MADE, the leading digital native lifestyle brand in home, achieved 2021 gross sales growth of + 38% year-on-year to £434m, a two-year growth rate of +79%. Growth was supported by last twelve month active customers increasing +26% to 1.3m, 260bps higher repeat order mix and average order value improving +8% year-on-year. Previous revenue and adjusted EBITDA guidance is reconfirmed.
Philippe Chainieux, CEO of MADE commented:
"I am delighted with how well the business is performing, with strong customer growth in all markets and the self-help measures implemented in H2 2021 now mitigating the impact of industry wide supply chain issues. Indeed, by the end of H1, we expect average lead times to be significantly below pre-lockdown levels and, with the acceleration of the homeware product range, the company is well positioned to deliver its strategic initiatives in 2022."
Growth has been consistent across both the UK and Europe. Both UK and Continental Europe achieved +38% year-on-year growth. Full year constant currency growth was +40%.
Second half performance has been strong, with £220m gross sales, a year-on year growth of +25% and two year growth of +69%.
UK growth rate remained strong throughout the second half. Continental Europe saw some volatility with a softer start to the December sale period compared to trend, but still delivered robust growth for the second half.
Full year growth was adversely impacted by closure of Vietnamese factories due to Covid restrictions and industry wide disrupted global supply chains. These disruptions led to up to 20% of key high performing furniture ranges to be unavailable during peak trading this Autumn. All key factories are now open, dispatching product and shipping disruptions have been easing.
Marketing efficiency levels have been broadly maintained from the first to second half of the year.
Category performance has been consistently strong for both Furniture and Homewares. Homewares mix increased by 0.5ppt to 27.2 %. The trend of natural materials and weaves has continued to support growth across categories, with strong growth also seen in modular and "social" seating. Our marketplace expansion into candles and home fragrance has been a particular highlight, demonstrating the ability to rapidly create new category strength.
Robust customer metrics with +26% growth in active customers; repeat order mix +260bps to 44% and average order value up 8% year-on-year, partly driven by range expansion into higher price point products being adopted well by customers.
Average of 3-4 weeks lead time expected to be achieved in H1 2022
Marketplace moving beyond beta test on back of very encouraging performance during 2021, marked by release of the first phase of MADE's marketplace technology infrastructure.
Unaudited net cash at 31 December 2021 was £107m.
MADE on track to achieve 3-4 weeks average lead time during H1 2022
MADE has continued to deliver significant progress on its key strategic priorities as set out at the time of the IPO and expects to achieve the target 3-4 weeks average lead time during H1 2022. The group has built stock positions to deliver significantly better lead times to consumers for 2022 and beyond. 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, so all our key suppliers around the world are now operational.
Marketplace evolving beyond beta test
On the back of the strong performance from the marketplace beta test, MADE confirm its moving to the next stage of its marketplace development. Over the last 12 months, MADE has delivered great progress on its homeware proposition and now has more than 100 designer makers, artisans and small brands onboarded to the curated marketplace. In addition, MADE has successfully completed the first phase of its marketplace technology infrastructure implementation. The new infrastructure includes dropship capability and automated onboarding processes.
Source : Made.com
For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.
I find the news and articles they publish really useful and enjoy reading their views and commentary on the industry. It's the only source of quality, reliable information on our major customers and it's used regularly by myself and my team.