Mulberry Group Plc · LSE:MUL
Mulberry — H1 2012/13 Earnings Presentation
31 slides from Mulberry's earnings presentation, December 2012
Slide 1: Interim Results for the Six Months Ended 30 September 2012
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
Slide 2: Highlights for the Six Months Ended 30 September 2012
HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012 SUSTAINED REVENUE GROWTH, BUT AT A SLOWER PACE ― Total revenue up 6% to £76.5 million (2011: £72.3 million) ― Retail revenue up 13% ― Wholesale revenue down 4%, affected by account rationalisation and challenging environment CONTINUED PROFITABILI
Slide 3: Agenda
AGENDA 1. FINANCIAL REVIEW 2. STRATEGIC REVIEW 3. OPERATING REVIEW 4. CURRENT TRADING AND OUTLOOK 3
Slide 4: 1. Financial Review
1. FINANCIAL REVIEW 4
Slide 5: Revenue by Channel
1. Financial review 2. Strategic review REVENUE BY CHANNEL VALUE OF SALES 3. Operating review 4. Current trading and outlook £72.3m £76.5m (up 6%) RETAIL UP 13%, UP 7% LIKE-FOR- LIKE: ― UK up 9% ― International up 40% £30.0m ― Online up 44% £31.3m (39%) (43%) WHOLESALE DOWN 4%, AFFECTED BY: £46.5m ―
Slide 6: Revenue Growth
1. Financial review 2. Strategic review REVENUE GROWTH VALUE OF SALES 3. Operating review 4. Current trading and outlook 80 78 £1.2m £2.1m -£2.5m 76 £76.5m £3.4m 74 Revenue (£m) 72 £72.3m 70 68 66 64 62 60 H1 2011/12 UK Retail International UK Wholesale International H1 2012/13 Retail Wholesale 6
Slide 7: Income Statement
1. Financial review 2. Strategic review INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012 3. Operating review 4. Current trading and outlook £ MILLION 30 SEPTEMBER 30 SEPTEMBER VARIANCE 2011 2012 Revenue 72.3 76.5 +6% Gross profit 47.8 46.9 -2% Gross margin 66.2% 61.3% Administrative expen
Slide 8: Net Administrative Expenses
1. Financial review 2. Strategic review NET ADMINISTRATIVE EXPENSES FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012 3. Operating review 4. Current trading and outlook 40 35 £1.0m £0.1m -£0.2m £37.1m £3.7m 30 £32.5m (£m) 25 20 15 10 5 0 H1 2011/12 New store Other employee A&P Other H1 2012/13 operating co
Slide 9: Balance Sheet
1. Financial review 2. Strategic review BALANCE SHEET AS AT 30 SEPTEMBER 2012 3. Operating review 4. Current trading and outlook BALANCE SHEET (£ MILLION) 30 SEPTEMBER 31 MARCH 30 SEPTEMBER 2011 2012 2012 Fixed assets and investments 24.1 28.6 33.8 Inventories 29.1 32.5 36.9 Trade and other receivab
Slide 10: Capital Expenditure Analysis
1. Financial review 2. Strategic review CAPITAL EXPENDITURE ANALYSIS FOR THE YEAR ENDED 31 MARCH 2013 3. Operating review 4. Current trading and outlook 25 £8.3m £12.0m £20.3m £12.4m 20 £1.3m £2.6m (£m) 15 £4.7m £0.6m £1.0m £0.7m £1.9m £11.7m £2.9m 10 £0.7m £4.3m £0.4m £1.6m £6.5m £6.9m 5 £5.2m 0 Ac
Slide 11: 2. Strategic Review
MUL 2. STRATEGIC REVIEW
Slide 12: Long Term Strategic Themes
1. Financial review 2. Strategic review LONG TERM STRATEGIC THEMES 3. Operating review 4. Current trading and outlook 1. REINFORCE LUXURY POSITIONING 2. INTERNATIONAL EXPANSION 3. PRODUCT DEVELOPMENT 4. LEVERAGE OPERATIONS TO SUPPORT GROWTH 12
Slide 13: 1. Reinforce Luxury Positioning
1. Financial review 2. Strategic review 1. REINFORCE LUXURY POSITIONING 3. Operating review 4. Current trading and outlook QUALITY MADE IN ENGLAND COMMUNICATION DISTRIBUTION SERVICE 13
Slide 14: 2. International Expansion
1. Financial review 2. Strategic review 2. INTERNATIONAL EXPANSION MULTI-CHANNEL DISTRIBUTION STRATEGY 3. Operating review 4. Current trading and outlook MULTI-CHANNEL DISTRIBUTION STRATEGY RETAIL WHOLESALE DEPARTMENT STANDALONE PARTNER WHOLESALE ONLINE STORE STORES STORES ACCOUNTS CONCESSIONS GLOBA
Slide 15: 2. International Expansion: High Priority Markets
1. Financial review 2. Strategic review 2. INTERNATIONAL EXPANSION HIGH PRIORITY MARKETS 3. Operating review 4. Current trading and outlook NORTH WESTERN AMERICA EUROPE JAPAN CHINA (INCL. HK) 15
Slide 16: 3. Product Development
1. Financial review 2. Strategic review 3. PRODUCT DEVELOPMENT 3. Operating review 4. Current trading and outlook 1. HANDBAGS TO REMAIN CORE CATEGORY Focus on creativity, innovation and quality 2. EXPAND THE OFFER IN SELECTED CATEGORIES Small leather goods, fashion accessories, women’s shoes, belts
Slide 17: 4. Leverage Operations to Support Growth
1. Financial review 2. Strategic review 4. LEVERAGE OPERATIONS TO SUPPORT 3. Operating review GROWTH 4. Current trading and outlook 1. INVEST ― Invest in people ― Facilitate a global business through IT and supply chain investments 2. ADAPT ― Organisation structured to drive strategy ― Incentive sch
Slide 18: Executing Our Strategy
1. Financial review 2. Strategic review EXECUTING OUR STRATEGY 3. Operating review 4. Current trading and outlook STRATEGIC COMPLETED DURING H1 ACTIONS FOR H2 AND THEME BEYOND REINFORCE On-going product quality Commenced second UK factory LUXURY enhancements, including leather build and components
Slide 19: 3. Operating Review
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Slide 20: Performance by Region: Europe
1. Financial review 2. Strategic review PERFORMANCE BY REGION EUROPE – REVENUE BY CHANNEL 3. Operating review 4. Current trading and outlook £55.5m £61.0m PERFORMANCE ― UK business growing despite more challenging environment £10.1m (down 6%) ― Other Europe retail growth boosted £10.7m by new store
Slide 21: Edinburgh
1. Financial review 2. Strategic review EDINBURGH 3. Operating review 4. Current trading and outlook 21
Slide 22: Performance by Region: North America
1. Financial review 2. Strategic review PERFORMANCE BY REGION NORTH AMERICA - REVENUE BY CHANNEL 3. Operating review 4. Current trading and outlook £3.6m £4.0m PERFORMANCE ― Sales up 11% ― Opened two standalone stores in San £0.7m Francisco and New Jersey in late H1 £0.7m £3.3m (up 14%) STRATEGY £2.
Slide 23: San Francisco
1. Financial review 2. Strategic review SAN FRANCISCO 3. Operating review 4. Current trading and outlook 23
Slide 24: Performance by Region: Asia Pacific, Middle East & Rest of World
1. Financial review 2. Strategic review PERFORMANCE BY REGION ASIA PACIFIC, MIDDLE EAST & REST OF WORLD - REVENUE BY CHANNEL 3. Operating review 4. Current trading and outlook £13.2m £11.5m PERFORMANCE First half revenue impacted by: £1.2m ― Challenging economic environment ― Cautious ordering by pa
Slide 25: Singapore
1. Financial review 2. Strategic review SINGAPORE 3. Operating review 4. Current trading and outlook 25
Slide 26: New Store Openings
1. Financial review 2. Strategic review NEW STORE OPENINGS WORLDWIDE RETAIL FOOTPRINT 30 SEPTEMBER 2012 3. Operating review 4. Current trading and outlook TOTAL STORES: 107 UK: 45 directly operated +2 +4 NORTH +2 ASIA AMERICA: PACIFIC: 5 directly EUROPE: 37 partner operated 6 directly operated MIDDL
Slide 27: 4. Current Trading and Outlook
4. CURRENT TRADING AND OUTLOOK 27
Slide 28: Current Trading and Outlook
1. Financial review 2. Strategic review CURRENT TRADING AND OUTLOOK 3. Operating review 4. Current trading and outlook RETAIL — Retail sales up 19% for the nine weeks to 1 December 2012, up 11% like-for-like, demonstrating continued strength of Mulberry brand — Encouraging progress in sourcing new s
Slide 29: Contacts
CONTACTS PELHAM BELL POTTINGER 0797 792 7142 Daniel de Belder MULBERRY INVESTOR RELATIONS 0207 605 6771 Amelia Fincher ALTIUM 0207 484 4040 Ben Thorne Melanie Szalkiewicz BARCLAYS 0203 124 9803 Jon Bathard-Smith Nicola Tennent MULBERRY.COM blog.mulberry.com Twitter @mulberry_editor facebook.com/mulb
Slide 30: Appendix: Revenue by Region
APPENDIX: REVENUE BY REGION (VALUE OF SALES) £72.3m £76.5m £1.2m £1.2m £4.0m £3.5m £10.3m £12.1m £13.5m £12.6m £47.5m £42.9m H1 2011/12 H1 2012/13 UK Europe Asia Pacific & Middle East North America Rest of World 30
Slide 31: Appendix: Worldwide Retail Footprint September 2012
APPENDIX WORLDWIDE RETAIL FOOTPRINT: SEPTEMBER 2012 Department store Free Standing Changes from Shop-in-Shop Stores Total 31 March 2012 Own Stores UK Full Price 26 10 36 - UK Airport - 5 5 - UK Outlet - 4 4 - Europe 2 4 6 +2 USA - 5 5 +2 Total Own Stores 28 28 56 +4 Partner Stores Scandinavia - 9 9