Lovisa Holdings Ltd. · ASX:LOV
Lovisa — FY2015 Earnings Presentation
13 slides from Lovisa's earnings presentation, Aug 27, 2015
Slide 1: Lovisa Holdings Limited FY15 Results Presentation
LOVISA HOLDINGS LIMITED (LOV) FY15 RESULTS For personal use only PRESENTATION 1. FY15 Financial Highlights 2. Comparison to Prospectus 3. Comparison to Prior Year 4. Sales 5. Gross Margin 6. CODB and Earnings 7. Balance Sheet 8. Cash Flow 9. Foreign Exchange Risk Management 10. Store Growth 11. FY16
Slide 2: FY15 Financial Highlights
For personal use only FY15 FINANCIAL HIGHLIGHTS REVENUE UP 27% TO $134.3M. EBIT OF $24.8M, up $1.3m on prospectus +5.5% • Revenue increased by 27.1% to $134.3m • GM increased from 76.0% to 77.1% • Gross profit increased by 28.7% to $103.5m • EBIT (adjusted for exceptionals related to the IPO*) of $2
Slide 3: Results compared to prospectus
results compared to prospectus earnings forecast beaten For personal use only FY15 FY15 Actual * FY15 Prospectus (A $’m) Forecast (A $’m) Variance (A $’m) Variance (%) Revenue 134.3 134.7 (0.4) -0.3% Gross profit 103.5 103.4 0.1 +0.1% EBITDA 30.8 29.6 1.2 +4.1% EBIT 24.8 23.5 1.3 +5.5% NPAT 17.6 16.
Slide 4: Results compared to prior year
results compared to prIOR YEAR REVENUE UP 27% For personal use only FY15 Highlights FY15 Statutory FY14 Statutory (A $’m) (A $’m)* Variance (A $’m) Variance (%) Revenue 134.3 105.7 28.6 27.1% Gross profit 103.5 80.4 23.1 28.7% EBITDA 43.6 12.5 31.1 248% EBIT 37.5 6.9 30.6 443% NPAT 30.6 4.6 26.0 565
Slide 5: Sales
sales a $28.6m increase over fy14 160 For personal use only 140 $134.3m 120 $105.7m 100 80 $70.3m 60 $39.8m 40 20 FY12 FY13 FY14 FY15 • FY15 sales increase driven by; > Strong like for like (LFL) sale growth of +8.2% for the year > All countries reported positive LFL for FY15 > 55 store openings, be
Slide 6: Gross margin and gross profit
gross margin and gross profit a 1.1% improvement in gross margin over prior year For personal use only • We have lifted our gross margin in FY15 as a 90% result of; 80% > Working with our suppliers as we grow to ensure best price and quality. 70% > Investing in Merchandise Planning team and 60% 79%
Slide 7: Cost of doing business and earnings
cost of doing business and earnings operating leverage delivered lower cost of doing business For personal use only 70% 60% 50% 40% 59% 65% 62% 54% 30% 20% FY12 FY13 FY14 FY15 • Cost of doing business was been positively impacted by; > The closure of 20 low turnover stores in Australia. All store cl
Slide 8: Balance sheet
balance sheet healthy net asset position following reorganisation associated with the ipo For personal use only • Inventory level reflects more stores, addition FY15 (A$’000s) FY14 (A$’000s) of HK warehouse, and initiatives to drive sales Cash 4,251 2,869 through merchandise intensity Trade and othe
Slide 9: Summary of cash flows
SUMMARY OF CASH FLOWS strong cash flow from operations, and high dividend payout ratio For personal use only FY15 (A$’000s) FY14 (A$’000s) Cash received from customers 147,834 116,208 Cash paid to suppliers (122,166) (99,331) Interest paid (250) (45) Tax paid (5,958) (1,826) Cash generated from oper
Slide 10: Currency management
currency MANAGEMENT MANAGING THE RISK OF A VOLATILE A$ For personal use only Lovisa retains several advantages that mitigate the risks associated with a fluctuating currency; • as a vertically integrated retailer, we have control of our retail pricing • we continously bring in newness • we order clo
Slide 11: Store growth
STORE GROWTH A NET INCREASE OF 29 STORES IN FY15 Store number growth in FY15 For personal use only FY14 store FY15 store Increase/ Prospectus Variance to numbers numbers (decrease) forecast prospectus Australia 166 146 (20) 148 (2) New Zealand 14 14 - 14 - Singapore 10 15 5 16 (1) Malaysia 7 15 8 14
Slide 12: FY16 Outlook
FY16 OUTLOOK GROWTH OF COMPANY OWNED STORES AND FRANCHISE TERRITORIES For personal use only Existing Markets • In Australia we are through the bulk of closures due to the take over of Diva stores • Continue to open new stores in all markets • Continue to open new stores under franchise in the Arabia
Slide 13: Questions?
For personal use only QUESTIONS? 12