Asos bosses have missed out on bonuses for the second year running after the business failed to hit performance targets.
Profit before tax at Asos dropped by 68% year on year to £33.1m in the year to 31 August, following “significant” investment in its warehousing and sustainability credentials. As a result, directors received no annual bonuses for the period.
The annual bonus opportunity for the coming year will continue to be 150% of salary for the CEO and 100% of salary for the CFO.
CEO, Nick Beighton received a base salary of £565,000 for the year to 31 August 2019, with a total remuneration payout of £796,921.
Beighton said the large decrease in profit for the period was due to “significant” investment, which was “regrettably more disruptive” than the etailer anticipated. Investments included the launch and expansion of two new warehouses in the US and Germany and greater investment in sustainability, customer acquisition and customer retention.
However, gross profit increased by 8% to £1.3bn during the period. Turnover also rose by 13% to £2.7bn in the year. UK sales grew by 15%, those in the European Union were up by 12% and sales in the US increased by 9%.
Net debt at the end of the period was £90.5m, reflecting ”elevated capex investment in support of the global logistics platform”. The business had net cash of £42.7m in 2018.