Boohoo Group (LON:BOO) has today announced its interim results for the six months ended 31 August 2019.
“Leading the fashion eCommerce market”
| 6 months to 31 August 2019 £ million | 6 months to 31 August 2018 £ million | Change | |
| 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.”
Investor and Analyst Meeting
A meeting for analysts will be held at 9.30am today at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. boohoo group plc’s interim results 2020 are available at www.boohooplc.com.
A live audio webcast will be available at 9.30am via the following link:
https://webcasting.buchanan.uk.com/broadcast/5d541fada98d141c9d04c8ed
A replay will subsequently be available from 12 noon via the same link.
