Boohoo Group Plc · LSE:DEBS
Boohoo — FY2023 Earnings Presentation
34 slides from Boohoo's earnings presentation, May 2023
Slide 1: FY23 Results
FY23 Results For the 12 months ended 28 February 2023 Back to growth
Slide 2: Introduction
Introduction John Lyttle Back to growth Shaun McCabe Financial Review John Lyttle Strategic Update 2 Back to growth
Slide 3: Back to growth
Back to growth John Lyttle – Group CEO Back to growth 3
Slide 4: Overview
Overview Significant growth and market share gains over 3 years Improving macro backdrop Priorities: • Test & Repeat • Leaner, lighter, faster • Automation efficiencies • International fulfilment Back to growth 4
Slide 5: Improving outlook vs 6 months ago
Improving outlook vs 6 months ago Cost inflation outlook Freight costs Freight lead times Consumer demand 5 Back to growth
Slide 6: Significant market opportunity
Significant market opportunity Further online penetration Market share increased FY20 FY23 FY20 FY23 29% 41% 6.2% 6.9% 28% 43% 0.4% 0.5% Source: Kantar, Statista, boohoo group data 6 Back to growth
Slide 7: Back to Growth
Back to Growth Customer first Investing for growth Delivering sustainable ROI Latest trends US warehouse International growth Outstanding value Automation Rebuilding profitability Great experience Leaner, lighter, faster Cash management 7 Back to growth
Slide 8: Financial Review
Financial Review For 12 months ended 28 February 2023 Shaun McCabe – Group CFO 8 Back to growth
Slide 9: Delivering sustainable ROI
Delivering sustainableROI Stock management Cost out Cash management Selectively investing for growth Back to growth 9
Slide 10: Key Financial Data
Key Financial Data 12 months to Feb (£m) FY23 FY22 Chg Revenue 1,769 1,983 -11% Gross Margin 50.6% 52.5% -190bps Adjusted EBITDA 63 125 -49% Adjusted EBITDA Margin 3.6% 6.3% -270bps Net Cash / (Debt) 5.9 1.3 +4.6 Inventory 178 279 -36% 10 Back to growth
Slide 11: Leaner, lighter, faster
Leaner, lighter, faster Significant Unlocking Faster lead Accelerate inventory working times stock turn reduction capital Inventory 36% YOY 11 Back to growth
Slide 12: Strong cash generation underpins investments
Strong cash generation underpins investments FY22 Net Cash Profit Stock Capex & Other FY23 Net Liquidity Management Investments Cash Headroom £330 million of liquidity headroom Back to growth 12
Slide 13: Tight cost control with opportunity ahead
Tight cost control with opportunity ahead Medium term view Marketing 10.8% Investment in growth Distribution 23.0% Scale and automation Admin 13.2% Cost out and scale Costs disclosed as a % of net sales, excluding depreciation and amortisation 13 Backtotogrowth Back growth
Slide 14: Unlocking US Growth
Unlocking US Growth Faster delivery Lower delivery costs Additional capacity Initial investment 14 Back to growth
Slide 15: Clear path to improving profitability
Clear path to improving profitability International growth Cost control Volume growth Returns reduction Unlock input cost deflation 6 - 8% 3.6% Investing in price, product, proposition FY23 Medium Term Adjusted EBITDA Margin Delivering sustainable ROI 15 Back to growth
Slide 16: FY24 Guidance
FY24 Guidance Full Year sales expected to be between flat & a decline of 5% H1 sales expected to decline 10% to 15%, back to growth in H2 Adjusted EBITDA margin 4% to 4.5% Capex: £80-90 million FY24 year-end Net Debt / Adjusted EBITDA of ~1x 16 Back to growth
Slide 17: Strategic Update
Strategic Update John Lyttle – Group CEO 17 Back to growth
Slide 18: Test & Repeat, Leaner, lighter, faster
Test & Repeat o Flexible sourcing o Short lead-time o Outstanding value Leaner, lighter, faster 18 Back to growth
Slide 19: Fashion first, last & everything in between
Fashion first, last & everything in between 2019 2020-21 2022 2023 TRADITIONAL MIX ATHLEISURE / JERSEY PREMIUM / OCASSION WEAR BACK TO NORMAL Up to 4k new lines added weekly Back to growth 19
Slide 20: Expanding our reach
Expanding our reach 18m 65m 400m Active Social media Combined Customers followers reach 20 Back to growth
Slide 21: Gearing for growth
Gearing for growth Automation Doubling capacity in Sheffield Significant labour efficiencies US Distribution Centre Phased rollout Transforming the delivery proposition 21 Back to growth
Slide 22: The digital department store
The digital department store ACTIVE CUSTOMERS 2.5 MILLION BRANDS ON SITE 1,600 PRODUCTS ON SITE 573,000 UNPARALLELED CHOICE ACROSS FASHION, BEAUTY AND HOME 22 Back to growth
Slide 23: Global Partnerships
Global Partnerships Extends reach globally Complementary routes to market Elevates brand presence Countries with wholesale presence 23 Back to growth
Slide 24: Summary
Summary o Improving macro backdrop Delivering Customer Investing for o Controlling controllables sustainable First growth ROI o Significant gains over 3 years Leaner, lighter, faster… 24 Back to growth
Slide 25: Appendices
APPENDICIES 25 Back to growth
Slide 26: Customer KPIs
CUSTOMER KPIs 12 months to Feb (£m) FY 23 FY 22 Chg Active Customers 18.0m 19.9m -10% Number of Orders 55.5m 62.4m -11% Order Frequency 3.08x 3.14x -2% Conversion rate to sale 3.7% 3.6% 10bps Average Order Value £53.32 £48.16 11% Items per basket 2.82x 3.04x -7% 26 Back Back to to growth growth
Slide 27: Revenue by period: FY23
REVENUE BY PERIOD: FY23 £m 4m to 31 December 2m to 28 February 12m to 28 February FY23 FY22 YOY % YOY % CER FY23 FY22 YOY % YOY % CER FY23 FY22 YOY % YOY % CER Total 637.7 714.5 -11% -13% 248.6 292.4 -15% -17% 1,768.7 1,982.8 -11% -13% UK 400.8 451.0 -11% -11% 146.1 182.4 -20% -20% 1,091.5 1,202.8 -
Slide 28: Operating costs: FY20-23
OPERATING COSTS: FY20-23 12 months to Feb (£m) FY 23 FY 22 Chg Distribution` 407.2 467.9 -13% Marketing 191.1 219.3 -13% Other Admin 233.7 228.8 -2% Total 832.0 916.0 -9% Distribution 23.0% 23.6% -60bps Marketing 10.8% 11.1% -30bps Other Admin 13.2% 11.5% +170bps Total 47.0% 46.2% +80bps 28 Back Bac
Slide 29: Group balance sheet
GROUP BALANCE SHEET 12 months to Feb (£m) FY 23 FY 22 Intangible assets 132 129 Property, Plant & Equipment 372 349 Right-of-use assets 136 50 Financial assets 0 3 Investments 15 0 Deferred tax 24 8 Non-current assets 679 538 Working capital -105 -13 Lease liabilities -139 -52 Net financial assets -
Slide 30: Group cash flow
GROUP CASH FLOW 12 months to Feb (£m) FY 23 FY 22 Profit for the year -76 -4 Share based payments 32 26 Depreciation and Amortisation 82 54 Finance income -4 0 Finance expense 12 2 Loss on unsettled ineffective hedge contracts 14 0 Tax expense -15 12 Change in working capital 85 -79 Operating cash f
Slide 31: Financial calendar
FINANCIAL CALANDER EVENT DATE 1H24 Interim Results October 2023 (TBC) Peak Trading Update January 2024 (TBC) FY24 Preliminary Results May 2024 (TBC) 31 Back Back to to growth growth
Slide 32: Glossary
GLOSSARY Calculated as PBT, interest, depreciation, amortisation, share-based payment ADJUSTED EBITDA charges and exceptional items Calculated as EBIT excluding share-based payment charges, amortisation ADJUSTED EBIT of acquired intangible assets and exceptional items Calculated as PBT, excluding sh
Slide 33: Forward looking statements
FORWARD LOOKING STATEMENTS This Presentation contains statements, included or incorporated by reference, which may be, or may be deemed to be, “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition and other matters that are not historica
Slide 34: Disclaimer
DISCLAIMER Forward-looking statements speak only as at the date of this Presentation. Except as required by applicable law or regulation (including to meet the requirements of the AIM Rules, the Market Abuse Regulation as it forms part of domestic law in the United Kingdom by virtue of the European