Adore Beauty Group Ltd. · ASX:ABY
Adore Beauty — H1 FY2025 Earnings Presentation
21 slides from Adore Beauty's earnings presentation, Feb 17, 2025
Slide 1: H1 FY25 Results Presentation
H1 FY25 RESULTS PRESENTATION 17 February 2025
Slide 2: H1 FY25 Key Achievements
H1 FY25 KEY ACHIEVEMENTS Developed a 3-year omni-channel strategy with clear, ambitious, measurable targets to deliver a step change in revenue and profit growth underpinned by a material margin expansion Delivered material gross margin expansion of +270bpts through growth of owned brands, retail me
Slide 3: Adore Beauty Delivers Improved Profitability
ADORE BEAUTY DELIVERS IMPROVED PROFITABILITY Q2 performance demonstrates early success of strategy refresh H1 FY25 SUMMARY1 $4.7M $103.0M 36.2% Reported EBITDA2 Revenue Gross margin +98% on PCP +2.3% on PCP +2.7 ppts on PCP EBITDA margin 4.5% $2.8M 1.26M $11.7M Reported EBIT2 Total contactable +126%
Slide 4: Growing and Loyal Customer Base
GROWING AND LOYAL CUSTOMER BASE More than 1.2 million customers in contactable database ACTIVE CUSTOMERS1 TOTAL CONTACTABLE DATABASE2 (‘000) (‘000) 20% 4% 1256 1,003 1051 801 804 837 CY22 CY23 CY24 CY22 CY23 CY24 Solid growth in customers who shopped on the Adore Leveraging the growing contactable d
Slide 5: H1 FY25 Financial Results
H1 FY25 FINANCIAL RESULTS H1 FY25 RESULTS PRESENTATION | 5
Slide 6: Improved Quality of Earnings Delivers Record Margins
IMPROVED QUALITY OF EARNINGS DELIVERS RECORD MARGINS Working capital and gross margin expansion more than doubles EBIT REVENUE GROSS MARGIN REPORTED EBITDA REPORTED EBIT ($A Million) (%) ($A Million) ($A Million) 2.3% 98% 126% 4.7 2.7 PPTS 2.8 103.0 100.7 36.2 2.4 1.2 94.2 33.5 32.4 0.4 -0.6 H1 FY23
Slide 7: H1 FY25 P&L
H1 FY25 P&L A$M H1 FY24 H1 FY25 CHANGE Revenue 100.7 103.0 2.3% Cost of sales (66.9) (65.7) (1.9%) Revenue Gross profit 33.7 37.3 10.5% Revenue up 2.3% on the PCP with focus on improving Gross margin 33.5% 36.2% 2.7 ppts quality of revenue Employee costs (10.4) (11.6) 11.6% Marketing and advertising
Slide 8: Balance Sheet
BALANCE SHEET A$M AS AT 30 JUN 24 31 DEC 24 Cash and cash equivalents 32.9 11.7 Inventory 21.6 22.7 Other current assets 4.0 7.2 Other assets (non-current) 9.2 37.8 Total assets 67.7 79.3 Trade and other payables 20.9 22.4 Other current liabilities 5.6 7.2 Other liabilities (non-current) 1.5 9.8 Tot
Slide 9: 3-Year Strategy
3-YEAR STRATEGY H1 FY25 RESULTS PRESENTATION | 9
Slide 10: In Summary
IN SUMMARY The Adore Beauty Group is poised for material growth. This strategic plan delivers the clear vision and direction to achieve long-term value creation. A deeply connected online and offline digital ecosystem informed by advanced data and AI capability to drive enhanced customer experience
Slide 11: Adore Beauty Group 3-Year Targets
ADORE BEAUTY GROUP 3-YEAR TARGETS1 Our Vision is to help women feel more confident every day by delivering an empowering and engaging beauty shopping experience personalised to their needs Total Group Revenue > $260 million / +30%2 Gross margin expansion >200bpts CODB contraction/efficiencies >(150b
Slide 12: Growth Initiatives to Drive Material Step Change in Performance
GROWTH INITIATIVES TO DRIVE MATERIAL STEP CHANGE IN PERFORMANCE Retail Stores Material opportunity to grow revenue and market share with ~87.5%1 of our addressable market in the offline physical store environment Operational Excellence Seamlessly evolve into an omni-channel beauty authority, deliver
Slide 13: Retail Stores to Drive Revenue Growth, Increased Share of Wallet and Margin Expansion
RETAIL STORES TO DRIVE REVENUE GROWTH, INCREASED SHARE OF WALLET AND MARGIN EXPANSION Significant sales & Improved Halo effect on market share gain margins online sales 200k+ annual store 100k+ new transactions customers annually First Adore Beauty store open, iKOU expanding beyond existing 3 stores
Slide 14: Bringing Our Signature Online Experience to Life
BRINGING OUR SIGNATURE ONLINE EXPERIENCE TO LIFE True to our DNA our Adore Beauty stores deliver a deeply integrated digital experience, extending our market leading pureplay position into the physical store environment ‘Digital First’ Experience Gift With Purchase Instore Beauty Experts • Endless A
Slide 15: Increased Retail Media Capabilities Deliver Margin Expansion and Enhance Profitability
INCREASED RETAIL MEDIA CAPABILITIES DELIVER MARGIN EXPANSION AND ENHANCE PROFITABILITY INHOUSE TEAM • Dedicated team • Leveraging first-party data to create targeted, high-ROI campaigns BRAND PARTNER PORTAL INSTORE OPPORTUNITY • Streamlined processes through online • Advertising and product placemen
Slide 16: Summary & Outlook
SUMMARY & OUTLOOK H1 FY25 RESULTS PRESENTATION | 16
Slide 17: A Clear Path to Long-Term Value Creation
A CLEAR PATH TO LONG-TERM VALUE CREATION Early momentum of strategy refresh - strong EBIT & Gross Margin delivery in H1 FY25 Clearly defined drivers of continued long term gross margin expansion through multi- channel growth of owned brands, retail media revenue, refined promotional cadence and disc
Slide 18: A Clear Path to Long-Term Value Creation
A CLEAR PATH TO LONG-TERM VALUE CREATION Sacha Laing: CEO “With 25 years as Australia’s leading pureplay beauty authority our retail stores will be a natural extension of our online ecosystem with a deeply connected and immersive digital customer experience in-store. We remain focused on continued e
Slide 19: Appendix
APPENDIX H1 FY25 RESULTS PRESENTATION | 19
Slide 20: Proforma Adjustments to Statutory Income Statement
PROFORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT Statutory Actual Pro-forma Actual A$M H1 FY24 H1 FY25 A$M H1 FY24 H1 FY25 H1 FY24 H1 FY25 Statutory profit before tax 1.5 0.5 Revenue 100.7 103.0 100.7 103.0 Cost of sales (66.9) (65.7) (66.9) (65.7) Acquisition-related transaction cost 1.8 Gross pr
Slide 21: Disclaimer
DISCLAIMER Forward Looking Statements Certain statements made in this release are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Adore Beauty's current expectations, estimates and projections about the industry in which Adore Beauty oper