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Farfetch Announces Second Quarter 2021 Results

August 19, 2021
  • Gross Merchandise Value (“GMV”) exceeds $1 billion, up 40% year-over-year and more than double compared to Q2 2019
  • Full-price sales growth of 90% drives Q2 2021 Digital Platform GMV increases of 40% year-over-year and 89% compared to Q2 2019
  • Q2 2021 Revenue increases 43% year-over-year to $523 million
  • Q2 2021 Gross Profit Margin improves by 30 bps year-over-year to 44%; Digital Platform Order Contribution Margin declines 90 bps year-over-year to 34%
  • Q2 2021 Profit After Tax of $88 million includes $246 million non-cash benefit arising from impact of lower share price on items held at fair value and remeasurements
  • Q2 2021 Adjusted EBITDA improves to $(21) million, from $(25) million in Q2 2020

LONDON--(BUSINESS WIRE)-- Farfetch Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today reported financial results for the second quarter ended June 30, 2021.

José Neves, Farfetch Founder, Chairman and CEO said: “I am truly impressed with the resilience of the luxury industry, which after an unprecedented period, is already back to growth with even stronger fundamentals. I am very proud that Farfetch was a close partner for both retailers and brands in this time, delivering strong growth to our sellers, and as a result doubling our GMV in the last 24 months.

“Our strong performance in second quarter 2021 reflects powerful flywheel dynamics in play at full force. Our stronger Farfetch brand is drawing marketing partnerships and even greater supply from brands to drive a 90% increase in full-price sales year-over-year from the highly valuable luxury audience we have attracted. All this boosts our progress towards becoming the global platform for luxury, as we continue to advance our initiatives in China, Farfetch Platform Solutions, Farfetch Connected Retail and our Luxury New Retail vision.”

Elliot Jordan, CFO of Farfetch, said: “I am very pleased with Farfetch’s results in second quarter 2021. We executed across the platform to deliver high quality top line growth, significantly increasing our full-price mix and generating record media solutions revenue. This in combination with further efficiencies in demand generation and operating costs resulted in strong Adjusted EBITDA margin performance, which positions us well to achieve our full-year Adjusted EBITDA profitability target through the continued sustainable growth of our platform.”

Consolidated Financial Summary and Key Operating Metrics (in $ thousands, except per share data, Average Order Value, Active Consumers or otherwise stated):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Consolidated Group:

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

721,310

 

 

$

1,007,811

 

Revenue

 

 

364,680

 

 

 

523,313

 

Adjusted Revenue

 

 

307,877

 

 

 

439,488

 

Gross profit

 

 

159,375

 

 

 

230,082

 

Gross profit margin

 

43.7%

 

 

44.0%

 

(Loss) / Profit after tax

 

$

(435,899)

 

 

$

87,925

 

Adjusted EBITDA

 

 

(25,175)

 

 

 

(20,579)

 

Adjusted EBITDA Margin

 

(8.2)%

 

 

(4.7)%

 

Basic (Loss) / Earnings per share (“EPS”)

 

$

(1.29)

 

 

$

0.24

 

Diluted EPS

 

 

(1.29)

 

 

 

(0.31)

 

Adjusted EPS

 

 

(0.20)

 

 

 

(0.17)

 

Digital Platform:

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

651,036

 

 

$

913,350

 

Digital Platform Services Revenue

 

 

237,603

 

 

 

349,131

 

Digital Platform Gross Profit

 

 

130,579

 

 

 

184,999

 

Digital Platform Gross Profit Margin

 

55.0%

 

 

53.0%

 

Digital Platform Order Contribution

 

$

83,201

 

 

$

119,111

 

Digital Platform Order Contribution Margin

 

35.0%

 

 

34.1%

 

Active Consumers

 

 

2,524

 

 

 

3,394

 

Average Order Value (“AOV”) - Marketplace

 

$

493

 

 

$

599

 

AOV - Stadium Goods

 

 

304

 

 

 

335

 

Brand Platform:

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

66,348

 

 

$

72,722

 

Brand Platform Revenue

 

 

66,348

 

 

 

72,722

 

Brand Platform Gross Profit

 

 

27,729

 

 

 

34,252

 

Brand Platform Gross Profit Margin

 

41.8%

 

 

47.1%

 

See “Notes and Disclosures” on page 19 for further explanations. See “Non-IFRS and Other Financial and Operating Metrics” on page 19 for reconciliations of non-IFRS measures to IFRS measures.

Recent Business Highlights

Digital Platform

  • Strong Digital Platform GMV growth of 40% year-over-year, driven by 90% growth of full-price sales and increased mix of demand from existing customers on the Farfetch Marketplace
  • Third-party transactions, including a record level of media solutions revenue, generated 83% of Digital Platform GMV at a take rate of 30.3% in second quarter 2021
  • First-party transactions grew 64% year-over-year, supported by First-Party Original which generated 4% of Digital Platform GMV in second quarter 2021
  • The Farfetch Marketplace continued to offer customers an exceptionally broad selection of luxury fashion with more than 390,000 SKUs from nearly 1,400 sellers, as supply from both multi-brand retailers and e-concession partners continued to increase
    • Top 10 third-party e-concession partners expanded available stock units more than 70% year-over-year and saw a more than doubling of sales over the same period
  • Partnered with brands to showcase their products and collections to our nearly 3.4 million active consumers on the Marketplace, with campaigns featuring:
    • Exclusive immersive 3D shopping experience for the launch of Burberry’s ‘Olympia’ bag
    • Launch of Chopard’s ‘Happy Sport’ collection with interactive virtual try-on capabilities
    • Second installment of year-long ‘Imagined Futures’ partnership with Gucci titled ‘Fluid Futures’, launching Gucci’s 25 Eschatology collection
  • Continued to roll-out and enhance platform capabilities available to Farfetch Platform Solutions clients, such as live chat, improved personalization, and re-purchase capabilities for pre-owned products, among others
  • In August 2021, initiated Farfetch Connected Retail technology pilot with select retail partners, which will enable omni-channel, personalized experiences for Farfetch consumers and drive footfall to retailers' physical locations
  • Launched kidswear on Brownsfashion.com in July 2021, offering collections from luxury brands including Balmain, Fendi, and Givenchy along with exclusive capsules from newer to kidswear brands such as Off-White and Palm Angels

New Guards

  • Increased ownership position of Palm Angels operating company to 100%, and interest in the Palm Angels trademark to 60% in July 2021, bringing New Guards majority ownership of its largest growth contributor
  • New Guards’ portfolio continued to create culturally relevant collections, focusing on full-price sales and direct-to-consumer channels, which contributed to Off-White and Palm Angels’ positions within the top 10 brands on the Farfetch Marketplace:
    • Off-White released first kidswear collection, launched ‘Lemonade’ Off-White x Air Force 1 sneakers, collaborated with Pioneer for the release of a limited-edition capsule titled ‘Sound Engineering’ and presented its Fall-Winter 2021 collection in Paris in a show titled ‘Laboratory of Fun’
    • Palm Angelslaunched first kidswear collection, as well as capsule collections with Missoni and Vilebrequin
    • Ambushreleased the third drop of its sneaker collaboration with Nike and partnered with Porter & Stanley for a capsule collection

Environmental, Social and Governance (“ESG”)

  • Partnered with thredUP to expand Farfetch Donate to consumers in the United States
  • Farfetch Marketplace spotlighted Positively Farfetch offerings throughout June, highlighting the different services available to our consumers such as Second Life, Farfetch Donate and Farfetch Fix
  • Furthered alignment with shareholder interests through long-term equity award granted to Company's Founder, Chairman and CEO, which provides compensation solely in the form of share price performance-based restricted share units

Second Quarter 2021 Results Summary

Gross Merchandise Value (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Digital Platform GMV

 

$

651,036

 

 

$

913,350

 

Brand Platform GMV

 

 

66,348

 

 

 

72,722

 

In-Store GMV

 

 

3,926

 

 

 

21,739

 

GMV

 

$

721,310

 

 

$

1,007,811

 

GMV increased by $286.5 million from $721.3 million in second quarter 2020 to $1,007.8 million in second quarter 2021, representing year-over-year growth of 39.7%. Digital Platform GMV increased by $262.3 million from $651.0 million in second quarter 2020 to $913.4 million in second quarter 2021, representing year-over-year growth of 40.3%. Excluding the impact of changes in foreign exchange rates, Digital Platform GMV would have increased by 33.3%.

The increase in GMV primarily reflects the growth in Digital Platform GMV driven by order growth and an increase in Marketplace AOV from $493 to $599. This increase in AOV is due to a higher full-price mix and higher average selling price as customers shifted back to higher-priced category items. During second quarter 2021, we also saw year-over-year growth in transactions through websites managed by Farfetch Platform Solutions, primarily driven by strong growth within first-party businesses, including Off---White.com, and BrownsFashion.com.

Revenue (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Digital Platform Services third-party revenue

 

$

151,861

 

 

$

208,597

 

Digital Platform Services first-party revenue

 

 

85,742

 

 

 

140,534

 

Digital Platform Services Revenue

 

 

237,603

 

 

 

349,131

 

Digital Platform Fulfilment Revenue

 

 

56,803

 

 

 

83,825

 

Brand Platform Revenue

 

 

66,348

 

 

 

72,722

 

In-Store Revenue

 

 

3,926

 

 

 

17,635

 

Revenue

 

$

364,680

 

 

$

523,313

 

Revenue increased by $158.6 million year-over-year from $364.7 million in second quarter 2020 to $523.3 million in second quarter 2021, representing growth of 43.5%. The increase was primarily driven by 47.1% growth in Digital Platform Revenue to $433.0 million with overall growth impacted by comparatively lower Brand Platform Revenue year-over-year growth of 9.6%.

The increase in Digital Platform Services Revenue of 46.9% was driven by 40.3% overall growth in Digital Platform GMV with Digital Platform Services first-party GMV, which is comprised of our sales of owned-inventory including First-Party Original, and included in Digital Platform Services Revenue at 100% of the GMV, increasing 63.9% year-over-year to $140.5 million. Digital Platform Services first-party revenue growth was primarily driven by our continued strategic focus on growing New Guards direct-to-consumer sales on the Marketplace and the respective websites of the New Guards portfolio brands, as well as strong full-price performance through Browns’ sales on the marketplace and Brownsfashion.com.

Digital Platform Fulfilment Revenue represents the pass-through of delivery and duties charges incurred by our global logistics solutions, net of any Farfetch-funded consumer promotions and incentives. Whilst Digital Platform Fulfilment Revenue would be expected to grow as Digital Platform GMV and order volumes increase, in second quarter 2021, Digital Platform Fulfilment Revenue increased 47.6% year-over-year, above Digital Platform GMV growth of 40.3%. This was driven by increased pass-through costs resulting from higher duties due to a shift in regional mix of sales and impacts of Brexit. As we are transitioning our inventory to our Netherlands warehouse, we could continue to see this impact in the interim.

In-Store Revenue increased by 349.2% to $17.6 million and was primarily driven by revenue from additional New Guards portfolio brand stores opened within the last twelve months, as well as strong year-over-year growth due to temporary store closures in second quarter 2020, related to COVID-19 restrictions.

Cost of Revenue (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Digital Platform Services third-party cost of revenue

 

$

46,699

 

 

$

69,700

 

Digital Platform Services first-party cost of revenue

 

 

60,325

 

 

 

94,432

 

Digital Platform Services cost of revenue

 

 

107,024

 

 

 

164,132

 

Digital Platform Fulfilment cost of revenue

 

 

56,803

 

 

 

83,825

 

Brand Platform cost of revenue

 

 

38,619

 

 

 

38,470

 

In-Store cost of goods sold

 

 

2,859

 

 

 

6,804

 

Cost of revenue

 

$

205,305

 

 

$

293,231

 

Cost of revenue increased by $87.9 million, or 42.8%, year-over-year from $205.3 million in second quarter 2020 to $293.2 million in second quarter 2021 at a slightly lower rate than Revenue growth. The increase was driven by growth in Digital Platform cost of revenue and In-Store cost of goods sold.

Digital Platform Services cost of revenue increased at a higher rate than Digital Platform Services Revenue primarily due to an increase in subsidized shipping, for the benefit of customers, a shift in country mix to higher shipping cost regions and the recognition of European Digital Services Tax which was previously included within Selling, general and administrative expenses through second quarter 2020.

As we continue to rely on third parties to provide shipping services, changes in their operations due to the ongoing impacts of COVID-19, as well as supply and demand for delivery services as online adoption accelerates across industries, may impact our service levels or cost of revenue.

Gross profit (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Digital Platform third-party gross profit

 

$

105,162

 

 

$

138,897

 

Digital Platform first-party gross profit

 

 

25,417

 

 

 

46,102

 

Digital Platform Gross Profit

 

 

130,579

 

 

 

184,999

 

Brand Platform Gross Profit

 

 

27,729

 

 

 

34,252

 

In-Store Gross Profit

 

 

1,067

 

 

 

10,831

 

Gross profit

 

$

159,375

 

 

$

230,082

 

Gross profit increased by $70.7 million, or 44.4%, year-over-year, slightly above Revenue growth, to $230.1 million in second quarter 2021. Gross profit margin increased 30 bps year-over-year to 44.0% from 43.7%, due to Digital Platform Services first-party and In-Store growth.

Digital Platform Gross Profit Margin decreased 200 bps to 53.0% in second quarter 2021, from 55.0% in second quarter 2020 primarily driven by Digital Platform Services cost of revenue increasing at a higher rate than Digital Platform Services Revenue. This decrease reflects a decrease in Digital Platform third-party gross profit margin due to an increase in subsidized shipping and a shift in country mix to higher shipping cost regions, which was partially offset by an increase in Digital Platform first-party gross profit margin driven by an increase in the mix of full-price sales, and more sales in higher profit margin products from New Guards brands.

Brand Platform Gross Profit Margin increased 530 bps year-over-year to 47.1% primarily driven by optimizing cost improvements as well as consultancy income, with minimal related cost of revenue.

Selling, general and administrative expenses by type (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Demand generation expense

 

$

47,378

 

 

$

65,888

 

Technology expense

 

 

29,284

 

 

 

34,545

 

Share-based payments

 

 

61,915

 

 

 

60,173

 

Depreciation and amortization

 

 

51,758

 

 

 

62,720

 

General and administrative

 

 

107,888

 

 

 

150,229

 

Other items

 

 

1,302

 

 

 

6,828

 

Selling, general and administrative expense

 

$

299,525

 

 

$

380,383

 

Demand generation expense increased $18.5 million year-over-year to $65.9 million in second quarter 2021. As a percentage of Digital Platform Service Revenue, second quarter 2021 demand generation expense decreased from 19.9% to 18.9%. The improvement reflects our underlying strategy to gain efficiencies in demand generation spend by leveraging data insights to drive more targeted digital marketing, and visits from lower cost channels and from existing customers.

Technology expense primarily relates to maintenance and operations of our platform features and services, as well as software, hosting and infrastructure expenses, which includes three globally distributed data centers, including one in Shanghai, which support the processing of our growing base of transactions. Technology expense increased by $5.3 million, or 18.0%, in second quarter 2021 year-over-year. The increase was mainly driven by an increase in technology staff headcount as well as software and hosting costs to support growth.

Second quarter 2021 technology expense continued to scale as a percentage of Adjusted Revenue, decreasing from 9.5% to 7.9% year-over-year as Adjusted Revenue growth outpaced growth of our underlying technology costs.

Depreciation and amortization expense increased by $11.0 million, or 21.2%, year-over-year from $51.8 million in second quarter 2020 to $62.7 million in second quarter 2021. Amortization expense increased principally due to increased technology investments, where qualifying technology development costs are capitalized and amortized over their useful lives. Depreciation expense primarily increased as a result of new stores and office leases entered into within the last twelve months.

Share-based payments decreased by $1.7 million or (2.8%) year-over-year in second quarter 2021 due to the reduced cost of cash-settled awards and employment related taxes, primarily as a result of the share price movement and quarterly revaluation, partially offset by additional grants of equity-settled awards, including the performance-based restricted share unit (“PSU”) award granted to the Company’s Founder, Chairman and CEO, José Neves. Refer to “Notes and Disclosure” on Page 19 for more details.

General and administrative expense increased by $42.3 million, or 39.2%, year-over-year in second quarter 2021, primarily due to an increase in costs related to our platform, across a number of areas to support longer-term strategic initiatives including brand campaign investments and an increase in non-technology headcount. General and administrative expense decreased as a percentage of Adjusted Revenue to 34.2% compared to 35.0% in second quarter 2020 as we continued to leverage our operations base to efficiently grow Adjusted Revenue.

Other items of $6.8 million in second quarter 2021 primarily reflect transaction-related legal and advisory expenses.

(Losses)/gains on items held at fair value and remeasurements (in thousands):

 

 

Three months ended June 30,

 

 

 

2020

 

 

2021

 

Remeasurement (losses)/gains on put and call option liabilities

 

$

(65,771)

 

 

$

38,864

 

Fair value (losses)/gains on embedded derivative liabilities

 

 

(212,851)

 

 

 

206,874

 

(Losses)/gains on items held at fair value and remeasurements

 

$

(278,622)

 

 

$

245,738

 

The $206.9 million fair value gains on embedded derivative liabilities in second quarter 2021 was primarily driven by the decrease in our share price during the period. The fair value gains on embedded derivative liabilities in second quarter 2021 is comprised of the following revaluation gains on our convertible senior notes: (i) $88.4 million fair value gain related to $250 million 5.00% notes due 2025 (the “February 2020 Notes”); (ii) $69.0 million fair value gain related to $400 million 3.75% notes due 2027; and (iii) $49.4 million fair value gain related to $600 million 0.00% notes due 2030. These notes have provided strong liquidity to fund ongoing capital needs and invest in various growth initiatives. The $212.9 million fair value losses on embedded derivative liabilities in second quarter 2020 was primarily driven by the increase in our share price during the period. The fair value losses on embedded derivatives in second quarter 2020 comprised a $135.1 million fair value revaluation loss related to $250 million 5.00% convertible senior notes issued in February 2020, and a $77.8 million fair value revaluation loss related to $400 million 3.75% convertible senior notes issued in April 2020.

The remeasurement gains on put and call option liabilities in second quarter 2021 related to a $38.9 million remeasurement gain in connection with Chalhoub Group’s put option over non-controlling interest in Farfetch International Limited, compared to a $65.8 million remeasurement losses in second quarter 2020.

Profit After Tax

Profit after tax increased by $523.8 million year-over-year from a loss of $435.9 million to a profit of $87.9 million in second quarter 2021. The increase was primarily driven by gains on items held at fair value and remeasurements, which increased $524.4 million year-over-year.

EPS and Diluted EPS

Second quarter 2021 basic EPS was $0.24 and diluted EPS was $(0.31). Diluted EPS assumes a full conversion of the convertible notes into shares, and that the settlement of the Chalhoub liability held on the statement of financial position at June 30, 2021 would have been in shares, with both transactions occurring at the beginning of 2021. As such, diluted EPS excludes the gains on items held at fair value and interest costs related to the Chalhoub liability and the convertible notes, net of any applicable tax, while including all outstanding equity instruments that have a dilutive impact.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA improved by $4.6 million, to $(20.6) million in second quarter 2021 as a result of our growth and scaling of the fixed cost base. Adjusted EBITDA Margin improved from (8.2)% to (4.7)% year-over-year, primarily reflecting declines in both general and administrative expenses and in technology expense as percentage of Adjusted Revenue.

Conversion of 5.00% Convertible Senior Notes due 2025 (“5.00% Notes”)

In May 2021, Dragoneer elected to convert $39.1 million aggregate principal amount of 5.00% Notes. We elected to physically settle the conversion of the notes in shares, resulting in the issuance of 3.2 million Class A ordinary shares. Refer to “Post Balance Sheet Events” below on Page 9 for disclosure of additional conversions of 5.00% Notes.

Liquidity

At June 30, 2021, cash and cash equivalents were $1,048.7 million, a decrease of $524.7 million compared to $1,573.4 million at December 31, 2020. The decrease in cash and cash equivalents was primarily related to funding working capital and a $100 million short-term investment in variable money market instruments.

Post Balance Sheet Events

On July 20, 2021, New Guards completed the acquisition of 60% of the outstanding equity interests of Palm Angels S.r.l, the owner of the Palm Angels trademark. Palm Angels is a luxury fashion label based in Italy that has experienced growth in revenue and profitability since the acquisition of New Guards by the Company in 2019. In addition, New Guards agreed to a put and call option with the remaining shareholders of Palm Angels S.r.l, which would require New Guards to purchase the remaining 40% of outstanding equity interests of Palm Angels S.r.l in 2026, to the extent either the put or call option was exercised. In conjunction with this transaction, New Guards also increased total ownership of Palm Angels’ operating company to 100% through the acquisition of the remaining 31% of the outstanding equity interests of Venice S.r.l.

On August 2, 2021, the Company formally signed an agreement to enter into a global strategic partnership with Alibaba Group and Richemont, which was initially announced on November 5, 2020. The partnership aims to provide luxury fashion brands with enhanced access to the China market as well as accelerate the digitization of the global luxury industry. As part of the global partnership, Alibaba and Richemont invested $500 million ($250 million each) in Farfetch China, taking a combined 25% stake (12.5% each) in Farfetch China Holdings Ltd and its subsidiaries, the group through which Farfetch’s marketplace operations in the China region are conducted.

On August 6, 2021, Dragoneer elected to convert its remaining $85.9 million aggregate principal amount of 5.00% Notes. We elected to physically settle this conversion in shares, resulting in the issuance of 7 million Class A ordinary shares on August 10, 2021.

Outlook

The following forward-looking statements reflect Farfetch’s expectations as of August 19, 2021.

For Full Year 2021:

  • Digital Platform GMV growth of 35% to 40% year-over-year
  • Adjusted EBITDA margin of 1% to 2%

For Third Quarter 2021:

  • Digital Platform GMV growth of approximately 30% year-over-year
  • Brand Platform GMV growth of approximately 45% year-over-year
  • Adjusted EBITDA of approximately $10 million

Uncertainties resulting from the COVID-19 pandemic and the evolving nature of the situation could have material impacts on our future performance and projections. Factors involving COVID-19 that could potentially impact our future performance include, among others:

  • disruptions to our operations, fulfilment network, and shipments
  • weakened consumer sentiment and discretionary income arising from various macro-economic conditions
  • increased costs to support our operations
  • slowing e-commerce consumer activity as vaccinations gain acceptance and populations resume to pre-pandemic activities and lifestyles

Conference Call Information

Farfetch Limited (the “Company” or “Farfetch”) will host a conference call today, August 19, 2021 at 4:30 p.m. Eastern Time to discuss the Company’s results as well as expectations about Farfetch’s business. Listeners may access the live conference call via audio webcast at http://farfetchinvestors.com, where listeners can also access Farfetch’s earnings press release and slide presentation. Following the call, a replay of the webcast will be available at the same website for at least 30 days.

Unaudited interim condensed consolidated statements of operations

 

 

 

 

 

for the three months ended June 30

 

 

 

 

 

(in $ thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

Revenue

 

 

364,680

 

 

 

523,313

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(205,305)

 

 

 

(293,231)

 

Gross profit

 

 

159,375

 

 

 

230,082

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(299,525)

 

 

 

(380,383)

 

Operating loss

 

 

(140,150)

 

 

 

(150,301)

 

 

 

 

 

 

 

 

 

 

(Losses)/gains on items held at fair value and remeasurements

 

 

(278,622)

 

 

 

245,738

 

Share of results of associates

 

 

(494)

 

 

 

18

 

Finance income

 

 

2,360

 

 

 

9,906

 

Finance costs

 

 

(23,111)

 

 

 

(20,631)

 

(Loss)/profit before tax

 

 

(440,017)

 

 

 

84,730

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

4,118

 

 

 

3,195

 

(Loss)/profit after tax

 

 

(435,899)

 

 

 

87,925

 

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(439,639)

 

 

 

86,647

 

Non-controlling interests

 

 

3,740

 

 

 

1,278

 

 

 

 

(435,899)

 

 

 

87,925

 

 

 

 

 

 

 

 

 

 

(Loss)/earnings per share attributable to equity holders of the parent

 

 

 

 

 

 

 

 

Basic

 

 

(1.29)

 

 

 

0.24

 

Diluted

 

 

(1.29)

 

 

 

(0.31)

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

341,223,981

 

 

 

358,188,280

 

Diluted

 

 

341,223,981

 

 

 

455,666,358

 

Unaudited interim condensed consolidated statements of comprehensive (loss) / income

 

for the three months ended June 30

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

(Loss)/profit after tax

 

 

(435,899)

 

 

 

87,925

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to the consolidated

statement of operations or financial position (net of tax):

 

 

 

 

 

 

 

 

Exchange gain on translation of foreign operations

 

 

2,701

 

 

 

1,674

 

Loss on cash flow hedges recognized in equity

 

 

(3,893)

 

 

 

(7,970)

 

Loss/(gain) on cash flow hedges reclassified and reported in net (loss)/profit

 

 

10,068

 

 

 

(4,997)

 

Loss on cash flow hedges recognized in equity - time value

 

 

-

 

 

 

(654)

 

Other comprehensive income/(loss) for the period, net of tax

 

 

8,876

 

 

 

(11,947)

 

Total comprehensive (loss)/income for the period, net of tax

 

 

(427,023)

 

 

 

75,978

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(430,763)

 

 

 

73,373

 

Non-controlling interests

 

 

3,740

 

 

 

2,605

 

 

 

 

(427,023)

 

 

 

75,978

 

Unaudited interim condensed consolidated statements of operations

 

 

 

 

 

for the six months ended June 30

 

 

 

 

 

(in $ thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

Revenue

 

 

696,117

 

 

 

1,008,392

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(383,366)

 

 

 

(557,441)

 

Gross profit

 

 

312,751

 

 

 

450,951

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(558,328)

 

 

 

(719,677)

 

Impairment losses on tangible assets

 

 

(2,292)

 

 

 

-

 

Operating loss

 

 

(247,869)

 

 

 

(268,726)

 

 

 

 

 

 

 

 

 

 

(Losses)/gains on items held at fair value and remeasurements

 

 

(213,188)

 

 

 

905,608

 

Share of results of associates

 

 

(524)

 

 

 

(51)

 

Finance income

 

 

3,601

 

 

 

10,924

 

Finance costs

 

 

(58,708)

 

 

 

(46,310)

 

(Loss)/profit before tax

 

 

(516,688)

 

 

 

601,445

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

1,612

 

 

 

3,147

 

(Loss)/profit after tax

 

 

(515,076)

 

 

 

604,592

 

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(521,706)

 

 

 

597,882

 

Non-controlling interests

 

 

6,630

 

 

 

6,710

 

 

 

 

(515,076)

 

 

 

604,592

 

 

 

 

 

 

 

 

 

 

(Loss)/earnings per share attributable to owners of the company

 

 

 

 

 

 

 

 

Basic

 

 

(1.53)

 

 

 

1.68

 

Diluted

 

 

(1.53)

 

 

 

(0.59)

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

340,747,663

 

 

 

356,634,987

 

Diluted

 

 

340,747,663

 

 

 

455,288,968

 

Unaudited interim condensed consolidated statements of comprehensive (loss) / income

 

for the six months ended June 30

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

(Loss)/profit after tax

 

 

(515,076)

 

 

 

604,592

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to the consolidated

statement of operations or financial position (net of tax):

 

 

 

 

 

 

 

 

Exchange gain/(loss) on translation of foreign operations

 

 

15,597

 

 

 

(5,605)

 

Loss on cash flow hedges recognized in equity

 

 

(21,095)

 

 

 

(1,697)

 

Loss/(gain) on cash flow hedges reclassified and reported in net (loss)/profit

 

 

13,227

 

 

 

(7,689)

 

Loss on cash flow hedges recognized in equity - time value

 

 

-

 

 

 

(2,552)

 

Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax):

 

 

 

 

 

 

 

 

Remeasurement loss on severance plan

 

 

(3)

 

 

 

-

 

Other comprehensive income/(loss) for the year, net of tax

 

 

7,726

 

 

 

(17,543)

 

Total comprehensive (loss)/income for the year, net of tax

 

 

(507,350)

 

 

 

587,049

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(513,980)

 

 

 

581,479

 

Non-controlling interests

 

 

6,630

 

 

 

5,570

 

 

 

 

(507,350)

 

 

 

587,049

 

 

 

 

 

 

 

 

 

 

Unaudited interim condensed consolidated statements of financial position

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

December 31,

2020

 

 

June 30,

2021

 

Non-current assets

 

 

 

 

 

 

 

 

Other receivables

 

 

58,081

 

 

 

46,342

 

Deferred tax assets

 

 

13,556

 

 

 

15,263

 

Intangible assets, net

 

 

1,279,328

 

 

 

1,244,758

 

Property, plant and equipment, net

 

 

89,082

 

 

 

92,215

 

Right-of-use assets

 

 

179,227

 

 

 

193,116

 

Investments

 

 

8,278

 

 

 

17,318

 

Investments in associates

 

 

2,319

 

 

 

70

 

Total non-current assets

 

 

1,629,871

 

 

 

1,609,082

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

145,309

 

 

 

206,719

 

Trade and other receivables

 

 

209,946

 

 

 

318,009

 

Current tax assets

 

 

2,082

 

 

 

2,468

 

Short term investments

 

 

-

 

 

 

100,075

 

Derivative financial assets

 

 

30,242

 

 

 

19,163

 

Cash and cash equivalents

 

 

1,573,421

 

 

 

1,048,748

 

Total current assets

 

 

1,961,000

 

 

 

1,695,182

 

Total assets

 

 

3,590,871

 

 

 

3,304,264

 

 

 

 

 

 

 

 

 

 

Liabilities and deficit

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Provisions

 

 

129,113

 

 

 

103,391

 

Deferred tax liabilities

 

 

182,463

 

 

 

168,901

 

Lease liabilities

 

 

165,275

 

 

 

182,191

 

Employee benefit obligations

 

 

26,116

 

 

 

21,047

 

Derivative financial liabilities

 

 

2,996,220

 

 

 

2,068,388

 

Borrowings (1)

 

 

617,789

 

 

 

612,890

 

Put and call option liabilities

 

 

348,937

 

 

 

276,773

 

Other financial liabilities

 

 

4,853

 

 

 

4,697

 

Total non-current liabilities

 

 

4,470,766

 

 

 

3,438,278

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 

666,144

 

 

 

614,194

 

Provisions

 

 

27,146

 

 

 

23,391

 

Current tax liability

 

 

3,098

 

 

 

4,039

 

Lease liabilities

 

 

26,128

 

 

 

28,375

 

Employee benefit obligations

 

 

38,286

 

 

 

13,331

 

Derivative financial liabilities

 

 

17,427

 

 

 

19,340

 

Put and call option liabilities

 

 

-

 

 

 

9,467

 

Other financial liabilities

 

 

518

 

 

 

537

 

Total current liabilities

 

 

778,747

 

 

 

712,674

 

Total liabilities

 

 

5,249,513

 

 

 

4,150,952

 

Deficit

 

 

 

 

 

 

 

 

Share capital

 

 

14,168

 

 

 

14,456

 

Share premium

 

 

927,931

 

 

 

1,046,723

 

Merger reserve

 

 

783,529

 

 

 

783,529

 

Foreign exchange reserve

 

 

(7,271)

 

 

 

(11,736)

 

Other reserves

 

 

447,753

 

 

 

489,103

 

Accumulated losses (1)

 

 

(3,993,308)

 

 

 

(3,329,133)

 

Deficit attributable to owners of the parent

 

 

(1,827,198)

 

 

 

(1,007,058)

 

Non-controlling interests

 

 

168,556

 

 

 

160,370

 

Total deficit

 

 

(1,658,642)

 

 

 

(846,688)

 

Total deficit and liabilities

 

 

3,590,871

 

 

 

3,304,264

 

(1) Refer to “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 19

Unaudited interim condensed consolidated statements of cash flows

 

 

 

 

 

for the six months ended June 30

 

 

 

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

2020

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Operating loss

 

 

(247,869)

 

 

 

(268,726)

 

Adjustments to reconcile operating loss to net cash outflow from operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

18,243

 

 

 

23,640

 

Amortization

 

 

84,838

 

 

 

93,072

 

Non-cash employee benefits expense

 

 

76,175

 

 

 

99,034

 

Impairment losses on tangible assets

 

 

2,292

 

 

 

-

 

Impairment of investments

 

 

169

 

 

 

67

 

Change in working capital

 

 

 

 

 

 

 

 

Increase in receivables

 

 

(28,184)

 

 

 

(106,026)

 

Decrease/(increase) in inventories

 

 

11,925

 

 

 

(57,552)

 

Increase/(decrease) in payables

 

 

39,730

 

 

 

(71,347)

 

Change in other assets and liabilities

 

 

 

 

 

 

 

 

Increase in non-current receivables

 

 

(517)

 

 

 

(1,562)

 

Increase/(decrease) in other liabilities

 

 

6,724

 

 

 

(30,146)

 

Increase/(decrease) in provisions

 

 

14,833

 

 

 

(14,760)

 

(Decrease)/increase in derivative financial instruments

 

 

(14,581)

 

 

 

6,846

 

Income taxes paid

 

 

(16,016)

 

 

 

(12,733)

 

Net cash outflow from operating activities

 

 

(52,238)

 

 

 

(340,193)

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Acquisition of subsidiary, net of cash acquired

 

 

(12,016)

 

 

 

-

 

Payments for property, plant and equipment

 

 

(9,106)

 

 

 

(11,626)

 

Payments for intangible assets

 

 

(43,102)

 

 

 

(52,767)

 

Payments for investments

 

 

(2,872)

 

 

 

(9,107)

 

Increase in short-term investments

 

 

-

 

 

 

(100,000)

 

Interest received

 

 

2,176

 

 

 

1,804

 

Dividends received from associate

 

 

58

 

 

 

-

 

Net cash outflow from investing activities

 

 

(64,862)

 

 

 

(171,696)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repayment of the principal elements of lease payments

 

 

(7,926)

 

 

 

(12,475)

 

Interest paid and fees paid on loans

 

 

(17,288)

 

 

 

(17,679)

 

Dividends paid to holders of non-controlling interests

 

 

(20,515)

 

 

 

(4,275)

 

Proceeds from exercise of employee share-based awards

 

 

4,472

 

 

 

24,403

 

Proceeds from borrowings, net of issue costs

 

 

641,861

 

 

 

-

 

Net cash inflow/(outflow) from financing activities

 

 

600,604

 

 

 

(10,026)

 

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 

483,504

 

 

 

(521,915)

 

Cash and cash equivalents at the beginning of the period

 

 

322,429

 

 

 

1,573,421

 

Effects of exchange rate changes on cash and cash equivalents

 

 

(3,820)

 

 

 

(2,758)

 

Cash and cash equivalents at end of period

 

 

802,113

 

 

 

1,048,748

 

Unaudited interim condensed consolidated statements of changes in equity/(deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

 

 

Share

premium

 

 

Merger

reserve

 

 

Foreign

exchange reserve

 

 

Other

reserves

 

 

Accumulated

losses

 

 

Equity/ (deficit)

attributable to owners of the parent

 

 

Non- controlling

interests

 

 

Total

equity/ (deficit)

 

 

Balance at January 1, 2020

 

 

13,584

 

 

 

878,007

 

 

 

783,529

 

 

 

(30,842)

 

 

 

349,463

 

 

 

(826,135)

 

 

 

1,167,606

 

 

 

170,226

 

 

 

1,337,832

 

 

Changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/income after tax for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(521,706)

 

 

 

(521,706)

 

 

 

6,630

 

 

 

(515,076)

 

 

Other comprehensive income/(loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,597

 

 

 

(7,871)

 

 

 

-

 

 

 

7,726

 

 

 

-

 

 

 

7,726

 

 

Total comprehensive income/(loss) for the period, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,597

 

 

 

(7,871)

 

 

 

(521,706)

 

 

 

(513,980)

 

 

 

6,630

 

 

 

(507,350)

 

 

Gain on cashflow hedge transferred to inventory

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(615)

 

 

 

-

 

 

 

(615)

 

 

 

-

 

 

 

(615)

 

 

Issue of share capital, net of transaction costs

 

 

79

 

 

 

-

 

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

79

 

 

 

-

 

 

 

79

 

 

Share-based payment – equity settled

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

29,924

 

 

 

35,236

 

 

 

65,160

 

 

 

-

 

 

 

65,160

 

 

Share-based payment – reverse vesting shares

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

13,046

 

 

-

 

 

 

13,046

 

 

 

-

 

 

 

13,046

 

 

Dividends paid to non-controlling interests

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

(20,515)

 

 

 

(20,515)

 

 

Balance at June 30, 2020

 

 

13,663

 

 

 

878,007

 

 

 

783,529

 

 

 

(15,245)

 

 

 

383,947

 

 

 

(1,312,605)

 

 

 

731,296

 

 

 

156,341

 

 

 

887,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2021

 

 

14,168

 

 

 

927,931

 

 

 

783,529

 

 

 

(7,271)

 

 

 

447,753

 

 

 

(3,993,308)

 

 

 

(1,827,198)

 

 

 

168,556

 

 

 

(1,658,642)

 

 

Changes in deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income after tax for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

597,882

 

 

 

597,882

 

 

 

6,710

 

 

 

604,592

 

 

Other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,465)

 

 

 

(11,938)

 

 

 

-

 

 

 

(16,403)

 

 

 

(1,140)

 

 

 

(17,543)

 

 

Total comprehensive (loss)/income for the period, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,465)

 

 

 

(11,938)

 

 

 

597,882

 

 

 

581,479

 

 

 

5,570

 

 

 

587,049

 

 

Loss on cashflow hedge transferred to inventory

 

-

 

 

-

 

 

-

 

 

-

 

 

 

2,023

 

 

-

 

 

 

2,023

 

 

-

 

 

 

2,023

 

 

Issue of share capital, net of transaction costs

 

 

160

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

160

 

 

-

 

 

 

160

 

 

Early conversion of convertible loan notes

 

 

128

 

 

 

118,792

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

118,920

 

 

-

 

 

 

118,920

 

 

Share-based payment – equity settled

 

-

 

 

-

 

 

-

 

 

-

 

 

 

43,953

 

 

 

66,293

 

 

 

110,246

 

 

-

 

 

 

110,246

 

 

Share-based payment – reverse vesting shares

 

-

 

 

-

 

 

-

 

 

-

 

 

 

13,046

 

 

-

 

 

 

13,046

 

 

-

 

 

 

13,046

 

 

Acquisition of non-controlling interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

2,434

 

 

 

2,434

 

 

Dividends paid to non-controlling interests

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(17,063)

 

 

 

(17,063)

 

 

Non-controlling interest put option

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(4,861)

 

 

-

 

 

 

(4,861)

 

 

-

 

 

 

(4,861)

 

 

Other

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(873)

 

 

-

 

 

 

(873)

 

 

 

873

 

 

 

-

 

 

Balance at June 30, 2021

 

 

14,456

 

 

 

1,046,723

 

 

 

783,529

 

 

 

(11,736)

 

 

 

489,103

 

 

 

(3,329,133)

 

 

 

(1,007,058)

 

 

 

160,370

 

 

 

(846,688)

 

 

 

Supplemental Metrics 1

 

2019

 

 

2020

 

 

 

2021

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

(in $ thousands, except per share data, Average Order Value, Active Consumers or otherwise stated)

 

Consolidated Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

492,014

 

 

$

739,937

 

 

$

610,874

 

 

$

721,310

 

 

$

797,840

 

 

$

1,056,990

 

 

 

$

915,604

 

 

$

1,007,811

 

Revenue

 

 

255,481

 

 

 

382,232

 

 

 

331,437

 

 

 

364,680

 

 

 

437,700

 

 

 

540,105

 

 

 

 

485,079

 

 

 

523,313

 

Adjusted Revenue

 

 

228,227

 

 

 

337,738

 

 

 

301,152

 

 

 

307,877

 

 

 

386,778

 

 

 

464,887

 

 

 

 

408,851

 

 

 

439,488

 

In-Store Revenue

 

 

9,077

 

 

 

9,788

 

 

 

8,516

 

 

 

3,926

 

 

 

11,416

 

 

 

13,666

 

 

 

 

10,675

 

 

 

17,635

 

In-Store GMV

 

 

9,077

 

 

 

9,788

 

 

 

8,516

 

 

 

3,926

 

 

 

11,416

 

 

 

13,666

 

 

 

 

13,275

 

 

 

21,739

 

Gross profit

 

 

115,139

 

 

 

176,136

 

 

 

153,376

 

 

 

159,375

 

 

 

209,029

 

 

 

249,148

 

 

 

 

220,869

 

 

 

230,082

 

Gross profit margin

 

45.1%

 

 

46.1%

 

 

46.3%

 

 

43.7%

 

 

47.8%

 

 

46.1%

 

 

 

45.5%

 

 

44.0%

 

Demand generation expense

 

$

(34,321)

 

 

$

(51,162)

 

 

$

(37,966)

 

 

$

(47,378)

 

 

$

(46,185)

 

 

$

(67,258)

 

 

 

$

(61,867)

 

 

$

(65,888)

 

Technology expense

 

 

(22,322)

 

 

 

(22,653)

 

 

 

(26,307)

 

 

 

(29,284)

 

 

 

(29,809)

 

 

 

(29,827)

 

 

 

 

(33,532)

 

 

 

(34,545)

 

Share-based payments

 

 

(31,760)

 

 

 

(42,238)

 

 

 

(26,760)

 

 

 

(61,915)

 

 

 

(81,840)

 

 

 

(121,118)

 

 

 

 

(40,516)

 

 

 

(60,173)

 

Depreciation and amortization

 

 

(35,097)

 

 

 

(50,065)

 

 

 

(51,323)

 

 

 

(51,758)

 

 

 

(54,007)

 

 

 

(60,135)

 

 

 

 

(53,992)

 

 

 

(62,720)

 

General and administrative

 

 

(94,134)

 

 

 

(120,247)

 

 

 

(111,422)

 

 

 

(107,888)

 

 

 

(143,349)

 

 

 

(141,687)

 

 

 

 

(144,666)

 

 

 

(150,229)

 

Other items

 

 

(10,061)

 

 

 

(5,584)

 

 

 

(5,025)

 

 

 

(1,302)

 

 

 

(860)

 

 

 

(17,080)

 

 

 

 

(4,721)

 

 

 

(6,828)

 

Impairment losses on tangible assets

 

 

-

 

 

 

-

 

 

 

(2,292)

 

 

 

-

 

 

 

-

 

 

 

(699)

 

 

 

 

-

 

 

 

-

 

Impairment losses on intangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(36,269)

 

 

 

 

-

 

 

 

-

 

Gains / (losses) on items held at fair value and remeasurements

 

 

32,286

 

 

 

(10,565)

 

 

 

65,434

 

 

 

(278,622)

 

 

 

(373,079)

 

 

 

(2,057,306)

 

 

 

 

659,870

 

 

 

245,738

 

(Loss) / Profit after tax (1)

 

 

(90,484)

 

 

 

(110,126)

 

 

 

(79,177)

 

 

 

(435,899)

 

 

 

(536,960)

 

 

 

(2,263,587)

 

 

 

 

516,667

 

 

 

87,925

 

Adjusted EBITDA

 

 

(35,638)

 

 

 

(17,926)

 

 

 

(22,319)

 

 

 

(25,175)

 

 

 

(10,314)

 

 

 

10,376

 

 

 

 

(19,196)

 

 

 

(20,579)

 

Adjusted EBITDA Margin

 

(15.6)%

 

 

(5.3)%

 

 

(7.4)%

 

 

(8.2)%

 

 

(2.7)%

 

 

2.2%

 

 

 

(4.7)%

 

 

(4.7)%

 

Basic (Loss)/Earnings per share ("EPS") (1)

 

$

(0.30)

 

 

$

(0.34)

 

 

$

(0.24)

 

 

$

(1.29)

 

 

$

(1.58)

 

 

$

(6.47)

 

 

 

$

1.44

 

 

$

0.24

 

Diluted EPS

 

 

(0.30)

 

 

 

(0.34)

 

 

 

(0.24)

 

 

 

(1.29)

 

 

 

(1.58)

 

 

 

(6.47)

 

 

 

 

(0.28)

 

 

 

(0.31)

 

Adjusted EPS (1)

 

 

(0.20)

 

 

 

(0.08)

 

 

 

(0.24)

 

 

 

(0.20)

 

 

 

(0.17)

 

 

 

(0.00)

 

 

 

 

(0.22)

 

 

 

(0.17)

 

Digital Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

420,266

 

 

$

628,610

 

 

$

494,899

 

 

$

651,036

 

 

$

674,097

 

 

$

939,444

 

 

 

$

790,014

 

 

$

913,350

 

Digital Platform Services Revenue

 

 

156,479

 

 

 

226,411

 

 

 

185,177

 

 

 

237,603

 

 

 

263,035

 

 

 

347,341

 

 

 

 

285,861

 

 

 

349,131

 

Digital Platform Fulfilment Revenue

 

 

27,254

 

 

 

44,494

 

 

 

30,285

 

 

 

56,803

 

 

 

50,922

 

 

 

75,218

 

 

 

 

76,228

 

 

 

83,825

 

Digital Platform Gross Profit

 

 

83,294

 

 

 

123,572

 

 

 

97,207

 

 

 

130,579

 

 

 

143,318

 

 

 

189,102

 

 

 

 

156,335

 

 

 

184,999

 

Digital Platform Gross Profit Margin

 

53.2%

 

 

54.6%

 

 

52.5%

 

 

55.0%

 

 

54.5%

 

 

54.4%

 

 

 

54.7%

 

 

53.0%

 

Digital Platform Order Contribution

 

$

48,973

 

 

$

72,410

 

 

$

59,241

 

 

$

83,201

 

 

$

97,133

 

 

$

121,844

 

 

 

$

94,468

 

 

$

119,111

 

Digital Platform Order Contribution Margin

 

31.3%

 

 

32.0%

 

 

32.0%

 

 

35.0%

 

 

36.9%

 

 

35.1%

 

 

 

33.0%

 

 

34.1%

 

Active Consumers

 

 

1,889

 

 

 

2,068

 

 

 

2,149

 

 

 

2,524

 

 

 

2,742

 

 

 

3,024

 

 

 

 

3,272

 

 

 

3,394

 

AOV - Marketplace

 

$

582

 

 

$

636

 

 

$

571

 

 

$

493

 

 

$

574

 

 

$

626

 

 

 

$

618

 

 

$

599

 

AOV - Stadium Goods

 

 

327

 

 

 

301

 

 

 

314

 

 

 

304

 

 

 

340

 

 

 

308

 

 

 

 

326

 

 

 

335

 

Brand Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

62,671

 

 

$

101,539

 

 

$

107,459

 

 

$

66,348

 

 

$

112,327

 

 

$

103,880

 

 

 

$

112,315

 

 

$

72,722

 

Brand Platform Revenue

 

 

62,671

 

 

 

101,539

 

 

 

107,459

 

 

 

66,348

 

 

 

112,327

 

 

 

103,880

 

 

 

 

112,315

 

 

 

72,722

 

Brand Platform Gross Profit

 

 

27,464

 

 

 

47,543

 

 

 

52,480

 

 

 

27,729

 

 

 

58,738

 

 

 

51,857

 

 

 

 

57,735

 

 

 

34,252

 

Brand Platform Gross Profit Margin

 

43.8%

 

 

46.8%

 

 

48.8%

 

 

41.8%

 

 

52.3%

 

 

49.9%

 

 

 

51.4%

 

 

47.1%

 

(1) Refer to “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 19

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding Farfetch China, Farfetch Connected Retail, anticipated future expense recognition in connection with equity-settled awards, future financial or operating performance, planned activities and objectives, anticipated growth resulting therefrom, market opportunities, strategies and other expectations, strategic initiatives, our growth and expected performance for the third quarter of 2021 and full year 2021, as well as statements that include the words “expect,” “intend,” “plan,” “aim,” “enable,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: purchasers of luxury products may not choose to shop online in sufficient numbers; the effect of the COVID-19 global pandemic on our business and results of operations; our ability to generate sufficient revenue to be profitable or to generate positive cash flow on a sustained basis; the volatility and difficulty in predicting the luxury fashion industry; our reliance on a limited number of luxury sellers for the supply of products on our Marketplace; our reliance on luxury sellers to anticipate, identify and respond quickly to new and changing fashion trends, consumer preferences and other factors; our reliance on retailers and brands to make products available to our consumers on our Marketplace and to set their own prices for such products; New Guards’ dependence on its production, inventory management and fulfilment processes and systems; the operation of retail stores subjects us to numerous risks, some of which are beyond our control; our ability to acquire or retain consumers and to promote and sustain the Farfetch brand; our reliance on highly complex software, which may contain undetected errors; our ability or the ability of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect our confidential information; our reliance on information technologies and our ability to adapt to technological developments; our reliance on third-party providers to host certain websites and applications; our ability to successfully utilize our data; our ability to manage our growth effectively; the increased focus on social, environmental and sustainability matters could increase our costs, harm our reputation and adversely affect our financial results, and our ability to implement our environmental, sustainability, responsible sourcing, social and inclusion and diversity goals; José Neves, our Chief Executive Officer, has considerable influence over important corporate matters due to his ownership of us, and our dual-class voting structure will limit your ability to influence corporate matters, including a change of control; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and on our website at http://farfetchinvestors.com. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

NOTES AND DISCLOSURES

Revisions to Previously Reported Financial Information

We have revised previously reported finance cost, loss after tax, loss per share, and non-current borrowings for both the fourth quarter and annual periods ended December 31, 2020. The revision had no impact on the Company’s results for previously reported second quarter 2020 or the current quarter. Refer to our Form 6-K furnished with the SEC on May 13, 2021, for further information.

Performance-based Restricted Share Unit (“PSU”) Award to the Company’s Founder, Chairman and CEO, José Neves

As previously disclosed, on May 24, 2021, the Board unanimously approved the recommendation of the Compensation Committee of the Board to grant a long-term PSU award to the Company’s Founder, Chairman and CEO, José Neves. On May 28, 2021, the fair value of this PSU award, which was initially estimated to be $77.0 million, was finalized and the fair value upon grant was determined to be $99.0 million, to be recognized in the consolidated statement of operations from the date of grant to May 19, 2027. Taking into account of performance-based conditions, where the vesting of each tranche of units is dependent on the achievement of a certain share price hurdle within a specified performance period, expense recognition is front-loaded in the early years of the award, resulting in expected expenses of $15.1 million, $25.3 million, $22.0 million, $17.4 million, $11.5 million, $6.5 million and $1.2 million from 2021 to 2027. Refer to the Report of Foreign Private Issuer on Form 6-K furnished with the SEC on May 28, 2021, for further information.

Non-IFRS and Other Financial and Operating Metrics

This release includes certain financial measures not based on IFRS, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution, and Digital Platform Order Contribution Margin (together, the “Non-IFRS Measures”), as well as operating metrics, including GMV, Digital Platform GMV, Brand Platform GMV, In-Store GMV, Active Consumers and Average Order Value. See the “Definitions” section below for a further explanation of these terms.

Management uses the Non-IFRS Measures:

  • as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations;
  • for planning purposes, including the preparation of our internal annual operating budget and financial projections;
  • to evaluate the performance and effectiveness of our strategic initiatives; and
  • to evaluate our capacity to fund capital expenditures and expand our business.

The Non-IFRS Measures may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. We present the Non-IFRS Measures because we consider them to be important supplemental measures of our performance, and we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Management believes that investors’ understanding of our performance is enhanced by including the Non-IFRS Measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations period over period and would ordinarily add back non-cash expenses such as depreciation, amortization and items that are not part of normal day-to-day operations of our business. By providing the Non-IFRS Measures, together with reconciliations to IFRS, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Items excluded from the Non-IFRS Measures are significant components in understanding and assessing financial performance. The Non-IFRS Measures have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for loss after tax, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are:

  • such measures do not reflect revenue related to fulfilment, which is necessary to the operation of our business;
  • such measures do not reflect our expenditures, or future requirements for capital expenditures or contractual commitments;
  • such measures do not reflect changes in our working capital needs;
  • such measures do not reflect our share-based payments, income tax benefit/(expense) or the amounts necessary to pay our taxes;
  • although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and
  • other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.

Due to these limitations, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Revenue should not be considered as measures of discretionary cash available to us to invest in the growth of our business and are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. In addition, the Non-IFRS Measures we use may differ from the non-IFRS financial measures used by other companies and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Furthermore, not all companies or analysts may calculate similarly titled measures in the same manner. We compensate for these limitations by relying primarily on our IFRS results and using the Non-IFRS Measures only as supplemental measures.

Digital Platform Order Contribution and Digital Platform Order Contribution Margin are not measurements of our financial performance under IFRS and do not purport to be alternatives to gross profit or loss after tax derived in accordance with IFRS. We believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance within our industry because they permit the evaluation of our digital platform productivity, efficiency and performance. We also believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance because they take into account demand generation expense and are used by management to analyze the operating performance of our digital platform for the periods presented.

Farfetch reports under International Financial Reporting Standards (“IFRS”) issued by the IASB. Farfetch provides earnings guidance on a non-IFRS basis and does not provide earnings guidance on an IFRS basis. A reconciliation of the Company’s Adjusted EBITDA guidance to the most directly comparable IFRS financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that are made for future changes in the fair value of cash-settled share-based payment liabilities; foreign exchange gains/(losses) and the other adjustments reflected in our reconciliation of historical non-IFRS financial measures, the amounts of which, could be material.

Reconciliations of the historical non-IFRS measures presented in this press release to their most directly comparable IFRS measures are included in the accompanying tables.

The following tables reconcile Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable IFRS financial performance measure, which are loss after tax and loss after tax margin, respectively:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit after tax(a)

 

 

$

(90,484)

 

 

$

(110,126)

 

 

$

(79,177)

 

 

$

(435,899)

 

 

$

(536,960)

 

 

$

(2,263,587)

 

 

$

516,667

 

 

$

87,925

 

Net finance expense/(income)(a)

 

 

 

10,689

 

 

 

(16,182)

 

 

 

34,355

 

 

 

20,751

 

 

 

14,363

 

 

 

(2,874)

 

 

 

24,660

 

 

 

10,726

 

Income tax (benefit)/expense

 

 

 

(104)

 

 

 

(108)

 

 

 

2,506

 

 

 

(4,118)

 

 

 

2,882

 

 

 

(15,704)

 

 

 

49

 

 

 

(3,195)

 

Depreciation and amortization

 

 

 

35,097

 

 

 

50,065

 

 

 

51,323

 

 

 

51,758

 

 

 

54,007

 

 

 

60,135

 

 

 

53,992

 

 

 

62,720

 

Share-based payments (b)

 

 

 

31,760

 

 

 

42,238

 

 

 

26,760

 

 

 

61,915

 

 

 

81,840

 

 

 

121,118

 

 

 

40,516

 

 

 

60,173

 

(Gains)/losses on items held at fair value and remeasurements(c)

 

 

 

(32,286)

 

 

 

10,565

 

 

 

(65,434)

 

 

 

278,622

 

 

 

373,079

 

 

 

2,057,306

 

 

 

(659,870)

 

 

 

(245,738)

 

Other items (d)

 

 

 

10,061

 

 

 

5,584

 

 

 

5,025

 

 

 

1,302

 

 

 

860

 

 

 

17,080

 

 

 

4,721

 

 

 

6,828

 

Impairment losses on tangible assets

 

 

 

-

 

 

 

-

 

 

 

2,292

 

 

 

-

 

 

 

-

 

 

 

699

 

 

 

-

 

 

 

-

 

Impairment losses on intangible assets

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

36,269

 

 

 

-

 

 

 

-

 

Share of results of associates

 

 

 

(371)

 

 

 

38

 

 

 

31

 

 

 

494

 

 

 

(385)

 

 

 

(66)

 

 

 

69

 

 

 

(18)

 

Adjusted EBITDA

 

 

$

(35,638)

 

 

$

(17,926)

 

 

$

(22,319)

 

 

$

(25,175)

 

 

$

(10,314)

 

 

$

10,376

 

 

$

(19,196)

 

 

$

(20,579)

 

Revenue

 

 

$

255,481

 

 

$

382,232

 

 

$

331,437

 

 

$

364,680

 

 

$

437,700

 

 

$

540,105

 

 

$

485,079

 

 

$

523,313

 

(Loss)/Profit after tax margin(a)

 

 

(35.4)%

 

 

(28.8)%

 

 

(23.9)%

 

 

(119.5)%

 

 

(122.7)%

 

 

(419.1)%

 

 

106.5%

 

 

16.8%

 

Adjusted Revenue

 

 

$

228,227

 

 

$

337,738

 

 

$

301,152

 

 

$

307,877

 

 

$

386,778

 

 

$

464,887

 

 

$

408,851

 

 

$

439,488

 

Adjusted EBITDA Margin

 

 

(15.6)%

 

 

(5.3)%

 

 

(7.4)%

 

 

(8.2)%

 

 

(2.7)%

 

 

2.2%

 

 

(4.7)%

 

 

(4.7)%

 

 
  1. Refer to “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 19.
  2. Represents share-based payment expense.
  3. Represents (gains)/losses on items held at fair value and remeasurements. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
  4. Represents other items, which are outside the normal scope of our ordinary activities. See “other items” on page 24 for a breakdown of these expenses. “Other items” is included within selling, general and administrative expenses.

The following tables reconcile Adjusted Revenue to the most directly comparable IFRS financial performance measure, which is revenue:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

$

255,481

 

 

$

382,232

 

 

$

331,437

 

 

$

364,680

 

 

$

437,700

 

 

$

540,105

 

 

$

485,079

 

 

$

523,313

 

Less: Digital Platform Fulfilment Revenue

 

 

 

(27,254)

 

 

 

(44,494)

 

 

 

(30,285)

 

 

 

(56,803)

 

 

 

(50,922)

 

 

 

(75,218)

 

 

 

(76,228)

 

 

 

(83,825)

 

Adjusted Revenue

 

 

$

228,227

 

 

$

337,738

 

 

$

301,152

 

 

$

307,877

 

 

$

386,778

 

 

$

464,887

 

 

$

408,851

 

 

$

439,488

 

The following tables reconcile Digital Platform Order Contribution and Digital Platform Order Contribution Margin to the most directly comparable IFRS financial performance measure, which are Digital Platform Gross Profit and Digital Platform Gross Profit Margin, respectively:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Platform Gross Profit

 

 

$

83,294

 

 

$

123,572

 

 

$

97,207

 

 

$

130,579

 

 

$

143,318

 

 

$

189,102

 

 

$

156,335

 

 

$

184,999

 

Less: Demand generation expense

 

 

 

(34,321)

 

 

 

(51,162)

 

 

 

(37,966)

 

 

 

(47,378)

 

 

 

(46,185)

 

 

 

(67,258)

 

 

 

(61,867)

 

 

 

(65,888)

 

Digital Platform Order Contribution

 

 

$

48,973

 

 

$

72,410

 

 

$

59,241

 

 

$

83,201

 

 

$

97,133

 

 

$

121,844

 

 

$

94,468

 

 

$

119,111

 

Digital Platform Services Revenue

 

 

$

156,479

 

 

$

226,411

 

 

$

185,177

 

 

$

237,603

 

 

$

263,035

 

 

$

347,341

 

 

$

285,861

 

 

$

349,131

 

Digital Platform Gross Profit Margin

 

 

53.2%

 

 

54.6%

 

 

52.5%

 

 

55.0%

 

 

54.5%

 

 

54.4%

 

 

54.7%

 

 

53.0%

 

Digital Platform Order Contribution Margin

 

 

31.3%

 

 

32.0%

 

 

32.0%

 

 

35.0%

 

 

36.9%

 

 

35.1%

 

 

33.0%

 

 

34.1%

 

The following tables reconcile Adjusted EPS to the most directly comparable IFRS financial performance measure, which is Earnings per share:

(per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/earnings per share (a)

 

 

$

(0.30)

 

 

$

(0.34)

 

 

$

(0.24)

 

 

$

(1.29)

 

 

$

(1.58)

 

 

$

(6.47)

 

 

 

 

$

1.44

 

 

$

0.24

 

Share-based payments (b)

 

 

 

0.11

 

 

 

0.12

 

 

 

0.08

 

 

 

0.18

 

 

 

0.24

 

 

 

0.35

 

 

 

 

 

0.11

 

 

 

0.17

 

Amortization of acquired intangible assets

 

 

 

0.06

 

 

 

0.09

 

 

 

0.09

 

 

 

0.09

 

 

 

0.09

 

 

 

0.09

 

 

 

 

 

0.08

 

 

 

0.09

 

(Gains)/losses on items held at fair value and remeasurements (c)

 

 

 

(0.10)

 

 

 

0.03

 

 

 

(0.19)

 

 

 

0.82

 

 

 

1.08

 

 

 

5.88

 

 

 

 

 

(1.86)

 

 

 

(0.69)

 

Other items (d)

 

 

 

0.03

 

 

 

0.02

 

 

 

0.01

 

 

 

0.00

 

 

 

0.00

 

 

 

0.05

 

 

 

 

 

0.01

 

 

 

0.02

 

Impairment losses on tangible assets

 

 

 

-

 

 

 

-

 

 

 

0.01

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

Impairment losses on intangible assets

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.10

 

 

 

 

 

0.00

 

 

 

0.00

 

Share of results of associates

 

 

 

(0.00)

 

 

 

(0.00)

 

 

 

(0.00)

 

 

 

(0.00)

 

 

 

(0.00)

 

 

 

(0.00)

 

 

 

 

 

(0.00)

 

 

 

(0.00)

 

Adjusted (Loss)/earnings per share

 

 

$

(0.20)

 

 

$

(0.08)

 

 

$

(0.24)

 

 

$

(0.20)

 

 

$

(0.17)

 

 

$

(0.00)

 

 

 

 

$

(0.22)

 

 

$

(0.17)

 

  1. Refer to “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 19.
  2. Represents share-based payment expense on a per share basis.
  3. Represents (gains)/losses on items held at fair value and remeasurements on a per share basis. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
  4. Represents other items on a per share basis, which are outside the normal scope of our ordinary activities. See “other items” on page 24 for a breakdown of these expenses. “Other items” is included within selling, general and administrative expenses.

The following tables represent gains/(losses) on items held at fair value and remeasurements:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

Fair value remeasurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued as part of New Guards acquisition

 

 

$

(21,526)

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

$250 million 5.00% Notes due 2025 embedded derivative

 

 

 

-

 

 

 

-

 

 

 

44,014

 

 

 

(135,093)

 

 

 

(138,171)

 

 

 

(749,004)

 

 

 

214,345

 

 

 

88,393

 

$400 million 3.75% Notes due 2027 embedded derivative

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(77,758)

 

 

 

(157,108)

 

 

 

(869,078)

 

 

 

256,438

 

 

 

69,047

 

$600 million 0.00% Notes due 2030 embedded derivative

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(272,522)

 

 

 

159,607

 

 

 

49,434

 

FV remeasurement of previously held equity interest

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

784

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value remeasurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chalhoub put option

 

 

 

53,812

 

 

 

(8,959)

 

 

 

21,420

 

 

 

(65,771)

 

 

 

(77,800)

 

 

 

(165,776)

 

 

 

28,696

 

 

 

38,864

 

CuriosityChina call option

 

 

 

-

 

 

 

(1,606)

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(926)

 

 

 

-

 

 

 

-

 

Gains / (losses) on items held at fair value and remeasurements

 

 

$

32,286

 

 

$

(10,565)

 

 

$

65,434

 

 

$

(278,622)

 

 

$

(373,079)

 

 

$

(2,057,306)

 

 

$

659,870

 

 

$

245,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farfetch share price (end of day)

 

 

$

8.64

 

 

$

10.35

 

 

$

7.90

 

 

$

17.27

 

 

$

25.16

 

 

$

63.81

 

 

$

53.02

 

 

$

50.36

 

The following tables represent other items:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction-related legal and advisory expenses

 

 

$

(5,061)

 

 

$

(5,584)

 

 

$

(4,925)

 

 

$

(1,799)

 

 

$

(860)

 

 

$

(17,014)

 

 

$

(4,654)

 

 

$

(6,828)

 

Loss on impairment of investments carried at fair value

 

 

 

(5,000)