Puuilo Oyj · OMXHEX:PUUILO
Puuilo Oyj — Q1 2024 Earnings Presentation
20 slides from Puuilo Oyj's earnings presentation, Jun 12, 2024
Slide 1: Steady performance - business as usual
Steady performance - business as usual Business review February - April 2024 Puuilo Plc 12 June 2024 Juha Saarela, CEO Ville Ranta, CFO
Slide 2: Our agenda today
Our agenda today Key figures and main events . . A GAS GRILL OR A PIZZA OVEN? Financial development IF YOU'RE SMART YOU CAN HAVE BOTH. Outlook for financial year 2024 BUY A MEFISTO GAS GRILL WITH 4+1 OR 6+1 BURNERS AND YOU WILL RECEIVE AFREE PIZZA OVEN. nea Strategy and long-term financial targets Q
Slide 3: Key figures and main events
▪ Two new stores were opened during the period. The Net sales Gross margin store in Nokia was opened in February whereas store in Ylöjärvi was opened in March. Both stores were part of the Hurrikaani acquisition concluded in 2023. The third store in Forssa was opened on the 2nd of May. New store ope
Slide 4: Financial development
Slide 5: Net sales increased by 16.1% and like-for-like net sales by 4.8%
▪ Net sales increased by 16.1% and like-for- like stores net sales by 4.8% ▪ Net sales increased in like-for-like stores and in new stores ▪ The increase in traffic continued in Q1, amounting to 19%. Like-for-like growth was approx. 7% ▪ The average basket size for Q1 decreased by 2% from the compar
Slide 6: Gross margin increased to 36.6% of net sales
▪ Gross margin increased to 36.6% of net sales ▪ Margin improvement was driven by lower logistics costs ▪ In addition, the change in the sales mix towards products with a cheaper price point supported margin development
Slide 7: Adjusted EBITA increased by 1.0 M€
▪ Adjusted EBITA increased by 1.0 M€ ▪ Relative profitability was 11.0% of net sales, decreasing slightly from the comparison period ▪ Personnel expenses increased mainly due to new store openings and general increase in salaries ▪ Personnel costs were affected by timing difference caused by the ope
Slide 8: Relative level of inventory has decreased from the comparison period
▪ The relative level of inventory has decreased from the comparison period ▪ The increase in absolute inventory level is primarily due to the inventories of seven new stores ▪ In addition, the volume of private label products increased ▪ Puuilo aims to further improve inventory turnover in the futur
Slide 9: Operative free cash flow was 2.3 M€
▪ Operative free cash flow was 2.3 M€ ▪ Operative cash flow was affected by change in inventories, which originates primarily from the inventories of new stores. In addition, the operating free cash flow was impacted by the acquisition of Hurrikaani store chain ▪ Puuilo continued to increase the imp
Slide 10: Net debt and long-term loans
▪ The ratio of net debt to adjusted EBITDA is in line with the long-term target (below 2.0x) ▪ The ratio of net debt to adjusted EBITDA excluding impact of IFRS 16 was 0.5 ▪ Puuilo’s long-term loans from financial institutions were 50.0 M€ at the end of the period * Net debt includes lease liabiliti
Slide 11: Q1 2024 summary of key figures
▪ Net sales increased by 16.1% (+10.3%) and were EUR 75.4 million (65.0) ▪ Like-for-like store net sales increased by 4.8% (+4.9%) ▪ Online store net sales decreased by 6.6% (-18.8%) ▪ Gross profit was EUR 27.6 million (23.7) and gross margin was 36.6% (36.5%) ▪ Adjusted EBITA was EUR 8.3 million (7
Slide 12: Outlook for financial year 2024
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Slide 13: Outlook for financial year 2024
Puuilo repeats the outlook for the financial year 2024 given in its financial statements release on 27 March 2024. The company forecasts that the net sales for financial year 2024 will be EUR 380 – 410 million and the adjusted operating profit (adjusted EBITA) in euros will be EUR 60 – 70 million. T
Slide 14: Strategy and long-term financial targets
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Slide 15: Long-term financial targets
Net sales above EUR 600 million Target to reach EUR >105 Puuilo aims to distribute at least Net debt to adjusted EBITDA by the end of financial year 2028 million adjusted EBITA by the 80% of net income each financial below 2.0x (ends Jan-2029) end of financial year 2028 (ends year to its shareholder
Slide 16: Store concept and economics
Notes: 1) Management estimate; 2) Based on average of 10 most recent store openings. Based on pricing margin (POS).
Slide 17: Growth strategy: store openings and marketing
New store openings expanding geographical reach Continued increases in marketing budget. Proven track record of increasing brand awareness Targeted marketing efforts for wider customer audience e.g. B2B customers Further differentation of product assortment from competitors
Slide 18: Store network
Notes: 1) Figures include all stores open at the end of April 2024 (total 44 stores)
Slide 19: New store openings
▪ Nokia, opened 21 February 2024 ▪ Ylöjärvi, opened 27 March 2024 ▪ Forssa, opened 2 May 2024 ▪ Tampere Lahdesjärvi, opens 13 June 2024 ▪ Oulu Karjasilta, opens during Q3/2024 ▪ Äänekoski, opens during Q4/2024 ▪ Kirkkonummi, opens during beginning of 2025 ▪ Lohja, opens H1/2025 ▪ ... several negotia
Slide 20: Q&A
Q&A Contact requests: ir@puuilo.fi sijoittajat.puuilo.fi NEXT FINANCIAL REPORTS AND EVENTS 12 Sep 2024 Half-year financial report 02/HI1 (February - July 2024) Tl Dec 2024 Business review Q3 (February - October 2024) PUUILO | BUSINESS REVIEW 01/2024