This statement contains inside information
9 December 2021
Made.com Group Plc ("MADE")
Trading Update
MADE reconfirms gross sales guidance of +40% year-on-year
MADE, the leading digital native lifestyle brand in home, confirms 2021 gross sales growth guidance of +40% year-on-year to c.£440m. Second half performance has been strong, including a successful cyber week event. The strong growth has been achieved while maintaining marketing efficiency and delivering improving repeat order mix. MADE has continued to deliver meaningful market share gains, which is testament to the strength of the MADE brand, the execution of MADE's strategy and the ongoing channel shift of the sector to online.
Strong consumer demand for MADE products comes against the backdrop of significant ongoing industry wide supply chain disruptions, which have worsened in recent months, negatively impacting the timing of stock intake. These included the recent extended closure of manufacturing in Vietnam, further port congestion and extended shipping times. As indicated at MADE's interim results, the timing of stock intake affects the timing of revenue recognition. Due to increased disruptions, MADE now anticipates a greater proportion of revenue to be delayed to early 2022, with a corresponding higher level of deferred revenue for 2021. Consequently, there will be a timing implication on adjusted EBITDA associated with delayed revenue recognition as shown in the table below. MADE anticipates no impact to the cash position.
| | Previous guidance | Revised guidance | | Phasing impact on 2022 |
| | | | | |
| Gross sales | +40% year-on-year | +40% year-on-year | | - |
| Deferred revenue | - | £35m to £45m higher | | - |
| Revenue | £410m | £365m to £375m | | £35m to £45m higher |
| Adjusted EBITDA | Positive | (£12m) to (£15m) | | £12m to £15m higher |
MADE has continued to deliver significant progress on its key strategic priorities as set out at the time of the IPO. On supply chain, the group has built stock positions to deliver significantly better lead times to consumers for 2022 and beyond as orders placed with suppliers are now in or close to our warehouses. The progress is based on foundational work already undertaken over the last 12-18 months, focusing on warehousing and logistics. Additionally, supply of goods from Vietnam has now returned to close to normal levels, with all key suppliers now operational. MADE has continued to make great progress on its homeware proposition and now has more than 100 designer makers, artisans and small brands onboarded to the curated marketplace.
MADE will provide a year-end trading update on 6 January 2022.
Enquiries:
MADE
Adrian Evans, Phil Clark
Brunswick Group
Sarah West, James Baker, Amber Ahluwalia
+44 207 404 5959
The person responsible for making this announcement on behalf of Made.com Group Plc is Lisa Tomlins, General Counsel and Company Secretary.
CAUTIONARY STATEMENT
Certain statements in this trading update are forward-looking. Although the group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
About MADE
MADE is the leading digitally native lifestyle brand in home, disrupting the industry with high-quality, exclusive designs underpinned by a responsible, small-batch production model, enabling customers to realise the vision of their homes.
In addition to its in-house design team and collaborations with leading designers, MADE champions independent talent, offering them a platform and access to a scalable supply chain that makes their ideas reality. These partners bring their unique perspective in the creation of bold statement collections and work with MADE to produce iconic designs.
Operating at the intersection of design and technology, proprietary algorithms take consumers on a journey: from outreach that makes designs discoverable to a frictionless digital shopping experience. Combined with an innovative 'just-in-time' order model, MADE provides a fresh and ever-changing range, with nine new collections launched every week and more than 8,000 active SKUs in the catalogue as at 30 June 2021.
Founded in 2010, MADE sells its products across the United Kingdom, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands via its e-commerce platform. The brand also has seven showrooms globally, with flagship brand experiences in London and Paris.
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