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Dr. Martens first result as listed company reveals revenue and earnings growth

By Prachi Singh

Jun 17, 2021


Image: Dr. Martens, Finsbury Group

In a preliminary results release for the year to March 31, 2021, Dr. Martens plc said, the group delivered revenue of 773 million pounds, up 15 percent driven by ecommerce, where revenue was up 73 percent to represent 30 percent of mix.

“I am pleased to be reporting our first results as a publicly listed company. I am very proud of the resilience, dedication and agility of our teams across the globe. This hard work, together with the investments we continued to make in our brand, resulted in revenue up 15 percent and EBITDA up 22 percent,” said Kenny Wilson, the company’s chief executive officer.

Highlights of Dr. Martens full year performance

The company said, during the year, retail performance was significantly impacted by Covid-19. Despite Covid-19, Dr. Martens opened 18 new own stores globally, taking the total own-store estate to 135. FY21 retail revenue was 99.7 million pounds, down 40 percent.

Over the medium-term, the company expects wholesale revenues to grow in absolute terms but become a smaller part of group revenue in percentage terms. In FY21, wholesale revenues were 437.9 million pounds, up 18 percent.

At a regional level, revenues increased by 17 percent in both EMEA and Americas, and 7 percent in APAC. In EMEA, the company reported strongest performance in Germany, following the conversion to a directly operated business in the prior year, while in the Americas, the company saw good growth in both USA ecommerce and wholesale channels. APAC performance was significantly impacted by Covid-19 store closures in Japan, which is Dr. Marten’s largest market in the region. In China, revenue was up 46 percent.

Dr. Martens reports FY21 EBITDA up 22 percent

FY21 EBITDA was 224.2 million pounds, up 22 percent with an EBITDA margin of 29 percent, up 1.6 percent pts. Group PBT before exceptional items was 151.4 million pounds, up 34 percent.

Due to exceptional costs related to IPO, PBT resulted in 70.9 million pounds, down 30 percent, while profit after tax was 35.7 million pounds, down 52 percent, due to the exceptional costs.

Adjusted diluted earnings per share were 11.6p, up 35 percent and the normalised adjusted diluted earnings per share were 14.5p, compared to 11.8p on the same basis in FY20.

Dr. Martens expects to report high teens revenue growth in FY22

In FY22, the company expects high teens revenue growth year on year. From FY23 and over the medium-term, the company anticipates mid-teens revenue growth and is targeting a 60 percent DTC mix over the medium-term, with ecommerce growing to at least 40 percent mix of group. Its medium-term target of a 30 percent EBITDA margin is also unchanged.

For FY22 specifically, Dr. Martens anticipates new own store openings of 20 to 25 stores and expects to pay our first dividend for the first half of FY22 in January 2022 with a one-third, two-third split of dividend payments across the fiscal year. The company plans to target a progressive dividend with a payout ratio of between 25 percent to 35 percent of net income.

Dr Martens