Made.com cuts revenue, profit forecasts on supply chain delays

UK online homeware and furniture maker Made.com lowered annual profits and revenue forecasts as global supply chain constraints hit the phasing of sales.

The company on Thursday said a greater proportion of revenue and adjusted core earnings would now be delayed to early 2022. It cut 2021 fiscal-year revenue guidance to £365m - £375m from £410m, but added that this would result in 2022 sales rising by £35 - $45m.

Full-year adjusted earnings before interest, taxes, depreciation and amortisation were expected to be £12m - £15m lower in 2021 and restored the following year.

Made.com confirmed full-year gross sales growth guidance of 40% to around £440 million.

"On supply chain, the group has built stock positions to deliver significantly better lead times to consumers for 2022 and beyond as orders placed with suppliers are now in or close to our warehouses," it said.

“Strong consumer demand for Made products comes against the backdrop of significant ongoing industry wide supply chain disruptions, which have worsened in recent months, negatively impacting the timing of stock intake.”

“These included the recent extended closure of manufacturing in Vietnam, further port congestion and extended shipping times. As indicated at Made's interim results, the timing of stock intake affects the timing of revenue recognition.”