Mahmud Kamani and Carol Kane, joint CEOs, commented:
“Our group results for the first half year show yet another strong performance, delivering record sales and profits. All of our brands performed extremely well across all territories as we continue to gain market share. We achieved market-leading growth in all markets, with Rest of Europe and the USA being particularly pleasing. Growth in the UK, our largest market, remains very strong.
We successfully executed a major relocation of the distribution centre for PrettyLittleThing, which represents a key milestone as we develop a distribution network capable of generating £3 billion of net sales globally, in line with our vision to lead the fashion eCommerce market. This relocation was carried out with a low level of disruption to the operations of PrettyLittleThing and is a credit to the project team. Our extended distribution centre in Burnley, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in 2019.”
boohoo group plc (LON:BOO), today announced interim results for the six months to 31 August 2018
|
6 months to 31 August 2018 |
6 months to 31 August 2017 |
Change |
|
|
|
£ million |
£ million |
|
|
Revenue |
395.3 |
262.9 |
+50% |
|
Gross profit |
218.6 |
140.2 |
+56% |
|
Gross margin |
55.3% |
53.3% |
+200bps |
|
Adjusted EBITDA(1) |
39.6 |
27.8 |
+43% |
|
% of revenue |
10.0% |
10.6% |
-60bps |
|
Adjusted EBIT(2) |
35.3 |
24.8 |
+42% |
|
% of revenue |
8.9% |
9.4% |
-50bps |
|
Adjusted profit before tax(3) |
35.8 |
25.1 |
+43% |
|
Profit before tax |
24.7 |
20.3 |
+22% |
|
Adjusted diluted earnings per share(4) |
1.99p |
1.52p |
+31% |
|
Diluted earnings per share |
1.39p |
1.22p |
+14% |
|
Net cash(5) at period end |
155.6 |
119.2 |
+£36.4 m |
Highlights
Group
· Revenue £395.3 million, up 50% (49% CER(6))
· Strong revenue growth across all geographies (UK: +43%; international: +62%). International now 41% of group revenue
· Strong balance sheet with net cash of £155.6 million (2018: £119.2 million) with robust operating cash flow of £55.7 million (2018: £33.0 million) and free cash flow of £24.5m (+93%)
· Distribution capabilities enhanced: PrettyLittleThing warehouse relocation completed; and automation of Burnley site to drive future efficiency is on schedule
boohoo
· Revenue £209.0 million, up 15% with market share gains in all focus markets
· Gross margin 53.4%, up 110bps; retail gross margin 56.0%, up 160bps
· 6.7 million active customers(7), up 15% on prior year
· Market share and brand awareness increasing, supported by proposition investments
· Next phase of fit-out and automation of distribution centre in Burnley on schedule for utilisation in 2019
PrettyLittleThing
· Revenue £168.6 million, up 132%
· Gross margin 57.3%, up 250bps; retail gross margin 59.0%, up 200bps
· 4.0 million active customers, up 99%
· Outstanding growth of market share and revenue in all markets
· Successful relocation of distribution centre to Sheffield with significant capacity that can service the brand’s growth
Nasty Gal
· Revenue £17.7 million, up 111%
· Gross margin 59.0%, down 480bps driven by refinements to the customer proposition
· 0.6 million active customers, up 313%
· Strong revenue growth in the USA and international markets
Guidance
Group revenue growth for the year to 28 February 2019 is expected to be 38% to 43%, up from our previous guidance of 35% to 40%, with adjusted EBITDA margin between 9% and 10%. We reiterate our medium term guidance to deliver sales growth of at least 25% per annum and EBITDA margin of 10%.
