Adairs Ltd. · ASX:ADH
Adairs — H1 2025 Earnings Presentation
21 slides from Adairs's earnings presentation, Feb 24, 2025
Slide 1: Adairs Limited 1H FY25 Results Presentation
Adairs Limited 1H FY25 Results Presentation 24 FEBRUARY 2025 ELLE ROSEBY GROUP CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR ASHLEY GARDNER GROUP CHIEF FINANCIAL OFFICER
Slide 2: Contents
1 Contents ► Group – 1H FY25 operational highlights ► Group – 1H FY25 financial highlights ► Business units – 1H FY25 financial highlights ► Adairs – 1H FY25 performance ► Focus on Furniture – 1H FY25 performance ► Mocka – 1H FY25 performance ► Balance sheet and cash flow ► Trading update and outloo
Slide 3: Group – 1H FY25 operational highlights
Group – 1H FY25 operational highlights 2 Adairs Focus on Furniture ► Significant executive leadership team renewal over the last nine months, ► The performance of new and refurbished stores gives us confidence in including: the national rollout strategy. The pipeline for new stores has increased wit
Slide 4: Group – 1H FY25 financial highlights
Group – 1H FY25 financial highlights 3 ($ million) 1H FY25 1H FY24 Adjusted Financial highlights Underlying1 26 weeks 27 weeks change2 Change Total sales 310.5 302.4 +6.6% +2.7% ► Group sales growth driven by strong contributions from Adairs (+9.3%) and Mocka (+12.4%) Gross margin 186.0 182.3 +5.8%
Slide 5: Business units – 1H FY25 financial highlights
Business units – 1H FY25 financial highlights 4 The 1H FY25 result was driven by strong contributions from Adairs, which achieved a record 1H sales result, and Mocka, which delivered another solid performance. ($ million) 1H FY25 1H FY24 1H FY24 Adjusted change2 Underlying1 26 weeks 26 weeks 27 week
Slide 6: Adairs – 1H FY25 performance
Adairs – 1H FY25 performance 5 Strong sales growth in both channels and lower cost-base drove significant ($ million) 1H FY25 1H FY24 Adjusted Underlying1 change2 Change EBIT improvement. 26 weeks 27 weeks Store sales 162.0 156.2 +8.0% +3.7% ► Record 1H total sales of $220.5m, up +9.3%. Online sales
Slide 7: Focus on Furniture – 1H FY25 performance
Focus on Furniture – 1H FY25 performance 6 Challenging first half impacted by a weaker trading environment and Victorian store ($ million) 1H FY25 1H FY24 Adjusted Underlying1 change2 Change portfolio bias. New and refreshed stores delivering encouraging results. 26 weeks 27 weeks Store sales 57.9 6
Slide 8: Mocka – 1H FY25 performance
Mocka – 1H FY25 performance 7 Sales growth and margin improvement delivered a strong EBIT for the half, despite ($ million) 1H FY25 1H FY24 Adjusted Underlying1 change2 Change challenging conditions in New Zealand persisting. 26 weeks 27 weeks Store sales - - - - ► Total sales of $28.1m, up +12.4%.
Slide 9: Balance sheet and cash flow
Balance sheet and cash flow 8 ($ million) Dec 22 Jun 23 Dec 23 Jun 24 Dec 24 Inventories ► Total Group inventories increased +$13.9m across 1H FY25 to $97.6m. Inventories 106.4 87.8 83.5 83.7 97.6 Trade and other payables (66.8) (54.9) (54.8) (52.4) (63.4) ► Additional investment in core lines in th
Slide 10: Trading update and outlook
Trading update and outlook 9 Trading update 2H FY25 Outlook Real-time sales (unaudited) (first 7 weeks) Group +9.2% ► For the balance of FY25 management remains focused on execution and expects: Adairs +15.2% Focus on Furniture -(5.4%) – Adairs sales to continue to maintain positive momentum, suppor
Slide 11: 2H FY25 and beyond – key priorities
2H FY25 and beyond – key priorities 10 ► Grow store portfolio profitably focusing on ► Pipeline of store openings is growing. ► Build out categories and innovate existing larger space - new stores, upsizes and Targeting 3-5 new stores over next two ranges to support further sales growth. consolidati
Slide 12: Questions?
QUESTIONS?
Slide 13: Appendices
Appendices 1. About the Group 2. Store footprint – Adairs brand 3. Store footprint – Focus on Furniture brand 4. Group income statement 5. Group income statement reconciliation 6. Group cash flow reconciliation 7. Glossary
Slide 14: Appendix 1: About the Adairs Group
Appendix 1: About the Adairs Group 13 Adairs Limited (ASX: ADH) is Australasia’s largest omni-channel specialty retailer of home furnishings, furniture and home decoration products Common to all three businesses ► Design-led (in-house) ► Exclusive and differentiated products ► Leading specialty reta
Slide 15: Appendix 2: Store footprint – Adairs brand
AppendixA2:recap: StoreOur strategy– Adairs brand footprint 14 FY25 ACTIVITY Store count Jun 24 New Closed Upsize Refurb Jun 25 VIC 52 - (2) 1 - 50 NSW 44 1 (1) - - 44 QLD 31 2 - 2 - 33 WA 22 - - - - 22 1 SA 8 - - - - 8 ACT 4 - - - - 4 TAS 2 - - - - 2 NT 1 - - - - 1 NZ 7 - - - - 7 23 Total 171 3 (3)
Slide 16: Appendix 3: Store footprint – Focus on Furniture brand
AppendixA3:recap: StoreOur strategy– Focus on Furniture brand footprint 15 FY25* ACTIVITY Store count Jun 24 New Closed Upsize Refurb Dec 24* VIC (Metro) 11 - - - - 11 VIC (Regional) 4 - - - - 4 NSW (Metro) 2 - - - - 2 NSW (Regional) 3 - - - - 3 ACT 1 - - - - 1 SA 2 - - - 1 2 QLD 2 1 - - - 3 Total 2
Slide 17: Appendix 4: Group income statement
Appendix 4: Group income statement 16 Adairs Focus Mocka Group ($ million) 1H FY25 1H FY25 1H FY25 1H FY25 1H FY24 Adjusted Underlying1 26 weeks 26 weeks 26 weeks 26 weeks 27 weeks change2 Change Store sales 162.0 57.9 - 219.9 217.6 +4.8% +1.1% Online sales 58.5 4.0 28.1 90.6 84.8 +11.1% +6.8% Total
Slide 18: Appendix 5: Group income statement reconciliation
AppendixA5:recap: GroupOur strategy income statement reconciliation 17 1H FY25 RECONCILIATION 1H FY24 RECONCILIATION Underlying WMS Statutory Underlying Statutory AASB 16 AASB 16 NDC transition ($ million) 1H FY25 transition 1H FY25 1H FY24 1H FY24 impact impact costs 26 weeks costs 26 weeks 27 week
Slide 19: Appendix 6: Group cash flow reconciliation
Appendix 6: Group cash flow reconciliation 18 Underlying Underlying 1H FY25 RECONCILIATION ($ million) 1H FY25 1H FY24 Underlying AASB 16 Statutory Underlying ($ million) Underlying EBITDA 39.1 36.2 1H FY25 impact 1H FY25 1H FY24 Opening cash 12.9 - 12.9 25.9 Significant items (cash impact) (0.6) (1
Slide 20: Appendix 7: Glossary
AppendixA6:recap: Our strategy Glossary 19 Term Meaning Term Meaning ASP Average selling price IPS Items per sale ATV Average transaction value LFL Like for like LTM Last twelve months CAC Customer acquisition cost Cost of doing business (refers to all expenses incurred by the NPAT Net profit after
Slide 21: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about Adairs Limited (ABN 50 147 375 451) (Adairs) and its activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It should