UK's warns supply problems could stretch into 2022

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A customer browses in a showroom in London, Britain, June 16, 2021. REUTERS/Toby Melville

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Sept 14 (Reuters) - UK online furniture retailer (MADE.L) said on Tuesday its first-half profit margins took a hit from higher shipping costs driven by global supply chain issues that could last until next year and delay orders.

In its first financial results since its London stock market debut in June, joins companies including rival Dunelm (DNLM.L) and online supermarket Ocado Retail (OCDO.L)(MKS.L) in flagging supply issues, as surging freight costs from lockdowns hit margins.

Made, which has over 1.1 million active customers, said it would pass some of the higher costs to customers and try to diversify its supplier base more to tackle higher freight costs.

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"Thanks to our ... supplier relationships, we are well-positioned to navigate the industry-wide global supply chain disruption, which is expected to continue into the first half of next year," Chief Executive Officer Philippe Chainieux said in a statement.

The company forecast full-year revenue of about 410 million pounds ($567.6 million), but warned that worsening supply chain disruptions would lead to delayed orders.

Reported pretax loss narrowed to 10.1 million pounds in the six months to June 30 from 15.2 million pounds a year earlier, said.

($1 = 0.7223 pounds)

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Reporting by Aditi Sebastian in Bengaluru; Editing by Devika Syamnath

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