Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — H1 2018 Earnings Presentation
18 slides from Michael Hill International's earnings presentation, Feb 22, 2018
Slide 1: Interim Results 31 December 2017
For personal use only I NTERI M RESU LTS 31 D E C E M B E R 2017
Slide 2: For personal use only
For personal use only
Slide 3: CEO Review
For personal use only CEO REVI EW • G R O U P R E S U LTS • O P E R AT I O N A L S U M M A RY • R EVI EW OF PR IOR ITI ES • M A R K E T OV E R V I E W
Slide 4: Key Performance Results
KEY PERFO RMAN CE RESU LTS 342.2 M I LLI O N 64.8% For personal use only $ G R O U P R EVE N U E G R OS S MAR G I N 4.5% 0.8% $ 42.3 M I LLI O N $ 23.0 M I LLI O N 2.5c O P E R AT I N G N E T CAS H I N F LOW N ET D E BT DIVI DE N D 165.7% 37.3% 2016: 2. 5 C $ 34.9 M I LLI O N $ 15.1 M I LLI O N U N
Slide 5: Operational Results
O PERATI O NAL RESU LTS For personal use only 0.3% 73% S A M E STO R E ECOM M E RCE S A LE S G R OW T H S A LE S G R OW T H 4.1% CANADA 3.5% N EW ZEALAN D (0.1%) AUSTRALIA S A M E STO R E S A M E STO R E S A M E STO R E S A LE S G R OW T H S A LE S G R OW T H S A LE S G R OW T H 14 M I CHAEL H I LL
Slide 6: Group Results
G R O U P R E S U LT S • Revenue grew 4.5%, with same store sales up 0.3% For personal use only • Gross profit lifted to 64.8% of revenue • One off impairment and onerous lease accounting provisions recognised of $19.8m relating to planned US exit ($4.6m) and Emma & Roe repositioning ($15.2m) • Unde
Slide 7: Michael Hill Australia Retail Segment
M I CHAEL H I LL AUSTRALIA R E TA I L S E G M E N T For personal use only • Revenue grew 1.6% in a tough retail market • Gross profit up 3.5%, lifting to 63.5% of revenue • Challenging November trading period and increased marketing costs impacted bottomline results • 6 new stores opened during the
Slide 8: For personal use only
For personal use only
Slide 9: Michael Hill New Zealand Retail Segment
M I CHAEL H I LL N EW ZEALAN D R E TA I L S E G M E N T For personal use only • Revenue grew by 4.2% to NZ$69.7m • Same store sales growth of 3.5% in a mature market • Increased investment in marketing and higher than expected payment plan costs adversely impacted the segment’s bottom line • Second
Slide 10: For personal use only
For personal use only
Slide 11: Michael Hill Canada Retail Segment
M I CHAEL H I LL CANADA R E TA I L S E G M E N T For personal use only • Revenue grew by 17.6% to CA$73.7m • Same store sales grew by 4.1% • EBIT increased 17.6% to a record CA$10.4m • This segment is benefiting from a strong and stable leadership team • Captured additional market share from increas
Slide 12: Michael Hill US Retail Segment
M I CHAEL H I LL US R E TA I L S E G M E N T For personal use only • Same store revenue down 10.6% • Impairment and onerous leases recognised of US$3.5m (AU$4.6m) • Underlying EBIT loss of US$2.1m • Continued strategic review leading to January US exit announcement • Exit expected to be completed by
Slide 13: Emma & Roe Retail Segment
EM MA & RO E R E TA I L S E G M E N T For personal use only • Total sales growth of 20.0% with same store sales declining 5.4% • Underlying EBIT loss of $4.4m • Impairment and onerous leases recognised of AU$15.2m • Strategic review of Emma & Roe progressed ahead of January repositioning announcemen
Slide 14: For personal use only
For personal use only
Slide 15: Review of Priorities for 2017-18
REVI EW O F PRI O RITI ES FO R 2017-18 • Increased same store sales for the Group, with Canada and New Zealand achieving solid growth For personal use only • Continued to target strategically suitable growth opportunities with 14 new Michael Hill stores opened • A brand review of Emma & Roe resulted
Slide 16: Material Adjustments
MATERIAL ADJ USTM ENTS • Impairment and onerous lease accounting provisions recognised of AU$19.8m relating to planned US exit and Emma & Roe repositioning For personal use only • After tax, AU$15.2m impact on net profit after tax • Final cash costs associated with the closures will be provided to t
Slide 17: Whitefire by Michael Hill
A WHITEFIRE BY MICHAEL HILL
Slide 18: Thank You
For personal use only THAN K YO U
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