Dusk Group Ltd. · ASX:DSK
Dusk — Investor Presentation (August 2024)
23 slides from Dusk's investor presentation, Aug 29, 2024
Slide 1: FY24 Results Presentation
dusk Group Limited (ASX:DSK) FY24 Results Presentation 29 August 2024 Vlad Yakubson Gordon Squire CEO & Managing Director CFO
Slide 2: Contents
Contents 01 02 Business Overview FY24 Financial Summary 03 04 Outlook Appendix
Slide 3: Business Overview
Business Overview
Slide 4: FY24 Financial Overview
FY24 Financial Overview Transformational year with new management team and new strategy in place. dusk delivered quarter on quarter improvements in sales trends as FY24 progressed $126.7m $81.5m 64.3% $6.2m Total Sales Gross Profit3 Gross Profit % Pro Forma EBIT4 -7.9% on pcp1 -7.5% vs pcp +20 basis
Slide 5: FY24 Operational Overview
FY24 Operational Overview Improvement in sales run rate through 2H FY24 reflects better execution and the early phase of new strategic initiatives gaining traction Renewal of Significant talent renewal across key leadership roles in the business. New leadership team in place, which leadership team b
Slide 6: Key strategic priorities – FY25 and beyond
Key strategic priorities – FY25 and beyond Grow market share and reassert our leadership in the home fragrance category and gifting Increasing New customer Redefine our 1 customer frequency 2 acquisition 3 brand identity • Deliver more product newness, more • Introduce more contemporary ranges • Upg
Slide 7: Product-led turnaround underway
Product-led turnaround underway A reset of our product strategy is at the heart of our turnaround. We are implementing material changes in both execution and the strategic aspects of product development, ranging, sourcing, and supply chain New products and ranges, more We are reinvigorating the cade
Slide 8: FY25 Priorities
FY25 Priorities • Accelerate product rejuvenation program. Upgrade core product New products offering, and increase frequency of new product drops and ranges • More product collaborations and new seasonal ranges are in the pipeline • Invest in digital marketing with social media campaigns that targe
Slide 9: FY24 Financial Summary
FY24 Financial Summary
Slide 10: Sales Overview
Sales Overview Solid execution and product newness deliver sales run rate improvement across FY24 Focus on better customer experience in-store and online 160 160 145 149 • At year end, dusk had 149 stores including 2 online stores (FY23: 145 132 stores) 140 140 122 • Total sales of $126.7m, down -7.
Slide 11: Re-setting our online channel
Re-setting our online channel Relaunch of website drives online growth in 2H FY24 Use our #1 store to re-set the brand aesthetic, launch new ranges, enable better product discovery, and provide an easy, exciting and immersive omni channel shopping experience 14.0 10.0% 8.7% 9.0% • Online sales of $7
Slide 12: dusk Rewards Membership
dusk Rewards Membership dusk Rewards Members (000s) dusk Rewards sales ($m) 100 70% 800 61% 62% 755 60% dusk Rewards sales as % total sales 735 90 57% 57% 750 60% 688 80 dusk Rewards sales ($m) 700 674 70 50% 650 Members (000s) 60 600 40% 50 550 525 30% 40 500 30 20% 450 20 COVID-19 10% 400 COVID-19
Slide 13: Average Transaction Value (ATV)
Average Transaction Value (ATV) dusk Rewards members spend more than dusk customers overall ATV resilient despite challenging macro environment 65 • dusk Rewards members ATV was $56 compared to $44 for non- 60 60 58 members, and $50 overall. 57 56 54 54 • ATV was slightly lower for both groups in FY
Slide 14: Financial Performance
Financial Performance Pro forma P&L1 • Total Revenue of $126.7m, down -7.9% vs pcp $m FY23 FY24 % Change • Improvement in sales run rate as FY24 progresses with 2H Revenue 137.6 126.7 -7.9% FY24 of -5.0% compared to 1H FY24 of -9.7% Gross profit 88.2 81.5 -7.5% • Gross Profit % improved by +20 bps,
Slide 15: Gross Profit
Gross Profit FY24 Gross Profit % improvement reflects disciplined and tactical promotional activity Increase in Gross Profit % despite higher freight and FX 1.2% movements • Gross Profit of $81.5m was -7.5% vs pcp 64.3% • Differentiated range and vertical retail model enables us to manage our pricin
Slide 16: Cost of Doing Business
Increase in CODB ($m) reflects higher award wages, additional stores Cost of Doing Business CODB increase reflects focus on controlling the “controllables”. Negative operating leverage occurred mainly due to sales decline CODB $ • CODB of $71.4m, up +$3.6m or +5.4% on pcp demonstrates dusk’s ongoing
Slide 17: Balance Sheet
Balance Sheet A$m FY23 FY24 Strong financial position with no debt CURRENT ASSETS Cash 16.0 20.8 • Closing cash of $20.8m was +$4.8m higher vs pcp Trade and other receivables 0.4 0.3 Inventories 15.2 15.5 • Inventory levels were slightly up on pcp due to the addition of Right of return assets 0.2 0.
Slide 18: Outlook
Outlook
Slide 19: Trading Update & Outlook
Trading Update & Outlook Sales results for the first 8 weeks of 1H FY25 are as follows: First 8 weeks FY25 vs: Sales growth, unaudited FY24 pcp Total sales +16.0% LFL sales +12.1% • First 8 weeks of FY25, online sales growth is +39.1%. Bricks and Mortar stores is +14.4% • Strong start to FY25 with t
Slide 20: Appendix
SOY StORIES| soy stories| soy stories Soy STORIES Soy stories
Slide 21: Pro Forma Adjustments
Pro Forma Adjustments Pro forma P&L $m FY23 FY24 Statutory EBITDA 37.0 27.1 Impact of AASB16 -16.6 -17.0 Rental concessions received -0.3 - NZ setup costs 0.3 - Pro forma EBITDA 20.5 10.1 Statutory NPAT 11.6 4.3 Impact of AASB16 0.1 0.3 Rental concessions received -0.3 - NZ setup costs 0.3 - Impairm
Slide 22: Disclaimer
Disclaimer This presentation has been prepared by Dusk Group Limited (‘dusk’) ABN: 38 603 018 131. It is general information on dusk and its subsidiaries (‘dusk Group’) current as at the date of the presentation. It is in summary form and is not necessarily complete. It should be read together with
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