Lovisa Holdings Ltd. · ASX:LOV
Lovisa — H1 2016 Earnings Presentation
18 slides from Lovisa's earnings presentation, Feb 18, 2016
Slide 1: Lovisa Holdings Limited 1H FY2016 Results Presentation
For personal use only LOVISA HOLDINGS LIMITED (LOV) 1H FY2016 RESULTS PRESENTATION shane fallscheer ceo iain sadler cfo 18th february 2016
Slide 2: 1H FY2016 snapshot
1h fy2016 snapshot store numbers up lfl sales For personal use only 12 to +4.1% 251 revenue up gross profit up 13.1% to 8.4% to $82.6m $62.0m ebit up NPAT up INTERIM DIVIDEND 3.4% to 8.0% to OF 6.67CPS, $17.9m $13.5m 75% FRANKED 1
Slide 3: Operational focus, growth across financial metrics, positive outlook
For personal use only OPERATIONAL focus growth across financial metrics positive OUTLOOK 2
Slide 4: Continued growth in global store footprint
continued GROWTH in global store footprint store numbers up 12 to 251 Store number growth in 1H FY2016 For personal use only December June 2015 2015 store Increase/ store numbers Store openings Store closures numbers (decrease) Australia 146 16 8 154 8 New Zealand 14 4 - 18 4 Singapore 15 1 - 16 1 M
Slide 5: Sales up 13.1% to $82.6m
For personal use only sales UP 13.1% TO $82.6M 1H FY2014 1H FY2015 1H FY2016 • 1H FY2016 sales increase driven by; > Like for like (LFL) sales growth of +4.1% for the period (on a constant currency basis) > 10 new company stores (net) and 2 new franchise stores 4
Slide 6: Cost of doing business
For personal use only cost of doing business 1H FY2014 1H FY2015 1H FY2016 • Cost of doing business (CODB)% improved due to: > LFL sales growth driving scale benefits > the growth of stores overseas > operational leverage of the Melbourne Support Centre • This has been achieved whilst continuing to
Slide 7: Operational focus, growth across financial metrics, positive outlook
For personal use only OPERATIONAL focus growth across financial metrics positive OUTLOOK 6
Slide 8: Growing revenues and earnings
growing revenues and earnings For personal use only 1H FY2016 Highlights 1H FY2015 1H FY2016 (A $’m) pro forma (A $’m) Variance (A $’m) Variance (%) Revenue 82.6 73.0 9.6 13.1% Gross profit 62.0 57.2 4.8 8.4% EBITDA 20.8 20.3 0.5 2.5% EBIT 17.9 17.3 0.6 3.4% NPAT 13.5 12.5 1.0 8.0% * The FY2015 inte
Slide 9: Gross margin
For personal use only gross margin 1H FY2014 1H FY2015 1H FY2016 • Gross margin has declined in 1H FY2016 as a result of: 1. Devaluation of the A$ which has increased the cost of goods compared to FY2015 > Effective 1H rate against US$ of 0.77 compared to 0.90 in H1 FY2015. This is a 15% year on yea
Slide 10: Currency impacts on 1H FY2016
For personal use only currency impacts on 1h fy2016 Impact on cost of goods • The effective 1H rate against the US$ was 0.77, compared to 0.90 in H1 FY2015. This is a 15% year on year increase in COGS • The effective rate for H2 FY2016 is forecast to be 0.75, compared to 0.85 for H2 FY2015 • In acco
Slide 11: Strong balance sheet
For personal use only strong balance sheet • Cash position increased by $6.2m in the half DEC 2015 JUNE 2015 (A$’000s) (A$’000s) (net debt of $3.4m) Cash 8,583 4,251 • Inventory level reflects additional stores, Trade and other receivables 2,181 2,147 Inventories 16,789 15,012 seasonal stock increas
Slide 12: Solid operating cash flows
solid operating cash flows 1H FY2016 1H FY2015 For personal use only (A$’000s) (A$’000s) Cash received from customers 91,388 80,430 Cash paid to suppliers (71,074) (59,634) Interest paid (331) (44) Tax paid (3,786) (3,197) Cash generated from operations 16,197 17,555 Capital expenditure (5,457) (2,4
Slide 13: Operational focus, growth across financial metrics, positive outlook
For personal use only OPERATIONAL focus growth across financial metrics positive OUTLOOK 12
Slide 14: Growth in existing markets in 2H FY2016
For personal use only growth in existing markets in 2h fy2016 Store Footprint • Estimated 10 new stores in current markets • Estimated closure of 10 poor performing stores, of which 6 due to exit of duplicate sites Product • Continual delivery of new designs each week • Implementation of UK based bu
Slide 15: New international markets
new international markets THE UK For personal use only • The Leeds store opened on the 4th December 2015 • Trading performance is meeting expectations • Several new store leases currently under negotiation • Lovisa anticipates pilot phase to be completed by the end of FY2016 • We have appointed a Le
Slide 16: In summary
IN SUMMARY 1H FY2016 - Continued growth delivered For personal use only • Increasing store numbers • Positive LFL sales • Growth in revenues and earnings • Strong balance sheet and solid operating cash flows • Interim dividend of 6.67cps, 75% franked 2H FY2016 - Positioned for further growth • Attra
Slide 17: Questions?
For personal use only QUESTIONS? 16
Slide 18: For personal use only
Some of the information contained in this For personal use only presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about fut