Stealth Group Holdings Ltd. · ASX:SGI
Stealth — FY2024 Earnings Presentation
50 slides from Stealth's earnings presentation, Aug 29, 2024
Slide 1: 2024 Full Year Results Briefing Presentation
STEALTH GROUP ASX: SGI 2024 Full Year Results Briefing Presentation 29 August 2024 An Australian Distribution Company © STEALTH GROUP HOLDINGS FY2024 RESULTS PRESENTATION 1
Slide 2: Table of Contents
STEALTH Table of Contents GROUP ASX: SGI Section Information Slide Introduction Stealth Group Holdings and FY24 results highlights 3 Company Overview Stealth Group Holdings 14 Group Performance FY24 highlights and progress on strategy 20 Financial Performance FY24 28 Outlook Markets and Company 36 A
Slide 3: The Stealth Group
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L The Stealth Group T R AD E P R O F E S S I O N A L S AN AUSTRALIAN DISTRIBUTION COMPANY DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CO
Slide 4: We are the Stealth Group
1 STEALTH GROUP ASX: SGI We are the Stealth Group STEALTH From our origins in 2014, Stealth has grown from our founder’s home in GROUP Perth into a large Australian public-listed distribution company. With ~$159m of annual sales, we distribute hundreds of leading brands known for quality, made for e
Slide 5: Quick Facts
Executive Summary 2 Quick Facts STEALTH GROUP ASX: SGI AT A GLANCE Our vision is to be Australia’s market-leading distribution alternative to the majors with a simple strategy to deliver on price, range and experience. 2014 Established. 2018 Listed for trading on the Australian Securities Exchange.
Slide 6: Our Business
Executive Summary 3 Our Business STEALTH GROUP ASX: SGI WE ARE A DISTRIBUTOR, A WHOLSALER, AND A RETAILER providing products and solutions, made for everyone, used every day. House of Brands One business, two divisions operating model to increase scale while maintaining a clearly differentiated cust
Slide 7: Corporate Information
Executive Summary 4 Corporate Information STEALTH GROUP ASX: SGI KEY FUNDAMENTALS 30 June 2024 ASX Code SGI Website stealthgi.com 1 Year Performance + 68% Share Price 30 June 2024 21.0 cents 11 2 Total Shares 115,395,542 Market Cap ($m) 30 June 2024 $24.2m Maiden dividend for the full-year FY24. Ful
Slide 8: Summary of Achievements in FY24
Building the future Australian market leader. 5 Summary of Achievements in FY24 STEALTH GROUP ASX: SGI A PROUD HISTORY, A POSITIVE FUTURE. – Most profitable year in Company history. – 68% increase in share price. What We – 10 consecutive years of year-over-year revenue growth. Delivered… – Diversifi
Slide 9: Continuing growth trajectory in FY25 and beyond
Building the future Australian market leader. 6 and…we continue an exciting growth trajectory in FY25 and beyond STEALTH GROUP ASX: SGI LOOKING AHEAD – FY25 year to outperform FY24. – Underlying annual revenue is now ~$159m. – House of brands strategy. What’s coming in – ‘One Business, Two Divisions
Slide 10: FY24 Group Performance Highlights Summary
Executive Summary 7 FY24 Group Performance Highlights Summary STEALTH GROUP ASX: SGI COMPANY RECORD….. REVENUE, PROFIT AND CASH HOLDING. LOOKING AHEAD FY25 & BEYOND Sales Cash Holding FY25 Underlying Sales $113.7m $10.1m $159m Growth of 2.4% Up 31.2% from $7.7m Growth of 39.0% on FY24 to set company
Slide 11: Group Performance Summary Table
Financial results 8 Group Performance Summary Table STEALTH GROUP ASX: SGI Year ended 30 June ($m) 2024 2023 Change v Prior 3-year CAGR % Key financials Revenue 113.7 111.0 2.4% 19.4% Gross Profit 33.7 32.6 3.4% 20.3% Statutory EBITDA 6.1 5.3 15.5% 28.1% Statutory EBIT 3.2 2.3 39.6% 35.7% Statutory
Slide 12: FY24 Continues a Four-year Period of Significant Growth
Ongoing growth despite impact of inflation 9 FY24 Continues a Four-year Period of Significant Growth (FY21 to FY24) STEALTH GROUP ASX: SGI Revenue Growth ($m)1 Statutory EBITDA Growth ($m)1 NPAT Growth ($m) Cash Holding ($m) Net Debt ($m) 19.4% CAGR 28.1% CAGR 40.9% CAGR 159 underlying 63% 253% 12 1
Slide 13: Strategic Agenda
Underpinning our Growth Strategy are our key enablers that we will continue to invest. 10 Strategic Agenda STEALTH GROUP ASX: SGI WE FOCUS ON WINNING A B C Objectives Brands Channels Customers House of brands strategy, including Deliver more customer value and New and expanded services. private-labe
Slide 14: Company Overview
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L 1 Company Overview T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUSTOM SM
Slide 15: Our Approach
Executive Summary 11 Our Approach STEALTH GROUP ASX: SGI OUR VISION Our ongoing commitment is building and growing a thriving business with a long term growth outlook, creating value for shareholders. To build Stealth into Australia’s market- leading alternative to the majors for industrial maintena
Slide 16: Our Businesses
August 2024 12 Our Businesses STEALTH GROUP ASX: SGI Industrials Group The Industrial Services Group is the leading distributor and a retailer of a wide- OUR STRENGTHS range of industrial, safety, automotive and workplace products and other related products and services Australia-wide, with approxim
Slide 17: Taking our industrial, safety, automotive and workplace products to multiple sectors
High Quality Customer Base….. 90% of the products we sell to our customers are non-discretionary items. 13 Taking our industrial, safety, automotive and workplace products to multiple sectors STEALTH GROUP ASX: SGI COMMERCIAL & BUSINESS TRADE PROFESSIONALS GOVERNMENT • Mining and Resources • Electri
Slide 18: Taking our consumer tech products to customers through multiple channels
Executive Summary 14 Taking our consumer tech products to customers through multiple channels STEALTH GROUP ASX: SGI CHANNELS AND SECTORS The retail network consists of +3,310 locations Australia-wide, from Coles, 7-Eleven, Officeworks, JB Hi-Fi and many others. • Convenience / FMCG • Consumer Elect
Slide 19: Robust capabilities for Business, Trade-Professionals and Retail consumers
Scale and value proposition. 15 We have robust set of capabilities for Business, Trade-Professionals and Retail consumers STEALTH GROUP ASX: SGI INFRASTRUCTURE ASSETS & CAPABILITIES INDUSTRIALS CONSUMER TECHNOLOGY Brands & Assortment Leading and trusted brands with breadth and depth. Leading and tru
Slide 20: FY24 Highlights and Progress on Strategy
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S FY24 Highlights and R E T AI L 2 T R AD E P R O F E S S I O N A L S Progress on Strategy DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SU
Slide 21: A proud history, a positive future
16 STEALTH GROUP ASX: SGI A proud history, a positive future. Celebrating 10 years – 2014 - 2024 We have grown into one of Australia’s largest distributors of industrial, safety, automotive, workplace and consumer technology products, and other related products and services. Industrial Consumer Serv
Slide 22: Summary
2024 Full-year results 17 Summary STEALTH GROUP ASX: SGI WE DELIVERED RECORD RESULTS IN FY24, AND WE WILL DELIVER A NEW RECORD IN FY25. Key financials Revenue up 2.4% to $114m. Gross Profit % up to 29.6% of sales, from 29.3%. EBITDA up 16% to $6.0m. NPAT up 50% to $1.4m. Operating cash inflow of $6.
Slide 23: 2024 achievement checklist at a glance
2024 Full-year results 18 2024 achievement checklist at a glance STEALTH GROUP ASX: SGI STEALTH ACHIEVED COMPANY RECORD PERFORMANCE ACROSS ALL P&L METRICS AS IT CONTINUES TO EXECUTE ON ITS GROWTH STRATEGY. Operational Execution Customer Experience More value on offer, high service levels, expanded p
Slide 24: Group Progress On Strategy
Setting the Foundation for Growth 19 Group Progress On Strategy STEALTH GROUP ASX: SGI ENHANCED CORE BUSINESS ACQUIRED CONSUMER TECHNOLOGY DISTRIBUTION BUSINESS • Executed pricing reset Principal activities expanded with this strategic investment • Became faster-to-market, more flexible, and more i
Slide 25: Product Sales Highlights
FY24 Results 20 Product Sales Highlights STEALTH GROUP ASX: SGI SALES BY PRODUCT CATEGORY 2% SALES $114m 9% DRIVERS 8% Industrial Renewing category growth initiatives Safety Enhanced pricing and mix strategies 52% Workplace 30% Stronger execution across distribution system Automotive Consumer Tech C
Slide 26: Store Network
As at 30 June 2024 21 Store Network STEALTH GROUP ASX: SGI LOCATIONS ACROSS AUSTRALIA 1 2 4 3 Brand Total Technology Stores 30 June 2023 6 0 52 11 1 0 70 Stores Movements in FY24 New Industrial Stores-Branches - - - - - - 0 New Retail Reseller Stores - ~3,310 - - - - 3,310 New Store-In-Stores - - -
Slide 27: Individual Business Highlights
22 Individual Business Highlights STEALTH GROUP ASX: SGI Heatleys C&L Tools Skipper Parts Buying Group Force Tech Corporate Invested in customer automation Strong underlying trading growth Rightsized Skippers. Merger Executed specialist wholesale Only 1 month of trading with The Group continues to i
Slide 28: Financial Performance
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L 3 Financial Performance T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUST
Slide 29: 4-year Historical Results Overview
Historical results 23 4-year Historical Results Overview STEALTH GROUP ASX: SGI HISTORICAL RESULTS SUMMARY Year ended 30 June ($m) 2024 2023 2022 2021 Revenue (continuing) $113.7m $111.0m $99.6m $66.7m Gross Profit $33.7m $32.6m $30.1m $19.3m EBITDA $6.1m $5.3m $4.0m $2.9m EBIT $3.2m $2.3m $1.4m $1.
Slide 30: Group Income Statement
Financial results 24 Group Income Statement STEALTH GROUP ASX: SGI Strong FY24 results, exceeding expectations, demonstrating resilience of the diversified business model. SUMMARY RESULTS COMMENTARY VS. PRIOR YEAR (PY) $millions1 2024 2023 Variance % Revenue 113.7 111.0 2.4% Sales increased 2.4% (re
Slide 31: Group Cash Flow
Financial results 25 Group Cash Flow STEALTH GROUP ASX: SGI COMMENTARY VS. PRIOR YEAR (PY) SUMMARY RESULTS Strong cash generation overall. $millions 2024 2023 Statutory EBITDA 6.1 5.3 • Cash conversion of 128%, continuing strong conversion rate from FY23. Operating cash flow 7.8 6.9 • Operating cash
Slide 32: Group Balance Sheet
Financial results 26 Group Balance Sheet STEALTH GROUP ASX: SGI SUMMARY COMMENTARY VS. PRIOR YEAR (PY) $millions 30 Jun-24 30 Jun-23 Disciplined capital management. Working capital Cash 10.1 7.7 • Total cash increased 31.2%. Trade and other receivables 19.2 17.1 Inventories • Net debt (excluding For
Slide 33: Group Debt Management
Financial results 27 Group Debt Management STEALTH GROUP ASX: SGI IN BRIEF – Repaid $1.0m off fixed debt facility. A further $1.0m has been subsequently paid in July 24 and August 24 resulting in the fixed debt facility paid out in full. TABLES – Net debt $10.8m (FY23: $7.2m). $4.9m pre-acquisition
Slide 34: Debt Management excluding Force pre-acquisition
Financial results 28 Debt Management which excludes Force pre-acquisition June 2024 STEALTH GROUP ASX: SGI GROSS DEBT COMPOSITION TREND TABLES excluding Force Technology Debt summary ($M) FY24 FY23 FY22 FY21 Net debt 4.9 7.2 10.2 4.2 Gross debt 14.2 14.9 14.9 7.3 Cash and equivalents (9.3) (7.7) (4.
Slide 35: Dividends
2024 Full-year results 29 Dividends STEALTH GROUP ASX: SGI IN BRIEF SUMMARY TABLE The Board has determined to pay a maiden fully franked final FY23 dividend payment NIL ordinary dividend of 0.84 cents per share which is at a 4% yield FY24 dividend payment cents per share (Full Franked) 0.84 cents an
Slide 36: Outlook
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L 4 Outlook T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS CUSTOM SM ART TECH
Slide 37: Key messages
August 2024 30 Key messages STEALTH GROUP ASX: SGI SUMMARY • Target of $300m revenue by 2028 at 8% EBITDA. • Progress on a consistent strategic agenda has allowed Stealth to continue growing market share and differentiate itself in the market. • New strength in product development capability acquire
Slide 38: Outlook
August 2024 31 Outlook STEALTH GROUP ASX: SGI OUTLOOK COMMENTS Stealth’s long-term growth strategy remains on track operating in a large, FY25 OUTLOOK GUIDANCE NUMBERS fragmented $64 billion addressable market. Demand for Stealth’s products and services across end-markets remains robust. Revenue1 Gr
Slide 39: Outlook focus areas and growth levers
August 2024 32 Outlook STEALTH GROUP ASX: SGI OUR FOCUS AREAS NEAR-TERM IN PRIORITIES…GROWTH LEVERS – Growing market share in core businesses and expanding into • Accelerating growth in B2B, in effect, commercial-business and with trade- adjacent markets. professionals. – Healthy people and healthy
Slide 40: Creating a new customer experience through store re-development
FY25 Project 33 Creating a new customer experience through store re-development STEALTH GROUP ASX: SGI DESIGNED IN FY24, ROLLOUT PILOT STORE BRISBANE LATE 1H25 © STEALTH GROUP HOLDINGS FY2024 RESULTS PRESENTATION 40
Slide 41: Creating a new customer experience through store re-development
FY25 Project 34 Creating a new customer experience through store re-development STEALTH GROUP ASX: SGI DESIGNED IN FY24, ROLLOUT PILOT STORE BRISBANE LATE 1H25 © STEALTH GROUP HOLDINGS FY2024 RESULTS PRESENTATION 41
Slide 42: FY28 growth building blocks to deliver $300m annual sales
August 2024 35 FY28 growth building blocks to deliver $300m annual sales STEALTH GROUP ASX: SGI ILLUSTRATIVE BUILDING BLOCKS Pipeline Revenue – organic and in-organic $300m Short-to- medium-term outlook (2025 – 2028) • Private-label FY25 Underlying Revenue • Exclusive Inorganic 15% $159m+ Brands 18%
Slide 43: Our Strategic Framework
2025 & Beyond 36 Our Strategic Framework STEALTH GROUP ASX: SGI Increase revenue, improve margins through operational efficiency and cost reduction while ensuring scalability and sustained growth. CREATE THE VALUE UPSIDE ENHANCE OUR OPERATING MODEL KEEP TRANSFORMING Business model Transaction-efficie
Slide 44: Supplementary Information
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L 5 Supplementary Information T R AD E P R O F E S S I O N A L S DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CONNECTED SUPPLY SOLUTIONS
Slide 45: About Force Technology International
Supplementary Information 37 About Force Technology International. STEALTH GROUP Technology ASX: SGI Headquarters Perth, Western Australia. Founded 1992 32-year business under same ownership. Sales & Profit $44 million of revenue, c.$2.5m EBITDA before transaction costs. It is cash generating. Busin
Slide 46: Group balance sheet breakdown with Force acquisition
Supplementary Information 38 Group balance sheet breakdown with Force acquisition completed June 24 STEALTH GROUP ASX: SGI Breakdown pre-acquisition and post acquisition of Force Technology completed June 24 Year ended 30 June ($m) FY24 – Stealth FY24 – Force FY24 – Acq. FY24 Consol FY23 Consol Comm
Slide 47: Quality and sustainability
Supplementary Information – Force Technology 39 Quality and sustainability STEALTH GROUP ASX: SGI Our framework encompasses quality assurance, APCO initiatives, supply chain solutions, and robust DC scale and capabilities, ensuring operational excellence and sustainable growth. Ethical compliance In
Slide 48: Ongoing commitment to building a thriving business for long term growth
Supplementary Information 40 Ongoing commitment to building and growing a thriving business for long term growth. STEALTH GROUP ASX: SGI Creating a destination point Product range reflecting Largest distribution network Looking after our people and for customers underpinned diverse customer needs, c
Slide 49: Disclaimer
STEALTH Disclaimer GROUP ASX: SGI This document has been prepared by Stealth Group Holdings Ltd (the Company) and is provided for information purposes only. opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this Th
Slide 50: The Stealth Group
STEALTH S T E A LT H GROUP GROUP ASX: SGI AN AUSTRALIAN DISTRIBUTION COMPANY INDUSTRIAL CONSUMER SERVICES TECHNOLOGY C O M M E R C I AL / B U S I N E S S E S R E T AI L The Stealth Group T R AD E P R O F E S S I O N A L S AN AUSTRALIAN DISTRIBUTION COMPANY DISTRIBUTOR OF PRODUCTS SOURCE SOLUTIONS CO
Stealth Group Holdings — FY2024 Earnings Presentation on 6ix