its first set of results since floating on the London market in June, saw gross sales increase 54% in the six months to 30 June, to £213.9m, while revenues improved 60% at £171.0m.

Adjusted earnings before interest, tax, deductions and amortisation was £1.1m, compared to a loss of £11.1m a year previously. The pre-tax loss narrowed to £10.1m from £15.2m.

Philippe Chainieux, chief executive, said Made.com had seen "strong and sustained consumer demand" during the six months, helping it to boost market share.

He continued: "Thanks to our agile business model and supplier relationships, we are well-positioned to navigate the industry-wide global supply chain disruption, which is expected to continue into the first half of next year."

Freight costs have soared over the last year, as the pandemic disrupted manufacturing and supply chains while ramping up demand for many items.

Made.com expects full-year 2021 revenues to come in around £410m, a 65% improvement year-on-year, with positive EBITDA.

But the firm acknowledged: "Our planning assumes industry-wide global supply chain disruptions continue to result in extended shipping times, range availability pressures and increased freight costs. Later than anticipated intake of goods to our warehouses could impact revenue recognition timing and inflated deferred income."

As at 1030 BST, shares in Made.com were flat at 155.0p.