Slide 1: Adairs Limited FY24 Results Presentation
Adairs Limited FY24 Results Presentation 28 August 2024 Mark Ronan Managing Director & CEO Ashley Gardner Chief Financial Officer
Slide 2: Contents
1 Contents ► FY24 highlights ► Group – FY24 financial performance ► Adairs – FY24 performance ► Adairs – NDC Update ► Focus on Furniture – FY24 performance ► Mocka – FY24 performance ► Balance sheet and cash flow ► Environmental, Social and Governance update ► FY25 – key priorities ► Trading update
Slide 3: FY24 highlights
FY24 highlights 2 NDC transition 7 new, 6 upsized/refurbished completed stores. GLA +3.9% Sales $594.4m Gross Margin 60.3% -4.3% v FY23 +170bps v FY23 GROUP RESULTS QLD warehouse 2 new, 2 refurbished established stores. GLA +7.8% Underlying Costs well EBIT $57.6m managed -9.8% v FY23 Offsetting infl
Slide 4: Group – FY24 financial performance
Group – FY24 financial performance 3 ($ million) FY24 FY23 Adjusted Sales impacted by lower customer traffic. Gross margin higher across all brands Underlying1 Change change2 and cost management was a key focus. Net debt reduced and dividends restored. 53 weeks 52 weeks Store sales 419.4 446.3 -(6.0
Slide 5: Adairs – FY24 performance
Adairs – FY24 performance 4 Tougher trading environment, however gross margins improved, costs are lower, ($ million) FY24 FY23 Adjusted Underlying1 Change change2 and the NDC transition has been completed. 53 weeks 52 weeks Store sales 298.8 314.2 -(4.9%) -(7.1%) ► Total sales of $413.4m, down -4.1
Slide 6: Adairs – NDC update
Adairs – NDC update 5 FY24 saw a reduction in NDC costs and improvement in service levels (customers and stores) in line with plan. The new WMS was implemented in July 2024 enabling further productivity improvements and cost savings from FY25 onwards. Goal Outcome (FY24 v FY23) Improve online custom
Slide 7: Focus on Furniture – FY24 performance
Focus on Furniture – FY24 performance 6 Solid performance given weaker trading environment and cycling a strong prior year. ($ million) FY24 FY23 Adjusted Underlying1 Change change2 New store roll-out and refresh program gaining momentum. 53 weeks 52 weeks Store sales 120.6 132.1 -(8.7%) -(11.2%) ►
Slide 8: Mocka – FY24 performance
Mocka – FY24 performance 7 Turnaround delivered through sales growth, gross margin improvement and tighter ($ million) FY24 FY23 Adjusted Underlying1 Change change2 cost management despite minimal growth in customer traffic. 53 weeks 52 weeks Store sales - - - - ► Total sales of $51.4m, up +5.7% on
Slide 9: Balance sheet and cash flow
Balance sheet and cash flow 8 Inventories ($ million) Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 ► Total Group inventories reduced by -$4.1m across FY24 to $83.7m. Inventories 99.1 106.4 87.8 83.5 83.7 ► Increased investment in core lines in the Adairs brand in Q4 will continue. Trade and other payables (51
Slide 10: Environmental, Social and Governance update
Environmental, Social and Governance update 9 Sustainability ► The Group achieved a 6.3% reduction in Scope 1 + 2 emissions in CY23 (v CY22). – Targeting net zero (Scope 1 and 2 emissions) by 2030 in line with the Australian Retail Association’s Net- zero Roadmap. – Well placed to meet our obligatio
Slide 11: FY25 – key priorities
FY25 – key priorities 10 ► New NDC WMS went live in late July ► Pipeline of store openings is growing. ► Consolidate turnaround plan and 2024. Critical next step to achieve Targeting 3 new stores in FY25. maintain profitability margins. further NDC efficiencies. ► Proven incremental returns on ► Opt
Slide 12: Trading update and outlook
Trading update and outlook 11 Trading update Outlook Real-time sales FY25 YTD ► The Group is optimistic about what it can achieve in FY25, given its (unaudited) (last 8 weeks) successes in FY24 in areas within its control such as gross margin Group -(0.4%) management, sales conversion and CODB disci
Slide 13: Questions?
QUESTIONS? >
Slide 14: Appendices
APPENDICES 1. About the Group 2. Store footprint – Adairs brand 3. Store footprint – Focus on Furniture brand 4. Group income statement 5. Group income statement reconciliation 6. Group cash flow reconciliation 7. Glossary
Slide 15: Appendix 1: About the Adairs Group
Appendix 1: About the Adairs Group 14 Adairs Limited (ASX: ADH) is Australasia’s largest omni-channel specialty retailer of home furnishings, furniture and home decoration products Common to all three businesses ► Design-led (in-house) ► Exclusive and differentiated products ► Leading specialty reta
Slide 16: Store footprint – Adairs brand
AppendixA2:recap: StoreOur strategy– Adairs brand footprint 15 FY24 ACTIVITY Store count Jun 23 New Closed Upsize Refurb Jun 24 VIC 54 1 (3) 2 2 52 NSW 44 1 (1) 1 - 44 QLD 30 3 (2) - - 31 WA 23 - (1) 1 - 22 1 SA 7 1 - - - 8 ACT 3 1 - - - 4 TAS 2 - - - - 2 NT 1 - - - - 1 NZ 7 - - - - 7 21 Total 171 7
Slide 17: Store footprint – Focus on Furniture brand
AppendixA3:recap: StoreOur strategy– Focus on Furniture brand footprint 16 FY24 ACTIVITY Store count Jun 23 New Closed Upsize Refurb Jun 24 VIC (Metro) 11 - - - 2 11 VIC (Regional) 4 - - - - 4 NSW (Metro) 1 1 - - - 2 NSW (Regional) 3 - - - - 3 ACT 1 - - - - 1 SA 2 - - - - 2 QLD 1 1 - - - 2 Total 23
Slide 18: Appendix 4: Group income statement
Appendix 4: Group income statement 17 Adairs Focus Mocka Group ($ million) FY24 FY24 FY24 FY24 FY23 Adjusted Underlying1 53 weeks 53 weeks 53 weeks 53 weeks 52 weeks Change change2 Store sales 298.8 120.6 - 419.4 446.3 -(6.0%) -(8.3%) Online sales 114.6 9.0 51.4 175.0 175.0 -(0.0%) -(2.3%) Total sal
Slide 19: Appendix 5: Group income statement reconciliation
AppendixA5:recap: GroupOur strategy income statement reconciliation 18 FY24 RECONCILIATION FY23 RECONCILIATION Underlying NDC Statutory Underlying NDC Statutory AASB 16 SaaS project AASB 16 ($ million) FY24 transition FY24 FY23 transition FY23 impact costs impact 53 weeks costs 53 weeks 52 weeks cos
Slide 20: Appendix 6: Group cash flow reconciliation
Appendix 6: Group cash flow reconciliation 19 Underlying Underlying FY24 RECONCILIATION ($ million) FY24 FY23 Underlying AASB 16 Statutory Underlying ($ million) Underlying EBITDA 68.8 72.5 FY24 impact FY24 FY23 Opening cash 25.9 - 25.9 26.1 Significant items (cash impact) (4.9) (0.4) Operating cash
Slide 21: Glossary
AppendixA6:recap: Our strategy Glossary 20 Term Meaning Term Meaning ASP Average selling price IPS Items per sale ATV Average transaction value LFL Like for like LTM Last twelve months CAC Customer acquisition cost Cost of doing business (refers to all expenses incurred by the NPAT Net profit after
Slide 22: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about Adairs Limited (ABN 50 147 375 451) (Adairs) and its activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It should