Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2024 Earnings Presentation
42 slides from Super Retail's earnings presentation, Feb 22, 2024
Slide 1: Super Retail Group Half Year Results
For personal use only FY 2024 Super Retail Group Half Year Results Authorised for release by the Board of Super Retail Group Limited 22 February 2024 Anthony Heraghty Group Managing Director & Chief Executive Officer
Slide 2: Group highlights
For personal use only Group highlights 2
Slide 3: Executive summary
Executive summary Record first half sales deliver strong first half profit For personal use only • Sales up 3 per cent to $2.0 billion • Group like-for-like sales growth of 1 per cent • Group gross margin increased by 30 bps to 46.5 per cent • Statutory PBT of $204 million, above the top of the prev
Slide 4: Record first half sales result
Record first half sales result Sales revenue increased by 3 per cent to $2.0 billion For personal use only GROUP H1 SALES GROWTH SALES ($M) BY BRAND H1 SALES H1 LFL SALES GROWTH (%) GROWTH (%) 4 3 (1) (3) 2,020 1,958 8 2 1,776 1,705 4 0 1,444 TOTAL GROUP 3 1 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 4
Slide 5: Gross margin and CODB
Gross margin and CODB Gross margin (%) has increased and costs have been well managed. Ongoing cost management initiatives in place For personal use only GROUP GROUP CODB AS GROUP PBT GROSS MARGIN A % OF SALES1 MARGIN Gross margin Higher CODB as a % of sales Double digit increased by 30 bps reflecti
Slide 6: Margin protection and cost management initiatives in place
Margin protection and cost management initiatives in place For personal use only Supply Cost of Goods Sold Variable cost Strategic chain (COGS) efficiency plan pricing Sourcing and Store development & Store cost base Capital discipline and procurement operating efficiency normalisation narrowed proj
Slide 7: Customer highlights
Customer highlights Club members represented 76 per cent of Group H1 sales For personal use only ACTIVE CLUB CLUB MEMBER CLUB MEMBER MEMBERS1 NPS % OF SALES 11.1m (UP 1.4M) 69 (UP 3) 76% (UP 4%) CLUB MEMBER CLUB MEMBER CLUB MEMBER CLUB MEMBER NPS (UP 1) NPS (UP 2) NPS (UP 5) NPS (UP 1) 67 66 73 69 C
Slide 8: Store network highlights
Store network highlights Strong pipeline of new store openings in FY24 For personal use only NEW TARGETED STORES STORE CURRENT OPENED IN OPENINGS IN H2 STORES H1 751 17 11 H1 STORE H1 STORE H1 STORE H1 STORE OPENINGS OPENINGS OPENINGS OPENINGS 7 1 5 4 TARGETED H2 TARGETED H2 TARGETED H2 TARGETED H2
Slide 9: Digital and omni-retail highlights
Digital and omni-retail highlights CLICK & Online sales have grown by 10 per cent GROUP H1 H1 ONLINE COLLECT % OF H1 For personal use only ONLINE SALES SALES GROWTH ONLINE SALES H1 FY24 BRAND SALES BY CHANNEL $260m 10% 47% HOME DELIVERY % OF H1 SALES 4 YEAR CAGR IN TOTAL % OF H1 COMPLETED IN H1 ONLI
Slide 10: First half results and brand highlights
First half results and brand highlights For personal use only 10
Slide 11: Group results
Group results For personal use only H1 FY24 H1 FY23 $m Change (26 weeks) (26 weeks) Total sales1 2,019.9 1,958.2 3.2% Total segment EBITDA 402.0 404.5 (0.6%) Segment D&A 168.7 163.6 3.1% Total segment EBIT 233.3 240.9 (3.2%) Finance costs 27.0 22.6 19.5% Normalised segment PBT 206.3 218.3 (5.5%) Seg
Slide 12: Segment results
Segment results For personal use only H1 FY24 H1 FY23 $m (26 weeks) (26 weeks) Segment Sales PBT Sales PBT Supercheap Auto 759.7 107.3 728.6 108.1 rebel 672.9 65.1 681.9 84.1 BCF 483.7 41.2 447.6 31.0 Macpac 105.4 7.9 101.4 15.9 Group and (1.8) (15.2) (1.3) (20.8) Unallocated Total 2,019.9 206.3 1,9
Slide 13: Supercheap Auto highlights
Supercheap Auto highlights For personal use only Supercheap Auto is Australia and New Zealand’s favourite1 specialty automotive parts and accessories retail business • Record first half sales driven by like-for-like sales growth • Record Boxing Day sales • Record club member NPS score • Added 600,00
Slide 14: Supercheap Auto results
For personal use only • Total sales increased by 4 per cent to $760 million driven by like-for-like sales $m H1 FY24 H1 FY23 Change growth • Like-for-like sales of 3 per cent driven by growth in transaction volumes and higher average transaction value (ATV) Sales 759.7 728.6 4.3% • The auto maintena
Slide 15: rebel highlights
rebel highlights For personal use only rebel is Australia’s leading sporting goods retailer. We empower our customers to achieve their sporting dreams and passions • Relaunched rebel active loyalty program in October • Executed a highly successful Women’s World Cup licensed football campaign • Added
Slide 16: rebel results
For personal use only • Total sales declined by 1 per cent to $673 million as consumer spending softened in the second quarter. Like-for-like sales declined by 3 per cent reflecting a decrease in units per $m H1 FY24 H1 FY23 Change transaction • Football and licensed were the best performing categor
Slide 17: Financial impact of rebel active loyalty program
Financial impact of rebel active loyalty program For personal use only • rebel’s H1 result includes the impact of a $5 million provision for deferred revenue as a result of loyalty credits issued to customers • The provision is expected to be ~$8 million in total for the full year FY24, in line with
Slide 18: Customers have embraced the relaunched rebel loyalty program
Our customers have embraced the relaunched rebel loyalty program • For personal use only rebel successfully relaunched its active club member loyalty program in October 2023 • rebel active club members now earn $5 worth of loyalty points for every $100 spent at rebel, which can be redeemed on purcha
Slide 19: BCF highlights
BCF highlights For personal use only BCF is Australia’s favourite1 outdoor retailer, with stores in every Australian state and territory • Record first half sales driven by higher transaction volumes • Strong growth in key expansion categories - fishing, caravan and 4WD • Club members represented 90
Slide 20: BCF results
For personal use only • Total sales increased by 8 per cent to $484 million driven by like-for-like sales growth and network expansion $m H1 FY24 H1 FY23 Change • Like-for-like sales increased by 2 per cent driven by strong growth in transaction volumes • Fishing was the fastest growing category, dr
Slide 21: Macpac highlights
Macpac highlights For personal use only Macpac is New Zealand’s original technical outdoor brand, that instils the confidence and spirit you need to take on anything • Record first half sales driven by a strong second quarter • Double digit like-for-like sales growth in New Zealand • Record Boxing D
Slide 22: Macpac results
• Total sales increased by 4 per cent to $105 million driven by new store openings For personal use only • Like-for-like sales declined by 5 per cent in Australia following a warm, dry winter $m H1 FY24 H1 FY23 Change • Like-for-like sales increased by 10 per cent in New Zealand driven by strong gro
Slide 23: Group and unallocated
Group and unallocated For personal use only • Group and unallocated includes corporate costs not allocated to segments and customer, omni, digital and loyalty development $m H1 FY24 H1 FY23 costs • Group and unallocated costs reduced by more than $5 million Segment PBT (15.2) (20.8) to approximately
Slide 24: Group balance sheet
Group balance sheet For personal use only • Total inventory is $26 million (or 3 per cent) higher than pcp and reflects $m 30 Dec 23 31 Dec 22 the expansion of the store network • Average inventory per store has declined compared to pcp Inventory • rebel’s December 2023 inventory balance reflects a
Slide 25: Returns, capital ratios and fx
Returns, capital ratios and fx For personal use only • The Group has delivered normalised EPS of 64.3 cents • The Directors have determined to pay a fully franked interim dividend H1 FY24 H1 FY23 Change of 32 cents per share • Group dividend policy is to pay out total annual ordinary dividends of No
Slide 26: Group cash flow
Group cash flow For personal use only • Operating cash flow of $479 million was up 9 per cent or $39 million $m 30 Dec 23 31 Dec 22 compared to pcp and reflects the following: • A 3 per cent increase in cash receipts from customers in line with Operating cash flow 478.5 439.3 revenue growth Store ca
Slide 27: Corporate strategy
For personal use only Corporate strategy 27
Slide 28: Our strategy
1 GROW THE FOUR Our strategy For personal use only CORE BRANDS Growing annual 2 LEVERAGE CLOSENESS TO OUR CUSTOMER customer value PRIMARY VALUE Ensuring organic growth and 3 CONNECTED OMNI-RETAIL SUPPLY CHAIN LEVERS capital discipline 4 Being an SIMPLIFY THE efficient BUSINESS omni-retailer 5 EXCEL
Slide 29: Delivering on our strategy in FY24
Delivering on our strategy in FY24 For personal use only GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • 5-year Brand strategies • Active customer growth remains • Supply chai
Slide 30: Leveraging closeness to customer through loyalty
Delivering on our strategy – leveraging closeness to customer through loyalty For personal use only Leveraging closeness to our CLUB MEMBER SALES % OF GROUP SALES1 customer Club members represented more than three quarters of Group sales in H1 FY24 Successful launch of new rebel Active loyalty progr
Slide 31: Sustainability and team
Sustainability and team For personal use only 31
Slide 32: Sustainability and team
Sustainability and team For personal use only ESG ratings Team Team engagement score of 80 which is above the Achiever’s benchmark for comparable companies¹ Over 4,000 team members are signed up to our “I am here” mental wellness program Since 2019 Super Retail Group has been committed to the UN Glo
Slide 33: Trading update
For personal use only Trading update 33
Slide 34: Trading update
Trading update H1 FY24 H1 FY24 H2 FY24 FY24 YTD Total sales growth LFL sales growth LFL sales growth LFL sales growth For personal use only (Wk 1 - 26) (Wk 1 - 26) (Wk 27 - 33)1 (Wk 1 - 33) Supercheap Auto 4% 3% 0% 3% rebel (1%) (3%) (4%) (3%) BCF 8% 2% (5%) 0% Macpac 4% 0% 5% 1% Group 3% 1% (2%) 0%
Slide 35: Appendix – Store network, performance trends and segment notes
Appendix 1 – Store network, performance trends and segment notes For personal use only 35
Slide 36: The Group has a network of over 750 stores across Australia and NZ
The Group has a network of over 750 stores across Australia and NZ For personal use only NT 6 QLD 3 1 2 172 85 38 45 4 WA Supercheap Auto (337 stores) 71 SA ACT 31 15 20 5 NZN rebel (159 stores) 50 16 56 21 11 15 3 4 4 3 5 NSW BCF (162 stores) 33 23 196 Macpac (93 stores) 84 51 45 16 VIC 143 58 38 2
Slide 37: Performance trends
Performance trends Reported Total Segment EBIT (pre-AASB16) ($m) For personal use only Reported Sales ($m) 256 225 213 1,958 2,020 168 1,776 1,705 1,403 1,444 125 1,296 1,324 115 114 115 1,159 1,216 94 93 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 14 Dec 15 Dec 16 Dec
Slide 38: Segment note (post AASB 16) H1 FY24
Segment note (post AASB 16) H1 FY24 For personal use only 38
Slide 39: Segment note (post AASB 16) H1 FY23
Segment note (post AASB 16) H1 FY23 For personal use only 39
Slide 40: Segment note (pre AASB 16) H1 FY24
Segment note (pre AASB 16) H1 FY24 For personal use only 40
Slide 41: Segment note (pre AASB 16) H1 FY23
Segment note (pre AASB 16) H1 FY23 For personal use only 41
Slide 42: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation has been prepared by Super Retail Group Limited ABN 81 108 676 204 ("SRG"). It provides summary information about the activities of SRG and its subsidiaries current as at the date of this presentation. The information in this pr