Equity Analysis /
United Kingdom

GB : Made.com - Peer reporting yet again highlights MADE’s stellar growth

    Adam Tomlinson
    Adam Tomlinson

    Analyst - Consumer Discretionary

    Contributors
    Anubhav Malhotra
    Wayne Brown
    CGS-CIMB
    25 March 2022
    Published by

    Interims from ScS (H1 order intake +16.6% yoy, flat on a 2-year basis) reminds us of MADE’s standout growth (H2 gross sales +25% yoy, +69% on a 2-year basis). DFS’s recent interims highlighted similar dynamics with -2% yoy gross sales decline and +14% on a 2-year basis.SCS also noted a 55.8% increase in online orders compared to two years ago, which suggests the structural shift to online is sticking. Despite the challenges of longer lead times and factory closures, MADE’s revenues are +79% on a 2-year basis. There is huge scope for upgrades as gross margins recover and we only forecast a recovery to 2019 margins by 2024E. With the shares having fallen c.65% since IPO to trade on a 0.4x forward EV/sales multiple, now should prove a very opportune moment to build a stake before the rotation back into growth occurs.