Nick Scali Limited · ASX:NCK
Nick Scali — FY2024 Earnings Presentation
17 slides from Nick Scali's earnings presentation, Aug 9, 2024
Slide 1: FY24 Results Presentation
FY23 Summary FY24 Results Presentation 9 August 2024 1
Slide 2: FY24 Highlights
FY24 Highlights • ANZ Written sales orders $447.4m, up 2.4% on FY23. • ANZ gross margin 66.0%, up 2.5% on FY23. • Group underlying1 profit after tax $82.1m. • UK acquisition of Fabb Furniture2 completed 8 May, group results include Fabb results from acquisition. • Cash and bank deposits $111.3m at 3
Slide 3: Group Revenue & Written Sales Orders
Group Revenue & Written Sales Orders Group Revenue FY24 $468.2m Group Written Sales Orders FY24 $454.2m Change versus FY23 -7.8% Change versus FY23 +3.9% Commentary Commentary • UK revenue of $8.3m included from 8 May 2024. • UK written sales orders $8.1m included in Group from 8 May 2024. • ANZ FY2
Slide 4: Group Financial Performance $m
Group Financial Performance $m Group UK from ANZ ANZ Gross Margin Underlying 2 8 May Underlying Group 2 ANZ gross margin 66%, up 2.5% on FY23. FY24 FY24 FY24 FY23 UK revenue is reported net of Interest free subsidy costs, reducing gross margin in FY24 circa 4.0%. Interest free financing is not offer
Slide 5: Group Cashflow $m
Group Cashflow $m FY24 FY23 Property and other capital investments FY24 includes $16.6m construction and $2.4m fit out costs for the new Operating cash flows net of lease liabilities Queensland Distribution centre. repayments and lease interest payments 87.1 89.8 Other plant, equipment, intangible a
Slide 6: Group Balance Sheet $m
Group Balance Sheet $m FY24 FY23 Inventory – On hand Cash and bank deposits 111.3 89.3 ANZ DCs ANZ showrooms UK Inventory - in transit 14.1 12.9 June 2024 17.9 22.8 3.2 Inventory - on hand 43.9 41.7 June 2023 18.8 22.9 N/A Property at net book value 119.6 104.5 Property at net book value Plant & equ
Slide 7: Nick Scali Brand Online
Nick Scali Brand Online Written sales order growth Nick Scali brand online • FY24 online written sales orders were $34.8m, up 17.8% with enhancements in the eCommerce user experience driving growth. Written sales orders ($m) 34.8 29.5 FY24 FY23 7
Slide 8: UK growth strategy
UK growth strategy Time Frame 3 Month Post Acquisition Update • Support management through any disruption due to integration Within Rodney Orrock, previously CEO Best & Less, appointed to lead the UK growth Culture and re-branding 6 months strategy transformation based full time in the UK • Continue
Slide 9: Store Network
Store Network 11 Long term June 2023 Net Change June 2024 Opportunity 1 14 Nick Scali Australia 59 – 59 73 New Zealand 5 – 5 13 64 64 86 Plush Australia 43 1 44 85-90 New Zealand – – – 05-10 14 43 44 90-100 2 4 13 UK 2 – 20 20 TBC Total 3 107 21 128 176-186 ENGLAND FY24 • Nick Scali showroom opened
Slide 10: Property
Property Location Date Net Lettable Property Carrying Value $m Acquired Area (m2) – Historical Acquisition Cost 130.0 – Current Book Value (Acquisition cost, 119.6 Auburn, NSW Dec 2017 5,469 less depreciation) Auburn, NSW Feb 2020 788 Alexandria, NSW Jul 2010 1,680 Caringbah, NSW Jul 2014 2,633 FY24
Slide 11: Outlook
Outlook Outlook ANZ June 2024 benefited from 5 weekends of trading, whereas July was disadvantaged by one less weekend when compared to the 2023 calendar year. Written sales order growth for June and July combined was -1.2% compared to the prior year. We continue to expand the store network and expe
Slide 12: QSA nickscali
QSA nickscali
Slide 13: Disclaimer & Important Information
Disclaimer & Important Information Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information avail
Slide 14: Supporting Information
EEE Supporting Information nickscali Lim tT €& D
Slide 15: Appendix A – Underlying Group NPAT Reconciliation $m
Appendix A – Underlying Group NPAT Reconciliation $m UK Acquisition FY24 FY24 costs Underlying FY23 Sales revenue 468.2 – 468.2 507.7 Cost of sales (161.4) – (161.4) (185.3) Gross profit 306.8 – 306.8 322.4 Gross Margin % 65.5% – 65.5% 63.5% Other income 5.5 – 5.5 4.7 Operating expenses (135.4) 1.5
Slide 16: Appendix B – EBITDA, EBIT and CODB Reconciliations $m
Appendix B – EBITDA, EBIT and CODB Reconciliations1 $m UK Acquisition FY24 FY24 costs Underlying FY23 Profit (Loss) before tax 116.3 1.5 117.8 143.6 Finance Costs 15.1 – 15.1 13.2 Interest income in Other income (3.4) – (3.4) (2.5) Depreciation and amortisation 45.4 – 45.4 42.8 EBITDA1 173.5 1.5 175
Slide 17: Appendix C – Lease Expense $m
Appendix C – Lease Expense $m FY24 ANZ UK Group FY23 Property Expense 12.2 0.7 12.9 8.6 AASB 16 depreciation expense 37.9 1.3 39.2 36.9 AASB16 Interest Expense 10.5 0.3 10.8 9.3 Total property expenses statutory 60.5 2.3 62.9 54.7 AASB 16 depreciation expense (37.9) (1.3) (39.2) (36.9) AASB16 Intere