Sosandar Plc · LSE:SOS
Sosandar — FY2022 Earnings Presentation
39 slides from Sosandar's earnings presentation, Jul 12, 2022
Slide 1: FY2022 Results and Trading Update
FY2022 Results and Trading Update Julie Lavington – Co-CEO and Co-Founder Ali Hall – Co-CEO and Co-Founder Steve Dilks – CFO 1
Slide 2: Important: Disclaimer and Notice to Readers
2 Important: Disclaimer and Notice to Readers This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”)
Slide 3: Agenda
3 Agenda • Highlights FY2022 & Current Trading • Sosandar’s Winning Formula • Financial and KPI Review • Market Backdrop and Strategy o Market Backdrop o Product Expansion o Customer Acquisition & Retention o Sales Channel o Supply Chain • Future Outlook
Slide 4: Highlights FY 2022 and Q1 2023
Highlights FY 2022 and Q1 2023 4
Slide 5: FY 2022 – A Milestone Year
5 FY 2022 – A Milestone Year • Revenue £29.5m up 142% yoy • Profitable in every month of H2 • Strong growth both on own site and through third parties • Increased diversity of product mix • Strong performance across all KPI’s
Slide 6: Success Continued Into FY2023
6 Success Continued Into FY2023 • Q1 Revenue £10.4m up 81% yoy • Profitable in every month • High demand across all product categories • Particularly strong sales of workwear, occasion wear and holiday clothes • Successful launch with The Very Group and Next Platform Plus
Slide 7: Sosandar's Purpose & Winning Formula
Sosandar’s Purpose & Winning Formula 7
Slide 8: Our Purpose / Our Opportunity
8 Our Purpose To dress women across the globe to feel sexy and chic Our Opportunity To be one of the biggest womenswear brands in the world
Slide 9: Growth Drivers
9 Growth Drivers Societal Shift to Huge Distinctive an Ageless addressable product range Generation market Unique creative High spending Special company process and affluent culture imagery customer base
Slide 10: Societal Shift to an Ageless Generation
Societal Shift to an Ageless Generation 10 Created the Opportunity for Sosandar “Everywhere we look, highly visible Society is increasingly reducing older women are rewriting all the “The term middle aged is fast aged based limitations, at work, in rules – they are at their peak of becoming obsolete
Slide 11: Kylie Minogue 54 Kate Winslet 46 Helen Mirren 76
11 Kylie Minogue 54 Kate Winslet 46 Jennifer Lopez 52 Helen Mirren 76 Naomi Campbell 52 Liz Hurley 57 Sharon Stone 64 Holly Willoughby 41 Alex52Scott 37 Naomi Campbell Kate Middleton 40 Cat Deeley 45
Slide 12: A Huge Addressable Market in UK alone
12 A Huge Addressable Market in UK alone Women By Age in UK 5.0 4.5 4.0 3.5 3.0 Millions 2.5 2.0 1.5 1.0 0.5 0.0 15-24 25-34 35-44 45-54 55-64 65-74 75+ 20 million women in the UK are aged over 35 13 million in our core demographic This opportunity is replicated across all continents worldwide
Slide 13: Women united by desire for on-trend, affordable, long lasting clothes
13 These women are united by a desire for on-trend, affordable, long lasting, lifestyle appropriate clothes . Sosandar’s magic is the successful execution of distinctive product and powerful communication.
Slide 14: Our Distinctive Product that Makes Women Feel Amazing
Our Distinctive Product that Makes Women Feel Amazing 14 Figure flattering Practical/bra friendly All occasions Unique prints Bright colours Head to toe outfits Long Lasting Purse friendly Youthful Sexy and Chic Feel Good Confidence Boosting
Slide 15: Our unique creative process has turned the industry norm on its head
15 Our unique creative process brought from the media has turned the industry norm on its head • The only fashion brand to produce lifestyle imagery and video for every product • From shoot to on site and on air in a matter of days • Shows how to wear the product, increases conversion and drives hig
Slide 16: Affluent Customer Base with Large Disposable Incomes
Affluent Customer Base with Large Disposable Incomes 16 Mosaic Group * Index Description Affluent married couples whose successful careers have afforded them financial security Prestige Positions 181.3 and a spacious home High-earning families who live affluent lifestyles in upmarket homes. Their bu
Slide 17: Ever-Growing Retention & Frequency Of Purchase
17 Ever-Growing Retention & Frequency Of Purchase Active Customers Repeat Purchase % 250,000 45.0% 42.3% 200,000 40.4% 40.0% 150,000 100,000 35.0% 33.2% 33.1% 50,000 30.0% - Apr-20 Apr-21 Apr-22 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Jun-19 Jun-20 Jun-21 Oct-19 Dec-19 Oct-20 Dec-20 Oct-21 Dec-21
Slide 18: Unique Company Culture
Unique Company Culture Product Design and Buying Disciplined Creativity & Stock Management Planning & Innovation Data Supply Chain Sosandar Warehousing and Delivery Marketing Agility & Speed E-commerce Customer Care 18
Slide 19: Financial And KPI Review
Financial And KPI Review 19
Slide 20: Financial Highlights – P&L
20 Financial Highlights – P&L Net Revenue EBITDA FY2022 + 142% vs. FY2021 FY2022 + £2.7m vs. FY2021 FY 2020 FY 2021 FY 2022 £29.5m £30.0m £- (£0.2m) (£2.0m) £20.0m (£2.9m) (£4.0m) £12.2m £10.0m £9.0m (£6.0m) £- (£8.0m) (£7.7m) FY 2020 FY 2021 FY 2022 • Milestone in H2, with every month both EBITDA &
Slide 21: Financial Highlights – P&L
21 Financial Highlights – P&L Gross Profit Overhead % of Revenue FY2022 + 800 bps vs. FY2021 FY2022 – 1,500 bps vs. FY2021 58.0% 140% 129% 56.0% 56.0% 120% 54.0% 100% 52.0% 80% 71% 50.0% 60% 56% 48.5% 48.0% 48.0% 40% 46.0% 20% 44.0% 0% FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 • Significant GP
Slide 22: Cost Efficiencies Whilst Delivering Top Line Growth
22 Cost Efficiencies Whilst Delivering Top Line Growth Overhead Analysis Overheads as % of Net Revenue £18.0m 80% 60% £12.0m 40% £6.0m 20% £- 0% FY2020 FY2021 FY2022 FY2020 FY2021 FY2022 Fulfilment Marketing Operations 3rd Parties Fulfilment Marketing Operations • Investment in marketing and operati
Slide 23: Ever-Increasing KPI's
23 Ever-Increasing KPI’s Website Visits Conversion Rate FY2022 +47% vs. FY2021 FY2022 +78 bps vs. FY2021 14.0m 4.5% 13.1m 4.0% 3.9% 12.0m 3.5% 10.0m 3.1% 8.9m 3.0% 2.7% 8.0m 8.0m 2.5% 6.0m 2.0% 1.5% 4.0m 1.0% 2.0m 0.5% - 0.0% FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 • New record website visit
Slide 24: Ever-Increasing KPI's
24 Ever-Increasing KPI’s Total Orders Average Order Value FY2022 +84% vs. FY2021 FY2022 +9% vs. FY2021 600k £100.00 508k £97.14 500k £95.00 400k £90.39 £90.00 300k 276k 214k £85.00 200k £82.70 100k £80.00 - £75.00 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 • Record order months in Oct / Nov 21
Slide 25: Ever-Increasing KPI's
Ever-Increasing KPI’s Repeat Orders FY2022 +93% vs. FY2021 400k 367k 350k 300k 250k 200k 190k 150k 108k 100k 50k - FY 2020 FY 2021 FY 2022
Slide 26: Third Party Revenue
Third Party Revenue Increase in inventory Equity raise Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY2022 FY2021
Slide 27: Financial Highlights – Income Statement
27 Financial Highlights – Income Statement FY2022 vs Income Statement FY2022 FY2021 FY2020 FY2021 £m £m £m Revenue 29.5 12.2 9.0 142% • PBT includes (£0.2m) accelerated Cost of Goods (13.0) (6.3) (4.6) 105% depreciation of intangible assets Gross Profit 16.5 5.8 4.4 182% Gross Profit % 56.0% 48.0% 4
Slide 28: Financial Highlights - Balance Sheet
28 Financial Highlights - Balance Sheet Balance Sheet Mar-22 Mar-21 Mar-20 £m £m £m Intangible assets - 0.2 0.2 • Mar-22 net assets doubled vs Mar-21 Property, plant and equipment 0.4 0.2 0.3 Total non-current assets 0.4 0.4 0.5 • Cash balance at March 2022 of £7.0m • Fund raise May-21 facilitated g
Slide 29: Market Backdrop & Strategy For Scale
Market Backdrop & Strategy For Scale 29
Slide 30: Consumer Spending & Confidence
30 Consumer Spending & Confidence Clothing market – resilient sector of retailing currently, women still buy clothes in difficult economic times, just buy less overall Sosandar Customer – affluent, more cushioned from rising cost of living Product – broader range, wider categories than in pandemic,
Slide 31: Four Pillar Strategy For Scale
31 Four Pillar Strategy For Scale 1. Product 2. Marketing 3. Sales 4. Supply Channels Chain
Slide 32: Product Expansion
32 Product Expansion 1. Product FY 2022 Other • Expansion of number of styles in all categories Soft Separates 6% 4% W Dresses 19% • Fast track development of newer categories- Jersey Tops 6% ➢ Occasionwear, swim and beach, blazers and suits Outerwear 6% • Development of new shapes to give even wide
Slide 33: Unique Customer Acquisition Strategy
33 Unique Customer Acquisition Strategy 2. Marketing TV Glossy Brochures • Multi-channel • Constant innovation Digital • Maximise ROI Social Media
Slide 34: Powerful Retention Strategy
34 Powerful Retention Strategy 2. Marketing E Mail Marketing Acquisition channels also drive retention TV Glossy Brochures • Grow active customers • Multi-channel • Increased retention • Constant innovation Digital Social Media • Maximise ROI • Industry leading open rates • Over 50% of revenue gener
Slide 35: Zero-Cost Brand Endorsement
35 Zero-Cost Brand Endorsement 2. Marketing Celebrities TV product placement Third Party Partners
Slide 36: Sales Channel Strategy
36 Sales Channel Strategy • Own Site growth is the anchor to success • We work with strategically chosen 3rd parties • Working with large retailers where we can grow rapidly • Strategy is to scale existing channels – own site and third parties • Future overseas expansion
Slide 37: Supply Chain Strategy
37 Supply Chain Strategy Suppliers - Further expansion & country diversification, margin growth, ethical compliance, sustainability Shipping - Balancing risk, margin, environmental impact, speed and efficiency Warehousing and delivery - Efficiency, speed, scalable, reliable
Slide 38: An Exciting Future Ahead
38 An Exciting Future Ahead • Strong start to new financial year • Increasingly ageless society presents ever-growing opportunity • Navigated very challenging trading conditions in pandemic and grown revenue massively and moved into profit • Achievements have been down to capitalising on the opportu
Slide 39: Thank You !
I want to say, your designs are utterly gorgeous, chic and sophisticated, as if tailor made. I am becoming addicted to your site! YVONNE, Sosandar customer A new era for style I discovered Sosandar through a friend when I admired her dress at a Christmas do Dec 2021. I have not looked back! Bye bye