Boohoo Group’s revenue for the year increased by 41 percent to 1.745 billion pounds, while adjusted EBITDA was 173.6 million pounds, an increase of 37 percent on the previous year.
The company’s profit before tax was 124.7 million pounds, an increase of 35 percent, while adjusted diluted earnings per share was 8.67p, up 47 percent on the prior year and diluted earnings per share rose to 7.25p, an increase of 36 percent.
Commenting on the company’s full year results, John Lyttle, Boohoo CEO, said: “FY21 has been a year of significant investment for the group as we build a platform for the future and I am very pleased to report a strong financial performance.”
Review of Boohoo’s full year performance across markets
The UK market accounting for 54 percent of revenue reported growth of 39 percent to 945.1 million pounds across all brands. Gross margin increased from 50.3 percent to 50.9 percent.
While restrictions on movement and the effect of lockdowns in Europe impacted growth variably at different points in time across the continent, the company saw revenue growth of 30 percent to 244.7 million pounds across all brands and all major countries. Gross margin declined from 58 percent to 56.2 percent.
The group’s highest territorial growth rates have been seen in the USA, as the brands’ momentum builds and market share increases. PrettyLittleThing, Karen Millen and BoohooMAN continued their growth, whilst Boohoo and NastyGal grew strongly too. Group’s USA revenue increased by 65 percent to 435.1 million pounds and gross margin improved slightly from 59.8 percent to 59.9 percent.
Growth in the rest of the world was moderate at 16 percent to 120.4 million pounds and gross margin declined slightly from 55.8 percent to 54.9 percent.
Boohoo expects FY22 revenue growth of around 25 percent
The company said that revenue growth for the full year to February 2022 is expected to be around 25 percent at a group level, with newly acquired brands expected to deliver approximately five percentage points of this growth. Growth within the established brands remains strong and over the last two years the company has achieved a revenue CAGR of 42 percent.
The company added that margins for established brands are expected to be in line year on year. Boohoo expects investment in newly-acquired brands to dilute the group’s overall adjusted EBITDA margin by 50-100bps, with the group’s adjusted EBITDA margin expected to be in the region of 9.5-10 percent for the full year.
The group expects a higher adjusted EBITDA margin in the second half, reflecting investments in its scalable multi-brand platform. The group’s medium-term target of sales growth of 25 percent per annum and an adjusted EBITDA margin of around 10 percent remains unchanged.
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