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Farfetch Announces Third Quarter 2019 Results

LONDON--(BUSINESS WIRE)--

  • Exceeds Q3 2019 Guidance - Beats on Both Digital Platform GMV and Adjusted EBITDA Margin
  • Strong Outlook for Q4 2019 - Raises Expectations for Adjusted EBITDA and Reiterates Platform GMV Growth Rate
  • Continued to Expand Share of Online Luxury Market - Q3 2019 Digital Platform GMV of $420 million, Up 37% Year-Over-Year, or approximately 40% on Constant Currency Basis
  • Stronger Unit Economics - Digital Platform Order Contribution Margin Up to 31% and Gross Margin to 45% in Q3 2019, From 28% and 41%, Respectively, in Q2 2019
  • Adjusted EBITDA Loss Margin Improved to (16)% from (29)%, Loss After Tax Margin Improved to (33)% from (57)% Year-Over-Year
  • Expands Direct Brand and Boutique Network to More Than 1,200 Partners, Maintains 100% Retention of Top 100 Brand Partners Over Past Three Years
  • New Guards Group Contributes to Q3 Financial Performance, Integrations with Marketplace and Farfetch Platform Solutions Underway

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

José Neves, Farfetch Founder, CEO and Co-Chair said: “I am very pleased with our continued progress in building the global platform for luxury. We had a fantastic Q3, beating all our expectations, and continuing to capture market share at a rapid pace. With $1.8 billion of Digital Platform GMV and 1.9 million Active Consumers over the last twelve months, Farfetch is firmly established as the #1 in-season luxury player online. Through our revolutionary technology, services and reach, we will continue to deliver an amazing service to our community of over 1,200 brands and boutiques, while also delighting fashion lovers around the world. We also remain focused on driving the cultural relevance of the Farfetch brand, and in that context I am delighted with our initial progress in integrating New Guards Group. A huge congratulations to all the brilliant Farfetchers who have worked so relentlessly across our global business to achieve these remarkable results.”

Elliot Jordan, CFO of Farfetch, said: “Our third quarter 2019 results demonstrate focused execution against our core strategy, which resulted in strong digital platform GMV growth of 37% year-over-year, extending our market leading position, balanced with Order Contribution Margin increasing quarter-over-quarter to 31.3%. We are also pleased by the early strategic and financial benefits from the acquisition of New Guards Group, which, coupled with the stronger unit economics and continued operating leverage in our digital platform, have contributed to a significant year-over-year improvement in EBITDA margin.”

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

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Consolidated Group:

 

 

 

 

 

 

 

 

Gross Merchandise Value (“GMV”)

 

$

309,973

 

 

$

492,014

 

Revenue

 

 

134,541

 

 

 

255,481

 

Adjusted Revenue

 

 

112,742

 

 

 

228,227

 

Gross Profit

 

 

67,387

 

 

 

115,139

 

Gross Profit Margin

 

50.1%

 

 

45.1%

 

Loss After Tax

 

$

(77,255

)

 

$

(85,457

)

Adjusted EBITDA

 

 

(32,311

)

 

 

(35,638

)

Adjusted EBITDA Margin

 

(28.7)%

 

 

(15.6)%

 

Earnings Per Share (“EPS”)

 

$

(0.30

)

 

$

(0.28

)

Adjusted EPS

 

 

(0.15

)

 

 

(0.18

)

Digital Platform:

 

 

 

 

 

 

 

 

Digital Platform GMV

 

$

305,884

 

 

$

420,266

 

Digital Platform Services Revenue

 

 

108,652

 

 

 

156,479

 

Digital Platform Gross Profit

 

 

65,487

 

 

 

83,294

 

Digital Platform Gross Profit Margin

 

60.3%

 

 

53.2%

 

Digital Platform Order Contribution

 

$

43,384

 

 

$

48,973

 

Digital Platform Order Contribution Margin

 

39.9%

 

 

31.3%

 

Active Consumers

 

 

1,240

 

 

 

1,889

 

Average Order Value (“AOV”) - Marketplace

 

$

585

 

 

$

582

 

AOV - Stadium Goods

 

 

-

 

 

 

327

 

Brand Platform:

 

 

 

 

 

 

 

 

Brand Platform GMV

 

$

-

 

 

$

62,671

 

Brand Platform Revenue

 

 

-

 

 

 

62,671

 

Brand Platform Gross Profit

 

 

-

 

 

 

27,464

 

Brand Platform Gross Profit Margin

 

 

-

 

 

43.8%

 

See “Metrics Definitions” on page 17 for further explanations, including the renaming of previous “Platform” metrics to “Digital Platform” metrics. See “Non-IFRS and Other Financial and Operating Metrics” for reconciliations of non-IFRS measures to IFRS measures.

Recent Business Highlights

  • Continued to add breadth and depth to the Farfetch Marketplace offering through expanded partnerships with luxury brands and retailers:
    • Top 10 brands supply more than doubled year-over-year as of the end of third quarter 2019; also increased supply points with existing brand partner, Saint Laurent, in the US, Canada and Mexico
    • Signed new e-concessions with Golden Goose and Sunglass Hut, among others, bringing total brand partner count to just under 500, and maintained 100% retention of top 100 direct brand partners over past three years
    • Integrated New Guards Group on the Marketplace – all New Guards Group brands including Off-White and Marcelo Burlon County of Milan now leveraging Fulfilment by Farfetch and selling directly on the Marketplace as e-concessions
    • Grew boutique network to more than 700 retailers, bringing total direct brand and retail partners to more than 1,200
  • Further distinguished Farfetch’s Marketplace as a premium destination for global luxury consumers while also helping advance Prada's direct-to-consumer distribution initiative as their exclusive third-party partner in offering its Linea Rossa collection for Autumn/Winter 2019
  • In August 2019, extended the Farfetch platform with the completion of the acquisition of New Guards Group, a luxury fashion platform with a proven track record of launching culturally relevant and profitable brands including Palm Angels, Heron Preston, Marcelo Burlon County of Milan, and Off-White, which was recently ranked #1 Hottest Brand in Q3 2019 by The Lyst Index. Addition of New Guards Group further elevates Farfetch’s Marketplace proposition for fashion lovers worldwide with the broadest selection and exclusive access to capsule collections from their portfolio of brands, and brings expertise to launch new brands
  • Along with 55 other leaders in the fashion industry including Kering, Chanel, Hermes, Burberry and Stella McCartney, signed The Fashion Pact, aimed at setting practical objectives for reducing the industry’s impact on the environment. Also furthered Farfetch’s Positively Farfetch focus on sustainability with the launch of two new initiatives:
    • A new Positively Conscious destination on Farfetch.com offers an inspirational way to discover and shop the broadest selection of sustainable luxury products
    • Extended our Positively Circular initiative by partnering with Dream Assembly alumnus, Thrift+, to offer UK customers an on-demand clothing donation service through which they can earn Farfetch credits

Third Quarter 2019 Results Summary

Gross Merchandise Value (in thousands):

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Digital Platform GMV

 

 

305,883

 

 

 

420,266

 

Brand Platform GMV

 

 

-

 

 

 

62,671

 

In-Store GMV

 

 

4,090

 

 

 

9,077

 

GMV

 

$

309,973

 

 

$

492,014

 

Gross Merchandise Value (“GMV”) increased by $182.0 million from $310.0 million in third quarter 2018 to $492.0 million in third quarter 2019, representing year-over-year growth of 58.7%. Digital Platform GMV increased by $114.4 million from $305.9 million in third quarter 2018 to $420.3 million in third quarter 2019, representing year-over-year growth of 37.4%. Excluding the impact of changes in foreign exchange rates, Digital Platform GMV would have increased by approximately 39.7%.

The increase in GMV primarily reflects the growth in Digital Platform GMV and the addition of $62.7 million of Brand Platform GMV from New Guards Group which we acquired in August 2019. The increase in Digital Platform GMV was primarily driven by increases in Active Consumers to 1.9 million and average number of orders, partially offset by decreases in Average Order Values. Other contributing factors included an increase in the number of clients supported by Farfetch Platform Solutions, growth in transactions through our managed websites and the addition of Stadium Goods, our premier sneaker and streetwear Marketplace.

Revenue (in thousands):

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Digital Platform Services Revenue

 

$

108,652

 

 

$

156,479

 

Digital Platform Fulfilment Revenue

 

 

21,799

 

 

 

27,254

 

Brand Platform Revenue

 

 

-

 

 

 

62,671

 

In-Store Revenue

 

 

4,090

 

 

 

9,077

 

Revenue

 

$

134,541

 

 

$

255,481

 

Revenue increased by $121.0 million year-over-year from $134.5 million in third quarter 2018 to $255.5 million in third quarter 2019, representing growth of 89.9%. The increase was primarily driven by 44.0% growth in Digital Platform Services Revenue to $156.5 million and the addition of Brand Platform Revenue from New Guards Group. In-Store Revenue increased by 121.9% to $9.1 million primarily due to the addition of revenue from New Guards Group’s directly-operated stores and growth in Browns stores.

The increase in Digital Platform Services Revenue of 44.0% was driven by 37.4% growth in Digital Platform GMV, partially offset by a decline in Third-Party Take Rate to 31.2% in third quarter 2019, from 32.1% in the prior year quarter. Digital Platform Services Revenue was also boosted by growth in first-party GMV, which nearly doubled year-on-year and is included in Digital Platform Services Revenue at 100% of the GMV.

Digital Platform Fulfilment Revenue represents the pass-through of delivery and duties charges incurred by our global logistics solutions, net of any customer promotions and incentives funded by the Company. Whilst Digital Platform Fulfilment Revenue would be expected to grow in line with the cost of delivery and duties, which increase as Digital Platform GMV and order volumes grow, an increase in the level of promotions and incentives funded by the company will decrease Digital Platform Fulfilment Revenue. In third quarter 2019, Digital Platform Fulfilment Revenue increased 25.0%, a slower rate as compared to the cost of shipping and duties, primarily due to an increase in customer promotions year-over-year in response to the market environment. However, the impact of promotions in the quarter was lower than that in second quarter 2019, reflecting our strategic decision to reduce promotional activity.

Cost of Revenue (in thousands)

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Digital Platform Services cost of revenue

 

$

43,166

 

 

$

73,185

 

Digital Platform Fulfilment cost of revenue

 

 

21,799

 

 

 

27,254

 

Brand Platform cost of revenue

 

 

-

 

 

 

35,208

 

In-Store cost of goods sold

 

 

2,189

 

 

 

4,695

 

Cost of Revenue

 

$

67,154

 

 

$

140,342

 

Cost of revenue increased by $73.2 million, or 109.0% year-over-year from $67.2 million in third quarter 2018 to $140.3 million in third quarter 2019. The increase was primarily driven by growth in first-party GMV and the associated cost of goods, delivery costs associated with order fulfilment, duties incurred on cross-border transactions, cost of goods sold related to our In-Store revenue and the addition of Brand Platform cost of revenue related to New Guards Group.

Gross Profit (in thousands)

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Digital Platform Gross Profit

 

$

65,487

 

 

$

83,294

 

Brand Platform Gross Profit

 

 

-

 

 

 

27,464

 

In-Store Gross Profit

 

 

1,900

 

 

 

4,381

 

Gross Profit

 

$

67,387

 

 

$

115,139

 

Gross profit increased by $47.8 million, or 70.9% year-over-year from $67.4 million in third quarter 2018 to $115.1 million in third quarter 2019, primarily due to the growth in our Digital Platform Services Revenue and the addition of New Guards Group’s Brand Platform operations. Gross profit margin decreased from 50.1% to 45.1% year-over-year, primarily driven by a lower Digital Platform Gross Profit Margin, due to an increase in promotions year-over-year, and the introduction of Brand Platform, which has a lower gross profit margin. The impacts were partially offset by an increase of In-Store gross profit margin.

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

 

 

Three months ended September 30,

 

 

 

2018

 

 

2019

 

Demand generation expense

 

$

22,103

 

 

$

34,321

 

Technology expense

 

 

19,034

 

 

 

22,322

 

Depreciation and amortization

 

 

6,014

 

 

 

35,097

 

Share based payments

 

 

38,475

 

 

 

31,760

 

General and administrative

 

 

58,561

 

 

 

94,134

 

Other items

 

 

-

 

 

 

(22,225

)

Selling, general and administrative expense

 

$

144,187

 

 

$

195,409

 

Third quarter 2019 demand generation expense increased 55.3% year-over-year to $34.3 million, or to 21.9% of Digital Platform Services Revenue, reflecting investments in customer acquisition and retention efforts to support the continued growth of Digital Platform GMV and Digital Platform Services Revenue. This increase contributed to the higher number of orders and Active Consumers as described above.

Technology expense, which is primarily related to development and operations of our platform features and services, and also includes software, hosting and infrastructure expenses, increased by $3.3 million, or 17.3%, year-over-year in third quarter 2019, driven by a 21.6% increase in technology staff headcount, which was partially offset by infrastructure cost efficiencies. 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 $29.1 million or 483.6% year-over-year from $6.0 million in third quarter 2018 to $35.1 million in third quarter 2019. Amortization expense increased principally due to amortization recognized on intangible assets acquired in recent acquisitions and continued technology investments, where qualifying technology development costs are capitalized and amortized over a three-year period. Depreciation expense also increased, driven by the first-time adoption of the new leasing accounting standard, IFRS 16, on January 1, 2019. We recognized $4.6 million of depreciation related to right-of-use assets in third quarter 2019. In third quarter 2018, the comparative expense for operating leases was included in general and administrative expense.

Share based payments decreased by $6.7 million or 17.5% year-over-year in third quarter 2019. This impact was due to a $44.6 million year-over-year increase in share based payment expense for equity settled awards, which was driven by a $27.4 million increase related to additional employee awards and $17.2 million from long-term employee incentives related to the acquisitions of Stadium Goods and New Guards Group. The $44.6 million increase was more than offset by a $51.4 million year-over-year difference between the quarterly adjustments to provisions for cash-settled payment awards, which are remeasured to their fair value based on our share price, and the related employment taxes. The year-over-year difference was driven by an increase in our share price during third quarter 2018, which resulted in a $32.0 million increase to the provision for the period, as compared to a decrease in our share price during third quarter 2019, which reduced our provision by $19.4 million for the current period.

General and administrative expense increased by $35.6 million, or 60.7%, year-over-year in third quarter 2019, reflecting the additional expenses related to Stadium Goods and New Guards Group, which both acquired during 2019, and an increase in non-technology headcount across a number of areas to support the expansion of our business. This was partially offset by a lower total employee cost per person and the impact of adopting IFRS 16 on January 1, 2019. General and administrative costs as a percentage of Adjusted Revenue decreased from 51.9% in third quarter 2018 to 41.2% in third quarter 2019, reflecting improved efficiency of our semi-variable and fixed costs, the addition of New Guards Group, which has a lower percentage of revenue, and the impact of adopting IFRS 16.

Other items totaled $22.2 million in third quarter 2019, primarily consisting of a net gain of $32.3 million related to the revaluation of liabilities held at fair value and impacted by movements in our share price, partially offset by $5.1 million of transaction-related legal and advisory expenses and $5.0 million loss on impairment of investments carried at fair value. The $32.3 million net gain described above resulted from a $53.8 million fair value revaluation gain from our partnership with Chalhoub Group, due to the remeasurement of the fair value of the non-cash consideration due to Chalhoub following the July 2019 completion of our previously announced partnership, partially offset by a $21.5 million fair value remeasurement charge for shares issued in the acquisition of New Guards Group. There were no such items in third quarter 2018.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA loss increased by $3.3 million, or 10.3%, year-over-year in third quarter 2019, to $35.6 million, for the reasons described above. Adjusted EBITDA Margin improved from (28.7)% to (15.6)% over the same period, primarily reflecting lower Technology and General and Administrative expenses as percentages of Adjusted Revenue, as well as the impact of adopting IFRS 16 on January 1, 2019, as described above, and was partially offset by lower Gross Profit Margin and higher demand generation expense as a percentage of Adjusted Revenue.

Loss After Tax

Loss after tax increased by $8.2 million, or 10.6% year-over-year, in third quarter 2019 to $85.5 million. The increase was largely driven by the movements in Adjusted EBITDA, Depreciation and Amortization Expense, Share Based Payments and Other Items, as explained above, resulting in an increase in the operating loss from $76.8 million to $79.9 million, and the impact of unrealized foreign exchange losses on revaluation of non-United States Dollar denominated receivables and payables.

Acquisition of New Guards Group

In August 2019, we completed the acquisition of 100% of the outstanding shares of New Guards Group for a total enterprise value of $675 million. The consideration was split equally between cash and Farfetch shares. Net of $102.8 million of acquired cash, total consideration included $256.1 million and 16.8 million shares. Pursuant to the sales and purchase agreement, an additional 10.7 million shares were issued in September 2019 to reflect a remeasurement of the initial estimated share consideration, resulting in a $21.5 million charge to other items. Purchase price allocations are expected to be completed in first quarter 2020, following customary adjustments. As of September 30, 2019, based on an initial analysis, we recognized goodwill of $183.5 million and Brand intangibles of $830.2 million, along with other assets of $90.2 million offset by liabilities of $241.4 million and minority non-controlling interests of $158.4 million. Goodwill is not subject to amortization and Brand intangibles will be amortized over an eight-year weighted average period.

Outlook

The following forward-looking statement reflects Farfetch’s expectations for fourth quarter 2019 as of November 14, 2019:

  • Digital Platform GMV growth of 30% to 35% year-over-year
  • Brand Platform GMV of $80 million to $90 million
  • Adjusted EBITDA loss of approximately $(21) million to $(31) million

The expected Adjusted EBITDA loss for the period includes the estimated impact from the adoption of IFRS 16, which became effective on January 1, 2019.

Conference Call Information

Farfetch will host a conference call today, November 14, 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 September 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Revenue

 

 

134,541

 

 

 

255,481

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(67,154

)

 

 

(140,342

)

Gross profit

 

 

67,387

 

 

 

115,139

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(144,187

)

 

 

(195,409

)

Share of results of associates

 

 

(5

)

 

 

371

 

Operating loss

 

 

(76,805

)

 

 

(79,899

)

 

 

 

 

 

 

 

 

 

Finance income

 

 

1,770

 

 

 

1,672

 

Finance cost

 

 

(1,037

)

 

 

(7,334

)

Loss before tax

 

 

(76,072

)

 

 

(85,561

)

 

 

 

 

 

 

 

 

 

Income tax (expense)/benefit

 

 

(1,183

)

 

 

104

 

Loss after tax

 

 

(77,255

)

 

 

(85,457

)

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(77,255

)

 

 

(90,250

)

Non-controlling interests

 

 

-

 

 

 

4,793

 

 

 

 

(77,255

)

 

 

(85,457

)

 

 

 

 

 

 

 

 

 

Loss per share attributable to owners of the company

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.30

)

 

 

(0.28

)

 

 

 

 

 

 

 

 

 

Weighted-average ordinary shares outstanding

 

 

 

 

 

 

 

 

Basic and diluted

 

 

256,163,135

 

 

 

322,226,776

 

Unaudited interim condensed consolidated statements of comprehensive loss

 

 

 

 

 

for the three months ended September 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Loss for the period

 

 

(77,255

)

 

 

(85,457

)

 

 

 

 

 

 

 

 

 

Other comprehensive (loss)/income:

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to consolidated

statement of operations (net of tax):

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

(7,702

)

 

 

3,287

 

Loss on cash flow hedges

 

 

-

 

 

 

(3,082

)

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

 

 

 

 

 

 

 

 

Impairment loss on investments

 

 

-

 

 

 

(100

)

Remeasurement loss on defined benefit plans

 

 

-

 

 

 

(31

)

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

 

 

(7,702

)

 

 

75

 

Total comprehensive loss for the period, net of tax

 

 

(84,957

)

 

 

(85,382

)

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(84,957

)

 

 

(90,175

)

Non-controlling interests

 

 

-

 

 

 

4,793

 

 

 

 

(84,957

)

 

 

(85,382

)

Unaudited interim condensed consolidated statements of operations

 

 

 

 

 

for the nine months ended September 30

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Revenue

 

 

406,851

 

 

 

638,805

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(202,598

)

 

 

(355,096

)

Gross profit

 

 

204,253

 

 

 

283,709

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(352,989

)

 

 

(545,374

)

Share of profits of associates

 

 

19

 

 

 

404

 

Operating loss

 

 

(148,717

)

 

 

(261,261

)

 

 

 

 

 

 

 

 

 

Finance income

 

 

22,798

 

 

 

10,873

 

Finance cost

 

 

(17,847

)

 

 

(32,697

)

Loss before tax

 

 

(143,766

)

 

 

(283,085

)

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(1,897

)

 

 

(1,270

)

Loss after tax

 

 

(145,663

)

 

 

(284,355

)

 

 

 

 

 

 

 

 

 

(Loss)/profit after tax attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(145,663

)

 

 

(289,183

)

Non-controlling interests

 

 

-

 

 

 

4,828

 

 

 

 

(145,663

)

 

 

(284,355

)

 

 

 

 

 

 

 

 

 

Loss per share attributable to owners of the company

 

 

 

 

 

 

 

 

Basic and diluted

 

 

(0.58

)

 

 

(0.93

)

 

 

 

 

 

 

 

 

 

Weighted-average ordinary shares outstanding

 

 

 

 

 

 

 

 

Basic and diluted

 

 

252,572,520

 

 

 

311,858,726

 

 

Unaudited interim condensed consolidated statements of comprehensive loss

 

 

 

 

 

for the nine months ended September 30

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2019

 

Loss for the period

 

 

(145,663

)

 

 

(284,355

)

Other comprehensive (loss)/income:

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to consolidated

statement of operations (net of tax):

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

(16,836

)

 

 

18,507

 

Losses on cash flow hedges

 

 

-

 

 

 

(8,162

)

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

 

 

 

 

 

 

 

 

Impairment loss on investments

 

 

-

 

 

 

(100

)

Remeasurement loss on defined benefit plans

 

 

-

 

 

 

(31

)

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

 

 

(16,836

)

 

 

10,214

 

Total comprehensive loss for the period, net of tax

 

 

(162,499

)

 

 

(274,141

)

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income attributable to:

 

 

 

 

 

 

 

 

Owners of the company

 

 

(162,499

)

 

 

(278,969

)

Non-controlling interests

 

 

-

 

 

 

4,828

 

 

 

 

(162,499

)

 

 

(274,141

)

 

 

 

 

 

 

 

 

 

 

Unaudited interim condensed consolidated statements of financial position

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

December 31,

2018

 

 

September 30,

2019

 

Non-current assets

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

10,458

 

 

 

17,248

 

Intangible assets

 

 

103,345

 

 

 

1,382,481

 

Property, plant and equipment

 

 

37,528

 

 

 

66,930

 

Right-of-use assets

 

-

 

 

 

99,374

 

Investments

 

 

566

 

 

 

15,289

 

Investments in associates

 

 

86

 

 

 

2,454

 

Total non-current assets

 

 

151,983

 

 

 

1,583,776

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

60,954

 

 

 

105,130

 

Trade and other receivables

 

 

93,670

 

 

 

153,541

 

Cash and cash equivalents

 

 

1,044,786

 

 

 

318,375

 

Total current assets

 

 

1,199,410

 

 

 

577,046

 

Total assets

 

 

1,351,393

 

 

 

2,160,822

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 

11,994

 

 

 

13,570

 

Share premium

 

 

772,300

 

 

 

876,444

 

Merger reserve

 

 

783,529

 

 

 

783,529

 

Foreign exchange reserve

 

 

(23,509

)

 

 

(5,004

)

Other reserves

 

 

67,474

 

 

 

408,000

 

Accumulated losses

 

 

(483,357

)

 

 

(731,118

)

Equity attributable to owners of the company

 

 

1,128,431

 

 

 

1,345,421

 

Non-controlling interests

 

 

-

 

 

 

62,133

 

Total equity

 

 

1,128,431

 

 

 

1,407,554

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Provisions

 

 

13,462

 

 

 

22,421

 

Lease liabilities

 

 

-

 

 

 

82,553

 

Deferred tax liabilities

 

 

-

 

 

 

227,520

 

Other liabilities

 

 

15,342

 

 

 

19,456

 

Contingent consideration liabilities

 

 

-

 

 

 

47,498

 

Total non-current liabilities

 

 

28,804

 

 

 

399,448

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 

194,158

 

 

 

334,829

 

Lease liabilities

 

 

-

 

 

 

18,023

 

Other current financial liabilities

 

 

-

 

 

 

968

 

Total current liabilities

 

 

194,158

 

 

 

353,820

 

Total liabilities

 

 

222,962

 

 

 

753,268

 

Total equity and liabilities

 

 

1,351,393

 

 

 

2,160,822

 

Unaudited interim condensed consolidated statements of cash flows

 

 

 

 

 

for the nine months ended September 30

 

 

 

 

 

 

 

 

(in $ thousands)

 

 

 

 

 

 

 

2018

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Loss before tax

 

 

(143,766

)

 

 

(283,085

)

Adjustments for:

 

 

 

 

 

 

 

 

Depreciation

 

 

4,952

 

 

 

19,533

 

Amortization

 

 

10,581

 

 

 

43,993

 

Non-cash employee benefits expense

 

 

16,692

 

 

 

75,525

 

Merger relief reserve

 

 

-

 

 

 

(7,370

)

Net loss on sale of non-current assets

 

 

1,045

 

 

 

5

 

Share of results of associates

 

 

(18

)

 

 

(404

)

Net finance (income)/ expense

 

 

(4,880

)

 

 

21,824

 

Net exchange differences

 

 

3,145

 

 

 

(1,966

)

Impairment of investments

 

 

-

 

 

 

5,000

 

Change in the fair value of derivatives

 

 

1,889

 

 

 

-

 

Change in the fair value of put option

 

 

-

 

 

 

(47,498

)

Change in working capital

 

 

 

 

 

 

 

 

Increase in receivables

 

 

(93,563

)

 

 

(2,124

)

Increase in inventories

 

 

(17,678

)

 

 

(6,746

)

Increase in payables

 

 

34,684

 

 

 

5,824

 

Change in other assets and liabilities

 

 

 

 

 

 

 

 

Increase in non-current receivables

 

 

(4,667

)

 

 

(2,558

)

Increase in other liabilities

 

 

38,947

 

 

 

39,519

 

Decrease in deferred tax liability

 

 

-

 

 

 

(5,011

)

Interest received

 

 

4,948

 

 

 

10,701

 

Interest paid

 

 

(68

)

 

 

(2,256

)

Income taxes paid

 

 

(780

)

 

 

(1,947

)

Net cash outflow from operating activities

 

 

(148,537

)

 

 

(139,041

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Acquisition of subsidiary, net of cash acquired

 

 

-

 

 

 

(461,690

)

Payments for property, plant and equipment

 

 

(18,014

)

 

 

(38,013

)

Payments for intangible assets

 

 

(31,208

)

 

 

(58,497

)

Payments for investments

 

 

-

 

 

 

(18,733

)

Net cash outflow from investing activities

 

 

(49,222

)

 

 

(576,933

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issue of shares, net of issue costs

 

 

859,525

 

 

 

8,249

 

Repayment of the principal elements of lease payments

 

 

-

 

 

 

(13,597

)

Interest paid on loan note

 

 

 

 

 

 

(551

)

Net cash inflow from financing activities

 

 

859,525

 

 

 

(5,899

)

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 

661,766

 

 

 

(721,873

)

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

 

 

(2,259

)

 

 

(4,538

)

Cash and cash equivalents at end of period

 

 

1,043,509

 

 

 

318,375

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital reorganization

 

 

652

 

 

 

(677,674

)

 

 

783,529

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

106,507

 

 

 

-

 

 

 

106,507

 

 

Total comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(16,836

)

 

 

-

 

 

 

(145,663

)

 

 

(162,499

)

 

 

-

 

 

 

(162,499

)

 

Issue of share capital

 

 

2,030

 

 

 

773,045

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

775,075

 

 

 

-

 

 

 

775,075

 

 

Share based payment – equity settled

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,692

 

 

 

-

 

 

 

16,692

 

 

 

-

 

 

 

16,692

 

 

Balance at September 30, 2018

 

 

11,980

 

 

 

773,045

 

 

 

783,529

 

 

 

(16,203

)

 

 

55,167

 

 

 

(474,840

)

 

 

1,132,678

 

 

 

-

 

 

 

1,132,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,505

 

 

 

(8,292

)

 

 

(289,182

)

 

 

(278,969

)

 

 

4,828

 

 

 

(274,141

)

 

Issue of share capital

 

 

1,576

 

 

 

104,144

 

 

 

-

 

 

 

-

 

 

 

389,879

 

 

 

-

 

 

 

495,599

 

 

 

-

 

 

 

495,599

 

 

Share based payment – equity settled

 

 

-

 

 

 

-

 

 

  ...