ersonal use only
RESULTS PRESENTATION | H1 FY22
15 February 2022
DELIVERING STRONG REVENUE GROWTH
RECORD REVENUE DRIVEN BY VALUABLE RETURNING CUSTOMERS
ersonal use only
$113.1M | 33.1% |
REVENUE | GROSS PROFIT |
+18% ON PCP | MARGIN |
+47% 2-YEAR CAGR | +0.6 PPTs ON PCP |
$3.8M | $25.1M |
EBITDA1 | CASH2 |
-27% ON PCP | -14% ON PCP |
+44% 2-YEAR CAGR |
876k | +56% |
ACTIVE | RETURNING |
CUSTOMERS3 | CUSTOMERS4 |
+13% ON PCP | |
+43% 2-YEAR CAGR |
Market leader5
in fast-growing
$1.3b online
beauty &
personal care
category
Online destination
of choice for
brand partners
and loyal returning customers who increase in value each year
Strong start to
FY22 with multiple
record trading
days & strong AOV
growth
Re-investing in
strategic
initiatives to drive sustainable, long- term growth
1.
2.
3.
4.
5.
Historical proforma adjustments are detailed in the appendix. EBITDA margin in line with guidance provided in FY21 results media release on 30th August 2021 "Adore Beauty expects to maintain a 2-4% EBITDA margin in the short to medium term while reinvesting to drive above market growth". Balance as 31 December 2021 compared to 30 June 2021.
Active customers refer to customers who have ordered in the last 12 months; comparison of CY21 to CY20.
Returning customers are customers who have previously placed an order on the Adore Beauty website; comparison of CY21 to CY20. Adore Beauty is the leading pureplay online beauty retailer in Australia, based on management estimates.
Results Presentation | H1 FY22 | 2 |
MORE RETURNING CUSTOMERS, SPENDING MORE
EXPANDING SHARE OF WALLET
only | REVENUE ($A MILLION) | ACTIVE CUSTOMERS1 ('000) | |||||||||||||||||||||||||
113 | 777 | +43% CAGR | |||||||||||||||||||||||||
+47% CAGR | |||||||||||||||||||||||||||
+18% | +13% | ||||||||||||||||||||||||||
876 | |||||||||||||||||||||||||||
use | |||||||||||||||||||||||||||
96 | 33 | ||||||||||||||||||||||||||
439 | |||||||||||||||||||||||||||
36 | 497 | ||||||||||||||||||||||||||
427 | |||||||||||||||||||||||||||
52 | |||||||||||||||||||||||||||
19 | 61 | 80 | 251 | ||||||||||||||||||||||||
ersonal | 436 | ||||||||||||||||||||||||||
33 | 176 | 280 | |||||||||||||||||||||||||
H1 FY20 | H1 FY21 | H1 FY22 | CY19 | CY20 | CY21 | ||||||||||||||||||||||
Returning | New | ||||||||||||||||||||||||||
Returning | New | ||||||||||||||||||||||||||
Returning customers driving strong revenue | Sustainably growing active customer base, driven by | ||||||||||||||||||||||||||
growth, accounting for 71% of revenues (up from | 56% growth in returning customers, who become | ||||||||||||||||||||||||||
64% in H1 FY21) | increasingly valuable over time |
1. Active customers refer to customers who have ordered in the last 12 months, comparison of CY21 to CY20.
ANNUAL REVENUE PER ACTIVE
CUSTOMER1
+3.3% CAGR
+5.3%
$224
$210 $213
CY19 | CY20 | CY21 |
Higher annual revenue per active customer reflecting larger proportion of returning customers and strong
Average Order Value (AOV) growth
Results Presentation | H1 FY22 | 3 |
SUBSCRIPTION-LIKE RETENTION RATES AFTER YEAR 2
CREATING MORE LOYAL RETURNING CUSTOMERS
only■
■
■
use■
■
COVID lockdowns accelerated new customer acquisition and returning customer repurchase
Transition out of lockdown seeing return to more sustainable growth rates off elevated base
Returning customer growth of 56% on PCP (2-year CAGR of 58%), offset 12% decline in new customers
CY21 aggregated retention1 of 56.2%, down 9.3ppts on PCP and up 2ppts on CY19, reflects cycling of larger proportion of new customers acquired during COVID
Strategic initiatives to reduce year-one churn and improve retention, including Mobile App and Loyalty
# CUSTOMERS ('000)
350
300
250
200
150
100
NUMBER OF CUSTOMERS
New Returning
ersonal | 50 | COVID | COVID | ||||||||||||||||
LOCKDOWN | LOCKDOWN | ||||||||||||||||||
SUPERIOR LOYALTY METRICS OVER TIME2 | |||||||||||||||||||
71% | ~3x | SPIKE | SPIKE | ||||||||||||||||
0 | |||||||||||||||||||
FY19 | FY19 | FY19 | FY19 | FY20 | FY20 | FY20 | FY20 | FY21 | FY21 | FY21 | FY21 | FY22 | FY22 | ||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||
of revenue from returning | per year | ||||||||||||||||||
customers who order | |||||||||||||||||||
from us on average | |||||||||||||||||||
1. Aggregated active customer retention rate = (Active Customers as at the end of the relevant year - Active Customers acquired during the relevant year) | |||||||||||||||||||
divided by Active Customers as at the commencement of the relevant year. | Results Presentation | H1 FY22 | 4 | |||||||||||||||||
2. Returning customer period of H1 FY22; Average order frequency period of CY18-CY21. |
CUSTOMER LIFETIME VALUE IS STRONG & GROWING
CONTENT AND LOYALTY STRATEGY SUPPORTING RETENTION, REDUCING RELIANCE ON PAID CHANNELS
only■
■
use■
■
ersonal
Key ratio to measure customer acquisition and engagement is LTV (Lifetime Value) / CAC (Customer Acquisition Cost)1
Strong unit economics
- CY18-CY21average LTV/CAC continues to recover investment in just under one year (CY21 LTV/CAC was 0.9)
- Return on investment continues to grow over time, with year four LTV more than five times acquisition cost
Investing in a disciplined, data-driven way to acquire and retain customers; working with brand partners to scale brand funded marketing
Content engagement strategy and loyalty-focused strategic initiatives (Loyalty program and Mobile app) supporting engagement, retention and LTV growth
- Investing in "owned" channels with media and content that supports discovery and fulfilment, driving higher customer loyalty and growth in returning customers
- Reduces reliance on competitive paid channels, which are showing price volatility at present
CY18 - CY21 AVERAGE LTV/CAC1 BY YEAR
5.5x
3.8x
2.4x
1.3x
Y1 | Y2 | Y3 | Y4 |
1.
LTV (Lifetime Value) is calculated as the cumulative contribution margin (where contribution margin is gross profit margin less bank and merchant fees) generated from the relevant customer | ||
cohort, net of customer churn for that cohort . CAC (Customer Acquisition Cost) represents the total advertising expense (this is a fully loaded advertising cost, including cost related to acquiring | ||
new and retargeting returning customers, and also includes brand awareness above the line (ATL) spend) over a period of time per new customer acquired during that period). | Results Presentation | H1 FY22 | 5 |
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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.