Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (March 2019)
43 slides from Premier Investments's investor presentation, Mar 22, 2019
Slide 1: 2019 Half Year Results Overview
PREMIER INVESTMENTS LIMITED 2019 Half Year Results Overview 22 March 2019 0 X
Slide 2: Agenda
Agenda Premier Investments Smiggle record sales and update on 1 1H19 overview 8 accelerated global expansion strategy Premier Investments Peter Alexander performing strongly 2 1H19 consolidated financial results 9 3 Premier Retail delivers record sales and EBIT 10 Premier Retail summary 4 Premier Re
Slide 3: 1H19 Overview
1H19 OVERVIEW
Slide 4: Premier Investments 1H19 overview
1 Premier Investments 1H19 overview • Group profit – Net profit after tax $88.8 million, up 13.0% on 1H181 – Record Premier Retail EBIT of $113.9 million, up 11.1% on 1H181 – Record 1H19 Sales of $680.2 million up 8.0% on 1H18 – LFL sales up 4.6% on 1H18 on a constant currency basis – Apparel Brands
Slide 5: Premier Investments summarised consolidated income statement
2 Premier Investments summarised consolidated income statement $m 1H19 1H18 Premier Retail EBIT – underlying 113.9 102.5 Premier Investments income from associate (BRG) 12.2 10.0 Premier Investments other revenue (Interest, Dividends, Rent & Other) 3.8 3.9 Premier Investments expenses (ex Premier Re
Slide 6: Premier Investments summarised consolidated balance sheet
2 Premier Investments summarised consolidated balance sheet $m 26 Jan 2019 28 Jul 2018 Assets Cash and cash equivalents 183.2 178.6 Inventories 166.5 159.3 Property, plant and equipment 230.1 238.2 Other assets 48.8 48.9 Deferred tax assets 40.7 36.6 Listed equity investment at fair value 34.9 40.7
Slide 7: Premier Retail
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Slide 8: Premier Retail delivers record sales and EBIT
3 Premier Retail delivers record sales and EBIT • Record 1H19 sales of $680.2 million up 8.0% on 1H18, with like-for-like (LFL) sales up 4.6% on 1H18 on a constant currency basis • Record 1H19 EBIT of $113.9 million, up 11.1% on 1H181 • Record 1H19 EBIT % to sales of 16.7%, up 47 bps on 1H181 • Reco
Slide 9: Premier Retail performance
3 Premier Retail performance 26 weeks 26 Weeks $000 to 26 Jan 2019 to 27 Jan 2018 Var LY Sales 680,201 630,073 +8.0% LFL sales (constant currency) +4.6% +2.4% Gross Profit 428,662 397,925 +7.7% Gross margin (%) 63.0% 63.2% -14 bps Employee Expenses1 (157,102) (143,360) +9.6% % sales 23.1% 22.8% +34
Slide 10: Premier Retail 1H19 EBIT: strong growth continues
4 Premier Retail 1H19 EBIT: strong growth continues • 7 consecutive years of first half EBIT growth in the critical summer season • 1H19 EBIT margin to Sales up 47 bps on 1H18 • Key gross margin and CODB strategies delivering Underlying EBIT – 7 Year History 16.7% 17.0% 120.0 16.3% 113.9 15.8% 16.0%
Slide 11: Premier Retail 1H19 EBIT: strong growth continues
4 Premier Retail 1H19 EBIT: strong growth continues Gross margin strategies continuing to deliver • 1H19 results were achieved notwithstanding significant external headwinds in the apparel sector and with Brexit uncertainty in the United Kingdom, with retailers continuing to discount deeper and for
Slide 12: Premier Retail 1H19 EBIT: strong growth continues
4 Premier Retail 1H19 EBIT: strong growth continues CODB – Store Profitability Focus • 16 stores closed during the last 12 months, a total of 101 stores closed over the last 6 years, as part of the ongoing program to close unprofitable stores • As consumers continue to increase their online shopping
Slide 13: Premier Retail investing in growth
5 Premier Retail investing in growth Premier Retail continues to invest in new stores, upgrades and refurbishments to deliver sustainable sales growth: • 136 stores received capital investment, including 17 new stores and 4 Smiggle International Concessions opened in 1H19 In 1H19, 89% of capital inv
Slide 14: Premier Retail investing in growth
5 Premier Retail investing in growth • 2 new stores opened across Australia and New Zealand • 1 store relocated and refurbished in Australia • 5 stores refurbished in existing locations in Australia • 96 stores received fixture upgrades in Australia • 3 stores refurbished in existing locations in Au
Slide 15: Apparel Brands deliver strong 1H19 sales growth
9 6 Apparel Brands deliver strong 1H19 sales growth • Apparel Brands 1H19 sales up 7.5% on 1H18 to $370.8 million, improving momentum on 2H18 sales growth of 5.5% • Apparel Brands 1H19 LFL sales growth of 8.8% was stronger than overall growth, with 16 stores closed during the last 12 months as part
Slide 16: Online – delivers record first half sales
9 7 Online – delivers record first half sales • Record 1H19 Online sales of $75.7 million, up 35.2% on a previous record 1H18 • Online sales growing to 12.9% of the respective markets’ sales in 1H19 Online Sales Growth • 2013 investment in centralised and specifically customised Australian Distribut
Slide 17: Smiggle: Brand expansion continues to deliver record results
8 Smiggle: Brand expansion continues to deliver record results • Record 1H19 Smiggle sales of $178.8 million • 1H19 Asia sales up 34.8% (up 112% over two years) • 6 new stores and 4 new concessions opened globally in 1H19 as accelerated growth strategy shifts to less capital intensive channels than
Slide 18: Smiggle Pathways to Global Growth update
8 Smiggle Pathways to Global Growth update Smiggle announced in September 2018 a plan to accelerate global growth from 4 major channels 1. Wholesale in markets where Smiggle has a significant opportunity but chooses not to or will unlikely operate company owned standalone stores 2. Online growth, bo
Slide 19: Smiggle Pathways to Global Growth update – Wholesale Asia/Middle East
8 Smiggle Pathways to Global Growth update – Wholesale Asia/Middle East Wholesale Update – Asia/Middle East • The brand today announces the launch of the Smiggle wholesale business, partnering with 5 iconic retailers across Asia and the Middle East • 5 new countries, 5 iconic retailers, initial roll
Slide 20: Smiggle Pathways to Global Growth update – Wholesale Asia/Middle East
8 Smiggle Pathways to Global Growth update – Wholesale Asia/Middle East Wholesale Update – Philippines • Successful trial in first wholesale market with local iconic retail partner in the Philippines in January 2019 • First class execution of Smiggle’s high brand integrity expectations, through zero
Slide 21: Smiggle Pathways to Global Growth update – Wholesale Canada
8 Smiggle Pathways to Global Growth update – Wholesale Canada Canada • Smiggle announces the launch of the brand through an iconic retailer in Canada in mid to late 2019 • The brand will launch in three major cities as well as on the retailer’s online platform • This will give Smiggle its first expo
Slide 22: Smiggle Pathways to Global Growth update - Online
8 Smiggle Pathways to Global Growth update - Online Online Update • Online growth in 1H19 across Smiggle’s proprietary websites continues to exceed our expectations • 1H19 Online sales in countries with a transactional website exceeded 15% of sales, with UK online sales 19% of total UK sales and Aus
Slide 23: Smiggle Pathways to Global Growth update - Online
8 Smiggle Pathways to Global Growth update - Online Online Update • Smiggle launched on third party transactional websites with Selfridges in August 2018 and Harrods in November 2018, with over 50% of customers shopping from locations outside of the UK from both sites • Smiggle today announces the l
Slide 24: Smiggle Pathways to Global Growth update – Concession
8 Smiggle Pathways to Global Growth update – Concession Concession Update • The concession strategy enables the brand to leverage the foot traffic generated by the iconic retail partner without the need for long term leases and at a fraction of the capital employed to open standalone stores • The co
Slide 25: Smiggle Pathways to Global Growth update – Concession
8 Smiggle Pathways to Global Growth update – Concession Concession Update Smiggle now operating across 3 Selfridges department stores and Harrods in the UK • Launched in Selfridges London Oxford Street in May 2018 • Launched in Selfridges Trafford Manchester in August 2018 • Launched in Selfridges B
Slide 26: Smiggle Pathways to Global Growth update – Concession
8 Smiggle Pathways to Global Growth update – Concession Concession Update 2 concessions opened in Singapore, with initial results ahead of expectations • Launched in Metro Causeway Point, Singapore in December 2018 • Launched in Robinson’s Raffles City, Singapore in March 2019 Smiggle sees opportuni
Slide 27: Smiggle Pathways to Global Growth update – New standalone stores
8 Smiggle Pathways to Global Growth update – New standalone stores New standalone store update • 6 new stores opened globally in 1H19 • The brand will continue to explore compelling opportunities to open standalone stores in existing markets where commercial terms and returns on investment are attra
Slide 28: Peter Alexander performing strongly: Sales Growth
9 Peter Alexander performing strongly 140 $130 Sales Growth 120 $114 $99 100 $87 Sales AUD $m 80 $73 $63 60 $51 $44 $38 40 $32 20 - 1H10 1H11 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 (Note 1) Sales Note: 1. 1H16 excludes non-comparable 27th week of sales 27
Slide 29: Peter Alexander performing strongly
9 Peter Alexander performing strongly • Record 1H19 Sales up 14.1% to $130.4 million with strong total and LFL sales in both Australia and New Zealand • 5 new stores opened in 1H19: Cockburn (WA), Blacktown (NSW), Forrest Chase (WA), Moonee Ponds (VIC) and Mt Maunganui (NZ) • Online has continued to
Slide 30: Peter Alexander 2020 Growth Plan ahead of expectations
9 Peter Alexander 2020 Growth Plan ahead of expectations • Sales of $234.7 million for the 12 months to January 2019 are well ahead of the strategic plan targeting annual sales in excess of $250 million by FY20 • The brand has opened 26 new stores in the last 18 months, well ahead of the 2020 Growth
Slide 31: Premier Retail summary 1H19
10 Premier Retail summary 1H19 Smiggle delivers record 1H19 Sales, announcement of key global partnerships • Record 1H19 Smiggle sales of $178.8 million • Record 1H19 performance in Asia with sales up 34.8% (up 112% over two years), with more than half of the brand’s global top 20 stores for sales c
Slide 32: Premier Retail summary 1H19
10 Premier Retail summary 1H19 Peter Alexander performing strongly • Record 1H19 Sales up 14.1% to $130.4 million with strong total and LFL sales in both Australia and New Zealand • Sales of $234.7 million for the 12 months to January 2019 well ahead of the strategic plan targeting annual sales in e
Slide 33: Portmans
portmans
Slide 34: Dividend
11 Dividend • Due to the continued strength of the Premier Balance Sheet and the strong performance of Premier Retail, the Premier Board has declared an increased record interim dividend of 33 cps fully franked, up 4 cps (13.8%) on 1H18 (1H18 Interim: 29 cps). The interim ordinary dividend will be p
Slide 35: Appendix A: Brand by Brand Performance
A PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 36: Highlights
A Highlights • Record 1H19 Smiggle sales of $178.8 million • Record 1H19 performance in Asia with sales up 34.8% (up 112% over two years), with more than half of the brand’s global top 20 stores for sales coming from the three Asia markets • Pathways to Global Growth Strategy underway, today announc
Slide 37: Highlights
A Highlights • Record 1H19 sales up 14.1% to $130.4 million with strong total and LFL sales in both Australia and New Zealand • Sales of $234.7 million for the 12 months to January 2019 well ahead of the 202 Growth Plan targeting annual sales in excess of $250 million by FY20 • 26 new stores opened
Slide 38: Highlights
A Highlights • 1H19 Sales up 14.3% to $122.7m in a particularly pleasing result for the group’s original brand founded in 1970 • 1H19 LFL sales up 14.6% were stronger than overall sales growth • 1 store was closed in the last 12 months as part of the ongoing program to close unprofitable stores • Ju
Slide 39: Highlights
A Highlights • 1H19 Sales up 7.2% to $92.2 million delivering a strong operating result for the brand • 1H19 LFL sales up 7.7% were stronger than overall sales growth • 4 stores were closed in the last 6 months as part of the ongoing program to close unprofitable stores • Jay Jays has a strong, dist
Slide 40: Highlights
A Highlights • 1H19 sales up 5.8% to $65.9 million • 1H19 LFL sales up 9.5% were stronger than overall sales growth • 5 stores were closed in the last 12 months as part of the ongoing program to close unprofitable stores • 1H19 Online sales continue to drive overall growth at a significantly higher
Slide 41: Highlights
A Highlights • 1H19 Sales up 1.6% to $37.0 million • 1H19 LFL sales up 2.1% were stronger than overall sales growth • 1 stores was closed in the last 12 months as part of the ongoing program to close unprofitable stores • Jacqui E has an extremely strong and distinctive market position • Ongoing inv
Slide 42: Highlights
A Highlights • The appointment of Judy Coomber to role of Managing Director Peter Alexander and Dotti, together with the return of Deanna Moylan to the group as Dotti Group General Manager in March 2018 reporting to Judy, is delivering a turnaround in performance • 1H19 LFL sales up 2.7% were strong
Slide 43: B Appendix
B B Appendix Notes regarding significant and other one-off items excluded from 1H18 underlying results • Premier’s 1H18 underlying EBIT and underlying NPBT excludes costs incurred in relation to its investment in Myer Holdings Limited ($0.9m) including preparation for legal action; costs incurred re
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