FY16 HIGHLIGHTS Sales up 40% year on year (42% CER) UK up 38%, - - PowerPoint PPT Presentation
FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2016 26 April 2016 FY16 HIGHLIGHTS Sales up 40% year on year (42% CER) UK up 38%, rest of Europe 25% (35% CER), rest of world up 56% (63% CER) Adjusted EBITDA 18.7m Over 4 million active
26 April 2016
FOR THE YEAR ENDED 29 FEBRUARY 2016
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FY16 HIGHLIGHTS
Sales up 40% year on year (42% CER) UK up 38%, rest of Europe 25% (35% CER), rest of world up 56% (63% CER) Adjusted EBITDA £18.7m Over 4 million active customers, up 34% Launch of app in UK, USA and Australia Warehouse extension completed and in operation Range extension driving growth and inclusivity of the boohoo brand
FOR THE YEAR ENDED 29 FEBRUARY 2016
FY16 FINANCIAL HIGHLIGHTS
Revenues of £195.4m up 40% (42% CER) on 2014/15 (£139.9m) UK sales +38% year on year Rest of Europe +25% (+35% CER) Rest of world +56% (+63% CER) Gross margin 57.8% Retail gross margin 58.8% (FY15 – 60.8%) Adjusted EBITDA £18.7m (FY15 - £14.1m) Net cash £58.3m (FY15 - £54.1m) Earnings per share up 48% to 1.11p
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SUMMARY INCOME STATEMENT
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(£m) FY16 FY15 Change
Revenue 19 195.4 5.4 139.9 +40% Gross profit 112.9 112.9 85.0 +33% Gross margin 57.8% 8% 60.8% -300bps Distribution costs 45.5 45.5 30.7 +48% Administrative expenses 53.8 3.8 43.8 +23% Other income 1.4 1.4
15. 15.0 10.6 +42% EBITDA (adjusted) 18. 18.7 7 14.1 +32% Profit before tax 15. 15.7 7 11.1 +42%
Gross margin at 57.8% reflects investment in customer proposition in UK and internationally along with growth in third party sales (-100bps impact) Adjusted EBITDA margin 9.6% after adding back share based compensation (£0.6m), depreciation and amortisation (£3.1m)
INTERNATIONAL
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Sales by geographic segment £m FY16 FY15 Change CER
UK 130.1 94.3 +38% +38% Rest of Europe 22.6 18.1 +25% +35% Rest of world 42.7 27.4 +56% +63% Total revenue 195.4 139.9 +40% +42%
Continued strong growth globally Europe impacted by weak Euro but now showing potential Growth in rest of the world driven by USA and Australia
30.9 40.1 45.6 48.7 59.1 71.0 20.5 18.3 21.6 23.9 31.7 33.6 51.4 51.4 58.4 58.4 6 67.2 .2 7 72.6 2.6 90 90.8 .8 104.6 104.6 H1 FY14 H2FY14 H1FY15 H2FY15 H1FY16 H2FY16 International UK
OPERATING COSTS
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Year ended 29 February £m FY16 FY15 Change Marketing 19.8 18.5
+7%
Distribution 45.5 30.7
+48%
Other admin 33.3 23.7
+40%
TOTAL 98.6 72.9
+35%
Year ended 29 February, % revenue FY16 FY15 Change Marketing 10.2% 13.2%
Distribution 23.3% 21.9%
+140bps
Other admin 17.0% 17.0%
+0bps
TOTAL 50.5% 52.1%
13.8% 14.1% 14.5% 12.1% 12.6% 8.0% 20.9% 23.1% 21.8% 22.1% 23.7% 22.9% 15.4% 11.4% 17.1% 16.9% 17.3% 16.8% 50.1% 48.6% 53.4% 51.1% 53.6% 47.7% H1 FY14 H2 FY14 H1 FY15 H2FY15 H1FY16 H2FY16 Other admin Distribution Marketing
EBITDA MARGIN DEVELOPMENT
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15.4% 13.9% 10.1% 10.1% 8.4% 10.6%
65. 65.0% 0% 61.5% 1.5% 62.2% 62.2% 59.5% .5% 60 60.5% .5% 56.8% 56.8%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016
Adjusted EBITDA margin Gross profit margin
KPIs
9 Indicator FY16 FY15 Change Active customers1 4.0m 3.0m +34% Number of orders 8.3m 5.8m +44% Order frequency4 2.08 1.93 +8% Conversion rate2 4.0% 3.6% +40bps Average order value3 £33.59 £35.28
Number of items in a basket 2.62 2.56 +2.3%
MONTHLY SESSIONS (MILLIONS) AND CONVERSION RATE2
1.
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
10.0 15.0 20.0 25.0 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Sessions Conversion rate
WORLD CLASS ECOMMERCE CAPABILITY
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Data science with a commercial edge Attribution modelling Personalisation Multi variant testing Improving customer lifetime value Building order frequency Price elasticity analysis Demand forecasting Promotion analysis Marketing effectiveness/ ROI analysis
OPERATING CASH FLOW
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Year ended 29 February, £m FY16 FY15 Pr Profit f
12.4 12.4 8.4 8.4 Depreciation/amortisation 3.1 2.0 Share-based payment charges 0.6 0.3 Tax expense 3.2 2.7 Finance income (0.6) (0.5) Increase in inventories (7.5) (1.4) Increase in receivables (2.5) (0.5) Increase in payables 17.0 3.1 Oper Operating cash flo ting cash flow w 25. 25.7 7 13.9 13.9 Capital expenditure (13.6) (8.2) Fr Free cash flo ee cash flow w 12. 12.1 1 5.8 5.8
Efficient conversion of EBITDA to cash with free cash flow up 109% year on year. Working capital inflow of £7m or 3.6% of sales. Operating cash flow increase of 85% year on year. Capital expenditure reflects investment in warehouse extension and purchase of two properties in Burnley and Manchester. Positive free cash flow with significant infrastructure investment to underpin future growth.
BALANCE SHEET
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At 29 February, £m FY16 FY15 Assets Intangible assets 4.5 4.6 Property, plant and equipment 21.4 10.9 Deferred tax 0.2
26.2 15.5 Working capital (4.2) (2.9) Net financial assets (4.9) 0.8 Cash and cash equivalents 58.3 54.1 Current tax liability (2.0) (1.2) Net as Net assets sets 73.4 3.4 66.4 66.4
Continued investment in warehouse and IT infrastructure. Negative net working capital. Capital employed £15.1m, excluding excess cash.
CAPEX
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Capital expenditure of £13.6m for FY16 included £3.4m expenditure to purchase two properties: one in Burnley to increase the ultimate capacity of the distribution centre (cost of £1.8m) and one in Manchester to secure the future
Manchester (cost of £1.6m).
0.9 4.7 9.0 7.8 11.5 3.3 3.1 2.5 1.8 2.5 1.5 0.6 2.0 3.4 4.5 8.2 13.0 13.6 16.0 FY 14 FY15 FY16 guidance FY16 actual FY17 guidance Property investments Other IT Warehouse
Capital expenditure £M
GUIDANCE
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Revenue growth c.25% EBITDA in line with current expectations Management will look at opportunities to further invest in customer lifetime value and market reach which may impact margins in the short term CAPEX £16.0m
FOR THE YEAR ENDED 29 FEBRUARY 2016
BRAND UPDATE
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THE LEADING ONLINE FASHION
BRAND FOR ALL 16-24 YEAR OLDS
We are the young inclusive brand
Think of us as your fashion best friend We Are Us, We Are You, We Are Boohoo
INCREDIBLE ¡ UNBEATABLE ¡ FANTASTIC ¡ UP ¡TO ¡DATE ¡
GREAT ¡ ¡ INTERNATIONAL ¡
UP TO DATE FASHION
Trend led authoritative fashion Inclusive fashion for all Maximising the best Fast response supply chain, test and repeat model
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INCREDIBLE PRICES
Best price in the market for fashion Clear price architecture and stretch with entry and exit prices Promotional strategy to attract and convert visits to site
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UNBEATABLE CHOICE
30,000 styles delivered to site in the last twelve months Best choice with nearly 20,000 styles available to shop Investment: 9,000 new styles in petite, plus and footwear New: 1,000 new styles in tall, lingerie and soft tailoring Continued introduction of new collections and Boohoo brands: e.g. wedding guest and prom
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FANTASTIC SERVICE
Free UK delivery after 9pm and international markets with thresholds £1.99 next day delivery promotion throughout the day for next day service available until 9pm Order up to midnight for next evening delivery (6pm-10pm) available seven days a week Free returns in UK, Ireland and France Collect returns service in the UK, Ireland and France. Introduction of web chat service, looking to start a trial at the beginning of May
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GREAT QUALITY
Expanded QA team focused on UK supply chain, and all
Supplier education with training & development program for key supply base Building block library to standardize fits
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UK
Continued focus on our Marketing Strategy, a combination of content created for above the line, and all Digital Channels Retention Marketing, to increase lifetime value of our Customer Utilise our Social Activity, so Customers become our Brand Ambassadors
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USA
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FRANCE
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MENSWEAR
BOOHOO MAN - Website now Launched Looking to market directly to a Male Consumer To do this we have unified a Menswear Focussed Team
Working with Male Influencers, across, TV, Gaming, Football, etc… MTV Male dedicated Idents
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SUMMARY
We ha e have had a s e had a str trong 12 month
period period We c e continue t
and with the leading f the leading fashion and pric ashion and price e points points We in e inves est in our pr t in our proposition t
give our cus e our customers the bes
t pos possible servic sible service e We c e complet
ed the first phase of t phase of
arehouse e ehouse ext xtension ension We launched our mobile app e launched our mobile app sho showing e wing exciting r citing results esults We r e remain f emain focus
sed on on our key y int interna ernational mark tional markets ets