Sosandar Plc · LSE:SOS
Sosandar — FY2021 Earnings Presentation
30 slides from Sosandar's earnings presentation, July 2021
Slide 1: Full Year 2021 Results and Q1 FY2022 Trading Update
Julie Lavington – Co-CEO and Co-Founder Ali Hall – Co-CEO and Co-Founder Steve Dilks – CFO Full Year 2021 Results and Q1 FY2022 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 • Overview • Financial and KPI review • Product • Third Parties • Marketing • ESG • Outlook
Slide 4: Overview
Overview 4
Slide 5: The Growth of Sosandar
5 The Growth of Sosandar • Ecommerce brand for women who have graduated from fast fashion • Trend-led, high quality, good fit, lifestyle appropriate, mid-price point • A unique aesthetic – chic and sexy • Launched September 2016 – 74 styles • 30 fold increase in product range – over 2,000 styles • F
Slide 6: Full Year Highlights
6 Full Year Highlights • 35% growth in Revenue to £12.2m • 62% improvement in EBITDA loss • Cash of £3.93m (July 2020 £4.40m) reflects strong cost control balanced with maximising ROI from customer acquisition activity • Accelerated range expansion adapting to customers’ changing needs • Recruited m
Slide 7: Current Trading (April-June 2021)
7 Current Trading (April-June 2021) • Great start to new financial year with a record quarter and record month in June • Revenue £5.7m in Q1 – up 256% yoy and up 45% versus Q4 FY2021 • 23% increase in Active Customers since Q4 FY2021 • Sell through of new stock strongest ever • Third parties going f
Slide 8: Financial and KPI Review
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Slide 9: 62% reduction in FY 2021 EBITDA losses
9 62% reduction in FY 2021 EBITDA losses P&L Overview FY2021 FY2020 YoY £m % of Sales £m % of Sales Revenue 12.2 9.0 35% Gross Profit 5.8 48.0% 4.4 48.5% 33% Admin expenses 8.6 70.7% 11.7 129.2% 26% Share based payments 0.2 1.4% 0.4 4.2% 53% EBITDA (2.9) (24.0%) (7.7) (84.8%) 62% • 35% growth in rev
Slide 10: Balance Sheet Overview
10 Balance Sheet Overview Balance Sheet FY2021 FY2020 • Cash at March 2021 of £3.9m – successfully £’000 £’000 managed with minimal usage since July 2020 Intangible assets 198 198 (£4.4m) Property, plant and equipment 165 282 Fixed Assets 363 480 • Inventory reduced to £2.9m whilst increasing produc
Slide 11: Momentum Accelerating with Q1 FY2022 40% Up Vs Q4 FY2021
11 Momentum Accelerating with Q1 FY2022 40% Up Vs Q4 FY2021 Number Of Orders - New and Repeat 45,000 40,000 Repeat New 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - • Total orders increased by 29% YoY in FY21 • Return to customer acquisition in September 2020 • Customer acquisition driving growt
Slide 12: Ever Increasing Average Order Frequency
12 Ever Increasing Average Order Frequency 45.0% 2.40 2.20 Active customers defined as number of customers who have shopped in the last 40.0% 12 months Average Order Frequency p.a 2.00 Repeat Purchase % Order frequency calculated as total orders divided by active customers 35.0% 1.80 Repeat Purchase
Slide 13: Conversion Substantially Ahead of Prior Year
13 Conversion Substantially Ahead of Prior Year Conversion Average Order Value £120 4.00% 3.80% £100 3.60% 3.40% £80 3.20% £60 3.00% 2.80% £40 2.60% 2.40% £20 2.20% 2.00% £0 H1 '19 H2 '19 H1 ' 20 H2 '20 H1 '21 H2 '21 Q1 22 H1 '19 H2 '19 H1 ' 20 H2 '20 H1 '21 H2 '21 Q1 22 • Conversion increased signi
Slide 14: Substantial Reduction in Costs Resulting in Improved Profitability
14 Substantial Reduction in Costs Resulting in Improved Profitability Costs by Type Costs as % of revenue Fulfilment Marketing Fulfilment Ops PLC Marketing 3rd Parties Ops H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 H1 FY2019 H2 FY2019 H1 FY2020 H2 FY2020 H1 FY2021 H2 FY2021 Q1 FY202
Slide 15: Product Expansion
Product Expansion 15
Slide 16: Successful Diversification of Product Mix
16 Successful Diversification of Product Mix Revenue by category FY2021 Change in category share Q1 FY2022 vs Q4 FY2021 Jersey Tops (JT) Other (OTH) Lounge & Leisure (LOU) Woven Dresses (WD) 8% 6% Outerwear (O) 21% 4% Footwear 7% (F) 16% 2% 8% Denim (D) 0% Woven Tops 8% 9% 11% -2% (WT) -4% -6% Leath
Slide 17: A Taste Of Sosandar Sell Out Styles
A Taste Of Sosandar Sell Out Styles
Slide 18: Third Party Partnerships
Third Party Partnerships ae A a ee nd
Slide 19: Accelerating Third Party Growth in A/W 21
19 Accelerating Third Party Growth in A/W 21 • Huge opportunity to exponentially grow in A/W 21 • Delivering greater depth for each style and a broader range • Product resonating with their customers in all categories and selling out quickly on key styles • Benefits: ➢ Incremental revenue growth ➢ F
Slide 20: Successful Marketing Strategy
Successful Marketing Strategy 20
Slide 21: Email
Email • Communications run like a news desk – skilled planning and quick reaction • Finger on the pulse - capture the zeitgeist of how customers think and feel • Very high open and conversion rates
Slide 22: Celebrity Endorsement – Presenters, Actors, Singers, Dancers
Celebrity Endorsement – Presenters, Actors, Singers, Dancers 22
Slide 23: Database quadrupled in years
23 Database quadrupled in 2 years Email Database 500 35 450 30 400 monthly new sign ups 000's 350 25 database size 000's 300 20 250 15 200 150 10 100 5 50 0 0 Monthly new sign ups Database Size • New sign ups directly linked to marketing acquisition spend (TV in particular drives volume) • Email now
Slide 24: A responsible fashion business
A responsible fashion business 24
Slide 25: A responsible fashion business: Ethical operations
25 A responsible fashion business Ethical operations Ethical Environmental Fabulous We are committed to sourcing our products from suppliers who share our belief in operating responsibly and with operations sustainability Sosandar integrity. An inclusive • More than 50 suppliers in countries includi
Slide 26: A responsible fashion business: Environmental Sustainability
26 A responsible fashion business Environmental Sustainability Fabulous Sosandar • Our clothing is designed to be robust and long lasting • Proud of our inclusive and open culture • Well on the road to sourcing: • Open door, family friendly policy • 100% of our cotton sustainably including BCI and •
Slide 27: Outlook
Outlook 27
Slide 28: Outlook
28 Outlook • Very strong start to year – revenue up 256% yoy (up 45% on Q4) • Incredibly fast sell through on all product ranges • Further investment in product range in autumn will underpin revenue growth both on our own site and with third parties • Investment in customer acquisition will continue
Slide 29: Appendix
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Slide 30: Income Statement
Income Statement Income Statement FY2021 FY2020 £’000 £’000 Revenue 12,163 9,027 Operational costs (6,319) (4,646) Gross Profit 5,844 4,381 Gross Profit % 48.0% 48.5% Administrative expenses (8,594) (11,662) Share based payment (175) (375) Depreciation and amortisation (163) (151) Operating (loss) (