Card Factory Plc · LSE:CARD
Card Factory — FY2024 Earnings Presentation
27 slides from Card Factory's earnings presentation, Apr 30, 2024
Slide 1: Creating celebrations for all life's moments
Creating celebrations for all life’s moments Card Factory plc FY24 Full Year results 30 April 2024
Slide 2: Agenda
Agenda Introduction Financial Performance Strategy Update Summary & Outlook Q&A cardfactery Darcy Willson-Rymer Matthias Seeger Darcy Willson-Rymer Darcy Willson-Rymer Darcy Willson-Rymer & Matthias Seeger
Slide 3: Section 1: Darcy Willson-Rymer, CEO
Section 1 Darcy Willson-Rymer, CEO 3
Slide 4: Positive momentum driving strong performance in FY24
Positive momentum driving strong performance in FY24 • Continued positive momentum across the business driving revenue and profit growth. • Strong performance in stores underlines strategic role in our omnichannel ambition. • Strategy delivering positive outcomes across all building blocks of growth
Slide 5: Section 2: Matthias Seeger
Section 2 Matthias Seeger 5
Slide 6: FY24 financial highlights
FY24 financial highlights Double-digit revenue growth Significant PBT improvement Investment in future growth Reduction in net debt Reinstatement of dividend FY24 = year ended 31 January 2024. 6
Slide 7: Strong financial performance in FY24
Strong financial performance in FY24 Revenue Adjusted PBT Adjusted EPS £510.9m £62.1m 13.5 pence (FY23: £463.4m) (FY23: £48.9m) (FY23: 12.1 pence) +10.3% +27.0% +1.4 pence Cash from DPS Net Debt Operations 4.5 pence £34.4m £118.7m (FY23: £57.2m) (FY23: 0.0 pence) (FY23: £107.8m) +10.1% -39.9% +4.5 p
Slide 8: Track record of underlying continuous growth
Track record of underlying continuous growth £m 510.9 FY19-FY24 CAGR 3.9% 463.4 451.5 422.1 364.4 285.1 Revenue (£m) FY19 FY20 FY21 FY22 FY23 FY24 8
Slide 9: Double-digit top line growth driven by strong LFL sales
Double-digit top line growth driven by strong LFL sales +10.3% year-on-year growth +8.2 ppts -0.5 ppts +0.4 ppts +2.2 ppts 463.4 38.1 (2.6) 1.6 10.4 510.9 £m Total +8.7% CFO LFL +0.4% LFL +7.7% +240% GP LFL -26.1% SA Greetings Partnerships Online cardfactory Stores Group Revenue cardfactory Stores O
Slide 10: Improved margins balanced with investments in future growth
Improved margins balanced with investments in future growth Margin % +1.7% increase YoY Productivity improvement due to higher sales per store. Acquisition gain, Covid provisions Efficiencies more than Investments to enable release, off-set impact of 9.7% future growth. impairment of NLW increase. G
Slide 11: Significant PBT growth vs FY23
Significant PBT growth vs FY23 FY24 FY23 Change • Adjusted PBT increased by +27.0% to £62.1m driven by revenue growth of +10.3% Revenue £510.9m £463.4m £47.5m and margin improvement of 1.7 ppts. Product Margin £355.6m £318.1m 37.5 • Product margins of 69.6% enhanced 1.0 ppts Product Margin % 69.6% 6
Slide 12: Strong cash generation enables £30 million investments in future growth
Strong cash generation enables £30 million investments in future growth FY24 FY23 Change • Significantly improved year-on-year cash EBITDA £122.6m £112.0m £10.6m generation. Cash from Operations £118.7m £107.8m £10.9m • Strong, normalised operating cash Corporation Tax (£13.5m) (£7.9m) (£5.6m) perfo
Slide 13: Strengthened balance sheet: De-leveraging and £23m reduction in net debt
Strengthened balance sheet: De-leveraging and £23m reduction in net debt £m Refinancing completed in April 2024 • £125 million RCF with £75 million accordion option. • Initial term to April 2028 with extension options to November 2029. • Competitive margin grid and reduction in overall cost. 13
Slide 14: Capital Allocation Policy: A balanced, progressive, sustainable approach
Capital Allocation Policy: A balanced, progressive, sustainable approach Maintain a strong balance sheet • Balanced delivery of sustainable, long-term growth in Maximum Adjusted Leverage of 1.5x shareholder value and progressive cash returns to shareholders. Invest to deliver the strategy Deliver bu
Slide 15: Cash returns to shareholders for FY24
Cash returns to shareholders for FY24 • Recommencement of ordinary dividend for FY24 following cessation of restrictions and strong cash generation. • Ordinary dividend comprises interim and final dividends. • Board will recommend a final dividend of 4.5p per share equivalent to £15.5 million - an a
Slide 16: Delivering shareholder value through strong performance
Delivering shareholder value through strong performance +8.85% p.a £650m • Strong set of financial results underpinned by the strength of +10.2% our commercial offer, our business operations and growth £510m £463m across strategic focus areas. Revenue • Strong top line sales growth and margin improv
Slide 17: Section 3: Darcy Willson-Rymer
Section 3 Darcy Willson-Rymer 17
Slide 18: Strategic growth pillars
Strategic growth pillars Stores: Card, Gifts & Online & Partnerships: Celebration Essentials: Omnichannel: Leverage and grow £13.4bn UK Celebration Deliver a seamless £80bn international profitable store estate Occasions addressable celebration experience market opportunity market 18
Slide 19: Positive impact of strategic initiatives: Stores
Positive impact of strategic initiatives: Stores • Continued active and efficient management of profitable store portfolio. • +26 net new stores, remain on track to deliver 90 new stores over the course of the five-year plan to FY27. • Impactful space realignment project as part of the store evoluti
Slide 20: Positive impact of strategic initiatives: Cards and gifts
Positive impact of strategic initiatives: Cards and gifts • Range development and innovation to broaden customer appeal and price points contributed to LFL growth in card of +4.8%. • Expanded ranges drove strong LFL growth in gifts +15.8% and celebration essentials +6.7%. • Successful implementation
Slide 21: Positive impact of strategic initiatives: Omnichannel and Online
Positive impact of strategic initiatives: Omnichannel and Online • Successful nationwide rollout of Click & Collect service completed in April 2024 with in-store collection representing 7.8% of all Online orders. • Customer omnichannel order to collection lead times reduced from 3-5 days at rollout
Slide 22: Positive progress of strategic initiatives: Partnerships
Positive progress of strategic initiatives: Partnerships • First four International franchise stores opened in Abu Dhabi and Dubai • Plans to open around 36 Stores in total over next four years. • Positive customer response with focus on gift and celebration essentials. • Rollout across all 223 UK M
Slide 23: Our approach to sustainability
Our approach to sustainability 23
Slide 24: Section 4: Darcy Willson-Rymer
Section 4 Darcy Willson-Rymer 24
Slide 25: Summary of FY24
Summary of FY24 • Strong performance through FY24. • Investments in strategy delivering positive outcomes across building blocks of growth. • Our value and quality proposition and strength of our store estate continue to drive growth and provide a competitive advantage. • Celebrations occasions mark
Slide 26: Confident outlook for FY25
Confident outlook for FY25 • The Board remains confident in the long-term compelling growth opportunity and in our ability to deliver on the FY27 target. • Expect to continue to make good strategic progress towards our ambitions in FY25. • Trading since the start of the new financial year has been i
Slide 27: cardfactory
cardfactery celebrate all life's moments