boohoo group plc – Interim Results

boohoo group plc – Interim Results

“Leading the fashion eCommerce market”

6 months to 31 August 2019

6 months to 31 August 2018

Change

£ million

£ million

Revenue

564.9

395.3

+43%

Gross profit

306.5

218.6

+40%

Gross margin

54.3%

55.3%

-100bps

Adjusted EBITDA(1)

60.7

39.6

+53%

% of revenue

10.8%

10.0%

+80bps

Adjusted EBIT(2)

51.2

35.3

+45%

% of revenue

9.1%

8.9%

+20bps

Adjusted profit before tax(3)

51.8

35.8

+45%

Profit before tax

45.2

24.7

+83%

Adjusted diluted earnings per share(4)

2.91p

1.99p

+46%

Diluted earnings per share

2.48p

1.39p

+78%

Net cash(5) at period end

207.4

155.6

+51.8 m

  

Highlights

 

Group

·    Revenue £564.9 million, up 43% (43% CER(6))

·    Strong revenue growth across all brands and geographies (UK: +35%; international: +55%). International now 44% of group revenue (2019: 41%)

·    Robust balance sheet with net cash of £207.4 million (2019: £155.6 million) with healthy operating cash flow of £55.9 million (2019: £55.7 million) and free cash flow of £30.1 million (+22%)

·    Acquisition of the MissPap, Karen Millen and Coast brands, complementary additions to the group’s scalable multi-brand platform

boohoo

·    Revenue £281.0 million, up 34% with market share gains in all focus markets

·    Gross margin 53.6%, up 20bps

·    8.4 million active customers(7), up 20% on prior year

 

PrettyLittleThing

·    Revenue £237.6 million, up 41%

·    Gross margin 55.3%, down 200 bps

·    5.7 million active customers, up 43%

·    Outstanding market share and revenue growth in all markets

 

Nasty Gal

·    Revenue £43.9 million, up 148%

·    Gross margin 54.2%, down 480bps driven by refinements to the customer proposition

·    1.5 million active customers, up 112%

·    Strong revenue growth across all markets, gathering momentum

 

Guidance

As announced on 5 September 2019, group revenue growth for the year to 29 February 2020 is expected to be 33% to 38%, with adjusted EBITDA margin for the financial year to remain at around 10%, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half year. We reiterate our medium term guidance to deliver revenue growth of at least 25% per annum and adjusted EBITDA margin of around 10%.

John Lyttle CEO, commented:

“It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded £1 billion in the last 12 months. We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands. We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains.”

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