Puuilo Oyj · OMXHEX:PUUILO
Puuilo Oyj — Q1 2023 Earnings Presentation
25 slides from Puuilo Oyj's earnings presentation, 2023
Slide 1: A solid start for the financial year – growth continues
A SOLID START FOR THE FINANCIAL YEAR– GROWTH CONTINUES PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 2: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023 2
Slide 3: Key figures Q1/2023 (February – April)
Key figures Q1/2023 (February – April) GROWTH PROFITABILITY EVENTS DURING THE REPORTING PERIOD ▪ Net sales growth is in line with our long-term +10.3% (+0.8%) 11.2% (10.5%) targets. Net sales increased in like-for-like stores EBITA margin (adj.) and in new stores. Net sales ▪ Gross margin level was
Slide 4: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 5: Net sales increased in line with long-term target
NET SALES DEVELOPMENT Net sales increased in line with long-term target +10.3% Q1/2023 +0.8% 65.0 ▪ Net sales increased by 10.3% and like-for-like 58.4 58.9 store net sales by 4.9%. ▪ Net sales increased in like-for-like stores and in new stores. Online store net sales decreased, because customers a
Slide 6: Gross margin increased 1.5 percentage points
PROFIT DEVELOPMENT Gross margin increased 1.5 percentage points +1.5% -points. Q1/2023 Q2/2021 -1.5% -points. 36.5% 36.5% ▪ Gross margin increased and was 36.5%. 35.0% ▪ The gross margin was supported by the decrease in logistics costs. ▪ In addition, Puuilo closely monitors market pricing. Sales pr
Slide 7: Adjusted EBITA and relative profitability increased
PROFIT DEVELOPMENT Adjusted EBITA and relative profitability increased -2.5 M€ Q1/2023 8.7 +1.1 M€ 7.3 ▪ Adjusted EBITA increased by 1.1 MEUR ▪ Relative profitability was 11.2% of net sales. 6.2 ▪ Cost control has been good despite high inflation. ▪ The increase in personnel costs was mainly due to
Slide 8: Inventory levels have decreased, and inventory turnover improved
INVENTORIES Inventory levels have decreased, and inventory turnover improved Q1/2023 +36.0 M€ -7.8 M€ ▪ The inventories amounted to 95.1 MEUR 103.0 95.1 ▪ The inventory levels have decreased significantly compared to the same time last year despite of four new stores. The new 67.0 stores contributed
Slide 9: Strong cash flow due to strong development of net sales and solid EBITA
CASH FLOW Strong cash flow due to strong development of net sales and solid EBITA Q1/2023 +7.1 M€ 10.3 ▪ Operating free cash flow was 10.3 MEUR. -3.7 M€ ▪ Operative free cash flow was positively 6.9 impacted by strong net sales growth, decrease in inventory levels and solid EBITA. 3.2 ▪ Cash convers
Slide 10: Net debt to EBITDA ratio decreased. Financial position is stable.
BALANCE SHEET Net debt to EBITDA ratio decreased. Financial position is stable. Net debt* / adj. EBITDA Cash and cash equivalents at the end of the reporting period, MEUR Q2/2021 Q1/2023 1.7 x ▪ Puuilo’s financial position is 37.6 stable. 1.5 x ▪ The ratio of net debt to adjusted EBITDA is in line w
Slide 11: Key figures Q1/2023 (1 Feb 2023 – 30 Apr 2023)
KEY FIGURES Q1 / 2023 (1 Feb 2023 – 30 Apr 2023) ▪ Net sales increased by 10.3% (+0.8%) and were EUR 65.0 million (58.9) ▪ Like-for-like store net sales increased by 4.9% (-5.0%) ▪ Online store net sales decreased by 18.8% (-8.4%) ▪ Gross profit was EUR 23.7 million (20.6) and gross margin was 36.5%
Slide 12: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 13: Puuilo's strategy supports our financial targets
Puuilo’s strategy supports our financial targets Growing the store network Net sales above EUR 400 million by the end of financial year 2025 with annual organic sales growth in excess of 10%. Like-for-like net sales growth in the young store network Increasing the share of private label Adjusted EBI
Slide 14: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 15: Outlook
OUTLOOK Puuilo repeats the outlook for the financial year 2023 given in its financial statements release on 30 March 2023. Net debt to adjusted EBITDA below 2.0x. By the end of financial year 2025 with annual organic sales growth in excess of 10%. Puuilo forecasts that net sales and adjusted operati
Slide 16: Store openings in FY 2023
Store openings in FY 2023: • Vantaa Porttipuisto, opened 30 March 2023 • Nummela, opened 8 June 2023 • Kerava • Helsinki Konala • Vantaa Varisto The aim for 2024 is to open at least 4 new stores! PUUILO PLC | BUSINESS REVIEW Q1/2023 16
Slide 17: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 18: Puuilo as an investment
Puuilo as an investment A leading player in the Successful concept Growing store network Growth clearly growing discount based on wide product and online store outperforming the retail market in assortment, low prices, market, high Finland perceived low price level profitability and strong and conve
Slide 19: Significant room to expand store network with proven ramp-up process
Significant room to expand store network with proven ramp-up process STORE NETWORK GROWTH NEW POTENTIAL STORE LOCATIONS1) EFFICIENT LAUNCH PROGRAM ~60 42 46 50 54 58 62 37 34 30 27 Current concept 23 19 FY17 FY18 FY19 FY20 FY21 FY22 Medium term potential Notes: 1) Management estimate; 2) Based on av
Slide 20: Strong like-for-like growth driven by increasing store traffic
Strong like-for-like growth driven by increasing store traffic Notes: 1) FY2022 excluding Lieto, which opened in Jan 2023. PUUILO PLC | BUSINESS REVIEW Q1/2023 20
Slide 21: The brand awareness and consideration of Puuilo is growing
The brand awareness and consideration of Puuilo is growing – still a lot of growth potential Aided brand awareness – Which discount store do you prefer to shop at? Recognize at least by name What other stores would you also consider? 98% 98% X 96% 53% 49% 42% X 11/2020 12/2021 12/2022 Spontaneous br
Slide 22: Increasing market share - customer satisfaction at good level
Increasing market share - customer satisfaction at good level NPS Good assortment Price level Good location (2021 40) Source: Customer research commissioned by Puuilo in May 2023 (n15500) PUUILO PLC | BUSINESS REVIEW Q1/2023 22
Slide 23: Long track record of strong sales growth and profitability
Long track record of strong sales growth and profitability 296 270 239 170 136 18,1% 17,9% 115 16,5% 14,1% 14,5% 90 77 63 51 < FAS IFRS > FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 PUUILO PLC | BUSINESS REVIEW Q1/2023 23
Slide 24: Business Review Q1/2023
PUUILO PLC | BUSINESS REVIEW Q1/2023
Slide 25: Our sustainability work in 2022
A RESPONSIBLE RETAILER A GOOD PLACE TO WORK CONSUME MORE SUSTAINABLY A responsible retailer covers Strong and sustainable growth is Puuilo wants to operate in a both the work carried out by possible only when personnel resource-wise manner and Puuilo employees and activities are skilled and motivate