Cazoo Announces Fourth Quarter and Full Year 2021 Financial Results
Cazoo Group reported a record revenue of £668 million in FY 2021, achieving a remarkable 312% year-over-year increase, with 49,853 vehicles sold, up 233% from the previous year. The UK retail gross profit per unit (GPU) improved to £427, compared to a loss of £229 in 2020. The company successfully launched in France and Germany, with plans for further expansion into Italy and Spain in 2022. With a strong cash position of £193 million and recent convertible notes issuance of $630 million, Cazoo is well-positioned for future growth, targeting over 100,000 retail unit sales and revenues exceeding £2 billion in 2022.
- Record revenues of £668 million, up 312% YoY.
- 49,853 vehicles sold, a 233% increase YoY.
- UK Retail GPU of £427, improving from a loss of £229.
- Strong cash position with £193 million and $630 million raised from convertible notes.
- Plans to sell over 100,000 retail units and generate over £2 billion in 2022.
- Loss for the year increased to £550 million compared to £103 million in 2020.
- Adjusted EBITDA loss of £180 million in FY 2021.
Record year with
-
Record revenues of
£668m , up312% YoY driven by significantUK retail sales growth -
Vehicles sold up
233% YoY, to 49,853 as consumers continue to embrace proposition -
Significant improvement in
UK Retail GPU, up£656 YoY to£427 per vehicle in FY 2021 - Multiple acquisitions, enhancing infrastructure, proposition, team & geographic reach
-
Launched in
France andGermany and preparing for launch inItaly andSpain in 2022 -
Strong cash position following issuance of
convertible notes in February$630 million
Alex Chesterman OBE, Founder & CEO of
During 2021, we made some important strategic progress, creating further moats around our business. In the
Outside of the
Whilst we have accomplished an enormous amount in a short period, we are still just at the start of this exciting journey. Our strong growth in 2021 combined with the strategic building blocks that we have put in place, including our significant funding, means that we are very well positioned to deliver on our ambitious growth plans.”
I am also extremely encouraged by the strategic steps we made in 2021 that we believe have set us up for significant future GPU expansion. We have made sensible investments by bringing
Whilst these investments have impacted GPU in the short term, the benefits are clear and give us much greater visibility and confidence to deliver on our long-term GPU target of
Our balance sheet remains very strong. In
Summary Results |
||||||||||||
|
Year ended
|
|
Three months ended
|
|
||||||||
|
2021
|
2020 |
Change |
2021
|
2020 |
Change |
||||||
Vehicles Sold |
49,853 |
14,981 |
+ |
16,325 |
6,665 |
+ |
||||||
Retail |
34,731 |
12,097 |
+22,634 |
8,714 |
5,408 |
+3,306 |
||||||
Wholesale |
15,122 |
2,884 |
+12,238 |
7,611 |
1,257 |
+6,354 |
||||||
Revenue (£m)1 |
668 |
162 |
+ |
245 |
75 |
+ |
||||||
Retail (£m)1 |
501 |
150 |
+ |
157 |
69 |
+ |
||||||
Wholesale (£m) |
104 |
9 |
+ |
69 |
4 |
+ |
||||||
Other (£m) |
63 |
3 |
+ |
19 |
2 |
+ |
||||||
|
427 |
(229) |
+656 |
233 |
(170) |
+403 |
||||||
Gross Profit (£m) |
25 |
(3) |
+28 |
2 |
(1) |
+3 |
||||||
Gross Margin (%) |
|
( |
+ |
|
( |
+ |
||||||
Loss for the year3 |
(550) |
(103) |
(447) |
|
|
|
||||||
Adj. EBITDA (£m)4,5 |
(180) |
(81) |
(99) |
|
|
|
||||||
Adj. EBITDA Margin (%)4,6 |
( |
( |
+ |
|
|
|
1 ‘Retail revenue’ excludes
2
3 Loss for the year includes a non-cash IFRS 2 expense of
4 Adjusted EBITDA is defined as loss for the period from continuing operations, adjusted for tax, finance income/expense, depreciation and amortization and impairment of intangible assets, share based payment expense, IFRS 2 expense on the Business Combination, fair value movement in warrants and exceptional items.
5 For a reconciliation to the most directly comparable measure under International Financial Reporting Standards (“IFRS”) see the section titled “Adjusted EBITDA Reconciliation”.
6 Adjusted EBITDA margin represents the ratio of Adjusted EBITDA to revenue.
FY 2021 Financial and Strategic highlights
-
Record revenues of
£668 million , up312% YoY and ahead of guidance given with Q3 2021 results -
Vehicles sold up
233% to 49,853 during the year as the Company’s strong growth trajectory continued -
UK Retail GPU of£427 , a significant improvement versus£(229) in 2020 driven by increased scale, operational efficiencies, improved buying mix and an increase in ancillary revenues -
UK refurbishment brought in-house giving full control of refurbishment and logistics - Launched car buying channel in H2 with a significant volume of cars sourced directly from consumers
- Completed multiple acquisitions enhancing our infrastructure, proposition, team and geographic reach
-
Launched in
France andGermany in Q4 and began preparing for launch inSpain andItaly in 2022 -
Successfully grew national brand awareness in the
UK to over75% of the population - Achieved sector-leading consumer feedback with a Trustpilot rating of 4.8 stars
-
Listed on the NYSE raising proceeds of approximately
net of fees$836 million
Fourth Quarter 2021 Financial and Strategic highlights
-
Revenue up
227% YoY to£245 million , driven by continued strong uptake of our offering combined with an acceleration in wholesale revenues after the launch of our car buying channel -
Vehicles sold up
145% YoY to 16,325 in Q4 as demand for proposition continued to grow despite inventory constraints -
UK Retail GPU of£233 with Q4 2021 impacted by seasonality, upfront investments in car buying channel and costs incurred to ramp up in-house reconditioning capabilities -
Significant steps taken to scale in-house reconditioning capacity, delivering immediate results with website retail inventory growing to 4,675 by
December 31, 2021 -
Strong momentum from car buying channel with over
30% of retail sales in the period sourced directly from consumers -
Acquired Swipcar, Spain’s leading online car subscription marketplace, accelerating our planned launch in
Spain in 2022
Since the end of the year
-
Raised
from the issuance of convertible notes to an investor group led by$630 million Viking Global Investors to support continued growth and expansion in theUK and EU -
Acquired brumbrum, Italy’s leading online car retailer and subscription platform, accelerating our planned launch in
Italy in 2022 and providing our first in-house vehicle preparation site in the EU -
Continued to ramp up our reconditioning capabilities which contributed significantly to the growth of our website inventory to record levels of approximately 6,500 vehicles in the
UK as atApril 5, 2022 -
UK unit sales have reached record levels resulting from the increased reconditioning capacity and available inventory and bothFrance andGermany have continued to scale successfully since launch -
Secured
€50 million asset backed securitisation withBNP Paribas for subscription business inFrance andGermany .
Cash flow and liquidity
-
Cash position of
£193 million as ofDecember 31, 2021 . InFebruary 2022 we raised from the issuance of convertible notes$630 million -
Capital expenditure was
£30 million in 2021 as the Company rolled out significant infrastructure across theUK andEurope -
Cash outflow of
£191 million on mergers and acquisitions in 2021 as we substantially enhanced our infrastructure, product proposition and geographic reach -
Cash outflow of
£220 million to fund inventory during the year. During 2022 the Company intends to asset finance a large portion of its inventory that was previously cash financed, further enhancing our cash position
Company outlook
Today the Company reconfirms the outlook given at the time of its convertible fundraising on
It is expected that the Company’s market leading proposition, combined with a growing level of inventory will result in continued market share gains in the
In addition to the substantial market share opportunity, the Company continues to see a clear path for significant Retail GPU improvement. Growth in GPU will be driven by a continued shift in buying mix including further success in the sourcing of cars directly from consumers. In addition, we expect the investments through 2021 and further progress in Q1 2022 to lead to continued efficiencies and operational leverage in reconditioning and logistics. Combined with further improvements to stock turn and enhancements to the Company’s products, partnerships and processes, we expect
Conference Call
About
Our mission is to transform the car buying and selling experience across the
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of
Cautionary Statement
The financial results for our year ended
Non-IFRS Financial Measures
This release includes certain financial measures not based on IFRS, including Adjusted EBITDA and Adjusted EBITDA Margin (together, the “Non-IFRS Measures”)
In addition to Cazoo’s results determined in accordance with IFRS, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information for management and investors to assess the underlying performance of the business as they remove the effect of certain non-cash items and certain charges that are not indicative of Cazoo’s core operating performance or results of operations.
Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other IFRS financial measures, such as loss for the period from continuing operations. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that they do not reflect the impact of working capital requirements or capital expenditures and other companies in Cazoo’s industry may calculate Adjusted EBITDA and Adjusted EBITDA Margin differently, or use a different accounting standard such as
Adjusted EBITDA is defined as loss for the period from continuing operations adjusted for tax, finance income/expense, depreciation and amortization and impairment of intangible assets, share based payment expense, IFRS 2 expense on Business Combination, fair value movement in warrants and exceptional items.
Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to revenue.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
||||||
For the year ended: |
||||||
|
|
Dec-21 |
|
Dec-20 |
|
Change |
|
|
£'m |
|
£'m |
|
(£'m) |
Revenue1 |
|
668 |
|
162 |
|
506 |
Cost of sales |
|
(643) |
|
(165) |
|
(478) |
Gross profit/(loss) |
|
25 |
|
(3) |
|
28 |
|
|
|
|
|
|
|
Marketing expenses |
|
(65) |
|
(36) |
|
(29) |
Selling and distribution expenses |
|
(55) |
|
(18) |
|
(37) |
Administrative expenses |
|
(235) |
|
(42) |
|
(193) |
Loss from operations |
|
(330) |
|
(99) |
|
(231) |
|
|
|
|
|
|
|
Net finance expense |
|
(5) |
|
(1) |
|
(4) |
Other income and expenses2 |
|
(214) |
|
- |
|
(214) |
|
|
|
|
|
|
|
Loss before tax |
|
(549) |
|
(100) |
|
(449) |
|
|
|
|
|
|
|
Tax (expense)/credit |
|
(1) |
|
1 |
|
(2) |
Loss from discontinued operations |
|
- |
|
(4) |
|
4 |
|
|
|
|
|
|
|
Loss for the year |
|
(550) |
|
(103) |
|
(447) |
1 Revenue excludes
2 Other income and expenses includes a non-cash IFRS 2 expense of
ADJUSTED EBITDA RECONCILIATION |
|||
Reconciliation of loss for the year from continuing operations to adjusted EBITDA |
|||
|
|
Dec-21 |
Dec-20 |
|
|
£'m |
£'m |
Loss for the year |
|
(550) |
(103) |
Loss for the year from discontinued operations |
|
- |
4 |
Loss for the year from continuing operations |
|
(550) |
(99) |
|
|
|
|
Adjustments: |
|
|
|
Tax expense/(credit) |
|
1 |
(1) |
Net finance expense |
|
5 |
1 |
Depreciation and amortization and impairment of intangible assets |
|
65 |
7 |
Share-based payment expense |
|
44 |
4 |
IFRS 2 expense on Business Combination (non-cash) |
|
241 |
- |
Fair value movement in warrants |
|
(27) |
- |
Exceptional items1 |
|
41 |
7 |
Total adjustments |
|
370 |
18 |
|
|
|
|
Adjusted EBITDA |
|
(180) |
(81) |
1 Exceptional items include transaction costs of
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
||||
As at: |
||||
|
|
Dec-21 |
|
Dec-20 |
|
|
£'m |
|
£'m |
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment and right-of-use assets |
|
273 |
|
86 |
|
|
262 |
|
27 |
Trade and other receivables |
|
10 |
|
7 |
|
|
545 |
|
120 |
Current assets |
|
|
|
|
Inventory |
|
337 |
|
115 |
Trade and other receivables1 |
|
105 |
|
29 |
Cash and cash equivalents |
|
193 |
|
244 |
|
|
635 |
|
388 |
Total assets |
|
1,180 |
|
508 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
79 |
|
36 |
Loans and borrowings2 |
|
181 |
|
88 |
Lease liabilities |
|
19 |
|
6 |
|
|
279 |
|
130 |
|
|
|
|
|
Loans and borrowings2 |
|
68 |
|
2 |
Lease liabilities |
|
71 |
|
42 |
Warrants |
|
43 |
|
- |
Provisions |
|
8 |
|
3 |
Deferred tax liabilities |
|
7 |
|
- |
|
|
197 |
|
47 |
Total liabilities |
|
476 |
|
177 |
|
|
|
|
|
Net assets |
|
704 |
|
330 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital, share premium and merger reserve |
|
1,324 |
|
447 |
Retained earnings |
|
(618) |
|
(117) |
Foreign currency translation reserve |
|
(2) |
|
- |
|
|
|
|
|
Total equity |
|
704 |
|
330 |
1 Prepayments within trade and other receivables includes inventory which has yet to arrive at
2 Loans and borrowings includes
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
||||
For the year ended: |
||||
|
|
Dec-21 |
|
Dec-20 |
|
|
£'m |
|
£'m |
Cash flows from operating activities: |
|
|
|
|
Loss for the year |
|
(550) |
|
(103) |
Tax expense/(credit) |
|
1 |
|
(1) |
Net finance expense |
|
5 |
|
1 |
Depreciation and amortization and impairment of intangible assets |
|
65 |
|
13 |
Share-based payment expense |
|
44 |
|
4 |
IFRS 2 expense on Business Combination (non-cash) |
|
241 |
|
- |
Fair value movement in warrants |
|
(27) |
|
- |
|
|
(221) |
|
(86) |
Movement in inventory |
|
(220) |
|
(36) |
Movement in subscription vehicles |
|
(81) |
|
- |
Other working capital movements |
|
(34) |
|
6 |
Net cash used in operating activities |
|
(556) |
|
(116) |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
(30) |
|
(18) |
Purchases and development of intangible assets |
|
(14) |
|
(2) |
Acquisition of subsidiaries, net of cash acquired |
|
(191) |
|
(16) |
Net cash used in investing activities |
|
(235) |
|
(36) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Net proceeds from the Business Combination |
|
622 |
|
- |
Proceeds from issue of shares |
|
- |
|
349 |
Vehicle financing activities |
|
139 |
|
20 |
Other financing activities |
|
(20) |
|
(8) |
Net cash from financing activities |
|
741 |
|
361 |
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(50) |
|
209 |
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
|
244 |
|
35 |
Net foreign exchange difference |
|
(1) |
|
- |
|
|
|
|
|
Cash and cash equivalents at the end of the year |
|
193 |
|
244 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220407005191/en/
Investor Relations:
ICR: cazoo@icrinc.com
Media:
Source:
FAQ
What were Cazoo's revenue results for 2021?
How many vehicles did Cazoo sell in FY 2021?
What is Cazoo's gross profit per unit for UK retail in 2021?
What are Cazoo's future sales targets for 2022?