Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2024 Earnings Presentation
36 slides from Stealth's earnings presentation, Sep 5, 2024
Slide 1: 2024 Full Year Results
STEALTH GROUP ASX: SGI 2024 Full Year Results Webinar Briefing Presentation 05 September 2024 An Australian Distribution Company © STEALTH GROUP HOLDINGS FY2024 RESULTS PRESENTATION 1
Slide 2: We are the Stealth Group
STEALTH 1 GROUP ASX: SGI We are the Stealth Group STEALTH From our origins in 2014, Stealth has grown from our founder’s home in GROUP Perth into a large Australian public-listed distribution company. With ~$159m of annual sales, we distribute hundreds of leading brands known for quality, made for e
Slide 3: What We Will Cover Today
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L What We Will Cover Today T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUS
Slide 4: Today’s Presentation – What We Will Cover
Executive Summary STEALTH 2 Today’s Presentation – What We Will Cover GROUP ASX: SGI • FY24 Results and Highlights • Company Evolution • Progress on Strategy • Navigating Market Challenges • Operational and Financial Achievements • FY25 – What is on the Horizon © STEALTH GROUP HOLDINGS FY2024 RESULT
Slide 5: Opening Comments – About FY24
Executive Summary STEALTH 3 Opening Comments – About FY24 GROUP ASX: SGI • Results reflect continued strong execution from our high-quality business. • Progress on a consistent strategic agenda has allowed Stealth to continue growing market share and differentiate itself in the market. • Performance
Slide 6: Opening Comments – Outlook FY25 & Beyond
Executive Summary STEALTH 4 Opening Comments – Outlook FY25 & Beyond GROUP ASX: SGI • Growing addressable markets • Win with product and with new services • Win with customer experience. • Grow in Commercial-Business, Trade-professional space and Retail. • Win with data, digital and automation • Con
Slide 7: Corporate Information
Executive Summary STEALTH 5 Corporate Information GROUP ASX: SGI KEY FUNDAMENTALS 30 June 2024 04 Sept 2024 ASX Code SGI Website stealthgi.com 1 Year Performance + 68% Share Price 30 June 2024 21.0 cents 30cents 11 2 Share Price Total Shares 115,395,542 Market Cap ($m) 30 June 2024 $24.2m $34.6m Mai
Slide 8: FY24 Highlights and Progress on Strategy
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S FY24 Highlights and R E T AI L T R AD E P R O F E S S I O N A L S Progress on Strategy DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPP
Slide 9: A proud history, a positive future.
STEALTH 6 GROUP ASX: SGI A proud history, a positive future. Celebrating 10 years – 2014 - 2024 We have grown into one of Australia’s largest distributors of industrial, safety, automotive, workplace and consumer technology products, and other related products and services. Industrial Consumer Servi
Slide 10: Quick Facts At a Glance
Executive Summary STEALTH 7 Quick Facts GROUP ASX: SGI AT A GLANCE Our vision is to be Australia’s market-leading distribution alternative to the majors with a simple strategy to deliver on price, range and experience. 2014 Established. 2018 Listed for trading on the Australian Securities Exchange.
Slide 11: Our Business Today
Executive Summary STEALTH 8 Our Business Today GROUP ASX: SGI WE ARE A DISTRIBUTOR, A WHOLSALER, AND A RETAILER providing products and solutions, made for everyone, used every day. House of Brands One business, two divisions operating model to increase scale while maintaining a clearly differentiate
Slide 12: Summary of Achievements in FY24
Building the future Australian market leader. STEALTH 9 Summary of Achievements in FY24 GROUP ASX: SGI A PROUD HISTORY, A POSITIVE FUTURE. – Most profitable year in Company history. – 68% increase in share price. What We – 10 consecutive years of year-over-year revenue growth. Delivered… – Diversifi
Slide 13: Looking Ahead: What’s coming in FY25 & beyond
Building the future Australian market leader. STEALTH 10 and…we continue an exciting growth trajectory in FY25 and beyond GROUP ASX: SGI LOOKING AHEAD – FY25 year to outperform FY24. – Underlying annual revenue is now ~$159m. – House of brands strategy. What’s coming in – ‘One Business, Two Division
Slide 14: FY24 Group Performance Highlights Summary
Executive Summary STEALTH 11 FY24 Group Performance Highlights Summary GROUP ASX: SGI COMPANY RECORD….. REVENUE, PROFIT AND CASH HOLDING. LOOKING AHEAD FY25 & BEYOND Sales Cash Holding FY25 Underlying Sales $113.7m $10.1m $159m Growth of 2.4% Up 31.2% from $7.7m Growth of 39.0% on FY24 to set compan
Slide 15: 2024 achievement checklist at a glance
2024 Full-year results STEALTH 12 2024 achievement checklist at a glance GROUP ASX: SGI STEALTH ACHIEVED COMPANY RECORD PERFORMANCE ACROSS ALL P&L METRICS AS IT CONTINUES TO EXECUTE ON ITS GROWTH STRATEGY. Operational Execution Customer Experience More value on offer, high service levels, expanded p
Slide 16: Group Progress On Strategy
Setting the Foundation for Growth STEALTH 13 Group Progress On Strategy GROUP ASX: SGI ENHANCED CORE BUSINESS ACQUIRED CONSUMER TECHNOLOGY DISTRIBUTION BUSINESS • Executed pricing reset ✓ Principal activities expanded with this strategic investment • Became faster-to-market, more flexible, and more i
Slide 17: Financial Performance
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L Financial Performance T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUSTOM
Slide 18: Group Performance Summary Table
Financial results STEALTH 14 Group Performance Summary Table GROUP ASX: SGI Year ended 30 June ($m) 2024 2023 Change v Prior 3-year CAGR % Key financials Revenue 113.7 111.0 2.4% 19.4% Gross Profit 33.7 32.6 3.4% 20.3% Statutory EBITDA 6.1 5.3 15.5% 28.1% Statutory EBIT 3.2 2.3 39.6% 35.7% Statutory
Slide 19: FY24 Continues a Four-year Period of Significant Growth
Ongoing growth despite impact of inflation STEALTH 15 FY24 Continues a Four-year Period of Significant Growth (FY21 to FY24) GROUP ASX: SGI Revenue Growth ($m)1 Statutory EBITDA Growth ($m)1 NPAT Growth ($m) Cash Holding ($m) Net Debt ($m) 19.4% CAGR 28.1% CAGR 40.9% CAGR 159 underlying 63% 253% 12
Slide 20: Group Debt Management
Financial results STEALTH 16 Group Debt Management GROUP ASX: SGI IN BRIEF – Repaid $1.0m off fixed debt facility. A further $1.0m has been subsequently paid in July 24 and August 24 resulting in the fixed debt facility paid out in full. TABLES – Net debt $10.8m (FY23: $7.2m). $4.9m pre-acquisition
Slide 21: Dividends
2024 Full-year results STEALTH 17 Dividends GROUP ASX: SGI IN BRIEF SUMMARY TABLE The Board has determined to pay a maiden fully franked final FY23 dividend payment NIL ordinary dividend of 0.84 cents per share which is at a 4% yield FY24 dividend payment cents per share (Full Franked) 0.84 cents an
Slide 22: The Stealth Group
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L The Stealth Group T R AD E P R O F E S S I O N A L S AN AUSTRALIAN DISTRIBUTION COMPANY DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CO
Slide 23: Our Approach
Executive Summary STEALTH 18 Our Approach GROUP ASX: SGI OUR VISION Our ongoing commitment is building and growing a thriving business with a long term growth outlook, creating value for shareholders. To build Stealth into Australia’s market- leading alternative to the majors for industrial maintena
Slide 24: Our Businesses
August 2024 STEALTH 19 Our Businesses GROUP ASX: SGI Industrials Group The Industrial Services Group is the leading distributor and a retailer of a wide- OUR STRENGTHS range of industrial, safety, automotive and workplace products and other related products and services Australia-wide, with approxim
Slide 25: Industrials Division
High Quality Customer Base….. 90% of the products we sell to our customers are non-discretionary items. STEALTH 20 Industrials Division GROUP ASX: SGI Taking our industrial, safety, automotive and workplace products to multiple sectors COMMERCIAL & BUSINESS TRADE PROFESSIONALS GOVERNMENT • Mining an
Slide 26: Consumer Goods Division
High Quality Customer Base. STEALTH 21 Consumer Goods Division GROUP ASX: SGI Taking our consumer tech products to customers through multiple channels CHANNELS AND SECTORS The retail network consists of +3,310 locations Australia-wide, from Coles, 7-Eleven, Officeworks, JB Hi-Fi and many others. • C
Slide 27: Robust capabilities for Business, Trade-Professionals and Retail consumers
Scale and value proposition. STEALTH 22 We have robust set of capabilities for Business, Trade-Professionals and Retail consumers GROUP ASX: SGI INFRASTRUCTURE ASSETS & CAPABILITIES INDUSTRIALS CONSUMER TECHNOLOGY Brands & Assortment Leading and trusted brands with breadth and depth. Leading and tru
Slide 28: Outlook
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L 4 Outlook T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUSTOM SM ART TECH
Slide 29: Strategic Agenda
Underpinning our Growth Strategy are our key enablers that we will continue to invest. STEALTH 23 Strategic Agenda GROUP ASX: SGI WE FOCUS ON WINNING A B C Objectives Brands Channels Customers House of brands strategy, including Deliver more customer value and New and expanded services. private-labe
Slide 30: Outlook - Growth
August 2024 STEALTH 24 Outlook - Growth GROUP ASX: SGI FY25 OUTLOOK GUIDANCE NUMBERS • Long-term growth strategy remains on track Revenue1 Gross Profit % • In first 8 weeks of FY25 demand continued. $159m+ 29% - 35% • 2028 Target of $300m revenue at 8% EBITDA. 2025 159 2025 29-35 2024 114 2024 29.6
Slide 31: Outlook - Industrials
August 2024 STEALTH 25 Outlook - Industrials GROUP ASX: SGI SUMMARY • Industrials division continues to benefit from the breadth and diversity of its business and resilient end markets, particularly in mining, resources and infrastructure. • Ongoing high demand for Stealth’s products and services. •
Slide 32: Outlook - Consumer Goods
August 2024 STEALTH 26 Outlook - Consumer Goods GROUP ASX: SGI SUMMARY • Expect above-market sales growth for our consumer technology products division. • Consumer Technology and industrials business overlap in customer types and segments, provide significant firepower to grow. • New product develop
Slide 33: Outlook – Group Focus Priorities
August 2024 STEALTH 27 Outlook – Group Focus Priorities GROUP ASX: SGI NEAR-TERM IN PRIORITIES…GROWTH LEVERS • Accelerating growth in B2B, in effect, commercial-business and with trade-professionals. • Selectively expand distribution of Force technology products into new and profitable markets and c
Slide 34: Store Network
As at 30 June 2024 STEALTH 28 Store Network GROUP ASX: SGI LOCATIONS ACROSS AUSTRALIA 1 2 3 4 Brand Total Technology Stores 30 June 2023 6 0 52 11 1 0 70 Stores Movements in FY24 New Industrial Stores-Branches - - - - - - 0 New Retail Reseller Stores - ~3,310 - - - - 3,310 New Store-In-Stores - - -
Slide 35: Disclaimer
STEALTH Disclaimer GROUP ASX: SGI This document has been prepared by Stealth Group Holdings Ltd (the Company) and is provided for information purposes only. opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this Th
Slide 36: The Stealth Group
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L The Stealth Group T R AD E P R O F E S S I O N A L S AN AUSTRALIAN DISTRIBUTION COMPANY DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CO
Stealth Group Holdings — FY2024 Earnings Presentation on 6ix