Robinsons Retail Holdings, Inc. · PSE:RRHI
Robinsons Retail — Q1 2021 Earnings Presentation
31 slides from Robinsons Retail's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Unaudited Earnings Results
ROBINSONS A RETAIL HOLDINGS, INC. FIRST QUARTER 2021 UNAUDITED EARNINGS RESULTS April 29, 2021 waisoBeregoueae
Slide 2: Agenda
AGENDA Performance Highlights Omnichannel Presence Consolidated Results Business Segments Recent Developments Plans & Prospects
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS ₱35.6bn (16.1%) Net Sales Blended SSSG 2,146 Stores Nationwide 22.9% 8.0% Plus 2,051 TGP Branches GP Margin EBITDA Margin 7x ₱945mn Total E-commerce Net Income Growth att. to the parent company 3
Slide 4: Omnichannel Presence
OMNICHANNEL PRESENCE Total of 2,146 stores plus 2,051 TGP Branches GoRobinsons serves as Metro Luzon Visayas Mindanao Manila an online store for 7 of our Supermarkets 113 102 37 16 banners. Department Stores 11 19 10 9 It runs on an asset-light DIY Stores 66 89 43 27 model, leveraging on our Conveni
Slide 5: RRHI Consolidated Results
RRHI CONSOLIDATED RESULTS 1Q2020 1Q2021 Supermarkets 24.4 21.1 7.0% Department stores 2.7 1.9 16.7% DIY stores 3.0 2.9 Net Sales 3.4% Convenience stores 1.5 1.2 Breakdown 59.3% 8.2% Drugstores 5.0 5.9 5.4% Specialty stores 3.4 2.5 TOTAL (₱ bn) 40.1 35.6 Comparison of Operating Environment: January F
Slide 6: RRHI Consolidated Results
RRHI CONSOLIDATED RESULTS In ₱ mn 1Q2020 1Q2021 1Q∆ Net Sales 40,062 35,616 (11.1%) SSSG 6.9% (16.1%) E-Commerce Gross Profit 8,736 8,164 (6.6%) as % to Total Sales Gross Margin 21.8% 22.9% EBITDA 3,337 2,833 (15.1%) 1Q20 1Q21 EBITDA Margin 8.3% 8.0% 0.2% 2.0% EBIT 1,673 1,163 (30.5%) 2021 Target: 2
Slide 7: Supermarket Segment
SUPERMARKET SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Net Sales 24,405 21,110 (13.5%) SSSG 18.7% (14.6%) Gross Profit 4,950 4,352 (12.1%) 2.0% Gross Margin 20.3% 20.6% EBITDA 1,999 1,711 (14.4%) 2021 Target: 2.4% EBITDA Margin 8.2% 8.1% 7
Slide 8: Supermarket Segment: Key Strategies and Omnichannel Presence
SUPERMARKET SEGMENT KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Aggressively expand the minimart format, Robinsons Has a total of Easymart by operating 500 stores in 4-5 years 268 stores ▪ Grow e-commerce presence thru online store expansion Onboarded banners: and SKU build-up in GoRobinsons (onboarding 2
Slide 9: Department Store Segment
DEPARTMENT STORE SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Net Sales 2,741 1,911 (30.3%) SSSG (21.2%) (30.6%) Gross Profit 837 576 (31.2%) 0.8% Gross Margin 30.5% 30.2% EBITDA 111 (12) (111.3%) 2021 Target: 1.0% EBITDA Margin 4.0% (0.7%) 9
Slide 10: Department Store Segment: Key Strategies and Omnichannel Presence
DEPARTMENT STORE SEGMENT KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Launch RDS in GoRobinsons in May 2021, Has a total of grow business in Lazada & expand e- Planned onboarding 49 stores commerce presence in Shopee by Q3. by May 2021 ▪ Improve customer experience for our Call, Collect & Delivery services
Slide 11: DIY Segment
DIY SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Net Sales 2,958 2,919 (1.3%) SSSG (13.5%) (2.3%) Gross Profit 973 986 1.4% 2.2% Gross Margin 32.9% 33.8% EBITDA 403 436 8.2% 2021 Target: 2.5% EBITDA Margin 13.6% 14.9% 11
Slide 12: DIY Segment: Key Strategies and Omnichannel Presence
DIY SEGMENT KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Grow e-commerce sales through online Has a total of expansion and improved assortment within 225 stores next 2 years (onboard at least 60 stores and Onboarded banners: listing 2Ok SKUs). • Handyman 177 Handyman • True Value ▪ Improve Call & Collect w
Slide 13: Convenience Store Segment
CONVENIENCE STORE SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Systemwide Sales 2,278 1,383 (39.3%) Net Sales 1,537 1,207 (21.4%) SSSG (0.8%) (33.4%) 2.0% GP + Royalty Income 626 457 (27.0%) GP + R.I. Margin 40.7% 37.9% EBITDA 136 72 (46.9%) 2021 Target: 3.4% EBITDA Margin 8.8% 6
Slide 14: Convenience Store: Key Strategies and Omnichannel Presence
CONVENIENCE STORE KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Expand our portfolio of e-services to 3% of sales by year Has a total of Has total of end. 463 stores 390 stores ▪ Targeted store growth focus on profitable cluster, i.e., onboard e- Franchised: 120 traditional and hi-end residential with insul
Slide 15: Drugstore Segment
DRUGSTORE SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Net Sales 4,995 5,938 18.9% SSSG (1) 13.7% (18.7%) Gross Profit 994 1,156 16.2% 2.2% Gross Margin 19.9% 19.5% EBITDA 521 439 (15.7%) 2021 Target: 4.1% EBITDA Margin 10.4% 7.4% (1) SSSG excludes TGP and Rose Pharmacy. TGP does
Slide 16: Drugstore Segment: Key Strategies and Omnichannel Presence
DRUGSTORE SEGMENT KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Expand the eCommerce operations to other Has a total of SouthStar & Rose Pharmacy independently operates its own key cities; 838 owned & eCommerce platform ▪ Prioritize store expansion to underserved 2,051 franchised SouthStar has 3rd party com
Slide 17: Specialty Stores Segment
SPECIALTY STORES SEGMENT In ₱ mn 1Q2020 1Q2021 1Q∆ E-commerce as % of Total Sales Net Sales 3,426 2,531 (26.1%) SSSG (14.6%) (13.2%) Gross Profit 812 694 (14.5%) 2.2% Gross Margin 23.7% 27.4% EBITDA 206 193 (6.1%) 2021 Target: 2.6% EBITDA Margin 6.0% 7.6% 17
Slide 18: Specialty Stores Segment: Key Strategies and Omnichannel Presence
SPECIALTY STORES SEGMENT KEY STRATEGIES OMNICHANNEL PRESENCE ▪ Expand after-sales services (eg. Installation) of Has a total of appliances segment 303 stores ▪ Build e-commerce play and integrate touchpoints Appliances & Onboarded banner: to support seamless omni-channel journey 129 Electronics • To
Slide 19: Working Capital
WORKING CAPITAL Cash Conversion Cycle 1Q2020 1Q2021 8.4 7.6 6.0 Receivable days 5.6 73.4 51.9 Inventory days 53.9 71.1 Payable days 1Q2020 1Q2021 19
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES 1Q2020 1Q2021 Supermarkets 46.1% 61.0% Department stores 16.3% 4.1% DIY stores 17.1% 10.4% Convenience stores 9.6% 4.7% Drugstores 4.5% 9.6% Specialty stores 6.4% 10.2% TOTAL CAPEX (₱ mn) 559 370 % of net sales 1.4% 1.0% 20
Slide 21: Share Buyback Program Extension
SHARE BUYBACK PROGRAM EXTENSION • The Board of Directors approved the extension of the share buyback program for an additional amount of ₱2.0bn on February 26, 2021. • The amount of shares for repurchase in the initial buyback program approved on March 9, 2020 was also ₱2.0bn, which brings total amo
Slide 22: Declaration of Cash Dividend
DECLARATION OF CASH DIVIDEND ₱0.83/share ₱1.00/share April 27, 2021 Declaration Date Regular Special Cash Dividend Cash Dividend May 20, 2021 Record Date 3.5% 88% Dividend Yield Payout at ₱51.90/share(1) Ratio(2) June 10, 2021 Payment Date (1) Closing Price on April 28, 2021 (2) Based on Total Outst
Slide 23: COVID Protect: Gokongwei Vaccination Program
COVID Protect: Gokongwei Vaccination Program Number of COVID-19 % of employees Cases 302 0.9% Over 33,000 DOSES 23
Slide 24: COVID Care: Telemed Services
COVID Care: Telemed Services 2,687 Employee Consultations on COVID-19 In partnership with 24
Slide 25: Support for Feeding Metro Manila
Our Supermarket Group continues support for Feeding Metro Manila, a non-government organization advocating for Zero Hunger. 25
Slide 26: 15 Years of Partnership with Amon Trading Corp.
On February 16, 2021, we celebrated 15 years of partnership with Amon Trading Corp. for True Value Philippines. 26
Slide 27: Business Strategies and Store Opening for 2021
BUSINESS STRATEGIES 01 STORE OPENING FOR 2021 Grow offline network especially in FY2021 FY2021 territories which still have 2020 Store Store Store opportunities for modern retail Count Opening Count channels Supermarket 264 16 280 02 No Brand 4 7 11 Continue to be on the look out for M&As for retail
Slide 28: Thank you.
Thank you.
Slide 29: Income Statement
INCOME STATEMENT Three Months Ended March 31 (Unaudited) PHP mm 2021 2020 Sales - net of sales discounts and returns 35,616 40,062 Cost of merchandise sold 27,452 31,326 Gross Profit 8,164 8,736 Royalty, rent and other revenues 206 669 Gross profit including other revenue 8,370 9,405 Operating expen
Slide 30: Balance Sheet
BALANCE SHEET March 31 December 31 (Unaudited) (Audited) PHP mm 2021 2020 Current Assets Cash and cash equivalents 16,692 21,338 Trade and other receivables 2,380 3,144 Merchandise inventories 22,399 22,234 Other current assets 2,881 2,656 Total Current Assets 44,352 49,373 Noncurrent assets Debt an
Slide 31: Cash Flow
CASH FLOW March 31 (Unaudited) December 30 (Audited) PHP mm 2021 2020 2020 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 886 1,395 4,419 Depreciation and amortization 1,670 1,664 6,987 Retirement expense 62 45 185 Others 301 278 411 Operating income before working capital changes 2,9
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