Douglas Ag · XETR:DOU
Douglas — Q4 FY2023/24 Earnings Presentation
54 slides from Douglas's earnings presentation, Dec 19, 2024
Slide 1: Financial Results & Business Highlights Q4 & FY 2023/24
FINANCIAL RESULTS & BUSINESS HIGHLIGHTS Q4 & FY 2023/24 Düsseldorf, 19 December 2024
Slide 2: Agenda
AGENDA 01 Business Highlights 4 02 Q4 Financials 13 03 Strategy Update 26 04 Peak Season Update 32 05 Wrap-up + Q&A 36
Slide 3: Q4 & FY 23/24 Successes
Q4 & FY 23/24 SUCCESSES OMNICHANNEL PROFITABILITY DEVELOPMENT WELL ON TRACK Store sales (Q4): Adjusted EBITDA (Q4): +8.3% +10.9% to €151.5m E-Com sales (Q4): Adj. EBITDA margin (Q4): +9.5% 15.8% (+0.3 ppts) POSITIVE GROWTH NET INCOME STRATEGY Net income (Full Year): Implementation of +404.2% to €84.
Slide 4: Business Highlights
SANDER VAN DER LAAN, CEO BUSINESS HIGHLIGHTS
Slide 5: Store Network: Spectacular Openings and Modernizations
Store Network: Spectacular Openings and Modernizations e.g. Pompeii, Leuven, Zagreb, Vienna
Slide 6: Premium Redesign of Online Shop, Website & App
Premium Redesign of Online Shop, Website & App Premiumization and consistency plus further omnichannel activation
Slide 7: One Tech Stack: E-Com platform rollout
One Tech Stack: E-Com platform rollout in Czech Rep., Slovakia, and France (NOCIBÉ) Harmonized Group Online Shops
Slide 8: Corporate Brands: #IYKYK Campaign was a huge success
Corporate Brands: #IYKYK Campaign was a huge success Sales*: IT +21%, DE +9%, PL +17% * Total for DOUGLAS COLLECTION during campaign period
Slide 9: All categories developing well, Skincare and Haircare grow above average
All categories developing well, Skincare and Haircare grow above average (Q4 2023/24) Outstanding omnichannel assortment
Slide 10: Rollout of core HR system SAP SuccessFactors
Rollout of core HR system SAP SuccessFactors in all countries Major milestone of global tech stack
Slide 11: New DOUGLAS Academy tool: Digital Learning
New DOUGLAS Academy tool: Digital Learning Platform for all Beauty Advisors Successful global launch in October
Slide 12: DOUGLAS Group is the Top Company for Women in Retail in 2024
DOUGLAS Group is the Top Company for Women in Retail in 2024 Award by Forbes and Statista
Slide 13: Q4 Financials
MARK LANGER, CFO Q4 FINANCIALS
Slide 14: Further increase in sales and profitability
Further increase in sales and profitability Q4 performance highlights a continued growth trajectory SALES ADJUSTED EBITDA1 in m€ 960 in m€ 883 152 +8.7% 137 +10.9% +9.4% lfl 15.5% 15.8% MARGINS Q4 2022/23 Q4 2023/24 Q4 2022/23 Q4 2023/24 − Ongoing strong sales momentum as customers continue to be at
Slide 15: DACHNL Q4 2023/2024
DACHNL Q4 2023/2024 Strong sales development in both channels SALES ADJUSTED EBITDA1 − Sales increase driven by +10.1% (+10.7% lfl) growth in Store business in m€ in m€ and +15.9% in E-Com sales 461 +12.2% − Sales increase in Stores due to strongly 410 increased footfall although lower conversion ra
Slide 16: France Q4 2023/2024
France Q4 2023/2024 Slight sales decline, adjusted EBITDA affected by one-time effects SALES ADJUSTED EBITDA1 − Sales decrease driven by E-Com channel (-9.4%) while Store business in m€ in m€ increased by +1.5% (+1.3% lfl) 161 160 -0.6% − Lower footfall with slightly lower conversion rate, but large
Slide 17: Southern Europe Q4 2023/2024
Southern Europe Q4 2023/2024 Ongoing sales growth in Stores and accelerated growth in E-Com SALES ADJUSTED EBITDA1 − Sales increase driven by +8.7% (+7.8% lfl) growth in Stores and in m€ in m€ +22.8% E-Com sales 143 130 +10.2% − Strongly increased footfall in Stores with slightly higher net sales pe
Slide 18: Central Eastern Europe Q4 2023/2024
Central Eastern Europe Q4 2023/2024 Strong sales growth with margin impacted by expansion program SALES ADJUSTED EBITDA1 − Sales increase driven by +13.2% (+8.8% lfl) growth in Stores and in m€ in m€ +21.4% in E-Com 146 +14.8% − Sales increase from significantly 127 higher footfall in Stores with la
Slide 19: Parfumdreams/NICHE BEAUTY Q4 2023/2024
Parfumdreams/NICHE BEAUTY Q4 2023/2024 Selected price investments impacted margin SALES ADJUSTED EBITDA1 − Resumed sales growth trajectory after transferring warehouse in m€ in m€ operations to OWAC Hamm last 43 quarter (Q3 2023/2024) 40 7.4% − More orders with larger basket sizes − Competitive pric
Slide 20: Sales Growth fueled by Omnichannel Business
Sales Growth fueled by Omnichannel Business Sales Q4 2023/2024 GROUP STORES E-COM in m€ in m€ in m€ − Significantly increased footfall and number of − E-Com continues to grow for the 10th 960 customers, partially due to openings consecutive quarter 883 +8.7% − Higher basket sizes in most segments −
Slide 21: P&L – Net Income significantly positive following growth path
P&L – Net Income significantly positive following growth path Q4 2023/2024 in m€ Q4 2022/23 Q4 2023/24 ∆% Sales 883.1 959.9 8.7% − Gross profit: Successful price Cost of raw materials, consumables and -476.9 -519.1 -8.8% pass-through, effectively supplies and merchandise transferring into maintained
Slide 22: Improved Net Working Capital in relation to sales; Capex program on track
Improved Net Working Capital in relation to sales; Capex program on track As of 30 September 2024 AVERAGE NET WORKING CAPITAL CAPEX in m€ in m€ 212 234 +10.8% 76 +60.4% 47 5.2% 5.3% Average NWC as % of Sales1 30.09.2023 30.09.2024 Q4 2022/23 Q4 2023/24 − Average inventory higher to support strong bu
Slide 23: Free Cash Flow improved
Free Cash Flow improved FY 2023/2024 in m€ 809 -151 -23 597 -63 26 534 -63 524 -10 5 Adj EBITDA CAPEX 1 Working TAX Others ³ Adj FCF EBITDA Free Cash Flow M&A FCF POST M&A Capital ² Adjustments (pre M&A) (Cash effect) 4 FY 2022/23 726 -110 -88 -33 28 523 -43 481 0 481 1 Excl. M&A-related investments
Slide 24: Significant reduction in leverage ratio
Significant reduction in leverage ratio As of 30 September 2024 AVAILABLE LIQUIDITY in m€ 438 424 TOTAL NET LEVERAGE1 ADJUSTED EBITDA² LTM 161 €10.5m used or 809 reserved for rental 4.7 726 guarantees (RCF) (PY: €8.8m) 340 in m€ (RCF) 2.8 262 (cash) 99 (cash) Sept.-23 Sept.-24 Sep-23 Sep-24 Sep-23 S
Slide 25: Outlook 2024/2025
Outlook 2024/2025 Continuation of growth trajectory DOUGLAS Group 2023/24 2024/25 (m€) reported guidance Sales 4.451 4.700 to 4.800 Adjusted EBITDA 809 855 to 885 Average net working capital as % of sales 5.3% <5% ➢ Net income expected between EUR 225m and EUR 265m, based on − increased EBITDA, − im
Slide 26: Strategy Update
SANDER VAN DER LAAN, CEO STRATEGY UPDATE
Slide 27: "Let it Bloom" Strategy Execution Continues as Planned
“Let it Bloom” Strategy Execution Continues as Planned Deliver most Be the #1 BEAUTY Offer most relevant Build focused customer friendly DESTINATION and distinctive and efficient OMNICHANNEL in all our markets RANGE OF BRANDS OPERATING MODEL experience Brand Communication Category & Brands Multiform
Slide 28: Store Network Development
Store Network Development Ongoing expansion and modernization − Connecting stores and digital channels closely is crucial to our strategy – increased omnichannel activation via e.g. our apps − We are steadily approaching our target of around 200 openings (net) and 400 refurbishments − Ongoing expans
Slide 29: CRM 2.0: The New Beauty Card
CRM 2.0: The New Beauty Card Creating a true omnichannel loyalty program − More than 59 million Beauty Card members* − Full redesign of our customer loyalty program starting in early 2025 with a brand new Beauty Card program − International harmonization & rollout to new countries − Facilitated pers
Slide 30: Expansion of Retail Media Offering
Expansion of Retail Media Offering Premium, data-driven marketing solutions − Retail Media is fastest-growing area in digital advertising* − High-margin revenue stream and important strategic pillar − DOUGLAS Group with strong data capabilities and industry-leading first party beauty retail data − I
Slide 31: Clear Path Forward in Sustainability
Clear Path Forward in Sustainability Moving from setting up to tracking progress − Ambitious Group-wide sustainability strategy in place − We are well on track in executing measures and initiatives − Major milestones in all three focus areas: − People: GPTW certification; high share of women in lead
Slide 32: Peak Season
PEAK SEASON
Slide 33: We started well into the new Financial Year
We started well into the new Financial Year SINGLES’ DAY BEAUTY FRIDAY CHRISTMAS 11 NOVEMBER 2024 29 NOVEMBER 2024 DECEMBER 2024 33
Slide 34: X-Mas: "Gift the DOUGLAS Feeling"
X-Mas: „Gift the DOUGLAS Feeling“ Christmas campaign about the beauty of gifting − 360-degree Christmas campaign with the motto "GIFT THE DOUGLAS FEELING”, drawing on the emotions of giving and receiving beautiful gifts − Campaign color mint and mint-colored gifts as recurring visual elements for st
Slide 35: This Year's Beauty Friday in Numbers
Peak time E-Com order volume of E-Com at the peak time (22:00) 22:00 CET ~25,000 per hour Orders Purchases Leading in E-Com in stores category This Year‘s ~1,450,000 ~500,000 Fragrance Beauty Friday in Numbers* iOS app charts (GER)**: 8x Website traffic (peak) vs usual days Most important sales day
Slide 36: Wrap-up + Q&A
WRAP-UP + Q&A
Slide 37: Summary
SUMMARY − Positive business development continues: Strong finish to 2023/24 – DOUGLAS Group started well into to the new FY − FY 2023/24 closed with results exceeding raised guidance − Omnichannel remains a winning model in beauty, with the DOUGLAS Group customer proposition leading the way − „Let i
Slide 38: Appendix
APPENDIX
Slide 39: Adjustments to EBITDA
Adjustments to EBITDA Q4 and FY 2023/2024 in m€ Q4 2022/23 Q4 2023/24 Q4 2022/23 YTD Q4 2023/24 YTD Reported EBITDA 137.0 152.9 683.0 730.3 Strategic projects Consulting fees1 3.1 0.6 9.5 10.7 Restructuring costs2 0.4 1.6 3.5 2.6 PPA -1.8 0.0 -2.2 -0.3 Release of unused provisions SOP 3 -3.8 0.2 -1.
Slide 40: Selected Segmental KPIs
Selected Segmental KPIs Q4 2023/2024 REPORTED EBITDA CAPEX In m€ Q4 2022/23 Q4 2023/24 In m€ Q4 2022/23 Q4 2023/24 DACHNL 84.5 111.4 DACHNL 8.0 32.1 France 36.4 28.0 France 10.5 14.4 Southern Europe 23.5 24.0 Southern Europe 8.8 10.0 Central Eastern Europe 34.5 35.4 Central Eastern Europe 9.6 15.1 P
Slide 41: Deep Dive into like-for-like sales development
Deep Dive into like-for-like sales development Quarterly overview Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 DACHNL 9.4% 7.5% 15.2% 10.6% 12.7% France 6.3% 2.9% 4.0% 3.7% -1.0% Southern Europe 4.3% 4.6% 5.9% 3.6% 9.7% Central Eastern Europe 16.9% 15.8% 18.2% 12.6% 11.6% PD/NB 37.6% 26.5%
Slide 42: Selected segmental KPIs FY 2023/24
Selected segmental KPIs FY 2023/24 REPORTED EBITDA CAPEX In m€ Q4 2022/23 YTD Q4 2023/24 YTD In m€ Q4 2022/23 YTD Q4 2023/24 YTD DACHNL 384.9 445.1 DACHNL 24.1 52.1 France 182.2 171.9 France 19.0 29.9 Southern Europe 123.9 147.2 Southern Europe 15.8 20.3 Central Eastern Europe 152.2 169.7 Central Ea
Slide 43: Development of Net Working Capital
Development of Net Working Capital As of 30 September 2024 241 245 221 205 in m€ 149 NWC as % of X% LTM Sales 5.0% 3.5% 5.6% 5.6% 5.0% Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 Inventory 762.6 794.7 776.6 765.5 793.5 Trade accounts receivable 61.0 116.6 87.8 76.1 61.4 Trade accounts pay
Slide 44: DACHNL FY 2023/2024
DACHNL FY 2023/2024 Strong sales development in both channels SALES ADJUSTED EBITDA1 − Sales increase driven by +8.2% (+8.4% lfl) growth in Store business in m€ in m€ and 14.8% E-Com sales 2.073 +10.7% − Sales increase in Stores due to 1.872 significantly higher footfall as well as higher basket siz
Slide 45: France FY 2023/2024
France FY 2023/2024 Solid sales growth SALES ADJUSTED EBITDA1 − Sales increase driven by +3.2% (+2.5% lfl) growth in Store business, in m€ in m€ E-Com increased by +2.5% 814 838 +3.0% − Higher footfall although lower conversion rate, higher basket sizes with higher sales per item in Stores; decrease
Slide 46: Southern Europe FY 2023/2024
Southern Europe FY 2023/2024 Ongoing sales growth in Stores translated into higher adj. EBITDA SALES ADJUSTED EBITDA1 − Sales increase driven by +7.8% (+7.3% lfl) growth in Stores, E-Com in m€ in m€ business decreased by -1.6% 666 626 +6.4% − Sales increase in Stores due to significantly higher foot
Slide 47: Central Eastern Europe FY 2023/2024
Central Eastern Europe FY 2023/2024 Very strong sales growth with margin impacted by store expansion program SALES ADJUSTED EBITDA1 − Sales increase driven by +16.4% (+12.9% lfl) growth in Stores and in m€ in m€ +20.3% in E-Com 652 +17.2% − Sales increase from significantly 556 higher footfall in St
Slide 48: Parfumdreams/NICHE BEAUTY FY 2023/24
Parfumdreams/NICHE BEAUTY FY 2023/24 Strong sales growth for the online beauty businesses SALES ADJUSTED EBITDA1 − Sales increase driven by the E-Com business mainly from the DACH in m€ in m€ market and growth in active 190 customers +10.8% 172 − More orders and higher basket sizes − Investments in
Slide 49: Sales growth fueled by Omnichannel business
Sales growth fueled by Omnichannel business Sales FY 2023/2024 GROUP STORES E-COM in m€ in m€ in m€ − Significantly increased footfall and number of − E-Com continues its growth trajectory 4.451 customers − Significantly more visits to the online shops 4.094 +8.7% − Higher basket sizes in most segme
Slide 50: P&L – KPIs significantly improved
P&L – KPIs significantly improved FY 2023/2024 Reported Reported Pro Forma/adjusted² Q4 2023/24 YTD reported in m€ FY 2022/23 FY 2023/24 FY 2023/24 − Gross profit: Successful price Sales 4,093.9 4,451.0 4,451.0 pass-through effectively transferring into maintained Cost of raw materials, consumables
Slide 51: Cash flow statement
Cash flow statement FY 2023/2024 In m€ Q4 2022/23 YTD Q4 2023/24 YTD Net cash flow from operating activities 584.7 683.6 Net cash flow from investing activities -104.1 -159.6 Free cash flow 480.6 524.0 Net cash flow from financing activities -465.6 -689.3 Net change in cash and cash equivalents 15.0
Slide 52: Financing structure since 15 April 2024
Financing structure since 15 April 2024 As of 30 September 2024 in m€ m€ x Adj. EBITDA1 Maturity Pricing Cash and Equivalents 99 RCF (€350m Volume) 1 Mar 29 E+2.25% Term Loan 816 Mar 29 E+2.75% Bridge facility 461 Mar 25 E+2.25% (can be extended twice by six months) IFRS 16 Liabilities 1,107 Net Deb
Slide 53: Store network across Europe
Store network across Europe As of 30 September 2024 NUMBER OF STORES DEVELOPMENT 1,850 1,884 30 September 2023 – 30 September 2024 Store openings 54 Store closures -20 1.756 Total 34 1.718 Store openings: 12 stores in DACHNL (DE, AT, CH, BE), 6 in France, 6 in South Europe (IT, PT, SI) 132 128 and 2
Slide 54: DOUGLAS Group
LOUGLAS GROUP