Premier Investments Limited · ASX:PMV
Premier Investments — H1 2013 Earnings Presentation
26 slides from Premier Investments's earnings presentation, Mar 21, 2013
Slide 1: First Half FY2013 Results Overview
Premier Investments Limited First Half FY2013 Results Overview 21 March 2013
Slide 2: Agenda
Agenda 1 Premier Investments 1H13 Overview 2 Premier Investments 1H13 Consolidated Financial Results 3 Just Group Results 1H13 Overview 4 Internet Strategy 5 Premier Investing in Growth 6 Gross Margin 7 CODB Reductions Continuing 8 Smiggle International Expansion 9 Summary 10 Trading Update 11 Inter
Slide 3: Financial results
1 Financial results • Group profit – Profit before tax of $64.5 million, up 19.2% on pcp – Profit after tax of $46.5 million, up 20.7% on pcp – Earnings per share of 29.9c, up 20.7% on pcp • Premier Retail (The Just Group) contribution to Premier performance – EBIT of $56.3 million, up 9.8% on pcp –
Slide 4: Premier—Consolidated Income Statement
2 Premier—Consolidated Income Statement 26 weeks 26 weeks to 26 Jan 2013 to 28 Jan 2012 $m’s Premier revenues (ex The Just Group) 14.3 10.6 Premier expenses (ex The Just Group) (2.3) (2.3) Premier Retail (The Just Group) underlying EBIT 56.3 51.3 Finance costs (3.8) (5.5) Profit before income tax 64
Slide 5: Premier—Summarised Consolidated Balance Sheet
2 Premier—Summarised Consolidated Balance Sheet $m’s 26 Jan 2013 28 July 2012 Assets Cash and cash equivalents 316.7 294.2 Inventories 70.0 71.1 Plant and equipment 77.7 80.3 Other assets 28.1 47.1 Available-for-sale financial assets 223.9 152.4 Intangible assets 854.5 854.5 Total assets 1,570.9 1,4
Slide 6: Just Group results 1H13 overview
3 Just Group results 1H13 overview • EBIT up 9.8% to $56.3 million • EBIT margin up 84bps to 12.7%* • PBT up 14.7% to $52.6 million • Gross margin up by 113bps* • Clean inventory • Exceptional internet sales growth – up 51% • Strong sales performance from Peter Alexander – up 16.7% • Outstanding sal
Slide 7: Just Group financial results
3 Just Group financial results 1H13 1H12 Var LY $000’s Sales* 444,727 433,823 +2.5% LFL sales -0.9% -7.1% Gross Profit* 279,173 267,435 Gross margin (%)* 62.8% 61.6% 113bps Salaries (103,547) (98,848) +4.8% % sales 23.3% 22.8% 50bps Rent (88,937) (87,768) +1.3% % sales 20.0% 20.2% -23bps Advertising
Slide 8: Premier Retail internet strategy delivering
4 Premier Retail internet strategy delivering Internet • Internet sales grew 51% for the season– well ahead of the industry growth* • All brands delivering strong on-line sales growth • Leading position with next day deliveries * and mobile • Sales from mobile devices exceptional • All brands on int
Slide 9: Premier Retail internet strategy delivering
4 Premier Retail internet strategy delivering 8
Slide 10: Premier Retail investing in stores…
5 Premier Retail investing in stores… • Store refresh program for 49 Dotti stores completed - next phase planned for 2H13 includes 31 additional stores • Refresh planned for selected Portmans stores in 2H13 to fuel sales growth – Fixture upgrades completed during summer delivering strong sales resul
Slide 11: Premier Retail investing in brands…
5 Premier Retail investing in brands… • Brand ambassadors creating connection with customers • Advertising and direct marketing programs achieving results Shanina Shaik Abbey Lee Kershaw Nicole Pollard Tara Moss Peter Alexander 10
Slide 12: Gross margin
6 Gross margin • Gross margin expansion of 113 bps in 1H13 • Gross margin expansion to continue in FY13/FY14 from: - Improved merchandise assortment and planning - Improved profitability from factory outlet stores • Increased sourcing from new markets with established capabilities to service interna
Slide 13: CODB reductions continuing
7 CODB reductions continuing • Cost culture well established and continuing to deliver benefits • Store rental negotiations continue to be a key focus for improving profitability • Labour efficiency gains retained in stores • Major supply chain programs underway to deliver significant benefits in al
Slide 14: Smiggle International Expansion
8 Smiggle International Expansion Smiggle Singapore • Opened two stores in 1H13; Compass Point and Wisma Atria • 2 new stores confirmed to open in 2H13; JEM and Tanglin Mall • 14 stores now trading and highly profitable • 8 of the top 10 Smiggle stores operate in Singapore • Supply chain improvement
Slide 15: Smiggle International Expansion
8 Smiggle International Expansion Smiggle Japan • International market development manager appointed • On the ground, in country research underway • Disciplined approach to store openings– research will determine the timing Smiggle Malaysia • Landlord discussions on-going • Disciplined approach to s
Slide 16: In summary
9 In summary • Continued focus on improving sales from core brands • Gross margin improvement initiatives to continue • Internet investment to continue and accelerate sales growth • Cost efficiency initiatives to continue – Supply Chain – Discretionary costs – Procurement • Peter Alexander and Smigg
Slide 17: Trading update
10 Trading update • Trading for the first 7 weeks is in line with our expectations • Premier Retail remains focused on continuing to implement the strategic initiatives • Industry pressure continues but Premier is well positioned to take advantage of all its growth opportunities 16
Slide 18: Interim dividend
11 Interim dividend • The Premier Board has declared an increased interim fully franked dividend of 19 cps (1H12: 18 cps) • The board’s decision to pay a dividend is always shaped by: – Assessment of the result – Outlook for the market – Confidence in the operational performance of Premier’s people,
Slide 19: Brand by Brand Performance
Brand by Brand Performance 18
Slide 20: Overview of Results
12 Overview of Results Sales $51.5m Var LY +16.7% Store movements Beg Open Close End Australia 40 6 0 46 New Zealand 8 0 0 8 48 6 0 54 Highlights • 6 new stores opened during the season and are trading ahead of expectations • 6 New stores to open in 2H13 • Successful collaborations providing new opp
Slide 21: Overview of Results
12 Overview of Results Sales $54.1m Var LY +12.4% Store movements Beg Open Close End Australia 98 13 1 110 New Zealand 22 1 0 23 Singapore 12 2 0 14 132 16 1 147 Highlights • Strong result for the season • 16 stores opened (13 Aust; 1 New Zealand; 2 Singapore) • Singapore performance continues to be
Slide 22: Overview of Results
12 Overview of Results Sales $54.7m Var LY +15.5% Store movements Beg Open Close End Australia 93 0 4 89 New Zealand 21 0 0 21 114 0 4 110 Highlights • Total sales grew 15.5% • Outstanding on-line sales growth with Dotti a recognised leader in this important channel • Successful key item programs in
Slide 23: Overview of Results
12 Overview of Results Sales $54.8m Var LY +5.4% Store movements Beg Open Close End Australia 93 0 2 91 New Zealand 12 0 0 12 105 0 2 103 Highlights • Total sales up 5.4% • Outstanding results from focus on delivering key fashion items at competitive prices • Sourcing improvements to deliver materia
Slide 24: Overview of Results
12 Overview of Results Sales $100.9m Var LY -2.2% Store movements Beg Open Close End Australia* 203 0 3 200 New Zealand 45 0 0 45 248 0 3 245 * Includes one group store Highlights • Solid performance for the season - profit contribution increased • Exploring new brands and other growth opportunities
Slide 25: Overview of Results
12 Overview of Results Sales $35.6m Var LY -3.9% Store movements Beg Open Close End Australia 83 0 1 82 New Zealand 21 0 0 21 104 0 1 103 Highlights • Turnaround strategy on track • Winter season opened well with strong LFL sales • Customer focused strategy delivering strong results • Strong profit
Slide 26: Overview of Results
12 Overview of Results Sales $93.2m Var LY -8.7% Store movements Beg Open Close End Australia 194 0 6 188 New Zealand 36 0 0 36 230 0 6 224 Highlights • Turnaround strategy is underway and focused on: – Target customer – Fashionability, especially for girls – ‘Famous for’ offers and categories – Gre