Douglas Ag · XETR:DOU
Douglas — Q3 FY2023/24 Earnings Presentation
47 slides from Douglas's earnings presentation, Aug 14, 2024
Slide 1: Business Highlights & Financial Results Q3 FY 2023/24
BUSINESS HIGHLIGHTS & FINANCIAL RESULTS Q3 | FY 2023/24 Düsseldorf, 14 August 2024
Slide 2: Agenda
AGENDA 01 Business Highlights 4 02 Q3 Financials 12 03 Strategy Update 23 04 Wrap-up + Q&A 29
Slide 3: Q3 Successes
Q3 SUCCESSES OMNICHANNEL PROFITABILITY DEVELOPMENT WELL ON TRACK Store sales (net): Adjusted EBITDA: +7.2% +5.6% to €162.9m E-Com sales (net): Adj. EBITDA margin: +7.5% 16.7% Implementation of is proceeding well
Slide 4: Business Highlights
SANDER VAN DER LAAN, CEO BUSINESS HIGHLIGHTS
Slide 5: Reopening of Luxury House of Beauty in Vienna
Reopening of Luxury „House of Beauty“ in Vienna (AT) Grand Reopening of 800m² Flagship Store
Slide 6: Successful Integration of parfumdreams Logistics into OWAC Hamm
Successful Integration of parfumdreams Logistics into OWAC Hamm OWAC Hamm Positive effect on future profitability
Slide 7: Certified Great Place to Work
Certified GREAT PLACE TO WORK® Employee Engagement Survey* * Survey conducted in select countries (Germany & Switzerland HQ, Croatia, Czech Republic, Slovakia, Hungary) with ~1.500 employees; survey to be conducted in other countries soon
Slide 8: Sale of Disapo to MYA Health completed
Sale of Disapo to MYA Health completed Transaction closed end of July
Slide 9: Start of Summer Season: Category Trends & Development
Start of Summer Season: Category Trends & Development All categories up year-on-year – hair care continues strong upward trend FRAGRANCE MAKE-UP Biggest category in the Continued success for DOUGLAS Group, Yves Saint-Laurent & showing strong growth Charlotte Tilbury; E.L.F. rate (+9.1%). Top growth
Slide 10: Q3 Financials
MARK LANGER, CFO Q3 FINANCIALS
Slide 11: Further Increase in Sales and Profitability
Further Increase in Sales and Profitability Q3 performance underscores sustained growth path NET SALES ADJUSTED EBITDA1 in m€ 977 in m€ 910 154 163 +7.3% +5.6% +7.4% lfl 16.9% 16.7% MARGINS Q3 2022/23 Q3 2023/24 Q3 2022/23 Q3 2023/24 − Ongoing strong sales momentum as customers continue to be attrac
Slide 12: DACHNL Q3 2023/24
DACHNL Q3 2023/24 Strong net sales development in both channels NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +6.7% (+7.5% lfl) growth in Store business in m€ in m€ and +15.2% E-Com sales 465 423 +9.9% − Net sales increase in Stores due to strongly increased footfall although slightly lo
Slide 13: France Q3 2023/2024
France Q3 2023/2024 Solid net sales growth, strong E-Com business NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +3.8% (+2.4% lfl) growth in Store business, in m€ in m€ E-Com grew by +9.2% 174 166 +4.8% − Significantly higher footfall with slightly lower conversion rate, moderately larger
Slide 14: Southern Europe Q3 2023/24
Southern Europe Q3 2023/24 Ongoing net sales growth in Stores translated into higher adj. EBITDA NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +6.1% (+5.0% lfl) growth in Stores, E-Com net in m€ in m€ sales still slightly declined for the 146 quarter (-2.2%), but significantly 139 +4.9%
Slide 15: Central Eastern Europe Q3 2023/24
Central Eastern Europe Q3 2023/24 Strong net sales growth with margin impacted by increased operating costs NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +14.2% (+10.1% lfl) growth in Stores and in m€ in m€ +19.9% in E-Com 144 +15.3% − Net sales increase from significantly 125 higher foo
Slide 16: Parfumdreams / NICHE BEAUTY Q3 2023/24
Parfumdreams / NICHE BEAUTY Q3 2023/24 Net sales temporarily impacted by successful warehouse integration NET SALES ADJUSTED EBITDA1 − Transfer of warehouse operations to OWAC Hamm had a temporarily in m€ in m€ negative impact on net sales 45 -10.2% − Selected pricing measures taken to 40 strengthen
Slide 17: Net Sales Growth fueled by Omnichannel Business
Net Sales Growth fueled by Omnichannel Business Net sales Q3 2023/24 GROUP STORES E-COM in m€ in m€ in m€ 977 − Significantly increased footfall and number of − E-Com continues to grow for the 8th 910 customers consecutive quarter +7.3% − Higher basket sizes in most segments − More visits, stable co
Slide 18: P&L – Nearly reached Break-Even on pro-forma/adjusted basis
P&L – Nearly reached Break-Even on pro-forma/adjusted basis Q3 2023/24 Reported Reported Pro Forma/adjusted² in m€ Q3 2022/23 Q3 2023/24 Q3 2023/24 Net sales 910.5 977.1 977.1 − Net income in Q3 2023/24 Cost of raw materials, consumables and -486.2 -520.0 -520.0 especially affected by one- supplies
Slide 19: Higher Net Working Capital to support growth; Capex program on track
Higher Net Working Capital to support growth; Capex program on track As of 30 June 2024 AVERAGE NET WORKING CAPITAL CAPEX in m€ in m€ 232 192 +21.1% 36 +37.1% 26 Average NWC as % 4.8% 5.3% of net sales1 30.06.2023 30.06.2024 Q3 2022/23 Q3 2023/24 − Average inventory higher to support strong business
Slide 20: Free Cash Flow Improved
Free Cash Flow Improved 9M 2023/24 in m€ 657 -89 -29 530 -51 41 -65 465 Adj EBITDA CAPEX 1 Net Working TAX Others ³ Adj FCF 5 EBITDA Free Cash Flow5 Capital ² Adjustments (Cash effect) 4 9M 2022/23 589 -73 -121 -25 32 402 -43 359 1 Excl. M&A-related investments (Cash Capex); 2 For details on Working
Slide 21: Significant Reduction in Leverage Ratio
Significant Reduction in Leverage Ratio As of 30 June 2024 AVAILABLE LIQUIDITY in m€ 448 401 €7.9m used or reserved for rental TOTAL NET LEVERAGE1 ADJUSTED EBITDA LTM guarantees (PY: €8.5m) 161 (RCF) 342 in m€ 4,8 794 699 (RCF) 2,8 239 106 (cash) (cash) Jun-23 Jun-24 Jun-23 Jun-24 Jun-23 Jun-24 Note
Slide 22: Strategy Update
SANDER VAN DER LAAN, CEO STRATEGY UPDATE
Slide 23: Management change in the Netherlands and Belgium
Management change in the Netherlands and Belgium Sebastiaan de Jong to take over from Willem Duthler in September 2024 − Willem Duthler to leave the DOUGLAS Group in September after more than 25 years; he has been CEO of the BENE organization since 2005 − Sebastiaan de Jong becomes new SVP / CEO BEN
Slide 24: Strategy execution continues as planned
Strategy execution continues as planned Spotlight on major milestones in our customer proposition Deliver most Be the #1 BEAUTY Offer most relevant Build focused customer friendly DESTINATION and distinctive and efficient OMNICHANNEL in all our markets RANGE OF BRANDS OPERATING MODEL experience Bran
Slide 25: Store Network Development
Store Network Development Network growth according to plan − Stationary business remains a key pillar and growth driver − High demand for on-site shopping and personal beauty advice: increase in visitors (+16.9%) and customers (+8.1%) demonstrates translation of strong shopping & brand experience to
Slide 26: Update from Corporate Brands
Update from Corporate Brands Marketing campaign & product successes − Launch of first-ever brand campaign for biggest brand DOUGLAS COLLECTION: „If You Know, You Know“ − Picking up on popular social media trend #IYKYK illuding to insider knowledge of premium quality − International 360-degree campai
Slide 27: Redesign of Website, Online Shop and App
Redesign of Website, Online Shop and App Elevated and more premium appearance − Further enhancement of premium brand positioning across channels and countries − Rollout of premium redesign starting in September; in waves across all major countries and online channels − Ambition: enhance brand recogn
Slide 28: Truly beauty, truly premium: sleek & cohesive design
Truly beauty, truly premium: sleek & cohesive design with brand showcases and clutter-free visuals Preview of our new DOUGLAS online shop 28
Slide 29: Wrap-up + Q&A
WRAP-UP + Q&A
Slide 30: Summary
SUMMARY − Sustained positive business development with strong Q3 results and nine months results ahead of the previous year; overall growth stronger than originally anticipated − Omnichannel model continues to thrive: both stores and E-Com are developing well and grow organically − Clear strategic f
Slide 31: Appendix
APPENDIX
Slide 32: Adjustments to EBITDA
Adjustments to EBITDA Q3/9M 2023/24 in m€ Q3 2022/23 Q3 2023/24 9M 2022/23 9M 2023/24 Reported EBITDA 139.3 152.4 546.0 577.4 Strategic projects Consulting fees1 2.0 3.6 6.4 10.1 Restructuring costs2 -4.5 0.1 3.1 1.0 PPA -0.1 -0.1 -0.3 -0.3 Release of unused provisions SOP 3 0.1 0.2 2.3 -2.5 Mainly
Slide 33: Selected Segmental KPIs
Selected Segmental KPIs Q3 2023/24 REPORTED EBITDA CAPEX In m€ Q3 2022/23 Q3 2023/24 In m€ Q3 2022/23 Q3 2023/24 DACHNL 84.6 96.8 DACHNL 8.2 9.6 France 32.3 29.5 France 4.1 6.7 Southern Europe 24.1 30.7 Southern Europe 3.1 4.0 Central Eastern Europe 34.4 36.1 Central Eastern Europe 4.2 6.3 PD/NB -0.
Slide 34: Deep Dive into lfl Net Sales Development
Deep Dive into lfl Net Sales Development Quarterly overview Q3 2022/23 Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 DACHNL 10.7% 9.4% 7.4% 15.1% 10.6% France 4.7% 6.4% 2.8% 4.1% 3.8% Southern Europe 14.3% 4.5% 4.8% 5.9% 3.7% Central Eastern Europe 15.0% 16.8% 15.5% 18.0% 12.2% PD/NB 23.0% 37.6% 26.5%
Slide 35: Selected Segmental KPIs
Selected Segmental KPIs 9M 2023/24 REPORTED EBITDA CAPEX In m€ 9M 2022/23 9M 2023/24 In m€ 9M 2022/23 9M 2023/24 DACHNL 300.4 333.7 DACHNL 16.1 19.9 France 145.8 143.9 France 8.5 15.5 Southern Europe 100.4 123.2 Southern Europe 7.1 10.4 Central Eastern Europe 117.7 134.3 Central Eastern Europe 8.1 1
Slide 36: Development of Net Working Capital
Development of Net Working Capital As of 30 June 2024 251 241 245 205 in m€ 149 NWC as % of X% 6.2% LTM net sales 5.0% 3.5% 5.6% 5.6% Q3 2022/23 Q4 2022/23 Q1 2023/24 Q2 2023/24 Q3 2023/24 Inventory 737.9 762.6 794.7 776.6 765.5 Trade accounts receivable 71.3 61.0 116.6 87.8 76.1 Trade accounts paya
Slide 37: DACHNL 9M 2023/24
DACHNL 9M 2023/24 Strong net sales development in both channels NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +7.6% (+7.6% lfl) growth in Store business in m€ in m€ and +14.5% E-Com sales 1.613 1.462 +10.3% − Net sales increase in Stores due to significantly higher footfall as well as hi
Slide 38: France 9M 2023/24
France 9M 2023/24 Solid net sales growth with stable EBITDA margin NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +3.6% (+2.9% lfl) growth in Store business, in m€ in m€ E-Com grew by +5.1% 678 652 +3.9% − Higher footfall although lower conversion rate, higher basket sizes with higher net
Slide 39: Southern Europe 9M 2023/24
Southern Europe 9M 2023/24 Ongoing net sales growth in stores translated into higher adj. EBITDA NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +7.5% (+7.2% lfl) growth in Stores, E-Com in m€ in m€ business decreased by -6.3% 522 495 +5.4% − Net sales increase in Stores due to significant
Slide 40: Central Eastern Europe 9M 2023/24
Central Eastern Europe 9M 2023/24 Very strong net sales growth with margin impacted by increased logistic costs NET SALES ADJUSTED EBITDA1 − Net sales increase driven by +17.3% (+13.8% lfl) growth in Stores and in m€ in m€ +20.0% in E-Com 506 +17.9% − Net sales increase from significantly 429 higher
Slide 41: Parfumdreams/NICHE BEAUTY 9M 2023/24
Parfumdreams/NICHE BEAUTY 9M 2023/24 Strong net sales growth for the online beauty businesses NET SALES ADJUSTED EBITDA1 − Net sales increase driven by the E- Com business mainly from the in m€ in m€ DACH market and strong growth in 147 active customers +11.9% 131 − Less orders but higher basket siz
Slide 42: Net Sales Growth fueled by Omnichannel business
Net Sales Growth fueled by Omnichannel business Net sales 9M 2023/24 GROUP STORES E-COM in m€ in m€ in m€ − Significantly increased footfall and number of − E-Com continues its growth trajectory 3.491 customers 3.211 +8.7% − More visits and stable conversion rate − Higher basket sizes in most segmen
Slide 43: P&L – KPIs Significantly Improved
P&L – KPIs Significantly Improved 9M 2023/24 Reported Reported Pro Forma/adjusted² in m€ 9M 2022/23 9M 2023/24 9M 2023/24 Net sales 3,210.8 3,491.1 3,491.1 Q3 2023/24 YTD reported Cost of raw materials, consumables and -1,760.2 -1,895.9 -1,895.9 − Net operating expenses: Main supplies and merchandis
Slide 44: Cash Flow Statement
Cash Flow Statement 9M 2023/24 In m€ 9M 2022/23 9M 2023/24 Net cash flow from operating activities 430.2 552.8 Net cash flow from investing activities -71.3 -87.6 Free cash flow 358.9 465.2 Net cash flow from financing activities -367.5 -623.0 Net change in cash and cash equivalents -8.5 -157.8 Cash
Slide 45: Financing Structure since April 2024
Financing Structure since 15 April 2024 As of 30 June 2024 in m€ m€ x Adj. EBITDA1 Maturity Pricing Cash and Equivalents 106 RCF (€350m Volume) 0 Mar 29 E+2.25% Term Loan 802 Mar 29 E+2.75% Bridge facility 452 Mar 25 E+2.25% (can be extended twice by six months) IFRS 16 Liabilities 1,044 Net Debt in
Slide 46: Store Network across Europe
Store Network across Europe As of 30 June 2024 NUMBER OF STORES DEVELOPMENT 1,850 1,869 30 September 2023 – 30 June 2024 Store openings 38 Store closures -19 1.742 Total 19 1.718 Store openings: 7 stores in DACHNL (DE, AT, CH), 5 in Franchise France, 4 in South Europe (IT, SI) and 132 127 21 CEE (PL
Slide 47: DOUGLAS Group
LOUGLAS GROUP