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Farfetch Announces Fourth Quarter and Full Year 2021 Results

February 24, 2022
  • Record 2021 Gross Merchandise Value (“GMV”) of $4.2 billion, up 33% year-over-year and up 98% compared to 2019
  • 2021 Revenue increases 35% year-over-year to $2.3 billion
  • Q4 2021 GMV and Digital Platform GMV each increase 22% year-over-year to $1.3 billion and $1.1 billion, respectively
  • Q4 2021 Revenue increases 23% year-over-year to $666 million
  • Q4 2021 Gross Profit Margin of 47.1%; Digital Platform Order Contribution Margin of 32.4%
  • Q4 2021 Profit After Tax of $97 million includes $217 million non-cash benefit arising from impact of lower share price on items held at fair value and remeasurements
  • Delivers $36 million Adjusted EBITDA in Q4 2021 for positive Adjusted EBITDA for full-year 2021

LONDON--(BUSINESS WIRE)-- Farfetch Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today reported financial results for the fourth quarter and full year ended December 31, 2021.

José Neves, Farfetch Founder, Chairman and CEO said: “Our fourth quarter results clearly demonstrate the strong momentum behind the Farfetch platform. We exit the year having once again delivered market share capturing GMV growth in 2021 along with our first year of Adjusted EBITDA profitability. This positions Farfetch for an incredible 2022 focused on continuing to lead the online luxury fashion industry, growing faster than the runner-ups, and expanding profitability.

“As we enter a post-pandemic environment, I am proud of the support Farfetch has provided to our partners across the global luxury community during this unprecedented time as we advanced our mission to be the connector between the curators, creators and consumers of the luxury fashion industry. Moreover, we are positioned to emerge stronger than ever, as an industry leader delivering strategic value to brand partners and an unmatched proposition for consumers. And the accelerated digitization of the luxury industry highlights the opportunity to leverage the unique capabilities of the Farfetch platform, to extend our track record of capturing market share while delivering further profitability.”

Elliot Jordan, CFO of Farfetch, said: “I am delighted with our fourth quarter 2021 results which demonstrate strong execution that delivered Digital Platform GMV growth at the high end of our expectations, and improved profitability margins. This completes a milestone year for Farfetch in which we added over $1bn in GMV, growing 33% year-over-year, and achieved our first full-year of profitability at the Adjusted EBITDA level. Our investments continue to deliver significant operating cost leverage and we are well positioned for further market share capture and profitability gains in the year ahead.”

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

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020 (1)

 

 

2021

 

 

2020 (1)

 

 

2021

 

Consolidated Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

1,056,990

 

 

$

1,289,145

 

 

$

3,187,014

 

 

$

4,229,874

 

Revenue

 

 

540,105

 

 

 

665,651

 

 

 

1,673,922

 

 

 

2,256,608

 

Adjusted Revenue (2)

 

 

464,887

 

 

 

571,095

 

 

 

1,460,694

 

 

 

1,924,104

 

Gross profit

 

 

249,148

 

 

 

313,380

 

 

 

770,928

 

 

 

1,016,511

 

Gross profit margin

 

46.1%

 

 

47.1%

 

 

46.1%

 

 

45.0%

 

(Loss)/profit after tax (1)

 

$

(2,263,587

)

 

$

96,890

 

 

$

(3,315,623

)

 

$

1,470,611

 

Adjusted EBITDA (2)

 

 

10,376

 

 

 

36,104

 

 

 

(47,432

)

 

 

1,638

 

Adjusted EBITDA Margin (2)

 

2.2%

 

 

6.3%

 

 

(3.2)%

 

 

0.1%

 

Basic (Loss)/earnings per share (“EPS”) (1)

 

$

(6.47

)

 

$

0.27

 

 

$

(9.69

)

 

$

4.02

 

Diluted EPS

 

 

(6.47

)

 

 

(0.23

)

 

 

(9.69

)

 

 

(1.07

)

Adjusted EPS (1)(2)

 

 

(0.00

)

 

 

(0.03

)

 

 

(0.60

)

 

 

(0.55

)

Digital Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

939,444

 

 

$

1,146,153

 

 

$

2,759,476

 

 

$

3,677,988

 

Digital Platform Services Revenue

 

 

347,341

 

 

 

431,469

 

 

 

1,033,156

 

 

 

1,385,678

 

Digital Platform Gross Profit

 

 

189,102

 

 

 

229,885

 

 

 

560,206

 

 

 

730,253

 

Digital Platform Gross Profit Margin

 

54.4%

 

 

53.3%

 

 

54.2%

 

 

52.7%

 

Digital Platform Order Contribution (2)

 

$

121,844

 

 

$

139,909

 

 

$

361,419

 

 

$

438,432

 

Digital Platform Order Contribution Margin (2)

 

35.1%

 

 

32.4%

 

 

35.0%

 

 

31.6%

 

Active Consumers (in thousands)

 

 

3,024

 

 

 

3,687

 

 

 

3,024

 

 

 

3,687

 

Average Order Value (“AOV”) - Marketplace

 

$

626

 

 

$

635

 

 

$

568

 

 

$

612

 

AOV - Stadium Goods

 

 

308

 

 

 

288

 

 

 

316

 

 

 

308

 

Brand Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

103,880

 

 

$

117,178

 

 

$

390,014

 

 

$

467,505

 

Brand Platform Revenue

 

 

103,880

 

 

 

117,178

 

 

 

390,014

 

 

 

467,505

 

Brand Platform Gross Profit

 

 

51,857

 

 

 

69,257

 

 

 

190,804

 

 

 

241,516

 

Brand Platform Gross Profit Margin

 

49.9%

 

 

59.1%

 

 

48.9%

 

 

51.7%

 

  1. See “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 21
  2. See “Non-IFRS and Other Financial and Operating Metrics” on page 24 for reconciliations of non-IFRS measures to IFRS measures.

Recent Business Highlights

Digital Platform

  • Third-party transactions generated 85% of Digital Platform GMV at a take rate of 30.4% in fourth quarter 2021
  • The Farfetch Marketplace continued to offer customers the most extensive selection of in-season luxury fashion on a global platform from over 1,400 sellers, as supply from both multi-brand retailers and e-concession partners continued to increase year-over-year to total stock units of nearly 10 million in fourth quarter 2021
  • Generated third consecutive quarter of record media solutions revenue and partnered with brands to launch innovative showcases of their collections to Farfetch Marketplace visitors, including:
    • Balmain X Netflix collaboration coinciding with the release of the movie ‘The Harder They Fall’, leveraging innovation features such as photo-real 3D visuals
    • Burberry outerwear campaign, utilizing Farfetch’s digital fashion capabilities to feature models dressed with digital assets
    • Zegna ‘Working With Words’ film content series in collaboration with Port Magazine, poet Seán Hewitt and musician Azekel
    • Tasaki Atelier high jewelry pearl and colored gemstone collection, available exclusively on the Farfetch Marketplace
  • In January 2022, ahead of the planned launch of beauty on the Farfetch Marketplace later in the year, announced the acquisition of cult favorite luxury beauty destination Violet Grey

New Guards

  • Launched Tmall Luxury Pavilion storefronts for Off-White, Palm Angels and Ambush in January 2022
  • New Guards’ portfolio continued to focus on direct-to-consumer channels while creating culturally relevant collections:
    • Off-White released ‘Off-White x Air Jordan 2 Low’ and capsule collection for lunar new year in January 2022
    • Palm Angels launched ‘8 Moncler Palm Angels’ collaboration and opened a new directly operated store in Las Vegas
    • Heron Preston released its third drop in collaboration with Calvin Klein and launched HERON01, the first fully 3D printed sneaker, in collaboration with technology company Zellerfeld
    • Alanui launched ‘Alanui x The Rolling Stones’ capsule collection dedicated the legendary band in celebration of their 60th anniversary
  • In February 2022, New Guards further expanded its portfolio of brands with the signing of agreements with Authentic Brands Group to become the exclusive partner to curate, create and bring to market Reebok’s luxury collaborations, as well as a core operating partner for the brand across Europe and distributor of premium Reebok products in the United States, Canada, Europe and certain other key markets.

Environmental, Social and Governance (“ESG”)

  • In December 2021, acquired Luxclusif, a business-to-business service provider that enables the acquisition, authentication and sale of second-hand luxury goods, with the aim to significantly accelerate our pre-owned platform capabilities

Fourth Quarter and Full Year 2021 Results Summary

Gross Merchandise Value (in thousands):

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Digital Platform GMV

 

$

939,444

 

 

$

1,146,153

 

 

 

2,759,476

 

 

 

3,677,988

 

Brand Platform GMV

 

 

103,880

 

 

 

117,178

 

 

 

390,014

 

 

 

467,505

 

In-Store GMV

 

 

13,666

 

 

 

25,814

 

 

 

37,524

 

 

 

84,381

 

GMV

 

$

1,056,990

 

 

$

1,289,145

 

 

$

3,187,014

 

 

$

4,229,874

 

GMV increased by $232.2 million from $1,057.0 million in fourth quarter 2020 to $1,289.1 million in fourth quarter 2021, representing year-over-year growth of 22.0%. Digital Platform GMV increased by $206.7 million from $939.4 million in fourth quarter 2020 to $1,146.2 million in fourth quarter 2021, representing year-over-year growth of 22.0%. Excluding the impact of changes in foreign exchange rates, Digital Platform GMV would have increased by 22.5%.

GMV growth was driven by our Digital Platform segment performance. Fourth quarter 2021 Digital Platform GMV growth reflects order growth across the Marketplace and an increase in AOV from $626 to $635, which was driven by increases in full-priced item mix and number of items per order, partially offset by a higher mix of lower-priced items.

Brand Platform GMV increased by 12.8% to $117.2 million driven by demand for new collections launched during the quarter, and was impacted by a change in the timing of shipments compared to the prior year, in addition to delays arising from the migration to a new warehouse.

In-Store GMV increased by 88.9% to $25.8 million, driven by additional New Guards brands stores opened in the last twelve months as well as growth from existing stores.

Revenue (in thousands):

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Digital Platform Services third-party revenue

 

$

209,332

 

 

$

270,817

 

 

$

637,568

 

 

$

845,941

 

Digital Platform Services first-party revenue

 

 

138,009

 

 

 

160,652

 

 

 

395,588

 

 

 

539,737

 

Digital Platform Services Revenue

 

 

347,341

 

 

 

431,469

 

 

 

1,033,156

 

 

 

1,385,678

 

Digital Platform Fulfilment Revenue

 

 

75,218

 

 

 

94,556

 

 

 

213,228

 

 

 

332,504

 

Brand Platform Revenue

 

 

103,880

 

 

 

117,178

 

 

 

390,014

 

 

 

467,505

 

In-Store Revenue

 

 

13,666

 

 

 

22,448

 

 

 

37,524

 

 

 

70,921

 

Revenue

 

$

540,105

 

 

$

665,651

 

 

$

1,673,922

 

 

$

2,256,608

 

Revenue increased by $125.5 million year-over-year from $540.1 million in fourth quarter 2020 to $665.7 million in fourth quarter 2021, representing growth of 23.2%. The increase was primarily driven by 24.5% growth in Digital Platform Revenue to $526.0 million and 12.8% growth in Brand Platform Revenue to $117.2 million.

Digital Platform Services Revenue increased by 24.2% ahead of the 22.0% overall growth in Digital Platform GMV, driven by third-party revenue, which increased 29.4%, reflecting measures implemented to share recent cost increases with our partners.

Third-party revenue growth was offset by slower growth in Digital Platform Services first-party revenue, which includes first-party original, of 16.4%, with strong performance of Browns’ products on the Digital Platform offset by slower growth in first-party original products following a strategic decision to control markdowns.

Digital Platform Fulfilment Revenue represents the pass-through to consumers of delivery and duties charges incurred by our global logistics solutions, net of any Farfetch-funded consumer promotions, subsidized shipping and incentives. Digital Platform Fulfilment Revenue increased 25.7% year-over-year, above Digital Platform GMV growth of 22.0%, as we have been able to pass-through more of these costs to consumers in the current quarter.

Cost of Revenue (in thousands):

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Digital Platform Services third-party cost of revenue

 

$

70,451

 

 

$

88,440

 

 

$

208,518

 

 

$

288,286

 

Digital Platform Services first-party cost of revenue

 

 

87,788

 

 

 

113,144

 

 

 

264,432

 

 

 

367,139

 

Digital Platform Services cost of revenue

 

 

158,239

 

 

 

201,584

 

 

 

472,950

 

 

 

655,425

 

Digital Platform Fulfilment cost of revenue

 

 

75,218

 

 

 

94,556

 

 

 

213,228

 

 

 

332,504

 

Brand Platform cost of revenue

 

 

52,022

 

 

 

47,921

 

 

 

199,208

 

 

 

225,989

 

In-Store cost of goods sold

 

 

5,478

 

 

 

8,210

 

 

 

17,608

 

 

 

26,179

 

Cost of revenue

 

$

290,957

 

 

$

352,271

 

 

$

902,994

 

 

$

1,240,097

 

Cost of revenue increased by $61.3 million, or 21.1%, year-over-year from $291.0 million in fourth quarter 2020 to $352.3 million in fourth quarter 2021, at a slightly lower rate than revenue growth. The increase was driven by growth in Digital Platform cost of revenue, partially offset by a decrease in Brand Platform cost of revenue.

Digital Platform Services cost of revenue increased at a higher rate than Digital Platform Services Revenue driven by an increase in first party costs of goods sold due to a year-over-year increase in stock clearance activity.

Gross profit (in thousands):

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Digital Platform third-party gross profit

 

$

138,881

 

 

$

182,377

 

 

$

429,050

 

 

$

557,655

 

Digital Platform first-party gross profit

 

 

50,221

 

 

 

47,508

 

 

 

131,156

 

 

 

172,598

 

Digital Platform Gross Profit

 

 

189,102

 

 

 

229,885

 

 

 

560,206

 

 

 

730,253

 

Brand Platform Gross Profit

 

 

51,858

 

 

 

69,257

 

 

 

190,806

 

 

 

241,516

 

In-Store Gross Profit

 

 

8,188

 

 

 

14,238

 

 

 

19,916

 

 

 

44,742

 

Gross profit

 

$

249,148

 

 

$

313,380

 

 

$

770,928

 

 

$

1,016,511

 

Gross profit increased by $64.2 million, or 25.8%, year-over-year, faster than revenue growth, to $313.4 million in fourth quarter 2021. Gross profit margin increased 95 bps year-over-year to 47.1% from 46.1%, driven by strong margin expansion in Brand Platform, partially offset by a decrease in Digital Platform Gross Profit Margin.

Digital Platform Gross Profit Margin decreased 116 bps to 53.3% in fourth quarter 2021 from 54.4% in fourth quarter 2020, as Digital Platform Services cost of revenue increased at a higher rate than Digital Platform Services Revenue. An increase in Digital Platform third-party gross profit margin was offset by a decrease in first-party gross profit margin primarily due to a lower full-price mix.

Brand Platform Gross Profit Margin increased 918 bps year-over-year to 59.1% driven by a higher sell-through of Off-White products, non-recurring discounts received from vendors, and elimination of Palm Angels royalty costs from Brand Platform cost of revenue, following the acquisition of 60% of the outstanding equity interests of Palm Angels S.r.l (“Palm Angels”) the owner of the Palm Angels trademark.

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

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Demand generation expense

 

$

67,258

 

 

$

89,976

 

 

$

198,787

 

 

$

291,821

 

Technology expense

 

 

29,827

 

 

 

30,746

 

 

 

115,227

 

 

 

131,408

 

Share-based payments

 

 

121,118

 

 

 

49,344

 

 

 

291,633

 

 

 

196,167

 

Depreciation and amortization

 

 

60,135

 

 

 

69,679

 

 

 

217,223

 

 

 

251,198

 

General and administrative

 

 

141,687

 

 

 

156,554

 

 

 

504,346

 

 

 

591,644

 

Other items

 

 

17,080

 

 

 

7,077

 

 

 

24,267

 

 

 

18,730

 

Selling, general and administrative expense

 

$

437,105

 

 

$

403,376

 

 

$

1,351,483

 

 

$

1,480,968

 

Demand generation expense increased $22.7 million year-over-year to $90.0 million in fourth quarter 2021 and increased as a percentage of Digital Platform Service Revenue from 19.4% to 20.9%. This was driven by our investment in acquiring and engaging customers in paid channels, including our redistribution of spend as we continue to implement measures in response to the impact of Apple's recent iOS privacy measures, which exhibited higher unit costs, on average.

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 $0.9 million, or 3.1%, in fourth quarter 2021 year-over-year driven by an increase in technology staff headcount and software and hosting costs to support growth.

Fourth quarter 2021 technology expense continued to scale as a percentage of Adjusted Revenue, decreasing from 6.4% to 5.4% year-over-year as we continue to leverage our existing infrastructure and organization.

Our total investment in technology, which includes investments in longer term development projects which are treated as capital items, was 11.3% of Adjusted Revenue in fourth quarter 2021, as compared to 12.2% in fourth quarter 2020.

Depreciation and amortization expense increased by $9.5 million, or 15.9%, year-over-year from $60.1 million in fourth quarter 2020 to $69.7 million in fourth 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 increased primarily as a result of new stores and office leases entered into within the last twelve months.

Share-based payments decreased by $71.8 million, or (59.3)% year-over-year in fourth quarter 2021 due to the decreased cost of employment related taxes and cash-settled awards, primarily as a result of the share price movement, partially offset by 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 in May 2021.

General and administrative expense increased by $14.9 million, or 10.5%, year-over-year in fourth quarter 2021, reflecting investments made to support longer-term strategic initiatives including brand campaigns.

General and administrative expense decreased as a percentage of Adjusted Revenue to 27.4% compared to 30.5% in fourth quarter 2020 as we continued to leverage our operations base to efficiently grow Adjusted Revenue.

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

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

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

 

$

(166,702

)

 

$

59,013

 

 

$

(288,853

)

 

$

384,122

 

Fair value (losses)/gains on embedded derivative liabilities

 

 

(1,890,604

)

 

 

157,949

 

 

 

(2,354,720

)

 

 

1,639,621

 

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

 

$

(2,057,306

)

 

$

216,962

 

 

$

(2,643,573

)

 

$

2,023,743

 

The $157.9 million of fair value gains on embedded derivative liabilities in fourth quarter 2021 were primarily driven by the decrease in our share price during the period. The fair value gains on embedded derivative liabilities in fourth quarter 2021 is comprised of the following revaluation gains on our convertible senior notes: (i) $22.4 million fair value gains related to $250 million 5.00% notes due 2025 (the “February 2020 Notes”); (ii) $92.1 million fair value gains related to $400 million 3.75% notes due 2027 (the “April 2020 Notes”); and, (iii) $43.4 million fair value gains related to $600 million 0.00% notes due 2030 (the “November 2020 Notes”). These notes have provided strong liquidity to fund ongoing capital needs and invest in various growth initiatives.

The $1,890.6 million of fair value losses on embedded derivative liabilities in fourth quarter 2020 were primarily driven by the increase in our share price during the period. The fair value losses on embedded derivatives in fourth quarter 2020 were comprised of $749.0 million fair value revaluation losses related to the February 2020 Notes; $869.1 million fair value revaluation losses related to the April 2020 Notes; and $272.5 million fair value losses related to the November 2020 Notes.

The $59.0 million of remeasurement gains on put and call option liabilities in fourth quarter 2021 related to $61.1 million gains on the put and call option resulting from the November 2020 strategic agreement with Alibaba Group Holding Limited (“Alibaba Group”) and Compagnie Financiere Richemont SA (“Richemont”), $7.2 million remeasurement gains in connection with Chalhoub Group’s put option over their non-controlling interest in Farfetch International Limited, and $0.7 million gains on the put and call option over the non-controlling interest in Alanui S.r.l., partially offset by $10.0 million losses on the put and call option that New Guards holds over the acquisition of the remaining 40% share capital in Palm Angels.

The $166.7 million of remeasurement losses in fourth quarter 2020 primarily related to the remeasurement losses in connection with the Chalhoub Group’s put option over the non-controlling interest in Farfetch International Limited.

Impairment losses on tangible and intangible assets (in thousands):

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

Impairment losses on right-of-use asset

 

$

(699

)

 

$

-

 

 

$

(2,234

)

 

$

-

 

Impairment losses on property, plant and equipment

 

 

-

 

 

 

-

 

 

 

(757

)

 

 

-

 

Impairment losses on tangible assets

 

$

(699

)

 

$

-

 

 

$

(2,991

)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment losses on intangible assets

 

$

(36,269

)

 

$

(11,779

)

 

$

(36,269

)

 

$

(11,779

)

Impairment losses on intangible assets

 

$

(36,269

)

 

$

(11,779

)

 

$

(36,269

)

 

$

(11,779

)

Impairment losses of $11.8 million on intangible assets in fourth quarter 2021 are related to a reduction in the carrying value of a small intangible brand asset associated with New Guards brand portfolio.

The impairment charge of $36.3 million on intangible assets and $0.7 million on tangible assets in fourth quarter 2020 is primarily comprised of a $30.5 million charge related to a reduction in the carrying value of one of the smaller intangible brand assets within New Guards portfolio, as well as a $0.7 million reduction in the carrying value of the corporate right-of-use assets associated with that same brand. The remaining $5.8 million impairment charge on intangible assets related to the closure of our direct consumer-facing channels on JD.com and the associated intangible asset held for the Farfetch Level 1 access button.

Profit / (loss) After Tax

Profit after tax increased by $2,360.5 million year-over-year from a loss of $(2,263.6) million to a profit of $96.9 million in fourth quarter 2021. The increase was primarily driven by gains on items held at fair value and remeasurements, which increased $2,274.3 million year-over-year.

EPS and Diluted EPS

Fourth quarter 2021 basic EPS was $0.27 and diluted EPS was $(0.23). Diluted EPS assumes a full conversion of the convertible notes into shares, and that the settlement of the Chalhoub liability and Farfetch China Holdings Ltd (“Farfetch China”) liability held on the statement of financial position at December 31, 2021 would have been in shares, with both transactions occurring at the beginning of the fourth quarter, 2021. As such, diluted EPS excludes the gains on items held at fair value and interest costs related to the Chalhoub liability, Farfetch China 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 $25.7 million to $36.1 million in fourth quarter 2021 as a result of our growth, improved gross profit margins, and scaling of the operating cost base. Adjusted EBITDA Margin improved from 2.2% to 6.3% year-over-year, primarily reflecting declines in both general and administrative expenses and in technology expense as percentage of Adjusted Revenue.

Liquidity

At December 31, 2021, cash and cash equivalents were $1,363.1 million, a decrease of $210.3 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, cash payments for business acquisitions, and $100 million short-term variable Net Asset Value investments. This was partially offset by $500 million cash proceeds related to the investment in Farfetch China by Alibaba Group and Richemont in August 2021.

Post Balance Sheet Events

On February 1, 2022, the Group completed the acquisition of Violet Grey Inc., a luxury beauty online retailer, for consideration of approximately $44.4 million, subject to customary completion accounts price adjustments, comprised of $43.5 million in cash and $0.9 million in Farfetch shares based on the Farfetch share price as at the acquisition date. The share consideration includes service conditions in respect of certain members of the Violet Grey Inc. management team remaining with the Group after the acquisition.

On February 22, 2022, New Guards Group entered into a commercial agreement with Authentic Brands Group LLC for the distribution rights of Reebok footwear and apparel ranges within certain countries in the European region. The agreement becomes effective upon the completed transfer of ownership of the Reebok brand to ABG, which is expected to close in the first quarter. As part of the arrangement, the Group is committed to minimum royalty payments of approximately $374 million (€329.9 million) over the 11 year life of the agreement.

Outlook

The following forward-looking statements reflect Farfetch’s expectations as of February 24, 2022.

For Full Year 2022:

  • Digital Platform GMV growth of 28% to 32% year-over-year
  • Brand Platform GMV growth of 20% to 25% year-over-year
  • Adjusted EBITDA margin of 1% to 2%

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 will host a conference call today, February 24, 2022, 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 statement of operations

 

 

 

 

 

for the three months ended December 31

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 (1)

 

 

2021

 

Revenue

 

 

540,105

 

 

 

665,651

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(290,957

)

 

 

(352,271

)

Gross profit

 

 

249,148

 

 

 

313,380

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(437,105

)

 

 

(403,376

)

Impairment losses on tangible assets

 

 

(699

)

 

 

-

 

Impairment losses on intangible assets

 

 

(36,269

)

 

 

(11,779

)

Operating loss

 

 

(224,925

)

 

 

(101,775

)

 

 

 

 

 

 

 

 

 

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

 

 

(2,057,306

)

 

 

216,962

 

Share of results of associates

 

 

66

 

 

 

(20

)

Finance income

 

 

20,065

 

 

 

863

 

Finance costs (1)

 

 

(17,191

)

 

 

(17,419

)

(Loss)/profit before tax

 

 

(2,279,291

)

 

 

98,611

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(expense)

 

 

15,704

 

 

 

(1,721

)

(Loss)/profit after tax

 

 

(2,263,587

)

 

 

96,890

 

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(2,267,145

)

 

 

101,431

 

Non-controlling interests

 

 

3,558

 

 

 

(4,541

)

 

 

 

(2,263,587

)

 

 

96,890

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

 

(6.47

)

 

 

0.27

 

Diluted

 

 

(6.47

)

 

 

(0.23

)

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

349,603,548

 

 

 

378,260,245

 

Diluted

 

 

349,603,548

 

 

 

472,844,249

 

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

 

for the three months ended December 31

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 (1)

 

 

2021

 

(Loss)/profit after tax (1)

 

 

(2,263,587

)

 

 

96,890

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to the consolidated

statement of operations (net of tax):

 

 

 

 

 

 

 

 

Exchange gain/(loss) on translation of foreign operations

 

 

1,639

 

 

 

(4,483

)

Gain on cash flow hedges recognized in equity

 

 

9,775

 

 

 

2,804

 

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

 

 

2,563

 

 

 

1,296

 

Gain/(loss) on cash flow hedges recognized in equity - time value

 

 

6,145

 

 

 

(1

)

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

 

 

 

 

 

 

 

 

Remeasurement loss on severance plan

 

 

(21

)

 

 

(77

)

 

 

 

 

 

 

 

 

 

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

 

 

20,101

 

 

 

(461

)

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

 

 

(2,243,486

)

 

 

96,429

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(2,247,376

)

 

 

103,001

 

Non-controlling interests

 

 

3,890

 

 

 

(6,572

)

 

 

 

(2,243,486

)

 

 

96,429

 

Unaudited condensed consolidated statement of operations

 

 

 

 

 

for the year ended December 31

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 (1)

 

 

2021

 

Revenue

 

 

1,673,922

 

 

 

2,256,608

 

Cost of revenue

 

 

(902,994

)

 

 

(1,240,097

)

Gross profit

 

 

770,928

 

 

 

1,016,511

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(1,351,483

)

 

 

(1,480,968

)

Impairment losses on tangible assets

 

 

(2,991

)

 

 

-

 

Impairment losses on intangible assets

 

 

(36,269

)

 

 

(11,779

)

Operating loss

 

 

(619,815

)

 

 

(476,236

)

 

 

 

 

 

 

 

 

 

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

 

 

(2,643,573

)

 

 

2,023,743

 

Share of results of associates

 

 

(74

)

 

 

(52

)

Finance income

 

 

24,699

 

 

 

12,599

 

Finance costs (1)

 

 

(91,294

)

 

 

(86,441

)

(Loss)/profit before tax

 

 

(3,330,057

)

 

 

1,473,613

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(expense)

 

 

14,434

 

 

 

(3,002

)

(Loss)/profit after tax

 

 

(3,315,623

)

 

 

1,470,611

 

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(3,333,171

)

 

 

1,466,487

 

Non-controlling interests

 

 

17,548

 

 

 

4,124

 

 

 

 

(3,315,623

)

 

 

1,470,611

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

 

(9.69

)

 

 

4.02

 

Diluted

 

 

(9.69

)

 

 

(1.07

)

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

343,829,481

 

 

 

364,696,712

 

Diluted

 

 

343,829,481

 

 

 

472,357,995

 

Unaudited condensed consolidated statement of comprehensive (loss) / income

 

for the year ended December 31

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 (1)

 

 

2021

 

(Loss)/profit after tax for the year (1)

 

 

(3,315,623

)

 

 

1,470,611

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to the consolidated statement of operations (net of tax):

 

 

 

 

 

 

 

 

Exchange gain/(loss) on translation of foreign operations

 

 

23,903

 

 

 

(20,017

)

Loss on cash flow hedges recognized in equity

 

 

(4,227

)

 

 

(12,825

)

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

 

 

17,612

 

 

 

(11,951

)

Gain/(loss) on cash flow hedges recognized in equity - time value

 

 

2,552

 

 

 

(2,552

)

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

 

 

 

 

 

 

 

 

Remeasurement loss on severance plan

 

 

(24

)

 

 

(77

)

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

 

 

39,816

 

 

 

(47,422

)

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

 

 

(3,275,807

)

 

 

1,423,189

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Equity holders of the parent

 

 

(3,293,687

)

 

 

1,421,809

 

Non-controlling interests

 

 

17,880

 

 

 

1,380

 

 

 

 

(3,275,807

)

 

 

1,423,189

 

 

 

 

 

 

 

 

 

 

Unaudited condensed consolidated statement of financial position

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

December 31,

2020 (1)

 

 

December 31,

2021

 

Non-current assets

 

 

 

 

 

 

 

 

Other receivables

 

 

58,081

 

 

 

31,225

 

Deferred tax assets

 

 

13,556

 

 

 

13,334

 

Intangible assets

 

 

1,279,328

 

 

 

1,359,657

 

Property, plant and equipment

 

 

89,082

 

 

 

97,063

 

Right-of-use assets

 

 

179,227

 

 

 

195,549

 

Investments

 

 

8,278

 

 

 

17,937

 

Investments in associates

 

 

2,319

 

 

 

69

 

Total non-current assets

 

 

1,629,871

 

 

 

1,714,834

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

145,309

 

 

 

255,664

 

Trade and other receivables

 

 

209,946

 

 

 

374,706

 

Current tax assets

 

 

2,082

 

 

 

10,201

 

Short-term investments

 

 

-

 

 

 

99,971

 

Derivative financial assets

 

 

30,242

 

 

 

8,010

 

Cash and cash equivalents

 

 

1,573,421

 

 

 

1,363,128

 

Total current assets

 

 

1,961,000

 

 

 

2,111,680

 

Total assets

 

 

3,590,871

 

 

 

3,826,514

 

 

 

 

 

 

 

 

 

 

Liabilities and (deficit)/equity

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Provisions

 

 

129,113

 

 

 

60,545

 

Deferred tax liabilities

 

 

182,463

 

 

 

156,025

 

Lease liabilities

 

 

165,275

 

 

 

180,915

 

Employee benefit obligations

 

 

26,116

 

 

 

12,948

 

Derivative financial liabilities

 

 

2,996,220

 

 

 

872,428

 

Borrowings (1)

 

 

617,789

 

 

 

515,804

 

Put and call option liabilities

 

 

348,937

 

 

 

836,609

 

Other financial liabilities

 

 

4,853

 

 

 

13,367

 

Total non-current liabilities

 

 

4,470,766

 

 

 

2,648,641

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 

666,144

 

 

 

806,406

 

Provisions

 

 

27,146

 

 

 

14,585

 

Current tax liability

 

 

3,098

 

 

 

5,189

 

Lease liabilities

 

 

26,128

 

 

 

33,594

 

Employee benefit obligations

 

 

38,286

 

 

 

8,296

 

Derivative financial liabilities

 

 

17,427

 

 

 

21,118

 

Put and call option liabilities

 

 

-

 

 

 

8,321

 

Other financial liabilities

 

 

518

 

 

 

9,748

 

Total current liabilities

 

 

778,747

 

 

 

907,257

 

Total liabilities

 

 

5,249,513

 

 

 

3,555,898

 

(Deficit)/equity

 

 

 

 

 

 

 

 

Share capital

 

 

14,168

 

 

 

15,231

 

Share premium

 

 

927,931

 

 

 

1,641,674

 

Merger reserve

 

 

783,529

 

 

 

783,529

 

Foreign exchange reserve

 

 

(7,271

)

 

 

(24,544

)

Other reserves

 

 

447,753

 

 

 

39,708

 

Accumulated losses (1)

 

 

(3,993,308

)

 

 

(2,366,990

)

(Deficit)/equity attributable to owners of the parent

 

 

(1,827,198

)

 

 

88,608

 

Non-controlling interests

 

 

168,556

 

 

 

182,008

 

Total (deficit)/equity

 

 

(1,658,642

)

 

 

270,616

 

Total (deficit)/equity and liabilities

 

 

3,590,871

 

 

 

3,826,514

 

 

Unaudited condensed consolidated statement of cash flows

 

 

 

 

 

for the year ended December 31

 

 

 

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

2020

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Operating loss

 

 

(619,815

)

 

 

(476,236

)

Adjustments to reconcile operating loss to net cash inflow/(outflow) from operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

39,366

 

 

 

49,564

 

Amortization

 

 

177,857

 

 

 

201,634

 

Non-cash employee benefits expense

 

 

168,347

 

 

 

219,932

 

Impairment losses on tangible assets

 

 

2,991

 

 

 

-

 

Impairment losses on intangible assets

 

 

36,269

 

 

 

11,779

 

Impairment of investments

 

 

235

 

 

 

134

 

Change in working capital

 

 

 

 

 

 

 

 

Increase in receivables

 

 

(15,833

)

 

 

(164,656

)

Increase in inventories

 

 

(16,471

)

 

 

(104,838

)

Increase in payables

 

 

280,454

 

 

 

115,025

 

Change in other assets and liabilities

 

 

 

 

 

 

 

 

(Increase)/decrease in non-current receivables

 

 

(1,453

)

 

 

13,551

 

Increase/(decrease) in other liabilities

 

 

59,640

 

 

 

(44,227

)

Increase/(decrease) in provisions

 

 

85,001

 

 

 

(68,128

)

(Decrease)/increase in derivative financial instruments

 

 

(15,052

)

 

 

5,663

 

Income taxes paid

 

 

(65,221

)

 

 

(41,351

)

Net cash inflow/(outflow) from operating activities

 

 

116,315

 

 

 

(282,154

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Acquisition of subsidiary, net of cash acquired

 

 

(12,016

)

 

 

(27,295

)

Payments for property, plant and equipment

 

 

(26,839

)

 

 

(28,854

)

Payments for intangible assets

 

 

(94,105

)

 

 

(167,707

)

Payments for investments

 

 

(2,872

)

 

 

(9,794

)

Investment in short-term investments

 

 

-

 

 

 

(100,000

)

Interest received

 

 

3,131

 

 

 

2,994

 

Dividends received from associate

 

 

60

 

 

 

-

 

Net cash outflow from investing activities

 

 

(132,641

)

 

 

(330,656

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repayment of the principal elements of lease payments

 

 

(19,051

)

 

 

(26,251

)

Interest paid and fees paid on loans

 

 

(54,154

)

 

 

(32,791

)

Transaction costs paid relating to capital contribution from non-controlling interest

 

 

-

 

 

 

(25,000

)

Dividends paid to holders of non-controlling interests

 

 

(20,515

)

 

 

(23,016

)

Acquisition of non-controlling interests

 

 

-

 

 

 

(18,514

)

Settlement of equity-based awards

 

 

-

 

 

 

(6,119

)

Proceeds from issue of shares, net of issue costs

 

 

50,000

 

 

 

-

 

Proceeds from exercise of employee share-based awards

 

 

62,899

 

 

 

36,833

 

Proceeds from borrowings, net of issue costs

 

 

1,241,861

 

 

 

-

 

Capital contribution from non-controlling interest

 

 

-

 

 

 

500,000

 

Net cash inflow from financing activities

 

 

1,261,040

 

 

 

405,142

 

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 

1,244,714

 

 

 

(207,668

)

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

 

 

6,278

 

 

 

(2,625

)

Cash and cash equivalents at end of period

 

 

1,573,421

 

 

 

1,363,128

 

 

Unaudited condensed consolidated statement of changes in (deficit)/equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 December 31, 2019

 

 

13,584

 

 

 

878,007

 

 

 

783,529

 

 

 

(30,842

)

 

 

349,463

 

 

 

(826,135

)

 

 

1,167,606

 

 

 

170,226

 

 

 

1,337,832

 

Changes in equity/(deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,333,171

)

 

 

(3,333,171

)

 

 

17,548

 

 

 

(3,315,623

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23,571

 

 

 

15,913

 

 

 

-

 

 

 

39,484

 

 

 

332

 

 

 

39,816

 

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

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23,571

 

 

 

15,913

 

 

 

(3,333,171

)

 

 

(3,293,687

)

 

 

17,880

 

 

 

(3,275,807

)

Gain on cashflow hedge transferred to inventory

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,213

)

 

 

-

 

 

 

(1,213

)

 

 

-

 

 

 

(1,213

)

Issue of share capital, net of transaction costs

 

 

584

 

 

 

49,924

 

 

 

-

 

 

 

-

 

 

 

4,808

 

 

 

-

 

 

 

55,316

 

 

 

-

 

 

 

55,316

 

Share-based payment – equity settled

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52,690

 

 

 

165,998

 

 

 

218,688

 

 

 

-

 

 

 

218,688

 

Share-based payment – reverse vesting shares

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

26,092

 

 

-

 

 

 

26,092

 

 

 

-

 

 

 

26,092

 

Acquisition of non-controlling interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

965

 

 

 

965

 

Dividends paid to non-controlling interests

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

(20,515

)

 

 

(20,515

)

Balance at December 31, 2020 (1)

 

 

14,168

 

 

 

927,931

 

 

 

783,529

 

 

 

(7,271

)

 

 

447,753

 

 

 

(3,993,308

)

 

 

(1,827,198

)

 

 

168,556

 

 

 

(1,658,642

)

Balance at December 31, 2020 (as previously reported)

 

 

14,168

 

 

 

927,931

 

 

 

783,529

 

 

 

(7,271

)

 

 

447,753

 

 

 

(4,010,756

)

 

 

(1,844,646

)

 

 

168,556

 

 

 

(1,676,090

)

Correction of misstatement (1)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

17,448

 

 

 

17,448

 

 

 

-

 

 

 

17,448

 

Revised balance at December 31, 2020

 

 

14,168

 

 

 

927,931

 

 

 

783,529

 

 

 

(7,271

)

 

 

447,753

 

 

 

(3,993,308

)

 

 

(1,827,198

)

 

 

168,556

 

 

 

(1,658,642

)

Changes in equity/(deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,466,487

 

 

 

1,466,487

 

 

 

4,124

 

 

 

1,470,611

 

Other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(17,273

)

 

 

(27,405

)

 

 

-

 

 

 

(44,678

)

 

 

(2,744

)

 

 

(47,422

)

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

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(17,273

)

 

 

(27,405

)

 

 

1,466,487

 

 

 

1,421,809

 

 

 

1,380

 

 

 

1,423,189

 

Loss on cashflow hedge transferred to inventory

 

-

 

 

-

 

 

-

 

 

-

 

 

 

2,066

 

 

-

 

 

 

2,066

 

 

 

-

 

 

 

2,066

 

Issue of share capital, net of transaction costs

 

 

333

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

333

 

 

 

-

 

 

 

333

 

Early conversion of convertible loan notes

 

 

653

 

 

 

630,976

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

631,629

 

 

 

-

 

 

 

631,629

 

Share-based payment – equity settled

 

-

 

 

-

 

 

-

 

 

-

 

 

 

61,282

 

 

 

159,831

 

 

 

221,113

 

 

 

-

 

 

 

221,113

 

Share-based payment – reverse vesting shares

 

 

51

 

 

 

54,626

 

 

-

 

 

-

 

 

 

(24,486

)

 

-

 

 

 

30,191

 

 

 

-

 

 

 

30,191

 

Acquisition of non-controlling interest

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(11,613

)

 

-

 

 

 

(11,613

)

 

 

(6,901

)

 

 

(18,514

)

Dividends paid to non-controlling interests

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

(23,016

)

 

 

(23,016

)

Non-controlling interest arising on purchase of asset

 

 

20

 

 

 

23,767

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

23,787

 

 

 

50,453

 

 

 

74,240

 

Share issued on purchase of subsidiary

 

 

6

 

 

 

4,374

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,380

 

 

 

-

 

 

 

4,380

 

Step acquisition

 

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

2,434

 

 

 

2,434

 

Non-controlling interest put option

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(150,070

)

 

-

 

 

 

(150,070

)

 

 

-

 

 

 

(150,070

)

Farfetch China Holdings Ltd put call option

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(744,163

)

 

-

 

 

 

(744,163

)

 

 

-

 

 

 

(744,163

)

Capital contribution from non-controlling interests, net of transaction costs

 

-

 

 

-

 

 

-

 

 

-

 

 

 

488,863

 

 

-

 

 

 

488,863

 

 

 

(13,875

)

 

 

474,988

 

Other

 

-

 

 

-

 

 

-

 

 

-

 

 

 

(2,519

)

 

 

-

 

 

 

(2,519

)

 

 

2,977

 

 

 

458

 

Balance at December 31, 2021

 

 

15,231

 

 

 

1,641,674

 

 

 

783,529

 

 

 

(24,544

)

 

 

39,708

 

 

 

(2,366,990

)

 

 

88,608

 

 

 

182,008

 

 

 

270,616

 

Supplemental Metrics (1)(2)

 

2020

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter (2)

 

 

Full
Year (2)

 

 

 

(in thousands, except per share data or otherwise stated)

 

Consolidated Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

610,874

 

 

$

721,310

 

 

$

797,840

 

 

$

1,056,990

 

 

$

3,187,014

 

Revenue

 

 

331,437

 

 

 

364,680

 

 

 

437,700

 

 

 

540,105

 

 

 

1,673,922

 

Adjusted Revenue

 

 

301,152

 

 

 

307,877

 

 

 

386,778

 

 

 

464,887

 

 

 

1,460,694

 

In-Store Revenue

 

 

8,516

 

 

 

3,926

 

 

 

11,416

 

 

 

13,666

 

 

 

37,524

 

Gross profit

 

 

153,376

 

 

 

159,375

 

 

 

209,029

 

 

 

249,148

 

 

 

770,928

 

Gross profit margin

 

46.3%

 

 

43.7%

 

 

47.8%

 

 

46.1%

 

 

46.1%

 

Demand generation expense

 

$

(37,966

)

 

$

(47,378

)

 

$

(46,185

)

 

$

(67,258

)

 

$

(198,787

)

Technology expense

 

 

(26,307

)

 

 

(29,284

)

 

 

(29,809

)

 

 

(29,827

)

 

 

(115,227

)

Share-based payments

 

 

(26,760

)

 

 

(61,915

)

 

 

(81,840

)

 

 

(121,118

)

 

 

(291,633

)

Depreciation and amortization

 

 

(51,323

)

 

 

(51,758

)

 

 

(54,007

)

 

 

(60,135

)

 

 

(217,223

)

General and administrative

 

 

(111,422

)

 

 

(107,888

)

 

 

(143,349

)

 

 

(141,687

)

 

 

(504,346

)

Other items

 

 

(5,025

)

 

 

(1,302

)

 

 

(860

)

 

 

(17,080

)

 

 

(24,267

)

Impairment losses on tangible assets

 

 

(2,292

)

 

 

-

 

 

 

-

 

 

 

(699

)

 

 

(2,991

)

Impairment losses on intangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(36,269

)

 

 

(36,269

)

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

 

 

65,434

 

 

 

(278,622

)

 

 

(373,079

)

 

 

(2,057,306

)

 

 

(2,643,573

)

Loss after tax (2)

 

 

(79,177

)

 

 

(435,899

)

 

 

(536,960

)

 

 

(2,263,587

)

 

 

(3,315,623

)

Adjusted EBITDA

 

 

(22,319

)

 

 

(25,175

)

 

 

(10,314

)

 

 

10,376

 

 

 

(47,432

)

Adjusted EBITDA Margin

 

(7.4)%

 

 

(8.2)%

 

 

(2.7)%

 

 

2.2%

 

 

(3.2)%

 

Basic (loss)/earnings per share (“EPS”) (2)

 

$

(0.24

)

 

$

(1.29

)

 

$

(1.58

)

 

$

(6.47

)

 

$

(9.69

)

Diluted EPS

 

 

(0.24

)

 

 

(1.29

)

 

 

(1.58

)

 

 

(6.47

)

 

 

(9.69

)

Adjusted EPS (2)

 

 

(0.24

)

 

 

(0.20

)

 

 

(0.17

)

 

 

(0.00

)

 

 

(0.60

)

Digital Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

494,899

 

 

$

651,036

 

 

$

674,097

 

 

$

939,444

 

 

$

2,759,476

 

Digital Platform Services Revenue

 

 

185,177

 

 

 

237,603

 

 

 

263,035

 

 

 

347,341

 

 

 

1,033,156

 

Digital Platform Fulfilment Revenue

 

 

30,285

 

 

 

56,803

 

 

 

50,922

 

 

 

75,218

 

 

 

213,228

 

Digital Platform Gross Profit

 

 

97,207

 

 

 

130,579

 

 

 

143,318

 

 

 

189,102

 

 

 

560,206

 

Digital Platform Gross Profit Margin

 

52.5%

 

 

55.0%

 

 

54.5%

 

 

54.4%

 

 

54.2%

 

Digital Platform Order Contribution

 

$

59,241

 

 

$

83,201

 

 

$

97,133

 

 

$

121,844

 

 

$

361,419

 

Digital Platform Order Contribution Margin

 

32.0%

 

 

35.0%

 

 

36.9%

 

 

35.1%

 

 

35.0%

 

Active Consumers (in thousands)

 

 

2,149

 

 

 

2,524

 

 

 

2,742

 

 

 

3,024

 

 

 

3,024

 

AOV - Marketplace

 

$

571

 

 

$

493

 

 

$

574

 

 

$

626

 

 

$

568

 

AOV - Stadium Goods

 

 

314

 

 

 

304

 

 

 

340

 

 

 

308

 

 

 

316

 

Brand Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

107,459

 

 

$

66,348

 

 

$

112,327

 

 

$

103,880

 

 

$

390,014

 

Brand Platform Revenue

 

 

107,459

 

 

 

66,348

 

 

 

112,327

 

 

 

103,880

 

 

 

390,014

 

Brand Platform Gross Profit

 

 

52,480

 

 

 

27,729

 

 

 

58,738

 

 

 

51,857

 

 

 

190,804

 

Brand Platform Gross Profit Margin

 

48.8%

 

 

41.8%

 

 

52.3%

 

 

49.9%

 

 

48.9%

 

Supplemental Metrics (1)

 

2021

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter

 

 

Full
Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

915,604

 

 

$

1,007,811

 

 

$

1,017,314

 

 

$

1,289,145

 

 

$

4,229,874

 

Revenue

 

 

485,079

 

 

 

523,313

 

 

 

582,565

 

 

 

665,651

 

 

 

2,256,608

 

Adjusted Revenue

 

 

408,851

 

 

 

439,488

 

 

 

504,670

 

 

 

571,095

 

 

 

1,924,104

 

In-Store Revenue

 

 

10,675

 

 

 

17,635

 

 

 

20,163

 

 

 

22,448

 

 

 

70,921

 

In-Store GMV

 

 

13,275

 

 

 

21,739

 

 

 

23,553

 

 

 

25,814

 

 

 

84,381

 

Gross profit

 

 

220,869

 

 

 

230,082

 

 

 

252,180

 

 

 

313,380

 

 

 

1,016,511

 

Gross profit margin

 

45.5%

 

 

44.0%

 

 

43.3%

 

 

47.1%

 

 

45.0%

 

Demand generation expense

 

$

(61,867

)

 

$

(65,888

)

 

$

(74,090

)

 

$

(89,976

)

 

$

(291,821

)

Technology expense

 

 

(33,532

)

 

 

(34,545

)

 

 

(32,585

)

 

 

(30,746

)

 

 

(131,408

)

Share-based payments

 

 

(40,516

)

 

 

(60,173

)

 

 

(46,134

)

 

 

(49,344

)

 

 

(196,167

)

Depreciation and amortization

 

 

(53,992

)

 

 

(62,720

)

 

 

(64,807

)

 

 

(69,679

)

 

 

(251,198

)

General and administrative

 

 

(144,666

)

 

 

(150,229

)

 

 

(140,195

)

 

 

(156,554

)

 

 

(591,644

)

Other items

 

 

(4,721

)

 

 

(6,828

)

 

 

(104

)

 

 

(7,077

)

 

 

(18,730

)

Impairment losses on tangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Impairment losses on intangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,779

)

 

 

(11,779

)

Gains on items held at fair value and remeasurements

 

 

659,870

 

 

 

245,738

 

 

 

901,173

 

 

 

216,962

 

 

 

2,023,743

 

Profit after tax

 

 

516,667

 

 

 

87,925

 

 

 

769,129

 

 

 

96,890

 

 

 

1,470,611

 

Adjusted EBITDA

 

 

(19,196

)

 

 

(20,579

)

 

 

5,310

 

 

 

36,104

 

 

 

1,638

 

Adjusted EBITDA Margin

 

(4.7)%

 

 

(4.7)%

 

 

1.1%

 

 

6.3%

 

 

0.1%

 

Basic earnings/(loss) per share ("EPS")

 

$

1.44

 

 

$

0.24

 

 

$

2.09

 

 

$

0.27

 

 

$

4.02

 

Diluted EPS

 

 

(0.28

)

 

 

(0.31

)

 

 

(0.25

)

 

 

(0.23

)

 

 

(1.07

)

Adjusted EPS

 

 

(0.22

)

 

 

(0.17

)

 

 

(0.14

)

 

 

(0.03

)

 

 

(0.55

)

Digital Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

790,014

 

 

$

913,350

 

 

$

828,471

 

 

$

1,146,153

 

 

$

3,677,988

 

Digital Platform Services Revenue

 

 

285,861

 

 

 

349,131

 

 

 

319,217

 

 

 

431,469

 

 

 

1,385,678

 

Digital Platform Fulfilment Revenue

 

 

76,228

 

 

 

83,825

 

 

 

77,895

 

 

 

94,556

 

 

 

332,504

 

Digital Platform Gross Profit

 

 

156,333

 

 

 

184,999

 

 

 

159,036

 

 

 

229,885

 

 

 

730,253

 

Digital Platform Gross Profit Margin

 

54.7%

 

 

53.0%

 

 

49.8%

 

 

53.3%

 

 

52.7%

 

Digital Platform Order Contribution

 

$

94,466

 

 

$

119,111

 

 

$

84,946

 

 

$

139,909

 

 

$

438,432

 

Digital Platform Order Contribution Margin

 

33.0%

 

 

34.1%

 

 

26.6%

 

 

32.4%

 

 

31.6%

 

Active Consumers (in thousands)

 

 

3,272

 

 

 

3,394

 

 

 

3,593

 

 

 

3,687

 

 

 

3,687

 

AOV - Marketplace

 

$

618

 

 

$

599

 

 

$

593

 

 

$

635

 

 

$

612

 

AOV - Stadium Goods

 

 

326

 

 

 

335

 

 

 

294

 

 

 

288

 

 

 

308

 

Brand Platform:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

112,315

 

 

$

72,722

 

 

$

165,290

 

 

$

117,178

 

 

$

467,505

 

Brand Platform Revenue

 

 

112,315

 

 

 

72,722

 

 

 

165,290

 

 

 

117,178

 

 

 

467,505

 

Brand Platform Gross Profit

 

 

57,735

 

 

 

34,252

 

 

 

80,272

 

 

 

69,257

 

 

 

241,516

 

Brand Platform Gross Profit Margin

 

51.4%

 

 

47.1%

 

 

48.6%

 

 

59.1%

 

 

51.7%

 

 

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 our expectations in relation to New Guards’ strategic partnership with Authentic Brands Group, the anticipated launch of our beauty offering, expectations regarding our pre-owned platform capabilities, the continued impact of Brexit, the ongoing impact of COVID-19, future financial or operating performance, actions we are taking in relation to Apple’s iOS privacy measures, planned activities and objectives, anticipated growth resulting therefrom, strategic initiatives, our growth and expected performance for full year 2022, statements regarding our profitability, 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, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, to be filed with the SEC (the “2021 20-F”), 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 fourth quarter 2020 or the current quarter. Refer to our Form 6-K furnished with the SEC on May 13, 2021, and Note 3, Significant accounting policies, within our Consolidated financial statements included in our 2021 20-F to be filed with the SEC, 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 profit/(loss) after tax and profit/(loss) after tax margin, respectively:

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter (1)

 

 

Full
Year (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss after tax (1)

 

$

(79,177

)

 

$

(435,899

)

 

$

(536,960

)

 

$

(2,263,587

)

 

$

(3,315,623

)

Net finance expense (1)

 

 

34,355

 

 

 

20,751

 

 

 

14,363

 

 

 

(2,874

)

 

 

66,595

 

Income tax benefit / (expense)

 

 

2,506

 

 

 

(4,118

)

 

 

2,882

 

 

 

(15,704

)

 

 

(14,434

)

Depreciation and amortization

 

 

51,323

 

 

 

51,758

 

 

 

54,007

 

 

 

60,135

 

 

 

217,223

 

Share-based payments (2)

 

 

26,760

 

 

 

61,915

 

 

 

81,840

 

 

 

121,118

 

 

 

291,633

 

(Gains)/losses on items held at fair value and remeasurements (3)

 

 

(65,434

)

 

 

278,622

 

 

 

373,079

 

 

 

2,057,306

 

 

 

2,643,573

 

Other items (4)

 

 

5,025

 

 

 

1,302

 

 

 

860

 

 

 

17,080

 

 

 

24,267

 

Impairment losses on tangible assets

 

 

2,292

 

 

 

-

 

 

 

-

 

 

 

699

 

 

 

2,991

 

Impairment losses on intangible assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

36,269

 

 

 

36,269

 

Share of results of associates

 

 

31

 

 

 

494

 

 

 

(385

)

 

 

(66

)

 

 

74

 

Adjusted EBITDA

 

$

(22,319

)

 

$

(25,175

)

 

$

(10,314

)

 

$

10,376

 

 

$

(47,432

)

Revenue

 

$

331,437

 

 

$

364,680

 

 

$

437,700

 

 

$

540,105

 

 

$

1,673,922

 

Loss after tax margin (1)

 

(23.9)%

 

 

(119.5)%

 

 

(122.7)%

 

 

(419.1)%

 

 

(198.1)%

 

Adjusted Revenue

 

$

301,152

 

 

$

307,877

 

 

$

386,778

 

 

$

464,887

 

 

$

1,460,694

 

Adjusted EBITDA Margin

 

(7.4)%

 

 

(8.2)%

 

 

(2.7)%

 

 

2.2%

 

 

(3.2)%

 

(in $ thousands, except as otherwise noted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter

 

 

Full
Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

 

$

516,667

 

 

$

87,925

 

 

$

769,129

 

 

$

96,890

 

 

$

1,470,611

 

Net finance expense

 

 

 

24,660

 

 

 

10,726

 

 

 

21,901

 

 

 

16,555

 

 

 

73,842

 

Income tax benefit / (expense)

 

 

 

49

 

 

 

(3,195

)

 

 

4,427

 

 

 

1,721

 

 

 

3,002

 

Depreciation and amortization

 

 

 

53,992

 

 

 

62,720

 

 

 

64,807

 

 

 

69,679

 

 

 

251,198

 

Share-based payments (2)

 

 

 

40,516

 

 

 

60,173

 

 

 

46,134

 

 

 

49,344

 

 

 

196,167

 

Gains on items held at fair value and remeasurements (3)

 

 

 

(659,870

)

 

 

(245,738

)

 

 

(901,173

)

 

 

(216,962

)

 

 

(2,023,743

)

Other items (4)

 

 

 

4,721

 

 

 

6,828

 

 

 

104

 

 

 

7,077

 

 

 

18,730

 

Impairment losses on tangible assets

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Impairment losses on intangible assets

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11,779

 

 

 

11,779

 

Share of results of associates

 

 

 

69

 

 

 

(18

)

 

 

(19

)

 

 

20

 

 

 

52

 

Adjusted EBITDA

 

 

$

(19,196

)

 

$

(20,579

)

 

$

5,310

 

 

$

36,103

 

 

$

1,638

 

Revenue

 

 

$

485,079

 

 

$

523,313

 

 

$

582,565

 

 

$

665,651

 

 

$

2,256,608

 

Profit after tax margin

 

 

106.5%

 

 

16.8%

 

 

132.0%

 

 

14.6%

 

 

65.2%

 

Adjusted Revenue

 

 

$

408,851

 

 

$

439,488

 

 

$

504,670

 

 

$

571,095

 

 

$

1,924,104

 

Adjusted EBITDA Margin

 

 

(4.7)%

 

 

(4.7)%

 

 

1.1%

 

 

6.3%

 

 

0.1%

 

  1. Refer to “Revisions to Previously Reported Financial Information” in Notes and Disclosures on page 21.
  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 27 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 28 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

First
Quarter

 

 

Second
Quarter

 

 

Third
Quarter

 

 

Fourth
Quarter

 

 

Full
Year