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boohoo Plc

boohoo group plc Strong growth and solid profitability

boohoo group plc (LON:BOO), today announced final results for the year ended 28 February 2019.

John Lyttle, CEO, commented:

“I am very excited to have joined the boohoo Group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results. In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business. This has confirmed my belief and optimism that the group’s investments into its brands and infrastructure have allowed it to develop a scalable multi-brand platform that is well-positioned to disrupt, gain market share and capitalise on what is a truly global opportunity.”


2019
2018Change
 £ million£ million 
Revenue856.9579.8+48%
Gross profit469.0306.4+53%
Gross margin54.7%52.8%+190bps
Adjusted EBITDA(1)84.556.9+49%
% of revenue9.9%9.8%+10bps
Adjusted EBIT(2)75.150.4+49%
% of revenue8.8%8.7%+10bps
Adjusted profit before tax(3)76.351.0+49%
Profit before tax59.943.3+38%
Adjusted diluted earnings per share(4)4.15p3.23p+29%
Diluted earnings per share3.22p2.71p+19%
Net cash(5) at year end190.7133.0+£57.7 million

Financial Highlights

Group

· Revenue £856.9 million, up 48% (47% CER(6))

· Strong revenue growth across all geographies with UK up 37% and international up 64%

· Gross margin increased to 54.7% (2018: 52.8%)

· Adjusted EBITDA £84.5 million, 9.9% of revenue (2018: £56.9 million, 9.8%)

· Adjusted profit before tax £76.3 million (2018: £51.0 million)

· Strong balance sheet with net cash of £190.7 million (2018: £133.0 million), with robust operating cash flow of £111.9 million (2018: £76.2 million)

boohoo

· Revenue £434.6 million up 16% (15% CER)

· Gross margin 52.9%, up 170bps

PrettyLittleThing

· Revenue £374.4 million up 107% (107% CER)

· Gross margin 56.6% up 140bps

Nasty Gal

· Revenue £47.9 million up 96% (100% CER)

· Gross margin 56.7% down 290bps

Operational Highlights

Group

· Burnley distribution centre extension build and fit-out completed, with automation live in April 2019

· PrettyLittleThing’s distribution centre successfully relocated to a larger facility in Sheffield

boohoo

· 7.0 million active customers(7), up 9% on prior year

· Strong international growth, now 44% of total revenue

· Significant investments in customer service improving the customer proposition

PrettyLittleThing

· 5.0 million active customers, up 70% on prior year

· Customer proposition resonating with consumers, driving growth and increasing market share

· High profile celebrity associations driving traffic and international expansion, exceptionally well in the US

Nasty Gal

· 0.9 million active customers, up 122% on prior year

· Extensive product range now comprises over 8,000 lines

· Strong growth in US home market and international appeal and revenue growing rapidly

Outlook and guidance

Trading in the first few weeks of the financial year has been encouraging. Group revenue growth for the financial year is expected to be 25% to 30% with an adjusted EBITDA margin of around 10% and capital expenditure in the region of £50 to £60 million. This guidance includes the adoption of IFRS 16, which is expected to increase EBITDA by £4 to £5 million and be broadly neutral at a Profit Before Tax level.

Looking beyond the current year, we will continue to make investments across the group as part of our vision to lead the global fashion e-commerce market. Whilst this will require continued investments in people and infrastructure, we believe that the benefits of our multi-brand platform will continue to generate economies of scale, allowing us to target sales growth of 25% per annum, with an adjusted EBITDA margin of around 10% over the medium term.

Investor and analyst meeting

A meeting for analysts will be held today at the office of Buchanan, 107 Cheapside, London, EC2V 6DN commencing 9.30am (UK time).

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.