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Farfetch Announces Second Quarter 2019 Results

LONDON--(BUSINESS WIRE)--

  • Record Gross Merchandise Value (“GMV”) of $488 million and Record Revenue of $209 million in Q2 2019
  • Platform GMV of $484 million, up 44% Year-Over-Year, or approximately 49% Growth on Constant Currency Basis
  • Q2 2019 Revenue Grew 43% with Platform Services Revenue Up 53% Year-Over-Year
  • Active Consumers Up 56% Year-Over-Year in Q2 2019
  • Acquisition of New Guards Group Adds Profitable ‘Brand Platform’ Extending Capabilities Into Design, Production and Brand Development

 

Farfetch Limited (FTCH), the leading global technology platform for the luxury fashion industry, today reported financial results for the second quarter ended June 30, 2019.

José Neves, Farfetch Founder, CEO and Co-Chair said: “Farfetch continued to deliver market-leading growth in second quarter 2019, with Platform GMV expanding 44% to a record $484 million, or approximately 49% growth on a constant currency basis. Our unmatched proposition for luxury consumers drove growth beyond not only our expectations, but also the growth of the online personal luxury goods industry, as we continued to gain market share.

“As we approach our one-year anniversary as a public company, I am delighted with our progress in executing on our Chapter 2 vision - to build on our global platform to take the lion’s share of the $100 billion growth expected in the online luxury industry. Moreover, the industry has only further validated our global e-concession model over the past year as we have seen major luxury groups increase their direct supply on our Marketplace while at the same time announcing plans to reduce wholesale distribution, and our overall number of brand and boutique partners continued to increase to now exceed 1,100. As the only at-scale global marketplace in the luxury industry with a Technology, Data, Logistics, and now an additional Brand Platform layer with our acquisition of New Guards Group, we are uniquely positioned to empower creators, curators and consumers and help uphold the values of an industry we love.”

Elliot Jordan, CFO of Farfetch, said: “Overall I am delighted with our second quarter 2019 results, in which we delivered record GMV and Platform GMV ahead of our guidance. We focused on driving engagement with our valuable customers against a backdrop of increased competitive behavior, whilst investing in the long-term strategy we laid out at our IPO, and achieving adjusted EBITDA margin in-line with our expectations. The powerful network effect of the platform we have built and the rich unit economics that can be achieved underpins our future growth and will ultimately deliver strong profitability. Additionally, the acquisition of New Guards Group brings profitable revenue streams and broadens our ability to leverage the Farfetch platform to further enable the luxury industry.”

Consolidated Financial Summary and Key Operating Metrics (in thousands, except per share data or as otherwise stated):

 

 

Three months ended June 30,

 

 

 

2018

 

 

2019

 

Consolidated Group:

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

338,543

 

 

$

488,475

 

Revenue

 

 

146,693

 

 

 

209,260

 

Adjusted Revenue

 

 

118,677

 

 

 

180,738

 

Loss After Tax

 

 

(17,681

)

 

 

(89,623

)

Adjusted EBITDA

 

 

(25,417

)

 

 

(37,576

)

Adjusted EBITDA Margin

 

(21.4)%

 

 

(20.8)%

 

Earnings Per Share (“EPS”)

 

$

(0.07

)

 

$

(0.29

)

Adjusted EPS

 

$

(0.05

)

 

$

(0.15

)

Platform:

 

 

 

 

 

 

 

 

Platform GMV

 

$

335,373

 

 

$

484,255

 

Platform Services Revenue

 

 

115,507

 

 

 

176,518

 

Platform Gross Profit

 

 

74,222

 

 

 

84,106

 

Platform Order Contribution

 

 

52,327

 

 

 

49,662

 

Platform Order Contribution Margin

 

45.3%

 

 

28.1%

 

Active Consumers1

 

 

1,138.7

 

 

 

1,773.0

 

Average Order Value (“AOV”) - Marketplace (actual)

 

$

602.4

 

 

$

600.4

 

Average Order Value - Stadium Goods (actual)

 

$

 

 

$

336.0

 

  1. See “Metrics Definitions” below for an explanation regarding changes to the previously reported metrics.

Recent Business Highlights

  • Acquired Milan-based New Guards Group, a collection of brands and a luxury fashion brand platform with a proven track record of identifying the most relevant emerging new creatives and providing them with resources and expertise to develop profitable brands. Acquisition extends Farfetch’s capabilities with new ‘Brand Platform’ layer and further enables its support of all areas of the luxury ecosystem by leveraging its global consumer base, large boutique network, significant data insights, and now, expert design capabilities
  • Continued to add breadth and depth to the Marketplace offering through our partnerships with luxury brands and retailers:
    • 2019 Spring/Summer supply from our top 10 brands as of the end of second quarter 2019 increased 169% year-over-year
    • Added luxury fashion labels Giuseppe Zanotti, Brunello Cucinelli and Stella McCartney as new direct brand partners
    • Grew boutique network by 45 across 24 countries, including our first partners in Kazakhstan, Monaco, and Slovakia
  • Farfetch’s China region, the company’s second-largest market, continued to see strong growth; the integration with JD.com’s platform was also completed during second quarter 2019, enabling JD.com's audience of 310 million users to discover and shop Farfetch’s broad luxury assortment
  • Further elevated our rich customer proposition with exclusive access to collections including Stella McCartney’s Beatles-inspired ‘All Together Now’ collection for which Farfetch was the exclusive launch partner; also collaborated with Zenith to design a limited edition version of their Defy Classic heirloom timepiece for Farfetch’s global customers, and exclusively launched Balenciaga’s mini bag, which was dubbed by Vogue as “the most desired mini bag for the summer of 2019”
  • Stadium Goods, in partnership with Sotheby’s, held a groundbreaking “ultimate sneaker” auction of rare sneakers, including the 1972 Waffle “Moon Shoe” designed by Nike co-founder Bill Bowerman, which sold for $437,500, making them the most expensive sneakers ever sold at auction; the entire lot of 100 pairs were purchased by art collector, Miles Nadal, for $1.3 million
  • Farfetch Platform Solutions signed its third LVMH brand, Nicholas Kirkwood, and implemented new features and enhancements to better serve clients, including a pre-order capability aimed at driving full-price sales by enabling customers to pre-order runway pieces online
  • Orchestrated innovative media solutions campaigns to drive heightened engagement with high intent luxury shoppers for Farfetch brand partners including a 360 activation program for Burberry’s launch of its TB Monogram collection, complete with content creation, high impact content placements on the Farfetch website and app, audience targeting, and first-ever Featured Product placements; also partnered with Gucci to launch an eight-month long ‘Open House’ content collaboration inviting lovers of Gucci into the homes of Farfetch community members across the globe

Second Quarter 2019 Results Summary

Gross Merchandise Value and Platform GMV

Gross Merchandise Value (“GMV”) increased by $149.9 million from $338.5 million in second quarter 2018 to $488.5 million in second quarter 2019, representing year-over-year growth of 44.3%. Platform GMV increased by $148.9 million from $335.4 million in second quarter 2018 to $484.3 million in second quarter 2019, representing year-over-year growth of 44.4%. Excluding the impact of changes in foreign exchange rates, Platform GMV would have increased by approximately 49.0%.

The increases in GMV and Platform GMV were primarily driven by an increase of 55.7% in Active Consumers to 1.8 million, and increases in average number of orders per Active Consumer and total number of orders on the Farfetch Marketplace. Other contributing factors included an increase in the number of clients supported by our Farfetch Platform Solutions, growth in transactions through our managed websites and the addition of Stadium Goods, our premier sneaker and streetwear marketplace.

Revenue

Revenue increased by $62.6 million year-over-year from $146.7 million in second quarter 2018 to $209.3 million in second quarter 2019, representing growth of 42.7%. The increase was primarily driven by 52.8% growth in Platform Services Revenue to $176.5 million . In-Store revenue increased by 33.1% to $4.2 million.

The increase in Platform Services Revenue of 52.8% was driven by 44.4% growth in Platform GMV, boosted by growth in first-party GMV which more than doubled year-on-year and which is included in Platform Services Revenue at 100% of the GMV.

Platform Fulfillment Revenue is derived from the pass-through of delivery and duties charges incurred by our global logistics solutions. Customer promotions and incentives are reflected as a deduction from Platform Fulfillment Revenue. Whilst Fulfillment Revenue generally grows in line with the cost of delivery and duties charges, which increase as Platform GMV and order volumes grow, an increase in the level of promotions will decrease Fulfillment Revenue. In second quarter 2019, Platform Fulfillment Revenue increased 1.8%, a slower rate as compared to the growth of Platform GMV, primarily due to a significant increase in customer promotions year-over-year.

Revenue by type of good or service (in thousands):

 

 

Three months ended June 30,

 

 

 

2018

 

 

2019

 

Platform Services Revenue

 

$

115,507

 

 

$

176,518

 

Platform Fulfilment Revenue

 

 

28,016

 

 

 

28,522

 

In-Store Revenue

 

 

3,170

 

 

 

4,220

 

Revenue

 

$

146,693

 

 

$

209,260

 

Cost of Revenue

Cost of revenue increased by $53.0 million, or 74.6% year-over-year from $71.0 million in second quarter 2018 to $124.0 million in second quarter 2019. The increase was primarily driven by the growth in first-party sales and the associated cost of goods, the delivery costs associated with order fulfillment and the costs of duties incurred on cross-border sales.

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

 

 

Three months ended June 30,

 

 

 

2018

 

 

2019

 

Demand generation expense

 

$

21,895

 

 

$

34,444

 

Technology expense

 

 

17,135

 

 

 

19,073

 

Depreciation and amortization

 

 

5,463

 

 

 

14,323

 

Share based payments

 

 

5,957

 

 

 

45,710

 

General and administrative

 

 

62,080

 

 

 

69,339

 

Other items

 

 

 

 

 

(1,764

)

Selling, general and administrative expense

 

$

112,530

 

 

$

181,125

 

Second quarter 2019 demand generation expense increased 57.3% year-over-year to $34.4 million, or 19.5% of Platform Services Revenue. The increase in spend contributed to the increased number of orders and Active Consumers as described above as we continued to invest in customer acquisition and retention efforts to support our continued growth in Platform GMV and Platform Services Revenue.

Technology expense, which is primarily related to research and development and operations of our platform features and services and also includes software, hosting and infrastructure expenses, increased by $1.9 million, or 11.3%, year-over-year in second quarter 2019, primarily driven by a 20.2% increase in technology staff headcount. This was offset by an increase in expenditure qualifying for capitalization driven by an increase in technology development in our Farfetch Platform Solutions business unit. We continue to operate three globally distributed data centers, which support the processing of our growing base of transactions, including one in Shanghai dedicated to serving our Chinese customers.

Depreciation and amortization expense increased by $8.9 million or 162.2% year-over-year from $5.5 million in second quarter 2018 to $14.3 million in second quarter 2019. Amortization expense increased principally due to our continued technology investment, in which we capitalize qualifying technology development costs and amortize them over a three-year period, as well as the additional amortization recognized on intangible assets acquired in recent acquisitions. The increase in depreciation expense was driven by the first-time adoption of the new leasing accounting standard, IFRS 16, on January 1, 2019, as a result of which we recognized $4.2 million of depreciation related to right-of-use assets in second quarter 2019. In second quarter 2018, the comparative expense for operating leases was included in general and administrative expense.

Share based payments increased by $39.8 million, or 667.3%, year-over-year in second quarter 2019, primarily due to additional key-contributor grants as part of the Farfetch annual compensation scheme as well as the award of acquisition-related long-term employee incentives. The year-over-year increase also reflects a higher fair value per share driven by the post-IPO share price and updated valuation assumptions.

General and administrative expense increased by $7.3 million, or 11.7%, year-over-year in second quarter 2019, primarily driven by an increase in non-technology headcount across a number of areas to support the expansion of the business. This was partially offset by a lower total employee cost per head. General and administrative costs as a percentage of Adjusted Revenue decreased from 52.3% in second quarter 2018 to 38.4% in second quarter 2019, reflecting improved efficiency of our semi-variable and fixed costs as well as the impact of adopting IFRS 16 on January 1, 2019, as described above.

Other items, totaling $1.8 million, is comprised of $2.2 million acquisition-related expenses fully offset by a release of tax provisions. There were no such items in second quarter 2018.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA loss increased by $12.2 million, or 47.8%, year-over-year in second quarter 2019, to $37.6 million. Adjusted EBITDA Margin improved from (21.4)% to (20.8)% over the same period, primarily due to the impact of adopting IFRS 16 on January 1, 2019, as described above.

Loss After Tax

Loss after tax increased by $71.9 million, or 406.9% year-over-year, in second quarter 2019 to $89.6 million. This was largely driven by a year-over-year increase in the operating loss from $36.8 million to $95.8 million partially offset by a decrease in unrealized foreign exchange losses on revaluation of non-United States Dollar denominated receivables and payables. Our exposure to unrealized foreign exchange gains and losses has decreased following a change in the functional currency of our principal legal entity, Farfetch UK Limited, from Pound Sterling to United States Dollars on January 1, 2019.

Subsequent Event

On August 8, 2019, we announced the acquisition of 100% of the outstanding shares of New Guards Group, a brand platform for luxury brands’ design, production and distribution, for a Total Enterprise Value of $6751 million. The consideration payable by Farfetch will be split equally between cash and Farfetch shares, with the exact amounts to be determined at completion following customary adjustments.

Update on Executive Organization

Farfetch today also announced that Andrew Robb has informed the company of his intention to step down as Chief Operating Officer after serving in the position for nine years. Mr. Robb will continue on with the Company for six months and will help ensure a seamless transition of his responsibilities.

“Andrew has worked passionately alongside me over the past nine years and I am grateful for all he has done to help establish our market-defining position,” said José Neves, Farfetch Founder, CEO and Co-Chair. “We are also fortunate that he will leave us with an incredibly talented and strong team he has built over the years, and he has our sincere thanks for all he has contributed to the Company, along with our best wishes for the future.”

“It is difficult to leave such an incredible company, team and culture at Farfetch,” said Andrew Robb, Farfetch Chief Operating Officer. “It has been a true privilege to have been part of Chapter 1 at Farfetch, and I firmly believe in the company’s ability to succeed in Chapter 2 and beyond.”

In light of the company’s acquisition of New Guards Group and its continued strong growth in its existing and emerging markets, it is taking the opportunity to evolve the Farfetch executive team structure to be even better positioned to execute on its strategy going forward. As part of this initiative, Farfetch will bring responsibility for its brand, customers and consumer product under a new role – Chief Customer Officer, which will be filled by Stephanie Phair, Farfetch’s current Chief Strategy Officer.

With over 15 years of experience in online luxury, Ms. Phair is a veteran in the technology and fashion industry. She started her online career in 2005 at Portero, a marketplace for pre-owned luxury in New York, and was a member of the Executive Board at Net-a-Porter Group for 7 years during which time she launched and built their second business, The Outnet. Ms. Phair also has experience on the agency side of the business, in-house at Issey Miyake, as well as in communications and marketing at American Vogue. She also sits on the board of Moncler S.pA, and was appointed as Chairman of the British Fashion Council in May 2018.

The Board has designated Ms. Phair as an “executive officer” of the Company for purposes of Rule 3b-7 under the Securities Exchange Act of 1934.

1 Converted from EUR to USD at an exchange rate of 1.11

Outlook

The following forward-looking statement reflects Farfetch’s expectations as of August 8, 2019:

Expectations for third quarter 2019 include:

  • Platform GMV growth of 30% to 35% year-over-year
  • Adjusted EBITDA Loss Margin of approximately (18)% to (20)% of Adjusted Revenue

Expectations for full year 2019 include:

  • GMV of approximately $2.10 billion, representing approximately 50% year-over-year growth
  • Platform GMV of $1.91 to $1.95 billion, representing approximately 37-40% year-over-year growth
  • Adjusted EBITDA Loss of $(135) to $(145) million, representing Adjusted EBITDA Loss Margin of approximately (15)% to (17)% of Adjusted Revenue

The expected Adjusted EBITDA Loss and Adjusted EBITDA Loss Margin for both periods includes the estimated impact from the adoption of IFRS 16, which became effective on January 1, 2019. The outlook also includes the impact of New Guards Group following the expected close of the acquisition in third quarter 2019.

Conference Call Information

Farfetch will host a conference call today, August 8, 2019 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 30 days.

Unaudited interim condensed consolidated statements of operations

 

 

 

 

 

for the three months ended June 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Revenue

 

 

146,693

 

 

 

209,260

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(71,000

)

 

 

(123,980

)

Gross profit

 

 

75,693

 

 

 

85,280

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(112,530

)

 

 

(181,125

)

Share of results of associates

 

 

24

 

 

 

17

 

Operating loss

 

 

(36,813

)

 

 

(95,828

)

 

 

 

 

 

 

 

 

 

Finance income

 

 

19,361

 

 

 

8,047

 

Finance cost

 

 

(42

)

 

 

(1,029

)

Loss before tax

 

 

(17,494

)

 

 

(88,810

)

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(187

)

 

 

(813

)

Loss after tax

 

 

(17,681

)

 

 

(89,623

)

 

 

 

 

 

 

 

 

 

(Loss)/ profit after tax attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(17,681

)

 

 

(89,658

)

Non-controlling interests

 

 

-

 

 

 

35

 

 

 

 

(17,681

)

 

 

(89,623

)

 

 

 

 

 

 

 

 

 

Earnings per share attributable to owners of the company

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.07

)

 

 

(0.29

)

 

 

 

 

 

 

 

 

 

Weighted-average ordinary shares outstanding

 

 

 

 

 

 

 

 

Basic and diluted

 

 

251,725,525

 

 

 

308,931,390

 

Unaudited interim condensed consolidated statements of comprehensive loss

 

 

 

 

 

for the three months ended June 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Loss for the period

 

 

(17,681

)

 

 

(89,623

)

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to consolidated

statement of operations (net of tax):

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

(28,932

)

 

 

(7,655

)

Loss on cash flow hedges

 

 

-

 

 

 

(4,813

)

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

 

 

(28,932

)

 

 

(12,468

)

Total comprehensive loss for the period, net of tax

 

 

(46,613

)

 

 

(102,091

)

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/ income attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(46,613

)

 

 

(102,126

)

Non-controlling interests

 

 

-

 

 

 

35

 

 

 

 

(46,613

)

 

 

(102,091

)

Unaudited interim condensed consolidated statements of operations

 

 

 

 

 

for the six months ended June 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Revenue

 

 

272,310

 

 

 

383,324

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(135,445

)

 

 

(214,754

)

Gross profit

 

 

136,865

 

 

 

168,570

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(208,802

)

 

 

(349,965

)

Share of profits of associates

 

 

24

 

 

 

33

 

Operating loss

 

 

(71,913

)

 

 

(181,362

)

 

 

 

 

 

 

 

 

 

Finance income

 

 

4,261

 

 

 

9,202

 

Finance cost

 

 

(42

)

 

 

(25,364

)

Loss before tax

 

 

(67,694

)

 

 

(197,524

)

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(714

)

 

 

(1,374

)

Loss after tax

 

 

(68,408

)

 

 

(198,898

)

 

 

 

 

 

 

 

 

 

(Loss)/ profit after tax attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(68,408

)

 

 

(198,933

)

Non-controlling interests

 

 

-

 

 

 

35

 

 

 

 

(68,408

)

 

 

(198,898

)

 

 

 

 

 

 

 

 

 

Loss per share attributable to owners of the company

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.27

)

 

 

(0.65

)

 

 

 

 

 

 

 

 

 

Weighted-average ordinary shares outstanding

 

 

 

 

 

 

 

 

Basic and diluted

 

 

250,759,946

 

 

 

306,748,971

 

Unaudited interim condensed consolidated statements of comprehensive loss

 

 

 

 

 

for the six months ended June 30

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Loss for the period

 

 

(68,408

)

 

 

(198,898

)

Other comprehensive income:

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

(9,134

)

 

 

21,793

 

Losses on cash flow hedges

 

 

-

 

 

 

(5,080

)

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

 

 

(9,134

)

 

 

16,713

 

Total comprehensive loss for the period, net of tax

 

 

(77,542

)

 

 

(182,185

)

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/ income attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(77,542

)

 

 

(182,220

)

Non-controlling interests

 

 

-

 

 

 

35

 

 

 

 

(77,542

)

 

 

(182,185

)

 

 

 

 

 

 

 

 

 

Unaudited interim condensed consolidated statements of financial position

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

2018

 

 

June 30,

2019

 

Non-current assets

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

10,458

 

 

 

12,161

 

Intangible assets

 

 

103,345

 

 

 

373,337

 

Property, plant and equipment

 

 

37,528

 

 

 

62,773

 

Right-of-use assets

 

-

 

 

 

93,481

 

Investments

 

 

566

 

 

 

20,286

 

Investments in associates

 

 

86

 

 

 

138

 

Total non-current assets

 

 

151,983

 

 

 

562,176

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

60,954

 

 

 

76,331

 

Trade and other receivables

 

 

93,670

 

 

 

120,991

 

Cash and cash equivalents

 

 

1,044,786

 

 

 

678,907

 

Total current assets

 

 

1,199,410

 

 

 

876,229

 

Total assets

 

 

1,351,393

 

 

 

1,438,405

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 

11,994

 

 

 

12,462

 

Share premium

 

 

772,300

 

 

 

824,275

 

Merger reserve

 

 

783,529

 

 

 

783,529

 

Foreign exchange reserve

 

 

(23,509

)

 

 

(1,716

)

Other reserves

 

 

67,474

 

 

 

85,374

 

Accumulated losses

 

 

(483,357

)

 

 

(664,651

)

Equity attributable to owners of the company

 

 

1,128,431

 

 

 

1,039,273

 

Non-controlling interests

 

 

-

 

 

 

245

 

Total equity

 

 

1,128,431

 

 

 

1,039,518

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Provisions

 

 

13,462

 

 

 

23,804

 

Lease liabilities

 

 

-

 

 

 

78,149

 

Deferred tax liabilities

 

 

-

 

 

 

898

 

Other liabilities

 

 

15,342

 

 

 

21,311

 

Total non-current liabilities

 

 

28,804

 

 

 

124,162

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 

194,158

 

 

 

237,861

 

Lease liabilities

 

 

-

 

 

 

15,858

 

Borrowings

 

 

-

 

 

 

21,006

 

Total current liabilities

 

 

194,158

 

 

 

274,725

 

Total liabilities

 

 

222,962

 

 

 

398,887

 

Total equity and liabilities

 

 

1,351,393

 

 

 

1,438,405

 

 

Unaudited interim condensed consolidated statements of cash flows

 

 

 

 

 

 

 

 

for the six months ended June 30

 

 

 

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Loss before tax

 

 

(67,694

)

 

 

(197,524

)

Adjustments for:

 

 

 

 

 

 

 

 

Depreciation

 

 

3,115

 

 

 

11,902

 

Amortization

 

 

7,223

 

 

 

16,527

 

Non-cash employee benefits expense

 

 

10,598

 

 

 

61,218

 

Net loss on sale of non-current assets

 

 

93

 

 

 

77

 

Share of results of associates

 

 

(24

)

 

 

(33

)

Net finance (income)/ expense

 

 

(3,135

)

 

 

16,162

 

Net exchange differences

 

 

1,562

 

 

 

(22

)

Change in the fair value of derivatives

 

 

1,529

 

 

 

-

 

Change in working capital

 

 

 

 

 

 

 

 

Increase in receivables

 

 

(61,750

)

 

 

(21,407

)

Increase in inventories

 

 

(5,024

)

 

 

(14,704

)

Increase in payables

 

 

6,624

 

 

 

27,194

 

Change in other assets and liabilities

 

 

 

 

 

 

 

 

Increase in non-current receivables

 

 

(722

)

 

 

(1,239

)

Increase/ (decrease) in other liabilities

 

 

1,885

 

 

 

(516

)

Interest paid

 

 

(43

)

 

 

(307

)

Income taxes paid

 

 

(199

)

 

 

(777

)

Net cash outflow from operating activities

 

 

(105,962

)

 

 

(103,449

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Acquisition of subsidiary, net of cash acquired

 

 

-

 

 

 

(205,616

)

Payments for property, plant and equipment

 

 

(11,259

)

 

 

(30,085

)

Payments for intangible assets

 

 

(19,311

)

 

 

(34,689

)

Interest received

 

 

3,177

 

 

 

7,999

 

Payments for investments

 

 

 

 

 

 

(19,719

)

Net cash outflow from investing activities

 

 

(27,393

)

 

 

(282,110

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issue of shares, net of issue costs

 

 

82,269

 

 

 

7,229

 

Repayment of the principal elements of lease payments

 

 

-

 

 

 

(6,682

)

Proceeds from issue of loan notes

 

 

-

 

 

 

21,006

 

Net cash inflow from financing activities

 

 

82,269

 

 

 

21,553

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(51,086

)

 

 

(364,006

)

Cash and cash equivalents at the beginning of the period

 

 

384,002

 

 

 

1,044,786

 

Effects of exchange rate changes on cash and cash equivalents

 

 

4,066

 

 

 

(1,873

)

Cash and cash equivalents at end of period

 

 

336,982

 

 

 

678,907

 

 

Unaudited interim condensed consolidated statements of changes in equity

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

Share premium

 

 

Merger reserve

 

 

Foreign exchange reserve

 

 

Other reserves

 

 

Accumulated losses

 

 

Equity attributable to the parent

 

 

Non-controlling interest

 

 

Total equity

 

Balance at January 1, 2018

 

 

9,298

 

 

 

677,674

 

 

 

-

 

 

 

633

 

 

 

38,475

 

 

 

(329,177

)

 

 

396,903

 

 

 

-

 

 

 

396,903

 

Changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/ income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,134

)

 

 

-

 

 

 

(68,408

)

 

 

(77,542

)

 

 

-

 

 

 

(77,542

)

Issue of share capital

 

 

421

 

 

 

102,158

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

102,579

 

 

 

-

 

 

 

102,579

 

Share based payment – equity settled

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,598

 

 

 

-

 

 

 

10,598

 

 

 

-

 

 

 

10,598

 

Balance at June 30, 2018

 

 

9,719

 

 

 

779,832

 

 

 

-

 

 

 

(8,501

)

 

 

49,073

 

 

 

(397,585

)

 

 

432,538

 

 

 

-

 

 

 

432,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2019

 

 

11,994

 

 

 

772,300

 

 

 

783,529

 

 

 

(23,509

)

 

 

67,474

 

 

 

(483,357

)

 

 

1,128,431

 

 

 

-

 

 

 

1,128,431

 

Changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income/ (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21,793

 

 

 

(5,080

)

 

 

(198,933

)

 

 

(182,220

)

 

 

35

 

 

 

(182,185

)

Issue of share capital

 

 

468

 

 

 

51,975

 

 

 

-

 

 

 

-

 

 

 

26,920

 

 

 

-

 

 

 

79,363

 

 

 

-

 

 

 

79,363

 

Share based payment – equity settled

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

41,643

 

 

 

21,961

 

 

 

63,604

 

 

 

-

 

 

 

63,604

 

Share based payment – reverse vesting shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(45,583 ...