Srp Groupe Sa · EURONEXT:SRP
Srp Groupe Sa — Groupe Showroomprivé — H1 2018 Earnings Presentation
27 slides from Srp Groupe Sa's earnings presentation, Jul 26, 2018
Slide 1: H1-2018 Results
H1-2018 RESULTS - July 26th, 2018 -
Slide 2: H1-2018 key business highlights
I H1-2018 key business highlights
Slide 3: H1-18 Key Business Highlights
I. H1-18 KEY BUSINESS HIGHLIGHTS H1-18 KEY BUSINESS HIGHLIGHTS WE EXECUTE OUR “PERFORMANCE 2018-2020” PLAN WITH ALREADY SIGNIFICANT Management actions UNDERTAKEN ON ALL FRONTS (COMMERCIAL, BUSINESS MONITORING, MARKETING, IT) WE SEE THE FIRST EFFECTS OF OUR ACTIONS, WITH POSITIVE SIGNALS IN Q2, AND A
Slide 4: Our Performance 2018-2020 plan is on track
I. H1-18 KEY BUSINESS HIGHLIGHTS OUR “PERFORMANCE 2018-2020” PLAN IS ON TRACK SHORT TERM performance MEDIUM TERM 2018-2020 3 short term objectives 3 strategic priorities 1. Refocus on fundamentals: 1. Deliver better, faster Members & Brands & at a lower cost 2. Improve operational 2. Develop new sou
Slide 5: Strengthening our organization and business monitoring
I. H1-18 KEY BUSINESS HIGHLIGHTS WE HAVE FOCUSED IN H1 ON STRENGTHENING OUR ORGANIZATION AND BUSINESS MONITORING Priorities Key actions Progress Reinforcement of the teams in several categories notably sport, FMCG, and children with senior hires already realized Holistic approach with strategic bran
Slide 6: First positive effects of our performance plan
I. H1-18 KEY BUSINESS HIGHLIGHTS WE ARE SEEING THE FIRST POSITIVE EFFECTS OF OUR PERFORMANCE PLAN Q1-18 Q2-18 Q1-18 Q2-18 # Sales events1 +9% -16% Traffic1 0% +8% Turnover / sale1 -12% +30% Buyers2 -6% +5% Reinforce Re-Think our Commercial Marketing approach approach Increase More customer detailed
Slide 7: Return to growth in Q2
I. H1-18 KEY BUSINESS HIGHLIGHTS RETURN TO GROWTH IN Q2 +28% +10% +8% +3% -2% Like-for-Like 315 306 8 9 54 54 244 253 195 215 154 151 152 165 134 105 Q3-17 Q4-17 Q1-18 Q2-18 H1-17 H1-18 2016 2017 2018 France International Other Come back to growth in Q2 in both France and International markets 7
Slide 8: Foundations of our medium term growth drivers
I. H1-18 KEY BUSINESS HIGHLIGHTS WE ARE LAYING OUT THE FOUNDATIONS OF OUR MEDIUM TERM GROWTH DRIVERS LOGISTIC MEDIA & DATA CARREFOUR PARTNERSHIP x Deliver better, faster and at Monetize our data and launch Leverage our transforming a lower cost by insourcing media offerings partnership with Carrefou
Slide 9: Zoom on our partnership with Carrefour
I. H1-18 KEY BUSINESS HIGHLIGHTS ZOOM ON OUR PARTNERSHIP WITH CARREFOUR x LOGISTIC MARKETING 600 Click-&-Collect stores Cross marketing campaigns already opened − Already several successful campaigns realized Target of 2,800 at year-end − Strong appetite and complementarity of the two Groups member
Slide 10: H1-2018 financial results
II H1-2018 financial results
Slide 11: Revenues growth supported by Q2 performance
REVENUES GROWTH SUPPORTED BY Q2 PERFORMANCE II. H1-18 FINANCIAL RESULTS Revenues breakdown € million +3% +8% +0.2% ORGANIC GROWTH Like-for-Like 315.5 306.2 8.5 8.6 243.5 +4% 253.4 152.4 164.7 54.1 -1% 53.6 H1-17 H1-18 Q2-17 Q2-18 International France Non-Internet Net Internet revenues 3% growth in H
Slide 12: Improvement of customer metrics in Q2
II. H1-18 FINANCIAL RESULTS IMPROVEMENT OF CUSTOMER METRICS IN Q2 Average -1.5% +0.5% -1.0% revenue per buyer € 96 98 95 128 97 127 +1.5% +0.3% +0.9% Average Basket size € 41.0 40.9 41.0 40.6 41.0 40.4 Average -2.9% +0.2% -1.9% order per buyer # 2.4 2.4 2.4 3.1 3.1 2.3 -5.9% +5.2% +0.1% Active buyer
Slide 13: Gross margin evolution
II. H1-18 FINANCIAL RESULTS GROSS MARGIN EVOLUTION Gross margin evolution € million 2017 H1-18 -3.5% 114.4 110.4 37.4% 35.7% 35.0% H1-17 H1-18 H1-17 H2-17 H1-18 Gross margin still negatively impacted by the sale of residual firm purchases inventories built in 2017 at less favourable commercial condi
Slide 14: Cost structure overview
II. H1-18 FINANCIAL RESULTS COST STRUCTURE OVERVIEW Opex evolution1 Costs In € million and as % of net revenues (as % of net revenues) MARKETING Marketing expenses up 3.6% over first half and 0%PT stable compared to the +1.6%PT previous year at 4% of revenues 4.0% 4.0% H1-17 H1-18 36.3% 36.8% 35.2%
Slide 15: EBITDA evolution
II. H1-18 FINANCIAL RESULTS EBITDA EVOLUTION EBITDA evolution € million 2017 H1-18 EBITDA mainly impacted by: €10.9m €2.2m €-0.8m • Slowdown of activity in Q1-18 • The exhaustion 3.6% of residual firm 0.6% purchases made in 2017 at less -0.2% favourable commercial conditions FRANCE INTERNATIONAL • G
Slide 16: Cash flow evolution
II. H1-18 FINANCIAL RESULTS CASH FLOW EVOLUTION Change in working capital by semester Progressive normalisation of inventories € million € million +€32m -€18m H1-16 H1-17 H1-18 -20.3 -15.7 -25.0 115 Additional firm purchases 93 97 -42.5 made in H1-17 83 -62.8 FY-16 H1-17 FY-17 H1-18 Structural negat
Slide 17: Outlook H2-2018
III Outlook H2-2018
Slide 18: Effects of Performance 2018-2020 plan will materialize progressively
EFFECTS OF "PERFORMANCE 2018-2020" PLAN WILL MATERIALIZE PROGRESSIVELY III. OUTLOOK FOR H2-18 Q1-2018 Q2-2018 H2-2018 & beyond • More selectivity and • Reinforcement and Ramp-up of tight monitoring of firm enlargement of "Performance 2018-2020" plan purchases & commercial and confirmation of positiv
Slide 19: Our priorities for H2-2018
III. OUTLOOK FOR H2-18 OUR PRIORITIES FOR H2-2018 01 Stay focused on executing our “Performance 2018-2020” plan 02 Capitalize on and amplify the first positive effects of our strategic plan Anticipate and prepare an ambitious 03 commercial and marketing plan around Black Friday and Christmas period
Slide 20: Appendices
IV appendices
Slide 21: Selected key performance metrics
SELECTED KEY PERFORMANCE METRICS 2016 2017 % Growth H1-17 H1-18 % Growth CUSTOMERS METRICS Cumulative Buyers (in thousands) 6,757 7,947 17.6% 7,256 8,474 16.8% France 5,562 6,442 15.8% 5,950 6,793 14.2% International 1,195 1,505 25.9% 1,306 1,682 28.7% Buyers (in thousands) 3,234 3,555 9.9% 2,264 2,
Slide 22: Profit & loss statement
PROFIT & LOSS STATEMENT (€ thousands) 2017 H1-17 H1-18 % Growth Net revenues 654,971 306,173 315,477 3.0% Cost of goods sold -416,003 -191,765 -205,075 6.9% Gross margin 238,967 114,408 110,402 -3.5% Gross margin as % of revenues 36.5% 37.4% 35.0% Marketing -33,048 -12,310 -12,759 3.6% As % of reven
Slide 23: Segmental information
SEGMENTAL INFORMATION Revenues (€ thousands) 2016 2017 % Growth H1-17 H1-18 % Growth INTERNET REVENUES France 453,729 518,712 14.3% 243,476 253,416 4.1% International 71,709 111,169 55.0% 54,075 53,603 -0.9% Total Internet revenues 525,438 629,882 19.9% 297,551 307,018 3.2% Other revenues 14,266 25,
Slide 24: Cash flow statement
CASH FLOW STATEMENT (€ thousands) 2016 2017 H1-17 H1-18 Net income for the period -250 -5,234 -210 -6,483 Adjustments for non-cash items 18,228 11,946 7,157 1,165 Cash flow from operations before finance costs and income tax 17,978 6,712 6,947 -5,318 Elim of accrued income tax expense 2,741 -2,689 7
Slide 25: Balance sheet
BALANCE SHEET (€ thousands) 2016 2017 H1-17 H1-18 NON-CURRENT ASSETS Goodwill 102,782 123,685 119,080 123,685 Other intangible assets 39,289 49,789 48,472 51,558 Tangible assets 15,626 16,606 15,558 16,899 Other non-current assets 6,902 6,906 6,978 4,529 Total non-current assets 164,599 196,971 190,
Slide 26: Disclaimer
DISCLAIMER This presentation contains only summary information and does not purport to be comprehensive. This document may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assump
Slide 27: Thank you
THANK YOU Investor.relations@showroomprive.com