British furniture e-commerce Made.com lost £31.4 million in 2021

British furniture e-commerce Made.com released its 2021 data report.

Made.com, an online furniture retailer founded by Chinese people, was established in the UK in 2010 and sells furniture ordered directly from designers. It sells its products in Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands through its e-commerce platform.

It recently announced its full-year results for 2021. In terms of full-year revenue , Made.com increased by 50% compared to 2020 to £371.9 million.

But higher freight costs (which rose more than fivefold in the year) prevented this strong revenue performance and filtered through to its profits; EBITDA losses grew by £9.2m to £14.3m , and its gross margin for 2021 was 46.3%, down from 53.2% in 2020 , resulting in a 6.9 percentage point drop in its gross margin .

In addition, the report also showed that Made.com's pre-tax loss in 2021 was 31.4 million pounds , a further decline from the 14.6% loss reported in the same period last year . According to the company , this was the result of global supply chain challenges and inflation.

In addition, one-off costs of £5.3 million related to the initial public offering and £3.5 million of share-based payment expenses also increased its pre-tax loss.

It is reported that Made.com's sales increased by 30% in 2020 to 315 million pounds. After rapid growth, it announced its listing plan in early 2021 and expected net sales to exceed 1.2 billion pounds by 2025.

The company's new CEO Nicola Thompson said , and remained optimistic about this year's financial performance , "Growth will be driven by our improved customer proposition, improved experience, wider product choice and expanded coverage. We expect full-year revenue of up to £ 500 million and adjusted EBITDA to be between £5 million and £15 million. "

The pandemic has boosted the development of home furnishing e-commerce, and Made.com is also facing increasing competition from newer online home furnishing brands. Made.com has been trying to attract design-savvy millennial customers with its modern and stylish furniture. As global transportation begins to improve, Made.com says it will also shorten delivery times, saving costs while providing better service to users.

U.K.

Made.com

furniture