Sosandar Plc · LSE:SOS
Sosandar — H1 FY2022 Earnings Presentation
29 slides from Sosandar's earnings presentation, October 2021
Slide 1: H1 FY2022 Results and Trading Update
Julie Lavington – Co-CEO and Co-Founder Ali Hall – Co-CEO and Co-Founder Steve Dilks – CFO H1 FY2022 Results and Trading Update 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
Agenda • Highlights • Financial and KPI Review • Product Expansion • Third Parties • Marketing Strategy • Supply Chain • Outlook • Q&A
Slide 4: Highlights
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Slide 5: Our Strategy For Success
5 Our Strategy For Success • Broadening the product range • We know our customer • Extending our reach with 3rd parties • Data driven learnings We are an incredibly agile business, enabling us to meet the needs of our customer whatever they may be
Slide 6: H1 FY2022 Highlights
6 H1 FY2022 Highlights • Revenue £12.2m up 184% yoy - higher than entirety of FY21 • Strong growth both on own site and through third parties • Increased diversity of product mix driving excellent new and repeat orders • Strong performance across all KPI’s • Gross Margin increased to 56.5% from 52.3
Slide 7: Current Trading Highlights
7 Current Trading Highlights • Consecutive record months - revenue up 120% yoy • EBITDA positive in both October and November • Cash at 31 October £7.6m (£7.4m at 30 September) • Investment in stock driving record new and repeat orders and record sales with 3rd parties • Rapid sell through of stock,
Slide 8: Financial And KPI Review
Financial And KPI Review 8
Slide 9: P&L Overview
9 P&L Overview H1 FY2022 H1 FY2021 YoY H2 FY2021 £m % of Sales £m % of Sales £m Revenue 12.2 4.3 184% 7.9 Gross Profit 6.9 56.5% 2.2 52.3% 207% 3.6 Admin expenses 7.8 63.8% 3.2 74.3% (144%) 5.4 Share based payments 0.1 0.8% 0.1 1.7% (35%) 0.1 EBITDA (1.0) (8.1%) (1.0) (23.7%) 3% (1.9) • Prior year E
Slide 10: Significant Step Up In Gross Margin
10 Significant Step Up In Gross Margin Gross Profit % 60.0% 56.5% 55.0% 53.6% 52.3% 50.0% 46.2% 45.8% 45.0% 40.0% H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 H1 FY2022 • Higher proportion of full price sales • Larger purchase quantities driving improved prices • FY2021 impacted by actions taken as conse
Slide 11: Balance Sheet Overview
11 Balance Sheet Overview Balance Sheet Sep-21 Sep-20 Mar-21 • Cash at September 2021 of £7.4m £m £m £m Intangible assets 0.2 0.3 0.2 • Balance Sheet strengthened in May 2021 following Property, plant and 0.1 0.1 0.2 equipment fund raise (£5.4m net) to accelerate growth: Fixed Assets 0.3 0.4 0.4 ➢ I
Slide 12: Substantial Growth In Both New And Repeat Orders
12 Substantial Growth In Both New And Repeat Orders 50,000 Repeat New 40,000 30,000 20,000 10,000 - • Total orders increased by 153% YoY in H1 FY2022 with AOV maintained at £86 • October 2021 set a new record for total orders, repeat orders and new orders
Slide 13: Ever Increasing Customer Engagement
13 Ever Increasing Customer Engagement 45% 2.40 2.20 Average Order Frequency p.a 40% Repeat Purchase % 2.00 Active customers defined as number of customers who have shopped in the last 12 months 35% 1.80 Order frequency calculated as total orders divided by active customers 1.60 Repeat Purchase % re
Slide 14: Delivering Substantial Growth in Conversion
14 Delivering Substantial Growth in Conversion Web Visits (millions) Conversion 7.0 4.00% 6.0 3.50% 5.0 4.0 3.00% 3.0 2.0 2.50% 1.0 - 2.00% H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 • Visits in H1 FY202
Slide 15: Cost Efficiencies Whilst Delivering Top Line Growth
15 Cost Efficiencies Whilst Delivering Top Line Growth Costs by Type Costs as % of revenue H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 H1 FY2022 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 H1 FY2022 Fulfilment Marketing Ops PLC 3rd Parties Fulfilment Marketing Ops • Investment in marketing and operations to
Slide 16: Product Expansion
Product Expansion 16
Slide 17: Equitable Product Mix
17 Equitable Product Mix * Lounge & Leisure Other ** Jersey Tops 2% 4% 5% Woven Dresses 19% Footwear 7% Woven Tops 9% 13% Knitwear 9% Leather 11% Jersey Dresses 10% Denim 11% Outerwear * Autumn – October & November 2021 ** Other categories: Jumpsuits, Trousers, Skirts, Beach & Swim, Accessories, Hom
Slide 18: All Product Categories Growing Significantly
18 All Product Categories Growing Significantly Year On Year Growth * 127% 122% 100% 97% 96% 81% 70% 65% 50% 35% 12% Knitwear Jersey Dresses Woven Dresses Woven tops Jersey tops Footwear Outerwear Other ** Leather Denim Lounge and Leisure * Autumn – October & November 2021 ** Other categories: Jumps
Slide 19: O in Occasion Wear
O in Occasion Wear Outstanding Success
Slide 20: Huge Success in Knitwear
Huge Success in Knitwear Year Round Denim Destination
Slide 21: Explosion in O
Explosion in O Knitwear Sales
Slide 22: Driving Growth Through Third Parties
Driving Growth Through Third Parties 22
Slide 23: Third Party Revenue Tripled In 6 Months
23 Third Party Revenue Tripled In 6 Months Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21
Slide 24: Driving Additional Growth Through Third Parties
24 Driving Additional Growth Through Third Parties • Product resonating brilliantly across all categories • Rapid sell-through • Additional stock driving revenue growth • Stock ramp up further accelerated for autumn 21 • Still only a proportion of the total product range on sale • Massive opportunit
Slide 25: Powerful Marketing Strategy
Powerful Marketing Strategy 25
Slide 26: Highly Successful Unique Marketing Strategy
26 Highly Successful Unique Marketing Strategy TV Brochures Social HIGH TRAFFIC VOLUME HIGH CONVERSION DEEP ENGAGEMENT • Continual refinement and development of our marketing activities • New customer orders in H1 FY2022 up 142% yoy
Slide 27: Market Leading E-Mail Open and Conversion Rates
27 Market Leading E-Mail Open and Conversion Rates
Slide 28: Outlook
Outlook 28
Slide 29: Outlook
29 Outlook • Already achieved in 6 months what we achieved in FY21 • Record autumn trading • Trading ahead of market expectations • Fundamentals in place to deliver sustained profitability • Own site and 3rd parties growing rapidly • Remaining vigilant and agile to the supply chain situation • Stron