Smcp Sa · EURONEXT:SMCP
Smcp Sa — H1 2022 Earnings Presentation
44 slides from Smcp Sa's earnings presentation, Aug 1, 2022
Slide 1: 2022 Half-Year Results
2022 Half-Year Results August 1st, 2022 Isabelle Guichot, CEO Patricia Huyghues Despointes, CFO
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation includes projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such forward-looking statements are not guarantees of future performance of the Group. Actual results or per
Slide 3: Isabelle Guichot, CEO
Isabelle Guichot, CEO 3
Slide 4: Strong sales growth over the semester
Strong sales growth over the semester Strong level of €565m +21.4% +24.5% Sales organic LFL Balanced growth1 Q1 +24% Q2 +19% H1 +21% between Q1 & Q2 Quality of sales reflected in Discount rate -6pp full-price Network Q1 -17 POS Q2 +3 POS stabilizing in Q2 (1) Organic Growth (at constant currency & s
Slide 5: Profitability jumps despite a difficult environment
Profitability jumps despite a difficult environment Gross margin 74.4% improving +2.8 pp of sales Adj. EBIT1 €45m 8.0% of sales jumping +76% +2.3 pp Net Result vs. €1m €21m rebounding in H1 2021 Leverage ratio2 vs. 2.5x 2.1x progressing in Dec. 2021 (1) Before LTIP impact (-€4.4m) (2) Net Debt / adj
Slide 6: Sales €565m, an all-time H1 record
Sales €565m, an all-time H1 record -0.2%* H1 Sales evolution €565.4m €540.3m €493.3m €453.3m €438.9m €372.8m H1 H1 H1 H1 H1 H1 2017 2018 2019 2020 2021 2022 Digital 22% penetration ► 6
Slide 7: Solid performance driven by strong demand in Europe and Americas
Solid performance driven by strong demand in Europe and Americas H1 Organic sales growth vs. 2021 by region FRANCE EMEA APAC AMERICAS +40.8% +50.4% -23.8% +28.1% H1 Sales breakdown by region by brand by channel 13% 9% 20% 34% 47% 15% 40% 91% 31% France EMEA Sandro Maje Other Brands Retail Wholesale
Slide 8: Brand desirability – Successful local marketing strategies all over the globe Montauk
Brand desirability – Successful local marketing strategies all over the globe Montauk Gurney’s Beach Party, Montauk, NYC Surf Lodge in Montauk, NYC 8
Slide 9: Brand desirability – Successful local marketing strategies all over the globe Dubaï Paris
Brand desirability – Successful local marketing strategies all over the globe Dubaï Paris Ramadan capsules X L’ORCHESTRE DE PARIS 9
Slide 10: Brand desirability – Fursac in the spotlight at the Paris Fashion Week
Brand desirability – Fursac in the spotlight at the Paris Fashion Week Gauthier Borsarello in the Fantastic Man 10
Slide 11: Brand desirability – Creative Collaborations
Brand desirability – Creative Collaborations @怡含怡含 China Weibo: 1.1m 11
Slide 12: Brand desirability – International exposure with Key Opinion Leaders
Brand desirability – International exposure with Key Opinion Leaders AMERICAS EUROPE APAC France China UK @Mao Xiaotong @hughlaughtonscott @camillecerf Weibo: 20.19M @Yang Zi @victoria Instagram: 184K Instagram: 980K Weibo: 57M @ladygaga Instagram: 1.3M Instagram: 53M @nathalieoffduty Instagram: 858
Slide 13: Concrete actions leading to strong results in Sustainability
Concrete actions leading to strong results in Sustainability Full Traceability ▼▼▼ Carbon footprint 2021 ▼▼▼ X3 -8% vs 2018* from 40 to 120 references * Including in 2021 figures the impact of sold products’ use and end of life – not included in 2018 figures 13
Slide 14: Q2 key openings in EMEA
Q2 key openings in EMEA Ibiza, SPAIN Deauville, FRANCE 14
Slide 15: Q2 key openings in China
Q2 key openings in China Wuhan, MixC Fuzhou, MixC New openings 15
Slide 16: Q2 key openings – Continued digital expansion
Q2 key openings – Continued digital expansion ▼ CANADA ▼ ▼ KOREA ▼ 16
Slide 17: Patricia Huyghues Despointes, CFO
Patricia Huyghues Despointes, CFO 17
Slide 18: Sales by region: Strong performance in Europe
Sales by region: Strong performance in Europe • Sharp improvement, exceeding H1 2019 and outperforming the market Sales evolution vs. LY • Accelerating performance in Q2 : +63.1% vs. 2021 and +8.2% vs. 2019 H1 21 H1 22 FRANCE • Strong reduction of discount rate: more than 10pp vs. 2021 €194.7m +40.8
Slide 19: Sales by region: Strong momentum in the Americas partly compensates restrictions in Asia
Sales by region: Strong momentum in the Americas partly compensates restrictions in Asia • Performance sharply impacted by Covid restrictions, such as: Sales evolution vs. LY − In Mainland China in Q2: o c. 25%* of B&M network closed for >2 months (mainly large stores located APAC in Tier 1 cities)
Slide 20: Navigating with agility the challenges of a tough environment
Navigating with agility the challenges of a tough environment Inflation Sourcing & Inventory o More than half of sourcing comes from the o Agile pricing policy to protect margins Euro-Mediterranean basin, limiting while limiting impact on consumer, with exposure to supply chain tensions smart collec
Slide 21: Strong Gross Margin improvement supported by solid pricing power
Strong Gross Margin improvement supported by solid pricing power and discount rate discipline Gross margin Store costs1 Retail Margin1 % of sales % of sales % of sales 74.4% 32.6% 2 71.6% 30.7% -41.9%2 -40.9% 31.5% -43.0% +280 bps -100 bps2 +190 bps 2 o Gross margin reaching 74.4% of sales, supporte
Slide 22: Adj. EBIT jumps by +76%, reaching 8% of sales in H1 2022
Adj. EBIT jumps by +76%, reaching 8% of sales in H1 2022… SG&A1 Adjusted EBIT % of sales % of sales 8.0% -20.5% 5.7% €45.2m -21.6% 2 €25.7m +76% -22.0% +40 bps 2 +230 bps o Continuing strong cost management and o Sharp improvement of the adj. EBIT, better absorption of all main expenses increasing m
Slide 23: Rebound of Net Profit, from breakeven in H1 2021 to c.€21m
… leading to a rebound of Net Profit, from breakeven in H1 2021 to c.€21m In €m Net income bridge versus last year H1 2021 Additional Non recurring Financial result Tax H1 2022 Net Income activity expenses Net Income o Significant sales increase leading to additional gross margin, combined with addi
Slide 24: CAPEX and Working Capital: a disciplined support to Brands growth
CAPEX and Working Capital: a disciplined support to Brands growth In €m CAPEX Working Capital Free Cash Flow 160.1 20.2 133.7 19.0 18.7 4.2% 3.3% 14.0% 13.9% 4.9 H1-21 H1-22 H1-21 H1-22 H1-21 H1-22 % of sales % of sales* Increase in absolute value A disciplined investment, Moderate FCF generation in
Slide 25: Net Debt: Leverage continues to decrease, well on track to reach 2x
Net Debt: Leverage continues to decrease, well on track to reach 2x at year-end Leverage ratio In €m (in €m) Dec 31, 2021 June 30, 2022 3.6x 2.5x Term Loan 208.2 153.8 2.1x RCF (€200m) Undrawn Undrawn State Guaranteed loan 193.3 179.6 Neu CP 38.0 33.5 365.6 317.7 314.4 Other debt 9.5 7.2 Gross finan
Slide 26: Outlook
Outlook 26
Slide 27: 2022 Outlook
Outlook 2021 2022 Outlook The strong results of SMCP in H1 2022, despite adverse external factors (war in Ukraine, continued inflation, Covid resurgences in Asia), demonstrate once again the resilience of the Group and the strength and desirability of its brands portfolio. Based on this performance,
Slide 28: Financial Agenda
Financial Agenda 28
Slide 29: Next financial publications
Next financial publications Oct 26th, 2022 o Q3 2022 Sales 2929
Slide 30: Appendix
Appendix
Slide 31: Quarterly net sales by region and by brand
Quarterly net sales by region and by brand Reported Organic Reported Organic Reported Organic In €m Q1-21 Q1-22 Q2-21 Q2-22 H1-21 H1-22 % % % % % % France 78.6 93.7 +19.1% +22.7% 63.2 101.0 +59.8% +63.1% 141.9 194.7 +37.2% +40.8% EMEA 47.5 83.1 +74.9% +72.9% 66.4 90.3 +35.8% +34.3% 114.0 173.4 +52.1
Slide 32: Breakdown of POS
Breakdown of POS Directly operated stores Var H1 22 Var H1 22 Var H1 22 Number of DOS H1-21 2021 Q1-22 H1-22 vs. Q1 22 vs. FY 21 vs. H1 21 By region France 494 472 459 462 +3 -10 -32 EMEA 408 402 395 394 -1 -8 -14 Americas 168 166 165 167 +2 +1 -1 APAC 245 252 251 251 - -1 +6 By brand Sandro 559 552
Slide 33: Income statement
Income statement €m - IFRS H1-21 H1-22 Sales 453.3 565.4 1 Purchases and changes in inventories -172.4 -202.1 2 Gross Margin 280.9 363.3 Other operating income and expenses -86.4 -115.5 Personnel costs -96.0 -126.0 3 Adjusted EBITDA 98.5 121.8 Depreciation and amortization expense -72.8 -76.7 3 Adju
Slide 34: Balance sheet – Assets (1/2)
Balance sheet – Assets (1/2) As of Dec. 31, As of June 30, BALANCE SHEET - ASSETS (€m) - IFRS 2021 2022 Goodwill 626.3 626.3 Trademarks, other intangible & right-of-use assets 1 139.2 1 154.9 Property, plant and equipment 87.6 82.6 Non-current financial assets 19.6 19.9 Deferred tax assets 49.7 48.6
Slide 35: Balance sheet – Equity and liabilities (2/2)
Balance sheet – Equity and liabilities (2/2) As of Dec. 31, As of June 30, BALANCE SHEET - EQUITY & LIABILITIES (€m) - IFRS 2021 2022 Share capital 83.3 83.9 Share premium 950.2 949.6 Reserves and retained earnings 89.2 112.9 Treasury shares -5.4 -2.7 Total Equity 1 117.2 1 143.7 Non current lease l
Slide 36: Net financial debt
Net financial debt As of Dec. 31, As of June 30, NET FINANCIAL DEBT (€m) 2021 2022 Non current financial debt & other financial liabilities -338.9 -262.9 Bank overdrafts and short-term financial liability -110.2 -111.2 Cash and cash equivalents 131.3 59.7 Net financial debt -317.7 -314.4 LTM adjuste
Slide 37: Other indicators
Other indicators1 €m H1-21 H1-22 Management Gross margin2 324.6 420.9 % of sales 71.6% 74.4% Direct costs of point of sales (185.4) (243.0) % of sales -40.9% -43.0% Retail margin 139.2 177.9 % of sales 30.7% 31.5% SG&A (99.7) (115.9) % of sales -22.0% -20.5% IFRS 16 Impacts 59.0 59.8 % of sales 13.0
Slide 38: Adj. EBITDA by brand
Adj. EBITDA by brand €m - IFRS H1-21 H1-22 1 Adjusted EBITDA 98.5 121.8 Sandro 47.7 61.2 M aje 47.2 55.6 Other Brands 3.7 5.0 1 Adjusted EBITDA margin 21.7% 21.5% Sandro 22.5% 22.9% M aje 25.8% 24.8% Other Brands 6.3% 6.7% 1 Before LTIP impact 38
Slide 39: Cash-flow statement
Cash-flow statement CASH FLOW STATEMENT (€m) - IFRS H1-21 H1-22 Adjusted EBIT1 25.7 45.2 D&A 72.8 76.7 Changes in working capital 6.4 -27.7 Income tax expense -2.5 -5.4 Net cash flow from operating activities 102.4 88.8 Capital expenditure -19.0 -18.7 Others -0.0 -0.0 Net cash flow from investing ac
Slide 40: Free cash-flow
Free cash-flow FCF (€m) - IFRS H1-21 H1-22 1 Adjusted EBIT 25.7 45.2 D&A 72.8 76.7 Change in working capital 6.4 -27.7 Income tax -2.5 -5.4 Net cash flow from operating activities 102.4 88.8 Capital expenditure -19.0 -18.7 Reimbursement rent lease -59.1 -59.8 Interest & Other Financial -4.7 -6.2 Oth
Slide 41: Working capital
Working capital €m H1-21 FY-21 H1-22 Inventories and work in progress 209.3 233.5 262.1 Trade receivables 48.3 56.7 56.6 Trade payables excluding fixed asset suppliers -112.9 -139.4 -160.3 Operational working capital 144.7 150.8 158.4 Other receivables 59.0 59.6 81.9 Other payables -70.1 -76.2 -80.3
Slide 42: IFRS 16 and IAS 38 impacts on key financial parameters
IFRS 16 and IAS 381 impacts on key financial parameters €m H1-22 IAS 38 IFRS 16 H1-22 P&L Excl. IFRS & IAS 38 impacts impacts Incl. IFRS Adjusted EBITDA 65.1 -3.1 59.8 121.8 D&A -25.4 1.6 -52.9 -76.7 Adjusted EBIT 39.8 -1.5 6.9 45.2 Other non-recurring expenses -2.5 0.3 -2.2 Financial result -6.4 -5
Slide 43: Shareholding structure and voting rights as of June 30th, 2022
Shareholding structure and voting rights as of June 30th, 2022 Capital (%) Voting rights (%) (Incl. double voting rights) Glas SAS (London Branch) 2 Glas SAS (London Branch) 2 28.8% 25.3% (28.0%) 1 (24.9%) 1 Free Float Free Float 35.6% 40.1% (35.2%) 1 (39.3%) 1 European TopSoho European TopSoho 8.0%
Slide 44: Definitions of non-IFRS financial measures
Definitions of non-IFRS financial measures o “Sales” consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. o “ Organic sales growth” correspo