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ForAPPENDIX 4D & FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2021
ABN: 78 636 138 988
ASX Code: ABY
ADORE BEAUTY GROUP LIMITED
INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
For personal use only
Contents | |
Appendix 4D………………………………………………………….………………..………………………….. 1 | |
Directors' report…………………..…………………………………….………………………….….………….. 2 | |
Auditor's independence declaration……………..……………….………………………………………… 5 | |
Condensed consolidated statement of profit or loss and other comprehensive income…………. 6 | |
Condensed consolidated statement of financial position………………………………..……..……….. 7 | |
Condensed consolidated statement of changes in equity……………..………………….……………. 8 | |
Condensed consolidated statement of cash flows……………………….…………….……….…… | ....... 9 |
Notes to the condensed consolidated financial statements…………………………..…….….……... 10 | |
Directors' declaration…………………………………………………………………………………..............13 | |
Independent auditor's review report……………..……………………………………….………............... | 14 |
Company directory……………………..……………..………………..……………………………............... | 16 |
ADORE BEAUTY GROUP LIMITED
INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
For personal use only
Appendix 4D - Half-yearly report
REPORTING PERIOD
Reporting period: | Half-year ended 31 December 2021. |
Previous corresponding period: | Half-year ended 31 December 2020. |
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Revenue and profit after tax for the half-year | ||||
ended 31 December 2021 | Up/Down | % Change | $'000 | |
Revenue from ordinary activities: | up | 18% | to | $113,103 |
Profit from ordinary activities after tax attributable to | down | -22% | to | $1,967 |
members: | ||||
Profit for the period attributable to members: | down | -22% | to | $1,967 |
DIVIDENDS
No dividends have been paid during the period and it is not proposed that any dividends be paid. Dividends of $nil were paid during the comparative period.
OVERVIEW OF OPERATING RESULTS
An overview of the operating results can be found in the 'Operating and Financial Review' section within the Directors' Report of the attached Interim Financial Statements.
NET TANGIBLE ASSETS PER SECURITY
31/12/21 | 31/12/20 | |
Net tangible assets per share: | $0.35 | $0.33 |
Total number of shares on issue at period end: | 94,124,497 | 94,124,497 |
ENTITIES OVER WHICH CONTROL HAS BEEN GAINED OR LOST DURING THE PERIOD
There are no entities over which control has been gained or lost during the period.
ASSOCIATES AND JOINT VENTURE ENTITIES
There are no associates and joint venture entities.
DIVIDEND REINVESTMENT PLANS
The Company currently does not have a dividend reinvestment plan.
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ADORE BEAUTY GROUP LIMITED
INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
INDEPENDENT AUDIT REVIEW
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This report is based on the condensed consolidated financial statements which have been subject to independent audit review by Grant Thornton Audit Pty Ltd. The independent audit review report is included within the Company's Interim Report which accompanies this Appendix 4D.
ACCOUNTING STANDARDS
This report was compiled with Australian Accounting Standards & International Financial Reporting Standards.
Directors' Report
The Directors of Adore Beauty Group Limited ('Adore Beauty' or 'the Company') present their Report together with the financial statements of the consolidated entity, being Adore Beauty and its Controlled Entities ('the Group') for the half-year ended 31 December 2021.
DIRECTORS
The names of the Directors in office at any time during or since the end of the half-year are:
Justin Ryan | Chair (retired 1st November 2021) |
Kate Morris | Executive director |
James Height | Executive director |
Marina Go | Non-executive director and Chair (from 1st November 2021) |
Sandra Birkensleigh | Non-executive director |
The above-named Directors held office during and since the end of the financial year unless otherwise stated.
PRINCIPAL ACTIVITIES
Adore Beauty generates its revenue through online sales of third-party beauty and personal care products to Australian and New Zealand consumers.
Adore Beauty's business model is based on three key elements which drive a powerful network effect attracting both new customers and new brands to the platform:
- Range authority: Adore Beauty offers Australian and New Zealand consumers a broad and compelling range of beauty and personal care products across prestige, professional, niche and masstige brands, with over 270 brands and 11,700 products (including exclusives). Adore Beauty provides brands with access to a large, engaged customer base and a strong marketing platform;
- Best online transaction experience: Adore Beauty seeks to provide customers with an outstanding online shopping experience by providing customers with instant gratification as a result of a seamless transaction experience;
- Data-enrichedcustomer engagement: Adore Beauty engages customers through an integrated content, marketing, and e-commerce retail platform, with personalisation to satisfy customer's beauty and personal care needs, driving loyalty and increasing their frequency and size of spend with Adore Beauty over time.
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ADORE BEAUTY GROUP LIMITED
INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
For personal use only
FINANCIAL HIGHLIGHTS FROM H1 FY2022
Revenue for the half-year was $113.1 million which was an increase of 18% over the comparative period in H1FY21. The revenue growth is attributable to the growth in LTM Active customers, which increased 13% over the comparative period in CY21 to 875,597. The Company also benefitted from multiple record trading days including Afterpay Day in August, and Cyber Weekend in November.
Balance Sheet
Adore Beauty's Balance Sheet remains strong. The Company is well funded with $25.1 million in cash. Inventory levels increased during the period to support revenue growth and mitigate supply chain issues.
Cash flow
Adore Beauty's net operating cash outflows were $2.6 million and included expenses incurred as part of strategic initiatives and inventory investment.
An additional $0.9 million was incurred on investing activities, primarily investment in the Company's website and mobile app which are the shop front of the business and the prime interface with its customers.
Dividend
No dividend has been paid or declared during the period.
COVID-19
The impact of COVID-19 has affected the Australian beauty and personal care market in a number of ways including, for example, a shift away from cosmetics to skin care products as the pandemic has emphasised the need for consumers to focus on self-care and health and consumers spending more time at home.
In addition, shopping behaviours and preferences have changed driven by government mandated restrictions (including lockdowns and social distancing measures) and consumer aversion to physically visiting retailers due to health concerns.
Strategic Update
Looking ahead, we expect to deliver strong sustainable growth as we leverage our online market leadership position to continue to increase our market share within a growing market driven by a structural shift to online. As the business grows, we expect scale benefits to increase operating leverage over time.
We are pursuing a growth strategy. The drivers of growth and operating leverage are outlined below.
- Range authority: Provide a unique and compelling range of products and services. Grow and deepen brand partnerships through providing access to a large, engaged customer base and strong marketing platform.
- Best online transaction experience: Deliver an integrated content, marketing and eCommerce retail platform. Provide an empowering, engaging online customer experience underpinned by data-driven personalisation.
- Content led customer engagement: Build a highly satisfied, engaged, loyal customer community. Build a trusted brand and beauty discovery destination. Expand authentic content and education to grow customer-led engagement.
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Adore Beauty Group Ltd. published this content on 14 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2022 21:43:08 UTC.