Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — H1 2023 Earnings Presentation
26 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Sep 19, 2023
Slide 1: H1 2023 Results Presentation
H1 2023 Results Presentation September 19, 2023
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company. The information, statements and opinions contained in this presentation do
Slide 3: Mavi Business Overview
MAVI BUSINESS OVERVIEW
Slide 4: Q2 2023 Business Overview
Q2 2023 Business Overview Business Overview › Strong brand strategy, demand creating newness supported by dynamic product / price planning helped mitigate product cost pressures and resulted with a strong gross margin performance › Delivered 150 bps improvement in opex/sales ratio through effective
Slide 5: H1 2023 Highlights
H1 2023 HIGHLIGHTS
Slide 6: H1 2023 Highlights
H1 2023 Highlights GROUP HIGHLIGHTS1 TURKEY HIGHLIGHTS › Consolidated revenue realized at 8,415 TRYm, 8,415 TRYm 1,887 TRYm 114% 95% growing 104% yoy Revenue EBITDA Retail Sales Online Sales Growth Growth › EBITDA for the period is 1,887 TRYm resulting in 22.4% EBITDA margin › Net income realized at
Slide 7: Sales Channels
SALES CHANNELS
Slide 8: Revenue Evolution in Sales Channels
Revenue Evolution in Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) Channel 115% 119% Growth 7,328 583 100% 104% 8,415 1,249 95% 3,949 3,346 803 80% 1,838 302 299 163% 1,963 552 145 475 5,495 4,468 4,124 99% 217 3,094 2,572 114% 404 447 1,477 2,236 885 985 5,649 221 110% Q2 2022 Q2 2023
Slide 9: Turkey Retail
TURKEY RETAIL
Slide 10: Turkey Retail Operations
Turkey Retail Operations # of Retail Stores Gross Selling Space in Turkey (Sqm K) Net New Avg. Stores 6 7 2 - Sqm/ 498sqm 501sqm 510sqm 513sqm Retail Store 164.0 167.7 168.7 320 327 329 329 159.4 2020 2021 2022 H1 2023 2020 2021 2022 H1 2023 › With four openings and four closures in H1 2023, number
Slide 11: Like-for-Like Stores Sales Performance
Like-for-Like Stores Sales Performance 42.7% 141.8% 29.5% 116.3% 19.2% 73.3% Transaction1 1.1% (20.8%) # Growth (%) 20.9% (11.0%) 2019 2020* 2021* 2022 H1 2023 2019 2020* 2021* 2022 H1 2023 › Traffic growth of 16% in H1 2023 displays continued strong 86.7% 81.4% consumer demand Basket Size › Right p
Slide 12: Sales in Denim & Lifestyle Categories
Sales in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) 42% Knits/Jerseys 28% Shirts 12% Jackets 2% 108% 166% 651 125 111% 2,320 107% 313 47 1,530 H1 2022 H1 2023 H1 2022 H1 2023 1,098 739 Accessories Non-Denim Bottoms 6% 8% 97% 135% 346 H1 2022 H1 2023 H1 2022 H1 2023
Slide 13: Online Business
ONLINE BUSINESS
Slide 14: Online Sales Growth (inc. wholesale partners)
Online Sales Growth (inc. wholesale partners) Global Online Sales (TRYm) Turkey Online Sales (TRYm) % Sales % Sales 8.0% 12.9% 10.7% 8.9% 897 95% 583 69% Channel 95 Growth 299 300 532 364 10% 70% 86 176 66% 283 131% 219 122 439 227 93% H1 2022 H1 2023 H1 2022 H1 2023 International Online Sales (TRYm
Slide 15: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS
Slide 16: Consolidated Gross Margins
Consolidated Gross Margins Revenue (TRYm) Gross Profit (TRYm) 55.6% 52.1% 56.0% 51.0% 100% 104% 8,415 87% 86% 4,291 4,468 4,124 2,329 2,309 2,236 1,243 Q2 2022 Q2 2023 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 › Significant product cost inflation in H1 2023 versus a low base last year. We view
Slide 17: Consolidated EBITDA and Net Income
Consolidated EBITDA and Net Income EBITDA exc.IFRS16 (TRYm) EBITDA inc.IFRS16 (TRYm) 20.4% 18.4% 18.9% 24.7% 21.8% 26.9% 22.4% 22.4% 79% 73% 1,593 76% 70% 1,887 820 922 976 1,109 457 553 Q2 2022 Q2 2023 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 Net Income exc.IFRS16 (TRYm) Net Income inc.IFRS1
Slide 18: Operational Cash Flow and Working Capital Management
Operational Cash Flow and Working Capital Management Cash Conversion & Operational Cash Flow (exc.IFRS16) Main Working Capital Items 49% TRYm 2022 H1 2022 H1 2023 46% Trade & Other Receivables 913 640 1,199 % LTM Sales 8.6% 9.3% 8.1% H1 2022 H1 2023 Inventories 2,308 1,276 2,994 % LTM COGS 46.2% 40.
Slide 19: Capex and Leverage Ratios
Capex and Leverage Ratios CAPEX (TRYm) Debt Breakdown (31 July 2023) % Sales 2.9% 2.2% 9% 2% 8% Average Cost of Debt USD 186 TRY 28.8% CAD 118 USD 7.4% TRY RUB RUB 12.5% H1 2022 H1 2023 CAD 7.0% 81% Blended 25.2% Net Cash exc.IFRS16 (TRYm) › All of non-TRY debt (19% of total) is carried by Mavi US,
Slide 20: FY2023 Management Guidance
FY2023 Management Guidance Previous (08.06.2023) Revised (19.09.2023) Consolidated Revenue Growth 75% ± 5% 80% + 5 net new stores 8 net new stores Turkey Retail Stores 7 store expansions 7 store expansions 18% ± 0.5% (exc. IFRS16) 19% ± 0.5% (exc. IFRS16) EBITDA Margin 22% ± 0.5% (inc. IFRS16) 22.5%
Slide 21: Thank You!
THANK YOU !
Slide 22: Financial Statements Income Statement (inc. IFRS 16)
Financial Statements Income Statement (inc. IFRS 16) TRYm Q2 2022 Q2 2023 Change (%) H1 2022 H1 2023 Change (%) Revenue 2,236 4,468 100% 4,124 8,415 104% Cost of Sales (994) (2,139) 115% (1,815) (4,124) 127% Gross Profit 1,243 2,329 87% 2,309 4,291 86% Gross Margin 55.6% 52.1% 56.0% 51.0% Administra
Slide 23: Financial Statements Balance Sheet (inc. IFRS 16)
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2023 31 July 2023 Change (%) Assets Current Assets Cash and Cash Equivalents 3,245 3,146 (3%) Financial Investments 58 54 (6%) Trade Receivables 871 1,173 35% Inventories 2,308 2,994 30% Other Current Assets 304 490 61% Total Current
Slide 24: Financial Statements Cash Flow Statement (inc. IFRS 16)
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm H1 2022 H1 2023 Profit¹ 704 1,139 Adjustments 649 1,105 Cash Flow from Operating Activities 1,353 2,244 Δ in Net Working Capital² (496) (815) Income Tax Paid (165) (160) Net Cash from Operating Activities 693 1,270 Capex (118) (186) Other
Slide 25: Effects of IFRS16 on Financial Statements
Effects of IFRS16 on Financial Statements TRYm 31-Jul-23 IFRS 16 Effect After IFRS 16 Current assets 7,867 (10) 7,858 Non-current assets 1,668 714 2,382 Current liabilities 5,260 446 5,706 Non-current liabilities 174 335 509 Equity 4,102 (77) 4,025 H1 2023 IFRS 16 Effect After IFRS 16 Operating prof
Slide 26: Global Operations as of 31 July 2023
Global Operations as of 31 July 2023 461 397 64 5 35 Monobrand Mono-Brand International ~4,000 5,801 HQ Countries Stores in Mono-Brand Points of Sale Employees Stores Turkey Stores TURKEY EUROPE RUSSIA Retail stores: 329 Retail stores: 1 Retail stores: 17 Franchise stores: 68 Wholesale doors: ~800 F
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