Just a reminder ...8 Oct 2021 12:13
boohoo group plc - interim results for the six months ended 31 August 2021
"Leading the fashion eCommerce market"
Record first half sales of £976 million and Investing for the Future
· Doubled market share in the UK and US over the last two years. Total group sales +73% since 1H20
· Significantly enhanced target addressable market, with up to 500 million potential customers in key markets
· Integration and relaunch of four new brands in the first half, including Debenhams marketplace
· Increased warehousing and distribution capacity, capable of supporting over £4 billion of net sales
· £85 million of Adjusted EBITDA, down 5% vs. exceptional levels of profitability last year, and up +40% since 1H20, despite £26 million of freight and logistics cost inflation
· Record capital expenditure of £172 million in H1, putting in place the platform for future growth
· Opening a new distribution centre in North America in 2023, significantly strengthening our proposition
Summary of H1 2022 performance
The Group has made significant progress in the first half, generating strong revenue growth, and a robust EBITDA performance, all whilst heavily investing into key growth enablers such as our brands, infrastructure and platform to support the Group's future growth ambitions.
Revenues have increased 73% vs. the corresponding period in 1H20, and grew 20% year on year in the first half. Performance in the second quarter was impacted by UK returns rates returning to pre-pandemic levels, physical stores reopening, consumer uncertainty in markets that we operate in resulting in the loss of key events and holidays, as well as continued COVID-19 related disruption across the Group's key international markets, which has impacted international delivery timeframes.
Adjusted EBITDA at £85m, remains robust and represents an increase of 40% since 1H20. This is however slightly lower than the exceptional levels of profitability achieved in the first half of the prior financial year. Profitability was impacted by a number of cost headwinds driven by short-term factors largely relating to the pandemic and our investment as we scale our newly acquired brands. These include: increased marketing investments in key markets and our new acquisitions, two warehouse operational moves, returns rates normalising and materially higher shipping costs. COVID-19-related distribution cost increases totalled approximately £26 million in the first half, or 270 basis points of margin.
Financial highlights
· Revenue £976 million, up 20% on 1H21 (up 20% CER(7)) and up 73% on 1H20
· Avoiding comparatives against the exceptional growth in 1H21 due to the effect of the pandemic on consumer behaviour, revenue across two years from 1H20 reveals consistent high growth across geographies, with UK +81% and international +63%, including US +126%
· Adjusted EBITDA £85 million, 5% lower compared to exceptional levels of profitability achieved
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