Myer Holdings Limited · ASX:MYR
Myer — H1 2024 Earnings Presentation
32 slides from Myer's earnings presentation, Mar 14, 2024
Slide 1: Half Year 2024 Results
14 March 2024 HALF YEAR 2024 RESULTS COMPARABLE SALES GROWTH ACHIEVED DESPITE MACRO ENVIRONMENT CONDITIONS • GROUP COMPARABLE SALES1 GROWTH OF 0.1% - CYCLING RECORD2 SALES IN 1H23 • 1H24 TOTAL SALES3 OF $1,829.1 MILLION, DECLINE OF 3.0% YOY, BUT 13.8% HIGHER THAN 1H20 (PRE-COVID) • NPAT4 OF $52.0 MI
Slide 2: Customer First Plan Update
“We are pleased to declare an interim dividend of 3.0 cents per share which will return $25 million to shareholders.” CUSTOMER FIRST PLAN UPDATE Myer’s customer value proposition continues to resonate in a challenging environment • Our focus on newness and investing to make key brand partnerships bi
Slide 3: Trading update for start of 2H
Trading update for start of 2H In the first six weeks of 2H24, Department store8 comparable sales1 are up 4.9% over the corresponding period in the prior year. John King said: “Like all retailers, we continue to remain cautious about the macro-economic environment, however, we are encouraged with ou
Slide 4: Half Year 2024 Results to January 2024
For personal use only MYER HOLDINGS LTD HALF YEAR 2024 RESULTS TO 27 JANUARY 2024 JOHN KING MATT JACKMAN Chief Executive Officer Chief Financial Officer
Slide 5: Important Information
Important Information The information in this document is Investors and potential investors should make their own assessment Subject to law, Myer assumes no obligation to update, review or and take independent professional advice in relation to the revise any information contained in this document,
Slide 6: Agenda
Agenda For personal use only 1H24 Highlights 1H24 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 7: Financial Highlights
Financial Highlights STA B L E CO M PAR AB LE POW E RF U L M U LTI C YC L I NG V E RY RO B U ST R E WA RDING SA L ES GROW TH C H A N NEL O F F E R STRO N G N PAT 4 BA L A N CE S H E E T S H A R E H OLDERS For personal use only 1H24 HIGHLIGHTS +0.1% +2.0% $52.0m $212m 3.0c Comparable sales1 Group onl
Slide 8: Strong sales performance and gains in market share
Strong sales performance and gains in market share despite a more challenging economic backdrop in 1H24 Total Sales1 CBD Stores out-performing Sales were flat on a comparable sales2 basis, cycling our Comparable Sales2 strongest 1st Half on record4 in 1H23, despite environmental CAGR +3.3% For per
Slide 9: MYER one continues to deliver record results
MYER one continues to deliver record results underpinning performance Record year for MYER one engagement, active customers and continued strong acquisition, Record Engagement with 76.2% particularly in the younger demographics with 55% For personal use only Overall Tag Rate +270bps YoY coming fro
Slide 10: Balanced merchandise offer focused on biggest brands and experiences
Our merchandise offer is more balanced and resilient with a focus on driving our biggest brands and experiences Our making the big bigger strategy has resulted in Extended ranges, new +174 5 For personal use only both increased investment support and exclusive shop in shop concepts shop in upgrade
Slide 11: Continued investment in store experience
Continued investment in store experience resulting in strongest in-store experience result Customer Satisfaction We have delivered significant growth in our in-store customer satisfaction through a focus across: For personal use only +15.1% Marion, Chermside and Ballarat refurbishments 1H24 HIGH
Slide 12: Customer First Plan delivers against key measures
The Customer First Plan continues to deliver strong underlying results against our key customer and productivity measures For personal use only Customer Customer Multi Product / Store sales Cost of Doing Service Engagement channel mix Inventory Productivity1 Business Management In-store customer Str
Slide 13: Agenda
Agenda For personal use only 1H24 Highlights 1H24 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 14: NPAT cycling strong 1H23
NPAT 1 cycling strong 1H23 $ MILLIONS 1H24 1H23 C H A N GE Total Sales2 1,829.1 1,884.9 (3.0%) Comparable sales3 were up 0.1% on the prior For personal use only 1H24 FINANCIAL RESULTS Operating Gross Profit 665.1 683.2 (2.7%) corresponding half year period; includes the increase in Group online4 s
Slide 15: Operating Gross Profit
Operating Gross Profit O P E R AT I N G G R O S S P R O F I T $ M 1H23 – 1H24 GROSS PROFIT BRIDGE 1.00 OGP 36.25% - (0.20) bps 0.14 bps 0.17 bps 36.36% margin(%) For personal use only 1H24 FINANCIAL RESULTS 0.95 0.90 0.85 683 -2.7% 0.80 0.75 0.70 21 0.65 665 0.60 5 0.55 7 5 0.50 Reclassification 0.4
Slide 16: Cost of Doing Business
Cost of Doing Business 1 COST OF DOING BUSINESS1 $M and GROUP COST 1H23 – 1H24 M A R G I N % t o T O TA L S A L E S STRUCTURE COST OF DOING BUSINESS1 BRIDGE 40 CODB Margin (%) For personal use only 1H24 FINANCIAL RESULTS Operating Wages Operating Other Costs 4 35 SSO 10 30 8 5 24.74 23.48 24.56 449
Slide 17: Operating Cash Flow
Operating Cash Flow $ MILLIONS 1H24 1H23 Operating cash flow (before interest & tax) down $11.0 million to EBITDA 215.7 240.7 $286.8 million Add implementation costs and ISIs (1.6) - Income tax was higher in 1H23 as tax instalments normalised post Covid-19 For personal use only 1H24 FINANCIAL RE
Slide 18: Balance Sheet
Balance Sheet $ MILLIONS 1H24 FY23 1H23 % OF INVENTORY1 AGED UNDER 6 MONTHS Inventory 373.1 371.3 383.6 Creditors (484.2) (401.7) (495.8) For personal use only 1H24 FINANCIAL RESULTS 83% 83% Other Assets & Liabilities 82.8 67.9 53.9 67% 80% 80% Right-of-Use Assets 1,103.5 1,101.4 1,156.0 1H20 1H21 1
Slide 19: Strong liquidity position supports Customer First Plan
Strong liquidity position supports execution of the Customer First Plan and shareholder returns NET CASH / (DEBT) $M – 1H20 TO 1H24 Fully franked interim dividend of 3.0 cents per share declared Decline in net cash compared to prior comparative period For personal use only 1H24 FINANCIAL RESULTS
Slide 20: Agenda
Agenda For personal use only 1H24 HIGHLIGHTS 1H24 FINANCIAL RESULTS Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 21: Myer is well positioned for the current environment
Myer is well positioned for the current environment and to maximise future opportunities We’ve repositioned the Unique strengths to provide We’re continuing to invest For personal use only business, underpinned by the customer value and a reason strongly behind long term CUSTOMER FIRST PLAN Customer
Slide 22: Generating greater connection with our customer
We are generating greater connection with our customer New POS roll out in-store to improve transaction speed and effectiveness Continued development of our leading team member app (M-Metrics) For personal use only Creating a CUSTOMER FIRST PLAN with over 8,000 staff members and partners now pro
Slide 23: Investment in supply chain capability
Investment in supply chain capability is starting to scale and will provide significant future benefits Re-envisioning our supply chain will provide a step change to our supply chain capability For personal use only CUSTOMER FIRST PLAN and underpin profitability; commencing with the introduction o
Slide 24: Investing in technology and store infrastructure
Continuing to invest in our technology and store infrastructure foundations For personal use only TECHNOLOGY TRANSFORMATION STORE NETWORK CUSTOMER FIRST PLAN New POS software roll-out due to Pipeline of initiatives including complete in 2H24 relocation of categories across all levels of selected
Slide 25: Customer First Plan has driven significant value creation
The Customer First Plan has driven significant value creation and momentum for our business since its inception and continues to underpin our approach Accelerate Online 1H18 1H24 For personal use only Continue to build scale and leverage multi-channel capability Factory to Customer Total Sales1 $1,7
Slide 26: Agenda
Agenda For personal use only 1H24 Highlights 1H24 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 27: Current Trade Update
Current Trade Update First six weeks of 1H24 has delivered comparable sales1,2 of +4.9% on the prior year We have been encouraged, but still remain cautious in the current macro economic environment. For personal use only 1 st S I X W E E K S S A L E S 1,2 CONCLUSION 4.9% 2.0% Total Sales Compar
Slide 28: Conclusion
Conclusion Our Customer First Plan has been, and continues We remain cautious given ongoing pressure to be, the right Plan and has underpinned our on the consumer but are confident in the results during the challenging consumer robustness of our plan, and the initiatives still environment in 1H2
Slide 29: Agenda
Agenda For personal use only 1H24 Highlights 1H24 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 30: Appendix 1: Income Statement – post AASB
Appendix 1: Income Statement – post AASB 16 $ MILLIONS 1H24 1H23 CHANGE Total Sales1 1,829.1 1,884.9 (3.0%) Operating Gross Profit 665.1 683.2 (2.7%) For personal use only Cost of Doing Business2 (449.4) (442.5) 1.6% APPENDICES EBITDA2 215.7 240.7 (10.4%) Depreciation2 (96.6) (101.1) (4.4%) EBIT2 11
Slide 31: Appendix 2: NPAT reconciliation to Statutory Accounts
Appendix 2: NPAT reconciliation to Statutory Accounts $ MILLIONS EBIT INTEREST TAX NPAT Statutory reported result 117.5 (44.5) (22.5) 50.5 For personal use only Add back: Implementation costs and individually significant items Restructuring, space exit costs and other significant items 1.6 - (0.1) 1
Slide 32: Appendix 3: Income Statement – AASB impact
Appendix 3: Income Statement – AASB 16 impact 1H24 AASB 16 1H24 1H23 CHANGE $ MILLIONS (STATUTORY) IMPACT (PRE-AASB 16) (PRE-AASB 16) (PRE-AASB 16) Total Sales1 1,829.1 - 1,829.1 1,884.9 (3.0%) Operating Gross Profit 665.1 0.2 665.3 682.9 (2.6%) For personal use only Cost of Doing Business2 (449.4)