Warrix Sport Pcl · SET:WARRIX
Warrix Sport Pcl — Warrix Sport Public Company — Q2 2024 Earnings Presentation
53 slides from Warrix Sport Pcl's earnings presentation, Aug 21, 2024
Slide 1: 2Q24 Analyst Meeting
SPORT PUBLIC COMPANY LIMITED 2Q24 Analyst Meeting 21 August 2024
Slide 2: Agenda
Agenda 01 2Q24 Financial Performance 02 2024 Key Strategies 03 Outlook 04 Q&A 2
Slide 3: 2Q24 Financial Performance
01 2Q24 Financial Performance 3
Slide 4: 2Q24 Financial Performance (Separate)
2Q24 Financial Performance (Separate) Unit: THB million Separate P&L Statement 2Q23 1Q24 2Q24 %QoQ %YoY 6M23 6M24 %YoY Revenues from core operation 256 322 346 8% 35% 504 668 32% COGS 131 160 188 18% 44% 267 348 30% Gross Profit 126 162 158 -3% 26% 238 320 35% Other Income 6 7 5 -25% -14% 16 12 -21%
Slide 5: 2Q24 Financial Performance (Consolidated)
2Q24 Financial Performance (Consolidated) Unit: THB million Consolidated P&L Statement 2Q23 1Q24 2Q24 %QoQ %YoY 6M23 6M24 %YoY Revenues from core operation 256 328 350 7% 37% 506 678 34% COGS 133 164 190 16% 43% 270 354 31% Gross Profit 124 164 160 -2% 30% 236 324 37% Other Income 6 8 5 -33% -12% 16
Slide 6: Key Financial Performance: Revenues by Channel
Key Financial Performance Revenues Breakdown By Channel 2Q24 YoY & QoQ Growth by Channel +59% YoY -6% YoY +111% YoY +23% QoQ +2% QoQ +1% QoQ 93 88 81 83 78 79 75 +38% YoY +82% YoY -8% QoQ -16% QoQ 58 42 38 37 +26% YoY -87% YoY +134% YoY +19% YoY +24% YoY +45% QoQ +5,620% QoQ +78% QoQ 32 +12% QoQ +27
Slide 7: Key Financial Performance: Revenues by Channel
Key Financial Performance Revenues Breakdown By Channel 2Q23 2Q24 +19% 6M23 6M24 +15% +59% -6% +95% 168 +111% 93 165 88 157 83 146 79 138 +39% +89% +38% 58 +82% 80 80 38 37 59 58 +39% -92% +58% 28 27 +24% +11% +26% -87% +134% +19% +24% 15 31 12 13 19 21 7 9 6 4 5 1115 13 8 10 2 1 1 2 2 3 Others Othe
Slide 8: Key Financial Performance: Revenues by Product
Key Financial Performance Revenues Breakdown By Product 2Q24 YoY & QoQ Growth by Product +88% YoY +34% QoQ -6% YoY +106% YoY 129 +4% QoQ -28% QoQ +15% YoY +22% QoQ 97 86 78 81 69 69 66 +87% YoY +232% YoY -65% YoY +19% YoY 60 57 +48% QoQ -40% QoQ +26% QoQ +12% QoQ 47 23 22 13 9 1 1 2 4 2 3 4 5 5 Nati
Slide 9: Key Financial Performance: Revenues by Product
Key Financial Performance Revenues Breakdown By Product 2Q23 2Q24 6M23 6M24 +88% +58% 226 129 +8% -6% +5% +15% 159 +87% 86 81 143 148 69 +106% 121126 113 69 60 47 +87% +232% -65% +19% +29% +391% -67% +24% 61 23 35 13 9 3 16 1 2 4 4 5 3 3 7 5 8 10 Football Club Collection National Team Made to Order
Slide 10: Key Financial Performance
Key Financial Performance Unit: THB’m Revenues Gross Profit Margin 62% 678 59% 506 54% 56% 53% 327 350 526 50% 256 48% 48% 436 47% 239 48% 46% 288 45% 46% 228 44% 152 44% 89 62 70 28 2Q23 1Q24 2Q24 6M23 6M24 2Q23 1Q24 2Q24 6M23 6M24 Licensed Non- Licensed Licensed Non-Licensed Total Unit: THB’m EBIT
Slide 11: Key Financial Performance
Key Financial Performance Unit: THB’m Cost of Sales and Services Unit: THB’m Selling Expenses 28% 34% 31% 30% 33% 54% 222 53% 52% 23 52% 31 150 50% 112 110 15 40 678 23 72 10 12 28 16 15 7 19 21 12 128 15 84 67 61 39 2Q23 1Q24 2Q24 6M23 6M24 506 Advertising & Promotion People cost Rental & Service f
Slide 12: Balance Sheet
Balance Sheet Unit: THB’m Assets Liabilities & Equity Unit: THB million Unit: THB million -4% YTD -4% YTD 1,800 1,800 28 1,729 1,729 62 48 79 51 38 Intangible assets 141 153 138 Other Liabilities Right-of-use assets 346 114 202 189 270 Interest Bearing Debt Land and Equipments 451 Trade and other cu
Slide 13: 2024 Key Strategies
02 2024 Key Strategies 13
Slide 14: 2024 Key Strategies
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. Cost Management - Cost improvement from higher bargaining power with suppliers and bett
Slide 15: 2024 Key Strategies: Brand Building
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. 15
Slide 16: 2024 Key Strategies: Brand Building
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. 16
Slide 17: 2024 Key Strategies: Brand Building
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. 17
Slide 18: 2024 Key Strategies: Brand Building
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. ▪ WARRIX x ZillyB | Knight Chrome Collection. A special collaboration project under the
Slide 19: 2024 Key Strategies: Brand Building
2024 Key Strategies Brand Building - Stretch brand awareness to regional active & lifestyle brand. - Brand building with strong partnership & brand ambassadors growing brand awareness of its non-license products. ▪ A special collaboration project with Tor Saksit Vejsupaporn, a classic vibe with the
Slide 20: 2024 Key Strategies: Direct to Customer
2024 Key Strategies Focus on Direct to Customer (Own Channels from 54% in 2023 to 65% in 2024) - Expand distribution channel, mainly focus on own channels; 5-10 new shops, retail, online, and project based. - Increasing high margin product mix. - Human resource development in every touch point for b
Slide 21: 2024 Key Strategies: Direct to Customer
2024 Key Strategies Focus on Direct to Customer (Own Channels from 54% in 2023 to 65% in 2024) - Expand distribution channel, mainly focus on own channels; 5-10 new shops, retail, online, and project based. - Increasing high margin product mix. - Human resource development in every touch point for b
Slide 22: 12th Own Shop – Outlet Muang Thong Thani 2
12th Own Shop – Outlet Muang Thong Thani 2 ▪ Location : Outlet Muang Thong Thani 2 ▪ Selling Area: 152 SQM ▪ Opening Date : 18 July 2024 22
Slide 23: 13th Own Shop – Market Village Suvarnabhumi
13th Own Shop – Market Village Suvarnabhumi ▪ Location : Market Village Suvarnabhumi, 1st Floor ▪ Selling Area: 75 SQM ▪ Opening Date : 12 July 2024 23
Slide 24: Pop-up store with department store
Pop-up store with department store ▪ Location : Central Pinklao ▪ Period : 18 - 31 July 2024 24
Slide 25: Pop-up store with department store
Pop-up store with department store ▪ Location : Mega Bangna ▪ Period : 1 - 31 July 2024 25
Slide 26: Pop-up store with department store
Pop-up store with department store ▪ Location : Central World ▪ Period : 6 Aug – 6 Sep 2024 26
Slide 27: 2024 Key Strategies: New Partnership
2024 Key Strategies New Partnership - Expand new partnership through licensing strategy to diverse customer target groups in SEA. - Potential new business expansion related to health and lifestyle. Warrix appoint Universal Sports as its sole distributor in Malaysia. Universal Sports is a trusted spo
Slide 28: Leveraging new partnership to penetrate Malaysian market
Leveraging new partnership to penetrate Malaysian market Warrix x Universal Sports 29
Slide 29: Outlook
03 Outlook 30
Slide 30: Industry Outlook
Industry Outlook Thailand's Sports Industry Top 5 Sports Contributing to the Industry in 2023 Unit: THB million Unit: THB million 14,018 7% +13% YoY 27,252 Football 207,888 14% 184,723 Running 168,973 73,983 130,581 38% Volleyball 32,417 Badminton 17% 46,301 24% Boxing 2021A 2022A 2023A 2024F Sports
Slide 31: Keep Building Momentum: Activation Events & Product Launching
Keep Building Momentum: Activation Events & Product Launching Revenues by quarter ▪ Warrix has shown robust and continuous growth from 2022 to 373 393 2024, with a notable increase in quarterly revenues each year 325 328 350 295 and less seasonal effect. Its strategic involvement in key events 250 2
Slide 32: Activity Roadmap Q2-Q4/2024
Activity Roadmap Q2-Q4/2024 Q2 Q3 Q4 WORLD CUP FIFA DAY FIFA DAY Qlf. 5,10 SEP 16,19Nov FOOTBALL EVENT 6,11 JUN KC CUP ASEAN MITSUBISHI TBA 2024 23NOV – 21DEC ระเริ งรัน TETS TETS TETS TETS KAMPANGPET PRACHUAB KANCHANABURI SARABURI CHAIYAPUM 30NOV-1DEC 1-2JUN 10-11AUG 31AUG-1SEP 12-13OCT RUNNING EVE
Slide 33: Own Running Event to Generate Recurring Income
Own Running Event to Generate Recurring Income FROM 20,000+ PARTICIPANTS IN SERIES 2023 TO TARGET 30,000+ PARTICIPANTS IN SERIES 2024 35
Slide 34: Own Running Event to Generate Recurring Income
Own Running Event to Generate Recurring Income THAILAND EARTH TRAIL 2024 ระ เริ ง รัน Thailand Earth Trail Thailand Earth Trail 2024 Series 2024 Series 2024 Series Prachuab Kanchanaburi Chaiyaphum Q1 Q2 Q3 Q4 Outlook: • Announce 1 Road Race and 5 Trail Race series • 3 New Races and 3 remaining Races
Slide 35: Own Running Event to Generate Recurring Income
Own Running Event to Generate Recurring Income THAILAND EARTH TRAIL 2024 37
Slide 36: Shopee Run
Shopee Run 4 QsNcc SHOPEE|RUNIEUNIS/EAIRIBYAWARRIXG sui-sinnaser 2590. 284690. ee eo ee 990. 790. 690.
Slide 37: Community Engagement with BKK Runners
Community Engagement with BKK Runners Outlook: • At the heart of our brand ethos is community building. Our initiative with Bangkok runners at the Warrix Run Hub has further solidified our commitment to fostering a supportive and vibrant running community. This ongoing effort not only strengthens ou
Slide 38: Artist Showcase
Artist Showcase ~K WARRIX WARRDEX’ a ‘WyiriuaSiov AAU: outludourdoventsa r ful Ce asa) eters W301U Thalond Kustom Kulture | 2, Meee le wmulsdiwurareAausalad Pinstriping wx x Mi WARREIX eon 4 Aatums? ,wwsudauAndo ¥ wane Aaussinunoruilulaiialecuofat) Rocing by MrPinman Es anuisnavdaldn @ Veni ACTNE &
Slide 39: Artist Showcase
Artist Showcase 41
Slide 40: Business Transformation: Automated Replenishment System
Business Transformation AUTOMATED REPLENISHMENT SYSTEM BENEFITS: Increasing sales by reducing opportunity losses ▪ A system that quickly and accurately monitors sales data, purchase orders, and the stock status of each SKU. ▪ This enhances the efficiency of sales forecasting and stock management, re
Slide 41: Business Transformation: Loyalty Program
Business Transformation LOYALTY PROGRAM BENEFITS: Encouraging repeat purchases ▪ A system to create a comprehensive Warrix Membership that includes membership cards, point accumulation, and reward redemption. It can also be integrated with programs from other partners. ▪ Customers can enjoy full mem
Slide 42: Business Transformation: Process Transformation
Business Transformation PROCESS TRANSFORMATION BENEFITS: ▪ Reducing operation time ▪ Enhancing work efficiency ▪ Reviewing, reducing, and modifying work processes, transforming into automation. ▪ This covers order reception, product ordering, design, production, financial and accounting management,
Slide 43: Business Transformation: AI-Powered Automation
Business Transformation AI: AI-POWERED AUTOMATION BENEFITS: Reducing operation time from days to minutes ▪ The use of Artificial Intelligence (AI) technology to automate processes, reducing complexity, increasing speed, and enhancing efficiency in tasks such as presentation creation, automatic calcu
Slide 44: Business Transformation: AI-Driven Efficiency #1
Business Transformation AI: AI-DRIVEN EFFICIENCY #1 BENEFITS: Reducing operation time from days to minutes ▪ Applying AI to improve efficiency in the design process and marketing strategy development, resulting in faster and more accurate creative and operational processes. 46
Slide 45: Business Transformation: AI-Driven Efficiency #2
Business Transformation AI: AI-DRIVEN EFFICIENCY #2 47
Slide 46: 2026 Sales Target
2026 Sales Target Target 2026 Gross Sales > THB ~2,700m 100 % Sales in 2026 300 150 Services ~ 4% NEW 430 Oversea ~ 11% Health ~ 5% 1,238 Licensed ~ 15% 1,062 20 4 211 Existing 655 228 1,805 648 696 1 4 147 147 140 1,007 830 549 507 504 Non-Licensed ~ 65% 2019 2020 2021 2022 2023 2026 Non-Licensed L
Slide 47: Q&A Disclaimer
Q&A For more information, please contact IR Department ir@warrix.co.th or 094 310 7103 Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or purchase for share in Warrix Sport Public Company Limited (“WARR
Slide 48: Appendix
05 Appendix 50
Slide 49: Sport Apparel Industry Outlook
Sport Apparel Industry Outlook ▪ The sport apparel goods market in Thailand is worth approximately THB 30 billion. ▪ Recovered to pre-COVID-19 level, and on an uptrend with prospect to grow 15-20% per year premised on increasing in health awareness as more people are committed to leading healthier a
Slide 50: Thailand Annual Garment Consumption
Thailand Annual Garment Consumption 51.1 T-shirt 17% 111.7 Others 37% 34.9 300 Shirt 12% mn pcs 27.9 Polo 9% 25.6 Sportwears 48.8 9% Pants 16% Thailand Annual Garment Consumption 2020 (mn pcs) Sources : Mckinsey sporting goods 2021-2022 report, Manager Daily news the mall group research 2018, Market
Slide 51: Key Financial Performance
Key Financial Performance Unit: THB’m Revenues Gross Profit Margin 1,225 59% 1062 55% 54% 696 655 648 1013 834 48% 44% 46% 45% 42% 549 509 508 46% 42% 41% 44% 41% 43% 41% 147 147 140 229 211 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Licensed Non-Licensed Licensed Non-Licensed Total Unit: THB
Slide 52: Key Financial Performance
Key Financial Performance Unit: THB’m Cost of Sales and Services Unit: THB’m Selling Expenses 59% 58% 28% 27% 30% 27% 24% 55% 326 54% 52% 255 37 47 198 200 22 181 30 1,225 21 18 37 63 17 30 23 41 19 30 33 166 179 1,063 118 100 130 2019 2020 2021 2022 2023 Advertising & Promotion People cost Rental &
Slide 53: Key Financial Performance: Ratio Performance
Key Financial Performance Warrix Sport PCL Ratio performance Unit : Million Baht 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Total A/R 141.0 153.5 221.7 351.0 327.2 245.9 344.3 357.1 294.8 317.6 Total Inventory 339.6 352.8 356.4 450.7 558.8 540.3 555.2 529.9 545.5 543.3 Total A/P 267.0 144.7 1
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