Beacon Lighting Group Ltd · ASX:BLX
Beacon Lighting — H1 FY2016 Earnings Presentation
27 slides from Beacon Lighting's earnings presentation, Feb 19, 2016
Slide 1: Results Presentation H1 FY2016
For personal use only Beacon Lighting Group Limited RESULTS PRESENTATION H I F Y 20 16
Slide 2: Disclaimer
DISCLAIMER For personal use only The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, su
Slide 3: Contents
CONTENTS For personal use only 1 RESULTS OVERVIEW 2 TRADING PERFORMANCE 3 CASH FLOW, BALANCE SHEET, DIVIDENDS 4 GROWTH STRATEGIES 5 H2 FY2016 OUTLOOK 6 QUESTIONS 3
Slide 4: Please Note
PLEASE NOTE For personal use only For the purposes of this presentation, please note the following: • H1 FY2016 was for the 26 weeks ending 27 December 2015 • H1 FY2015 was for the 26 weeks ending 28 December 2014 • H1 FY2014 based on the pro forma historical results presented in the Prospectus • H1
Slide 5: Results Overview
For personal use only 1 RESULTS OVERVIEW
Slide 6: H1 FY2016 Highlights
1 H1 FY2016 HIGHLIGHTS For personal use only • Record first half year sales and record profit result • Sales increased by $7.7m, 8.5% ahead of H1 FY2015 • Company store comparative sales increased by 5.1% • Gross profit dollars increased by 11.5% • Opened two new company stores and purchased two fra
Slide 7: H1 FY2016 Result
1 H1 FY2016 RESULT For personal use only H1 FY2015 H1 FY2016 $ Inc / Dec % Inc / Dec $’000 $’000 on Last Year on Last Year Sales 90,829 98,514 7,685 8.5% Gross Profit 58,247 64,934 6,687 11.5% Gross Profit Margin 64.1% 65.9% Other Income 2,034 1,763 (271) (13.3%) % of Sales 2.2% 1.8% Operating Expen
Slide 8: Trading Performance
For personal use only 2 TRADING PERFORMANCE
Slide 9: Sales
2 SALES For personal use only SALES: +8.5% Increased to $98.5m • Record first half year sales • Company store sales increased by 11.5% • Sales to trade and commercial customers increased by 13.7% • Acquired franchised stores contributed to sales to Australian wholesale customers decreasing by 27.8%
Slide 10: Company Store Comparative Sales
2 COMPANY STORE COMPARATIVE SALES For personal use only COMPARATIVE SALES: +5.1% Increase • Solid 5.1% comparative sales growth over a very strong H1 FY2015 increase of 11.7% • Stronger comparative sales growth in Q2 FY2016 compared to Q1 FY2016 • Strong comparative sales in NSW and QLD • Positive c
Slide 11: Gross Profit
2 GROSS PROFIT For personal use only Gross Profit $: +11.5% Increased to $64.9m • Gross profit $ increased by $6.7m or 11.5% • Gross profit margin for H1 FY2016 was 65.9% compared to 64.1% for H1 FY2015 • Strong results due to innovative new products, price management and FX cover Gross Profit Dolla
Slide 12: Other Income
2 OTHER INCOME For personal use only Other Income: -13.3% Decreased to $1.8m • Other Income decreased by $271k or 13.3% • Core marketing and royalty income continues to decline as franchised stores are acquired and converted into company operated stores Other Income $m 2.3 2.1 2.0 1.8 H1 FY13 H1 FY1
Slide 13: Operating Expenses
2 OPERATING EXPENSES For personal use only Opex: Down 0.5% of Sales to $49.1m • Operating expenses decreased by 0.5% of sales compared to H1 FY2015 • Productivity gains continue to be realised in relation to operating expenses Opex % of Sales $ ‘000 H1 FY15 % to Sales H1 FY16 % to Sales 54.8% 54.1%
Slide 14: Earnings
2 EARNINGS For personal use only EBITDA: +21.4% to $17.5m EBIT: +21.8% to $16.3m NPAT: +22.1% to $11.1m EBITDA $m EBIT $m 17.5 16.3 14.5 13.4 11.0 10.0 8.2 7.2 H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY13 H1 FY14 H1 FY15 H1 FY16 EBITDA Margin NPAT $m 11.1 17.8% 15.9% 9.1 14.7% 6.7 12.5% 4.7 H1 FY13 H1 FY
Slide 15: Cash Flow, Balance Sheet & Dividends
For personal use only 3 CASH FLOW, BALANCE SHEET & DIVIDENDS
Slide 16: Cash Flow
3 CASH FLOW For personal use only Capital Expenditure $2.7m $ ‘000 H1 FY15 H1 FY16 Cash Flow from Operations • New Stores Capex $1.0m Receipts from Customers 101,629 105,935 Payments to Suppliers & Employees (99,345) (94,869) • Information Tech. $0.9m Other (590) (499) • Major Refits $0.3m Income Ta
Slide 17: Balance Sheet
3 BALANCE SHEET For personal use only Debtors $ ‘000 DEC 2014 DEC 2015 • Commercial $3.8m Cash 10,547 13,107 • Franchise $3.3m Receivables 8,079 8,317 Inventories 47,612 52,251 Payables Other 681 837 • Trade Creditors $9.3m Total Current Assets 66,919 74,512 PPE 18,083 20,526 Borrowings Intangible 4
Slide 18: Dividends
3 DIVIDENDS For personal use only • Earnings Per Share (EPS) increased by 22.1% to 5.16 cents per share • Fully franked dividend of 2.3 cents per share for H1 FY2016 • Dividend increase of 27.8% over H1 FY2015 • Record date 4th March 2016 • Payment date 25th March 2016 • Payout ratio in the future e
Slide 19: Growth Strategies
For personal use only 4 GROWTH STRATEGIES
Slide 20: New Store Rollout
4 NEW STORE ROLLOUT For personal use only H1 FY2016 Store changes: • Purchased the Essendon (VIC) and Watergardens (VIC) franchise stores and converted them to company stores • Opened the Bundall (QLD) and Maribyrnong (VIC) stores • Expanded the Alexandria (NSW) Store 93 91 85 11 79 13 74 71 14 66 1
Slide 21: Latest Products
4 LATEST PRODUCTS Latest fashion, on trend and technologically advanced products for our customers For personal use only 21
Slide 22: Light Source Solutions
4 LIGHT SOURCE SOLUTIONS For personal use only • Commenced Light Source Solutions, our GE globes distribution business in September 2015 in both Australia and New Zealand • Established company infrastructure to support the new business • Agreed to purchase all the existing GE stock at a discount to
Slide 23: Omni Channel
4 OMNI CHANNEL For personal use only • Continued to leverage the benefits of a strong online presence combined with our bricks and mortar stores • Online fulfilment from all 93 stores. Click and collect available in all stores • Online sales grew by 20.0% to be 2.5% of total retail sales • Opened an
Slide 24: Other Strategies
4 OTHER STRATEGIES For personal use only • JustEnough forecasting and replenishment system implemented for all stores • Increased interstate store supply through the 3PL supply network by 33.1% to 24.7% of wholesale distribution • 198 Accredited Lighting Design Consultants in the Group (including fr
Slide 25: H2 FY2016 Outlook
For personal use only 5 H2 FY2016 OUTLOOK
Slide 26: H2 FY2016 Outlook
5 H2 FY2016 OUTLOOK For personal use only Beacon Lighting • Continue to drive company store comparative sales which have made a positive start to the new half year • Gungahlin (ACT), Preston (VIC) and Fairfield (QLD) are all planned to open • Continue to drive product innovation for our customers wi
Slide 27: Questions
For personal use only 6 QUESTIONS
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