Sosandar Plc · LSE:SOS
Sosandar — H1 FY2025 Earnings Presentation
25 slides from Sosandar's earnings presentation, Nov 26, 2024
Slide 1: Interim Results 26 November 2024
Interim Results 26 November 2024 Julie Lavington – Co-CEO and Co-Founder Ali Hall – Co-CEO and Co-Founder Steve Dilks – CFO 1
Slide 2: Agenda
Agenda • Highlights (H1 & FY Outlook) • Stores • H1 Financials • Product and Product Expansion Through Licensing • High Profit, High Margin Business Model • Questions 2
Slide 3: Successful Transition to Multi-Channel
Successful Transition to Multi-Channel • Successfully opened first four physical stores o Strong trading and positive halo effect online • Rebased the financial model - operating at much higher margins o Substantial margin increase o Positive swing in PBT • Cash strong – store roll out programme sel
Slide 4: H2 Outlook: On Track to Meet Full Year Expectations
H2 Outlook On Track to Meet Full Year Expectations • Gross margin continues to strengthen (64% Q3 FY25 to date) • Continued increase in PBT vs LY • Significant positive swing in revenue – on par with last year • Balance sheet remains robust, cash at £7m (22nd Nov) • First licensing agreement signed
Slide 5: Stores
Stores 5
Slide 6: Chelmsford
Chelmstord
Slide 7: Stores Attracting a High % of Brand-New Customers
Stores Attracting a High % of Brand-New Customers Repeat Customers 35% New Customers 65% 7
Slide 8: Halo Effect of Stores on Online Business
Halo Effect of Stores on Online Business Impact of Opening Stores on Online Pre and Post Opening Stores * 70% 60% 60% 53% 50% • Sessions up 50% in areas where stores have 50% opened (vs 25% average in other non-store 40% areas) 30% 25% • Revenue up 60% in areas where stores have 20% opened (vs 53% a
Slide 9: Stores – The First 10 Weeks
Stores – The First 10 Weeks • High margin - trading at full RRP • Minimal returns (<10%) • Footfall and sales are good all week, peaks on Saturday • Customers buying across all categories • Adapting product range by store 9
Slide 10: H1 FY2025 Financials
H1FY2025 Financials AB Ls
Slide 11: Increasing the Margin
Increasing the Margin • Re-based financial model • Reduction of price promotions • Already sell at full RRP with all third-party partners • Significant margin gains made since H2 FY2024 11
Slide 12: H1 FY2025 Significant Margin Increase
H1 FY2025 Significant Margin Increase Gross Margin % 65.0% 62.2% 60.0% H1 increased 57.6% margin by 56.0% 56.2% 680bps on 55.0% H1 previous year 50.0% FY2022 FY2023 FY2024 H1 FY2025 • Primary driver is reduction in price promotional activity • Intake margin improvements 12
Slide 13: Focus on Full Price Sales > Enhanced Margin
Focus on Full Price Sales > Enhanced Margin 85% Reduction in Price Promotions 85% Reduction Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Price Promotions by Quarter on sosandar.com 13
Slide 14: H1 FY25 KPIs: Substantial Improvement In Profitability
H1 FY25 KPI’s: Substantial Improvement In Profitability PBT Gross Margin % - 65.0% H1 FY2024 H1 FY2025 62.2% (£0.5m) 60.0% (£0.7m) 55.4% (£1.0m) 55.0% (£1.5m) (£1.3m) 50.0% H1 FY2024 H1 FY2025 Net Revenue Cash £25.0m £22.2m £10.0m £8.3m £20.0m £8.0m £7.0m £16.2m £15.0m £6.0m £10.0m £4.0m £5.0m £2.0m
Slide 15: Substantial Reduction in Loss - Focus on Margin
Substantial Reduction in Loss - Focus on Margin H1 FY2025 vs H1 Income Statement. H1 FY2025 H1 FY2024 FY2024 £m £m £m % Revenue 16.2 22.2 (6.0) -27% • Loss £0.7m, upswing vs LY (H1 FY2024 £1.3m) Cost of Goods (6.1) (9.9) 3.8 -38% Gross Profit 10.1 12.3 (2.2) -18% Gross Profit % 62.2% 55.4% 6.7% • Gr
Slide 16: Strong Cash Supporting Store Roll Out
Strong Cash Supporting Store Roll Out Balance Sheet Sep-24 Sep-23 Mar-24 £m £m £m Intangible assets 0.5 0.4 0.4 • Strong cash balance of £7.0m Property, plant and equipment 1.2 0.3 0.3 Right of use asset 2.1 0.6 0.6 Deferred income tax asset 0.6 0.7 0.6 Non-current assets 4.4 2.0 1.9 Inventory 12.2
Slide 17: Self-Funding Store Roll Out
Self-Funding Store Roll Out Cash Flow H1 FY2025 H1 FY2024 FY2024 £m £m £m Group EBITDA (0.3) (1.1) 0.3 Change in inventory (1.2) (1.9) 1.4 Change in trade and other receivables (1.1) (1.1) (0.0) Change in trade and other payables 2.6 0.8 (3.3) • Store roll out will be self-funded from strong Net cas
Slide 18: Product & Product Expansion Through Licensing
Product & Product Expansion Through Licensing 18
Slide 19: Success of Our Product
Success of Our Product • Success in all product categories – online, and in-store Tess Cat Daly Deeley • Top selling brand across all our ten third party partners • Celebrity product endorsements ever rising • Product resonates overseas, as well as in the UK Susanna Amanda Reid Holden 19
Slide 20: The Benefits of Licensing
The Benefits of Licensing Access additional No Capital consumer Expenditure expenditure Minimal Pure Profit Additional Resource 20
Slide 21: Homeware range: 50 piece collection
& Homeware range 50 piece collection Initial focus on living room Launching September 2025 - sold online exclusively at Next 21
Slide 22: High Profit, High Margin Business Model
High Profit, High Margin Business Model 22
Slide 23: High Profit, High Margin Business Model
High Profit, High Margin Business Model • £65 billion fashion retail market • Now a multi-channel retailer: • Own website • Own physical stores • Third parties – UK and International • High margin business • On track to meet full year expectations • On the road to being a business of substantial sca
Slide 24: Questions
Questions 24
Slide 25: Disclaimer
DISCLAIMER Important: Disclaimer and Notice to Readers This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (t