Perplexed13 Dec 2021 15:41
This is the outlook from the 30 Sept Trading update:
Full year outlook
Our expectation is for full year sales growth of 20% to 25%, implying sales growth of 20% to 30% in the second half of the financial year. As we have indicated above, we have seen a re-acceleration in the rate of growth compared to that achieved in the second quarter. Adjusted EBITDA margins are expected to remain robust, and the Group will continue to invest in its existing and new brands in order to facilitate the long-term growth opportunity. Elevated short-term cost headwinds experienced in the first half are expected to continue in H2 alongside recent freight inflation in our supply chain and wage inflation within our distribution centres. Consequently, adjusted EBITDA margins are now expected to be 9% to 9.5%, compared to 9.5% to 10% as previously guided. Reflecting ongoing investments across our technology, offices and infrastructure (including the initial phase of the international distribution centre), capex is now expected to be around £275million for the year, slightly above the top end of previous guidance of approximately £250 million.
The COVID-19 factors impacting EBITDA this financial year are expected to normalise over the medium term. Recent inflation in freight, logistics, and labour costs are expected to reduce from elevated levels in time, particularly as the Group invests in its own infrastructure through implementing more advanced automation in its existing distribution centres, global travel capacity increases and our first global distribution centre opens in North America.
Longer-term competitive positioning and opportunity to take market share unchanged
The Group expects to emerge from the pandemic in a far stronger position compared to two years ago.
I genuinely don't understand why the sp should be down over 40% since that update. As someone says below, what do the shorters know that we don't ?
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