Globe International Limited · ASX:GLB
Globe International — FY2024 Earnings Presentation
23 slides from Globe International's earnings presentation, Aug 22, 2024
Slide 1: Globe Intl. FY24 Results
GLOBE INTL. ASX: GLB 22ND AUGUST 2024 1
Slide 2: Globe International
Established in 1985, Globe International is a global producer and distributor specialising in purpose built apparel, footwear and skate GLOBE hardgoods. Serving the boardsports, street fashion, outdoor, and workwear markets, our products are sold in over 70 countries worldwide. INTERNATIONAL Founded
Slide 3: Core Brands
BRANDS CORE GLOBE SALTY CREW FXD IMPALA Founded: 1994 Founded: 2014 Founded: 2012 Founded: 2017 Primary Products: Primary Products: Primary Products: Primary Products: Footwear, Skate Hardware Men’s and Women’s Surf, Men’s and Women’s Roller Skates, Inline GLOBE INTERNATIONAL Fish and Dive Apparel W
Slide 4: Emerging Brands
BRANDS EMERGING IT’S NOW COOL X-DMG SZADE Founded: 2017 Founded: 2023 Founded: 2021 GLOBE INTERNATIONAL Primary Products: Women’s Swimwear Primary Products: Workwear Primary Products: Unisex Eyewear 4
Slide 5: Global Operations
OPERATIONS GLOBAL AUSTRALIA NORTH AMERICA EUROPE CHINA Established 1985 Established 1995 Established 2005 Established 2001 Handles APAC Handles Americas Direct in Western Europe and Skateboard Manufacturing GLOBE INTERNATIONAL Manages EMEA Distributors 5
Slide 6: FY24 Financial Highlights
GLOBE INTERNATIONAL $222.3M $17.1M 7.7% Revenue EBIT EBIT Margin -$11.9m on PCP +$12.4m on PCP vs 2.0% PCP FY24 FINANCIAL HIGHLIGHTS $11.5M 22 CENTS $22.1M NPAT Full Year Dividend Cash at Bank +$10.0m on PCP + 214% on PCP Reflecting a 8.1% Yield 6
Slide 7: CEO Highlights
GLOBE INTERNATIONAL + Strong global core brands with significant growth headroom in all regions + Our core brands delivered improved sales and financial performance, and importantly each of our regions delivered profit in FY24 + We believe the normalisation in skate hardgoods cycle is essentially co
Slide 8: Brand Performance
GLOBE BRAND + Heritage boardsports brand that continues to be the cultural core of the business + Launch of Globe safety gear and resurgence in heritage footwear trend driving growth SALTY CREW + Growing presence in US outdoor channel + Distribution re-alignment contributed dramatically to improved
Slide 9: FY24 Profit & Loss Statement
STRONG IMPROVEMENT IN FINANCIAL PERFORMANCE DRIVEN BY INITITAIVES IMPLEMENTED IN FY23 + Revenue of $222.3 million, down 5% on FY23 due to normalisation of hardgoods cycle + EBIT of $17.1 million, up $12.4 million on FY23 driven by brand performance, operational focus across core regions and reduced
Slide 10: Evolving Globe
EVOLVING GLOBE Normalisation in hardgoods cycle led to margin reduction due to inventory clearance 300 100.0% GLOBE’S STRATEGIC FOCUS 90.0% ON APPAREL PROVIDES Cyclical hardgoods led uplift DIVERSITY AND GROWTH 80.0% 250 exacerbated by COVID demand 70.0% 60.0% + Skate hardgoods has, and will 200 50.
Slide 11: Regional Performance
REGIONAL GLOBE IS AN AUSTRALIAN COMPANY SELLING BRANDS INTO THE INTERNATIONAL MARKETS PERFORMANCE WHICH ACCOUNTED FOR 32% OF EBIT IN FY24 AUSTRALIA NORTH AMERICA EUROPE + Increase in profitability YoY driven by + Returned to positive EBIT in FY24 after poor FY23 + Operational overhaul complete leadi
Slide 12: Dividend & Capital Management
PROVIDING STRONG RETURN OF CAPITAL TO SHAREHOLDERS + Final dividend of 13.0 cents per share (fully franked), taking the final FY24 dividend to 22.0 cents per share (FY23: 7.0 cents per share) + Implied trailing 12-month yield of 8.1% + The Board determined the final dividend having regard to underly
Slide 13: Our Social Responsibility
OUR SOCIAL GLOBE INTERNATIONAL RESPONSIBILITY NATIONAL FOREST FOUNDATION SEDEX COMMUNITY Off-set over three times the amount of trees Remains a member of SEDEX to further improve our ethical During the past Financial year, Globe donated harvested yearly in the production of our skateboards. and sust
Slide 14: FY25 Priorities
GLOBE INTERNATIONAL + Grow market share of existing core brands + Expand FXD in USA and Salty Crew in Australasia & EU FY25 + Product category expansion PRIORITIES + Continue driving improved contribution from international markets outside of Australia + Further efficiency improvements through opera
Slide 15: We never had a master plan for the business
“WE NEVER HAD A MASTER PLAN FOR THE BUSINESS, JUST A SERIES OF GUIDING PRINCIPLES THAT WERE ARTICULATED BY PETER AND STEPHEN AS A BUSINESS MISSION: STAY TRUE TO OUR ROOTS, REMAIN HARDCORE AND BE ADAPTIVE TO THAT AS OUR WORLD EVOLVES, AND MOST IMPORTANTLY HAVE FUN BREAKING CONVENTION.” – MATT HILL 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Globe Corporate Overview
GLOBE INTERNATIONAL Share Price (30 June 2024) $2.70 Shares on Issue (m) 41.4 52-week trading (low/high) $2.00 / $3.40 MARKET CAP $112M GLOBE CORPORATE OVERVIEW Other Board & Management Approx 70% Other Approx 30% Board and Management 17
Slide 18: Board & Senior Management
BOARD & GLOBE INTERNATIONAL SENIOR MANAGEMENT HARRY HODGE STEPHEN HILL PETER HILL MATT HILL KAREN BROWNE CHAIRMAN & EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER NON-EXECUTIVE DIRECTOR Harry Hodge was appointed to Stephen co-founded Globe Peter co-founded Glob
Slide 19: Profit & Loss Statement
GLOBE INTERNATIONAL PROFIT & LOSS STATEMENT 19
Slide 20: Balance Sheet
BALANCE SHEET GLOBE INTERNATIONAL 2023 2024 2023 2024 20
Slide 21: Cash Flow
GLOBE INTERNATIONAL CASH FLOW (11,415) 11,525 21
Slide 22: Globe International Contacts
GLOBE INTERNATIONAL INVESTORS: MEDIA ABN 65 007 066 033 Craig Sainsbury Michelle Audsley Globe International Limited 1 Fennell Street, Port Melbourne, VIC 3207 Automic Group Automic Group +61 3 8534 9999 +61 428 550 499 +61 402 008 929 craig.sainsbury@automicgroup.com.au michelle.audsley@automicgrou
Slide 23: Disclaimer
GLOBE INTERNATIONAL This presentation has been produced by Globe International Limited its directors, employees, associates, affiliates and agents, make no: or agents, nor any other person accepts any liability for any loss, claim, (“Globe”) and may contain forward looking statements that are based