Investor Presentaiton
REVIEW OF THE BUSINESS
CONTINUED
BOOHOO GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2021
CONTINUED PROFITABLE GROWTH
FINANCIAL REVIEW
"The
group has achieved a strong performance with revenues
and profits increasing in all territories and across all brands."
REVENUE BY GEOGRAPHICAL MARKET
UK
Rest of Europe
USA
Rest of world
KPIs
Active customers¹
Number of orders
Order frequency²
Conversion rate to sale³
Average order value4
Number of items per basket
2021
2020
Change
£ million
£ million
Change
CER
945.1
679.4
+39%
+39%
244.7
188.4
+30%
+30%
435.1
263.6
+65%
+63%
120.4
103.5
+16%
+19%
1,745.3
1,234.9
+41%
+41%
2021
17.8 million
2020
13.9 million
Change
53.4 million
42.2 million
+28%
+27%
3.00
3.04
-1%
4.28%
4.26%
+2bps
£46.06
£43.50
+6%
3.32
3.06
+8%
/ STRATEGIC REPORT
1. Defined as having shopped in the last 12 months on the website.
2. Defined as number of website orders in last 12 months divided by number of active customers.
3. Defined as the percentage of website orders taken to internet sessions.
4. Calculated as gross sales including sales tax divided by the number of orders.
CONSOLIDATED INCOME STATEMENT
2021
2020
£ million
£ million
Change
1,745.3
1,234.9
+41%
(800.1)
(568.6)
+41%
945.2
666.3
+42%
54.2%
54.0%
+20bps
(772.6)
(539.9)
1.0
0.2
173.6
126.6
+37%
Adjusted EBITDA margin %
10.0%
10.2%
-20bps
Depreciation
(20.1)
(16.6)
Amortisation of other intangible assets
(4.2)
(3.0)
Adjusted EBIT
149.3
107.0
+40%
Adjusted EBIT margin %
8.6%
8.7%
-10bps
Adjusting items:
Amortisation of acquired intangible assets
(5.5)
(5.1)
Equity-settled share-based payment charges
(19.7)
(11.0)
Operating profit
124.1
90.9
+37%
Finance income
0.9
1.7
Finance expense
(0.3)
(0.4)
Profit before tax
124.7
92.2
+35%
Tax
(31.3)
(19.3)
Profit after tax for the year
93.4
72.9
+28%
Diluted earnings per share
7.25p
5.35p
+36%
Adjusted profit after tax for the year
113.8
86.0
+32%
Amortisation of acquired intangible assets
(5.5)
(5.1)
Share-based payment charges
(19.7)
(11.0)
Adjustment for tax
4.8
3.0
Profit after tax for the year
93.4
72.9
share
Adjusted profit for the period attributable to shareholders of the company
Adjusted diluted earnings per
108.5
69.9
+55%
8.67p
5.88p
+47%
AGENDA FOR CHANGE
Our
for the Agenda for Change
programme
commenced with the publication of Alison
Levitt QC's independent review of the
group's UK supply chain, published in full
in September 2020. We followed the
review with the appointment in November
2020 of Sir Brian Leveson PC to oversee
progress on implementation of the review's
recommendations, which the board intends
to implement in full. Sir Brian's first board
report, which was published in full, reported
progress at pace in January 2021, while
noting that recommendations remain work
in progress. Sir Brian's most recent update,
published in March 2021 alongside the
group's UK supplier list, notes that the depth
and detail of supplier audits have dramatically
changed the way the industry is run in
Leicester and the determination of boohoo to
embed a new way of working, which, despite
a number of acquisitions in recent months,
remains its top priority.
The areas the group is committed to bring to
fruition are: enhancing corporate governance;
redefining our purchasing practices; raising
standards across our supply chain; supporting
Leicester's workers and workers' rights;
supporting suppliers; and demonstrating best
practice in action. Significant progress on the
Agenda for Change has been delivered by our
teams over the last six months and the
group
expects to make further great progress in the
coming year, with publication of our global
supplier list expected by September 2021.
Further details of the progress of the Agenda
for Change are contained in a separate
section in this report on page 20.
CORPORATE GOVERNANCE
The board is committed to strengthening
corporate governance and progress to
date includes: the appointment of Shaun
McCabe as an independent non-executive
director and Chair of the Audit and Risk
Committees; the appointment of a Group
Director of Responsible Sourcing and
resourcing of a
the publication
support team;
of the group's first Sustainability Report; and
the search for an additional non-executive
director with ESG experience. The Risk
Committee is a high-profile board function
created to oversee, in particular, the Supply
Chain Compliance Committee as part of
the Agenda for Change, demonstrating
our commitment to change at the highest
level in the company. Additionally, the
group appointed Sir Brian Leveson PC to
provide oversight of its Agenda for Change
programme in November 2020.
SUSTAINABILITY
The
group published its first sustainability
strategy, UP.FRONT, in March 2021, in
which we have addressed key priority areas
and time-based targets to achieve our goals.
The three key areas of focus are on smarter
manufacturing of clothes, better terms for
suppliers and action in responsible business
practices to reduce our carbon footprint.
This strategy has been formulated over the
past year by the sustainability team, with
board
I support demonstrating the group's firm
commitment to tangible progress in this area.
Revenue
Cost of sales
Gross profit
Gross margin
Operating costs
Other income
Adjusted EBITDA
30
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