Dfs Furniture Plc · LSE:DFS
Dfs Furniture — Investor Presentation (April 2025)
26 slides from Dfs Furniture's investor presentation, Apr 15, 2025
Slide 1: Investor Presentation
DFS GROUP INVESTOR PRESENTATION 15 April 2025
Slide 2: Overview
INVESTOR PRESENTATION APRIL 2025 Overview H1 FY25 Performance Tim Stacey & Marie Wall Strategy & Operational update Tim Stacey Future outlook Tim Stacey Questions & Answers Tim Stacey & Marie Wall 2
Slide 3: H1 FY25 Operational overview
INVESTOR PRESENTATION APRIL 2025 H1 FY25 Operational overview Compelling customer propositions & strong operational execution driving profit growth Growth in market share, margins and profitability: ● Outperforming a market in slight decline; order intake + 10.1% YoY £17m H1 PBTu(A) ● Continued gros
Slide 4: Headlines
INVESTOR PRESENTATION APRIL 2025 Headlines +8% +19% DFS YoY order Sofology YoY order intake1 intake1 > 40% +10% DFS exclusive brands Post-delivery NPS sales mix score YoY 1 Measured using the most comparable 25 weeks of each trading period to avoid distorting impact caused by a different number of w
Slide 5: Financials overview
INVESTOR PRESENTATION APRIL 2025 Financials overview (£m) unless stated H1 FY25 H1 FY24 YoY Order intake YoY +10.1%1 (1.1%) n/a Gross sales 675.6 666.2 1.4% Revenue 504.5 505.1 (0.1%) Underlying PBT(A)2 17.0 8.7 8.3 Reported PBT3 15.8 0.9 14.9 Underlying basic EPS 5.3p 2.8p 2.5p Net bank debt 116.7
Slide 6: Cost to Operate efficiencies
INVESTOR PRESENTATION APRIL 2025 Cost to Operate efficiencies Another strong period of sustainable cost savings £50m Annualisation and new savings Gross margin FY26 Target opportunities ● Ongoing optimisation of product margins through redistribution of volumes with key supplier partnerships Gross m
Slide 7: Gross margin
INVESTOR PRESENTATION APRIL 2025 Gross margin Continued gross margin rate improvement +£3.3m / +70bps 1.6% (1.4%) 0.5% - 56.7% 56.0% £6.9m delivered from cost to operate efficiencies ● Product margin improvement offsets higher interest free credit costs and freight rate increases ● 48 month interest
Slide 8: Operating costs (inc dep & interest)
INVESTOR PRESENTATION APRIL 2025 Operating costs (inc dep & interest) Further savings supported by cost efficiencies and disciplined cost management ● Volume related costs well controlled, reflecting the strong operational leverage within the business ● Inflation impact mainly wages, contained to £3
Slide 9: Cash Flow
INVESTOR PRESENTATION APRIL 2025 Cash Flow Disciplined cash management and focused on improving our financial position H1 FY25 H1 FY24 ● Cash capex prioritised in the period to lower risk, short payback growth investment Underlying EBITDA / other* 81.9 75.5 ● Bank interest and tax reduction; utilisa
Slide 10: Net debt & covenants
INVESTOR PRESENTATION APRIL 2025 Net debt & covenants Debt reducing, leverage reducing, fixed charge cover improving Pre-Covid average Net bank debt ● Financial strength improving; focus on strong free cash flow generation and reducing absolute net debt levels ● Both Leverage FCC covenants improving
Slide 11: Overview
INVESTOR PRESENTATION APRIL 2025 Overview MARKET H1 FY25 Performance Tim Stacey & Marie Wall CUSTOMER GROUP Strategy & Operational update STRATEGY Tim Stacey HOME Sofology DFS Sofology Home Future outlook Tim Stacey Sourcing & Manufacturing Platform Questions & Answers Technology & Data Platform Tim
Slide 12: Clear market leader
INVESTOR PRESENTATION APRIL 2025 Clear market leader Position is strengthening Consumer confidence / UK Market share1 Recent market share trend2 upholstery market size Market share Adjusted for price inflation Last 12 months ● Over 3x size of nearest competitor ● Good recent growth; taking share in
Slide 13: Strong growth potential
INVESTOR PRESENTATION APRIL 2025 Strong growth potential Three clear opportunities to drive profitable growth Core self help ● Consistent track record of share gains ● Up to 10-15 new Sofology showrooms ● 58% gross margin target ● Cost action plan Significant core market recovery potential ● Potenti
Slide 14: Our winning Integrated Retail proposition
INVESTOR PRESENTATION APRIL 2025 Our winning Integrated Retail proposition Two complementary retail brands meeting our customers’ needs through our market-leading omnichannel experience Customer Behaviour Why our proposition works ● Leading marketing execution c 90% of ● Well invested websites custo
Slide 15: Design, inspiration and sales force
INVESTOR PRESENTATION APRIL 2025 Design, inspiration and sales force Best sofa ranges supported by inspirational marketing and highly skilled sales colleagues Our differentiators Best ranges: Efficient and effective marketing: Best sales people: ● Best designers in the sector ● Award winning data dr
Slide 16: DFS
INVESTOR PRESENTATION APRIL 2025 DFS Trading well in a subdued market ● Order intake in H1 +7.8% ● Average order values up +4% ● Exclusive brand partnership sales mix at record high of 41% ● New branded partnership launched: La-Z-boy now live ● Leading IFC proposition driving conversion and order va
Slide 17: Sofology
INVESTOR PRESENTATION APRIL 2025 Sofology Range changes driving significant growth ● Order intake in growth: H1 +19.1% YoY driven by volume ● Improved merchandising ● Introduction of promotional activation ● Service levels; post purchase NPS close to record high ● Q4 FY24 range changes having positi
Slide 18: Sourcing and manufacturing
INVESTOR PRESENTATION APRIL 2025 Sourcing and manufacturing Improving our own design & manufacturing and utilising strong relationships with our partners to drive innovation & margin ● Own design and factories ○ New design and development centre driving NPD ○ Quality scores at record highs ○ Profita
Slide 19: The Sofa Delivery Company
INVESTOR PRESENTATION APRIL 2025 The Sofa Delivery Company Largest two person sofa delivery network in the UK - lowering costs whilst achieving record service levels ● Sector leading 2 person delivery and installation service ● Same infrastructure used to service both brands ● Smart well invested te
Slide 20: Overview
INVESTOR PRESENTATION APRIL 2025 Overview H1 FY25 Performance Tim Stacey & Marie Wall Strategy & Operational update Tim Stacey Future outlook Tim Stacey Questions & Answers Tim Stacey & Marie Wall 20
Slide 21: FY25 Outlook
INVESTOR PRESENTATION APRIL 2025 FY25 Outlook Full year profit expectations increased ● Trading continued to be strong through the second half to mid-March when we released out interim results ○ Order intake to mid-March +11% YoY (H1 +10% YoY*) ○ Ahead of our expectations ● Costs remain under good c
Slide 22: Market drivers
INVESTOR PRESENTATION APRIL 2025 Market drivers Outlook stable to positive supporting potential upholstery market recovery Consumer confidence - major purchases Property transactions Real household disposable income ● 80% of transactions are replacements ● Drive c20% of upholstery purchases ● Real d
Slide 23: Medium term
INVESTOR PRESENTATION APRIL 2025 Medium term Well positioned for future growth, CMD targets in tact Illustrative without action Self help Medium term >=8% 8% 3% ‘PBT % (c6%) revenue margin’ CMD Market BoE base Higher FY25 H1 Market share Gross margin FY25 H1 GM and cost Market Future PBT demand rate
Slide 24: Conclusions
INVESTOR PRESENTATION APRIL 2025 Conclusions A strong half, well positioned for full year & medium term ● Controlling the controllables; growth in market share, gross margins and profitability ● Financial position strengthened; absolute debt and leverage reducing ● Internally well set up; Customer p
Slide 25: Overview
INVESTOR PRESENTATION APRIL 2025 Overview H1 FY25 Performance Tim Stacey & Marie Wall Strategy & Operational update Tim Stacey Future outlook Tim Stacey Questions & Answers Tim Stacey & Marie Wall 25
Slide 26: Q&A
Q&A