Lovisa Holdings Ltd. · ASX:LOV
Lovisa — FY2022 Earnings Presentation
20 slides from Lovisa's earnings presentation, Aug 29, 2022
Slide 1: Lovisa Holdings Limited FY22 Full Year Results
Lovisa Holdings Limited FY22 FULL YEAR RESULTS VICTOR HERRERO CHIEF EXECUTIVE OFFICER CHRIS LAUDER CHIEF FINANCIAL OFFICER
Slide 2: Forward-looking statements
Some of the information contained in this presentation contains “forward - looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about future events of Lovisa
Slide 3: Contents
CONTENTS 1. STRATEGY RECAP 2. FULL-YEAR OVERVIEW 3. FINANCIAL OVERVIEW 4. TRADING PERFORMANCE 5. COST OF DOING BUSINESS 6. CASHFLOW AND BALANCE SHEET 7. STORE GROWTH 8. DIGITAL UPDATE 9. TRADING UPDATE AND OUTLOOK 10. SUMMARY 11. APPENDICES 3
Slide 4: Strategy Recap
STRATEGY RECAP Our strategic plans remain in place OUR PAST OUR PRESENT OUR FUTURE Although we have had short-term Continued expansion in our current 12 years ago we set out to develop a fast challenges with COVID over the past 2 markets with the same successful fashion jewellery concept to meet yea
Slide 5: Financial Year Overview
FINANCIAL YEAR OVERVIEW1 • Strong sales performance for the financial year with • CEO transition successfully completed during the year positive global comparable store sales for the year of • Global rollout strategy remains a key focus with 85 net +19.9% compared to FY21 new stores opened for the y
Slide 6: Financial Overview
FINANCIAL OVERVIEW1 FY22 FY22 FY22 FY21 Variance Variance ($000) (Statutory) (pre AASB 16) (pre AASB 16) (pre AASB 16) (pre AASB 16) (pre AASB 16) • Strong profit growth as most markets traded 53 weeks 53 weeks 52 Weeks 52 Weeks % (53 week) % (52 week) well as economic activity improved Revenue 458,
Slide 7: Trading Performance - Sales
TRADING PERFORMANCE - SALES Sales growth accelerates 440 420 • Global Sales Revenue up 59.3% to $459m, with sales growth 400 380 accelerating after two years of disruption. Sales adjusted 360 to remove the 53 rd week up 55.6% 340 320 • Comp sales up 19.9% on FY21, with first half momentum 300 280 ma
Slide 8: Trading Performance - Sales
TRADING PERFORMANCE - SALES Strong Sales momentum • Australia/New Zealand region delivered solid growth despite FY22 FY21 Region ($AUD '000) Variance (53 weeks) (52 weeks) impacts from temporary store closures early in the year, with strong comp sales for these markets after re-opening Australia / N
Slide 9: Trading Performance - Gross Margin
TRADING PERFORMANCE - GROSS MARGIN 90% Historical Gross Margins Gross Margin at Constant Currency* 80% FY22 FY22 FY21 70% (53 weeks) (53 weeks) (52 weeks) 60% Currency USD 0.74 0.71 0.71 50% Sales 458,712 458,712 288,034 40% 79% 80% 80% 77% 77% 79% 74% Cost of Sales (96,884) (100,678) (67,070) 30% 2
Slide 10: Cost of Doing Business
COST OF DOING BUSINESS1 Cost pressures well managed • CODB well managed despite impacts of temporary store 70% CODB % Sales1 closures in Q1 with minimal government wage subsidies or 60% rent abatements globally • Elevated logistics costs continued during the period, 50% remaining well above pre COVI
Slide 11: Cash Flow
CASH FLOW1 Continued investment in store rollout FY22 FY21 (A$000s) (pre AASB 16) (pre AASB 16) • Cash flow from operating activities $96.7m with Cash from operating activities 96,705 66,381 operating cash conversion at 99% Net interest paid (476) (586) • Capital expenditure of $34.5m includes 104 n
Slide 12: Balance Sheet
BALANCE SHEET Continued Balance Sheet strength (A$000s) FY22 FY21 • Inventory holdings increased reflecting store network growth, new Net Cash 24,153 35,552 Poland DC, and increased stock on hand to mitigate supply chain risks Receivables 22,383 11,325 Inventories 50,215 34,211 • Strong Net Cash pos
Slide 13: Store Growth
STORE GROWTH International Rollout continued with 85 net new stores opened Store number growth • 104 new stores opened in the period offset by 19 Country FY22 FY21 Variance New Stores Closures closures with constant focus on keeping the network Australia 154 153 1 6 (5) strong New Zealand 25 24 1 3
Slide 14: Digital Update
DIGITAL UPDATE • Focus on our digital capabilities accelerated over the last 2 years, with enhanced website performance and user experience • Improved customer service levels with investment in customer support • All company owned markets serviced via digital store fronts • Online sales grew by 30%
Slide 15: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • Trading for the first 7 weeks of FY23 has seen a continuation of the strong performance of FY22, with comparable store sales for this period of +21.0% on FY22. Total sales for this period are 66.1% up on the same period in FY22, with prior year impacted by lockdowns in p
Slide 16: Summary
SUMMARY • Sales momentum strong for the financial year following a COVID disrupted first quarter • International expansion continued with net 85 new stores opened during the year and a total network of 629 stores at year end • 2 new markets opened during the year in Poland and Canada, as well as our
Slide 17: Appendices
APPENDICES 17
Slide 18: Appendix 1 - Non-IFRS financial information
APPENDIX 1 ASIC Regulatory Guide 230 Disclosing non-IFRS financial information In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Lovisa Holdings Limited is required to make a clear statement about the non-IFRS information included in the Profit announcement and presentati
Slide 19: Appendix - Profit and Loss Statement
APPENDIX 2 – PROFIT AND LOSS STATEMENT1 FY22 Impact of FY22 FY21 FY21 Variance Variance ($’000) Statutory application of (pre AASB 16) Statutory (pre AASB 16) (Statutory) (pre AASB 16) 53 Weeks2 AASB 16 53 Weeks2 52 Weeks 52 weeks Revenue 458,712 458,712 288,034 288,034 59.3% 59.3% Cost of sales (96
Slide 20: Appendix - 53rd Week Profit and Loss Reconciliation
APPENDIX 3 – 53 rd WEEK PROFIT AND LOSS RECONCILIATION1 FY22 FY22 FY21 Variance ($’000) (pre AASB 16)1 53rd Week 2 (pre AASB 16) (pre AASB 16) (pre AASB 16) 53 Weeks 52-week basis2 52 weeks 52 weeks2 Revenue 458,712 10,467 448,245 288,034 55.6% Gross Profit 361,828 8,126 353,702 220,963 60.1% CODB (