Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (March 2022)
34 slides from Premier Investments's investor presentation, Mar 25, 2022
Slide 1: Premier Investments Limited 2022 Half Year Results Overview
Premier Investments Limited 2022 Half Year Results Overview 25 March 2022 X 0
Slide 2: Agenda
Agenda 1 Premier Investments Limited 1H22 overview 2 Premier Investments Limited 1H22 consolidated financial results 3 Premier Retail – delivers strong result 4 Peter Alexander – continued outstanding results 5 Smiggle – powerful global brand rebounding 6 Apparel Brands – well positioned for future
Slide 3: 1H22 overview
snniggie. last portmans Jay Jays dotti JACQUIE NEW UNITED AUSTRALIA ZEALAND KINGDOM a PREMIER INVESTMENTS LIMITED 1H22 OVERVIEW
Slide 4: Premier Investments Limited 1H22 overview
1 Premier Investments Limited 1H22 overview Statutory NPAT Dividend $163.6 million Fully Franked Interim Dividend 46 cps PMV Down -13.0% vs 1H21 Up 12 cps (35.3%) vs 1H21 Up +64.3% vs 1H20 GROUP 1H22 Premier Retail EBIT Associate Income (BRG) Results $212.0 million (incl significant items) Share of
Slide 5: Premier Investments Limited 1H22 overview
1 Premier Investments Limited 1H22 overview Breville Investment Myer Investment Investment of 26.2% in BRG Investment of 19.9% in MYR: Balance Sheet accounting value: $69 million PMV $289 million GROUP Market value at 29 Jan 2022: Property Over $1 billion Premier Retail Head Office and Financial Aus
Slide 6: Premier Investments Limited summarised consolidated income statement
2 Premier Investments Limited summarised consolidated income statement $'M 1H22 1H21 1H20 Premier Retail EBIT excluding significant items 196.4 186.1 126.1 Premier Retail EBIT including significant items 212.0 237.8 126.1 PMV Premier Investments income from Associate (BRG) 20.3 16.9 13.9 Premier Inv
Slide 7: Premier Retail
PREMIER RETAIL
Slide 8: Premier Retail – Delivers strong result
3 Premier Retail – Delivers strong result SALES $769.9 million +0.6% vs 1H21 LFL Sales +8.9% 42,675 store trading Premier vs 1H21 days lost due to +5.2% vs 1H20 COVID-19 Retail Peter Alexander Smiggle Apparel Brands 1H22 Sales: $227.4 m Sales: $146.3 m Sales: $396.2 m Results Online Sales +27.3% vs
Slide 9: Premier Retail – Delivers strong result
3 Premier Retail – Delivers strong result Gross Profit $ Gross Profit % $507.2 million 65.9% +1.4% vs 1H21; +10.8% vs 1H20 +54 bps vs 1H21; +334 bps vs 1H20 Premier Total Cost of Doing Business % 40.4% Retail -67 bps vs 1H21; -430 bps vs 1H20 Rent Expense % 12.4% Employee Expenses % 21.9% -27 bps vs
Slide 10: Premier Retail – strong result driven by Sales and Gross Margin
3 Premier Retail – strong result driven by Sales and Gross Margin • Premier Retail has seven iconic brands each with a strong, distinctive and competitive market position • Strong 1H22 results: • Sales of $769.9 million, up 0.6% on 1H21 and up 5.2% on 1H20 • Gross Margin of 65.9%, up 54 bps on 1H21
Slide 11: Peter Alexander – Powerful designer brand delivering record results
4 Peter Alexander – Powerful designer brand delivering record results • Record 1H22 sales of $227.4 million, up 11.4% on 1H21, underpinned by strong LFL growth both in stores and 250 online $227 • Peter Alexander delivered two year sales growth of 57.0% from 1H20 to 1H22, and over 400% sales growth
Slide 12: Peter Alexander – Powerful designer brand delivering record results
4 Peter Alexander – Powerful designer brand delivering record results • Peter Alexander customers enjoy a truly unique shopping experience: • Products that excite • World class store window displays and online experience • Service teams who love and are immersed in the brand • Instore theatre • New
Slide 13: Smiggle - Powerful global brand rebounding as children return to school
5 Smiggle - Powerful global brand rebounding as children return to school • Smiggle delivered global sales of $146.3 million in 1H22, up 5.6% on 1H21 • Smiggle is the ultimate children’s destination for school essentials. From backpacks, water bottles and lunchboxes to pens and pencil cases, Smiggle
Slide 14: Smiggle - Powerful global brand rebounding as children return to school
5 Smiggle - Powerful global brand rebounding as children return to school Smiggle collaboration Success • Highly successful global collaborations in 1H22 including with Disney studios (Disney Princesses, Marvel), BBC studios (Bluey) and Universal Studios (Minions) with results and response from Smig
Slide 15: Apparel Brands – well positioned to deliver future growth
9 6 Apparel Brands – well positioned to deliver future growth • Apparel Brands sales of $396.2 million, up 0.7% on 1H20 despite the impact of COVID-19 government lockdowns in Australia and New Zealand in 1H22 which resulted in the Apparel Brand Sales $’M group losing 42,675 trading days • Apparel Br
Slide 16: Online – record result with 1H22 Sales surpassing 25% of total sales
9 7 Online – record result with 1H22 Sales surpassing 25% of total sales • Record Online sales of $195.4 million, up $41.9 million or 27.3% on a previous record 1H21 and contributed Online Sales Growth 25.4% of total 1H22 sales (1H21: 20.1%) 240.0 25.4% • 2013 investment in centralised and specifica
Slide 17: Multi-channel strategy - Maximising channel profitability
8 Multi-channel strategy - Maximising channel profitability • The accelerated customer preference to shopping online has further increased Premier Retail’s focus on each store’s profitability. Premier Retail has closed 156 stores over the past seven years, including 67 stores in the last 2 years, de
Slide 18: Premier Retail – diverse portfolio of successful retail businesses
9 Premier Retail – diverse portfolio of successful retail businesses Today, Premier Retail is well positioned for future growth with: • 1H22 Global sales up 5.2% on ‘pre-COVID’ 1H20 despite protracted government mandated lockdowns during 1H22 • 1H22 EBIT up 55.7% on ‘pre-COVID’ 1H20 (excluding signi
Slide 19: Dividend
10 Dividend • The Premier Board remains optimistic about the group’s ability to continue to deliver, however also recognises the business is operating in highly uncertain times • The Board also notes that the environment, whilst challenging for many businesses, may present new opportunities for the
Slide 20: Appendix A: Brand by brand performance
7 PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 21: Highlights
A Highlights • Record 1H22 sales of $227.4 million, up 11.4% on 1H21, underpinned by strong LFL growth both in stores and online • Peter Alexander delivered two-year sales growth of 57.0% from 1H20 to 1H22, and over 400% sales growth in the past 10 years • Peter Alexander’s unique design led product
Slide 22: Highlights
A Highlights • Global sales of $146.3 million in 1H22, up 5.6% on 1H21 • Smiggle has been particularly impacted by COVID-19 over the past two years in all markets, with governments mandating closures of retail stores and schools for extended periods of time and with international borders shut • The
Slide 23: Highlights
A Highlights • 1H22 LFL sales growth was stronger than overall sales growth in a period significantly impacted by COVID-19 store closures • Sales up 16.0% over 3 years from 1H19 to 1H22 • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the store portfolio • J
Slide 24: Highlights
A Highlights • 1H22 LFL sales result was stronger than overall sales growth in a period significantly impacted by COVID-19 store closures • Sales up 3.4% over 3 years from 1H19 to 1H22 • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the store portfolio • Ja
Slide 25: Highlights
A Highlights • Portmans delivered a stand-out performance in a period significantly impacted by COVID-19 store closures • Record first half sales of $73.1 million, up 16.4% on 1H21, underpinned by strong LFL growth both in stores and online • Online Sales continue to drive overall growth at a signif
Slide 26: Highlights
A Highlights • 1H22 LFL sales growth was stronger than overall sales growth in a period significantly impacted by COVID-19 store closures • Continued improvement in gross margins being delivered through ongoing changes to sourcing strategy • Online Sales continued to grow ahead of the market with th
Slide 27: Highlights
A Highlights • 1H22 LFL sales growth was stronger than overall sales growth in a period significantly impacted by COVID-19 store closures • Jacqui E continues to be significantly impacted by the temporary exodus of workers from CBD areas during the COVID-19 health crisis • Online Sales continue to d
Slide 28: Appendix B: Impact of AASB and other information
Appendix B: Impact of AASB 16 and other information Zz: dotti sniggie JACQUIE Porenons JUST 27
Slide 29: Appendix: Implementation of lease accounting standard AASB 16
B B Appendix: Implementation of lease accounting standard AASB 16 • The new lease accounting standard AASB 16 was adopted at the start of the FY20 reporting period effective from 28 July 2019 • The implementation of AASB 16 has significantly changed reported results, however the standard does not ha
Slide 30: Premier Retail segment Profit and Loss impact of AASB 16 and Significant Items
Appendix: Premier Retail segment B B Profit and Loss impact of AASB 16 and Significant Items 1H22: Period Ended 29 January 2022 1H21: Period Ended 30 January 2021 1H22 vs 1H21 Post AASB16 Pre AASB16 Pre AASB16 Post AASB16 Pre AASB16 Pre AASB16 Pre AASB16 Statutory Including Excluding Statutory Inclu
Slide 31: Premier Retail segment – significant items reconciliation
B Premier Retail segment – significant items reconciliation 26 weeks 27 weeks 26 weeks to 29 Jan 2022 to 30 Jan 2021 to 25 Jan 2020 $'M 1H22 1H21 1H20 Premier Retail EBIT (pre AASB 16) 212.0 237.8 126.1 Impact of non-comparable 27th week in 1H21 - (8.9) - COVID-19 related rent concessions (9.1) (13.
Slide 32: Premier Investments Limited (Consolidated) Balance Sheet
Appendix: Premier Investments Limited (Consolidated) B B Balance Sheet Balance Sheet $'M 29 Jan 2022 31 Jul 2021 30 Jan 2021 Note 1: Cash Assets Jan-2022 Net Cash of Cash and cash equivalents 1 468.6 523.3 497.2 $400m (Cash $469m less Inventories 2 221.5 208.8 180.2 Debt $69m) is up $50m on Property
Slide 33: Premier Investments Limited (Consolidated) Profit and Loss Statement and impact of AASB 16
Appendix: Premier Investments Limited (Consolidated) B B Profit and Loss Statement and impact of AASB 16 Profit & Loss Pre AASB16 Pre AASB16 Post AASB16 Post AASB16 26 weeks 27 weeks 26 weeks AASB16 27 week s AASB16 $'M to 29 Jan 2022 to 30 Jan 2021 Var LY to 29 Jan 2022 Impact to 30 Jan 2021 Impact
Slide 34: Overview of Premier's non-IFRS financial information
B B Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with al
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