Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (August 2023)
14 slides from Nick Scali's investor presentation, Aug 11, 2023
Slide 1: FY23 Results Presentation
FY23 Summary FY23 Results Presentation 11 August 2023 1
Slide 2: FY23 Summary
FY23 Summary Revenue Profitability Revenue FY23 $507.7m, up 15.1% on FY22. 1 Group gross profit margin 63.5%, up 2.5% on FY22. FY23 revenue was favourably impacted by increased Net profit after tax of $101.1m, up 34.9%1 on FY22, deliveries as the aging of the order bank reduced with lead and up 26.1
Slide 3: Revenue & Written Sales Orders
Revenue & Written Sales Orders Revenue FY23 $507.7m Written Sales Orders FY23 $437.0m Change versus FY22 +15.1% Change versus FY22 -7.8% Commentary Commentary • First half revenue was $283.9m driven by the large opening • First half written sales orders $210.3m. order bank at June 2022. • Second hal
Slide 4: Financial Performance
Financial Performance FY22 FY23 Gross Profit Margin Underlying1 • Group margin FY23 of 63.5% improved 2.5% compared to Sales revenue 441.0 507.7 FY22 due to margin improvement for Plush and reduced freight costs. Cost of sales (172.0) (185.3) • Nick Scali FY23 margin of 63.7% is 1.2% higher than FY2
Slide 5: Cashflow
Cashflow Operating Cashflows Opening Cash 74.6 • Cash of $89.8m generated from operating activities and Deposits (including operating lease payments and interest payments) compared to $79.8m FY22. Operating Change in Borrowings 89.8 Cashflows • $7.0m repaid on corporate facility established to fund
Slide 6: Balance Sheet
Balance Sheet Jun 22 Jun 23 Inventory – On hand Cash & deposits 74.6 89.3 Plush Showrooms Inventory – In transit 22.5 12.9 Nick Scali DCs Showrooms Jun 23 18.8 4.3 Inventory – On hand 48.0 41.7 18.6 Property – At net book value 97.4 104.5 Plush Showrooms Plant & equipment 15.1 14.8 Nick Scali Leased
Slide 7: Nick Scali Brand Online
Nick Scali Brand Online Written Sales Orders Nick Scali Brand ($m) Written Sales Orders Nick Scali Brand • Nick Scali brand online written sales orders 2H FY23 of $14.5m were up 14.5% on 2H FY22. • Enhancements in the eCommerce user experience are driving growth. • Nick Scali brand online written sa
Slide 8: Store Network
Store Network June New June Western Australia Nick Scali: 6 Queensland 2022 Stores 2023 Target2 Plush: 3 Nick Scali: 15 Plush: 10 Nick Scali New South Wales Australia 57 2 59 73 Nick Scali: 19 Plush: 14 New Zealand 5 – 5 13 62 64 86 Plush Australia 45(1) 1 43(1) 85-90 New Zealand – – – 5-10 45 43 90
Slide 9: Property
Property Location Date Net Lettable Property Carrying Value $m Acquired Area (m2) – Historical Acquisition Cost 113.3 – Current Book Value (Acquisition cost, 104.5 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 FY23
Slide 10: Recent trading
Recent trading Recent trading • July 2023 orders of $39.7m were down 8.1% cycling off a strong July 2022. 10
Slide 11: Q&A
Q&A 11
Slide 12: 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 13: Appendix 1 – NPAT Reconciliation
Appendix 1 –NPAT Reconciliation FY22 FY23 Reported One-off Underlying Reported items(1) Sales revenue 441.0 – 441.0 507.7 Cost of sales (172.0) – (172.0) (185.3) Gross profit 269.0 – 269.0 322.4 Other income 1.6 – 1.6 4.7 Operating expenses (111.8) 4.3 (107.4) (127.5) Depreciation (41.6) 3.0 (38.6)
Slide 14: Appendix 2 – EBIT Reconciliation
Appendix 2 – EBIT Reconciliation FY22 FY23 Underlying1 Gross Margin 269.0 322.4 Other Income 1.6 4.7 Operating Expenses (111.8) (127.5) One-off items in EBITDA – Acquisition costs & Restructuring costs 4.3 – EBITDA2 163.2 197.1 Reported Depreciation & Amortisation (41.6) (42.8) One-off items in Depr