Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — FY2023 Earnings Presentation
31 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Mar 14, 2024
Slide 1: FY 2023 Results Presentation
FY 2023 Results Presentation March 14, 2024
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company. The information, statements and opinions contained in this presentation do
Slide 3: Disclaimer on Information excluding IAS29 Provisions
Disclaimer on Information excluding IAS29 Provisions With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS
Slide 4: 2023 Business Overview
2023 BUSINESS OVERVIEW
Slide 5: 2023 Business Overview
2023 Business Overview Consolidated Results › Strong inflation adjusted sales growth of 25% (91% pre-IAS29) › Sales growth was driven by volume in all product categories and price growth in real terms. Over 14 mn denim items were sold globally, growing 12% yoy › Successful brand strategy, demand cre
Slide 6: 2023 Business Overview
2023 Business Overview Turkiye › Consumer demand remained robust. LFL retail store growth realised 31% when adjusted for inflation, driven by both transaction and basket size growth › With a right product - right price - high quality strategy continued to grow sales volumes in jeans, women and men l
Slide 7: Mavi Building Blocks
Mavi Building Blocks Brand and Product Innovations Customer Experience Omnichannel: Growing Retail and Online • Mavi continues to gain market share and new customers • ‘En Mutlu Mavi Musterisi’ (The Happiest Mavi Customer) • Instore Sales launched allowing all Mavi stores to sell while increasing fr
Slide 8: Mavi Building Blocks
Mavi Building Blocks Towards a more digital future All Blue. Timeless Quality. For All. People Oriented Culture • Digitalization and CRM investments are at the core of the • Global All Blue strategy continues to drive sustainable • Average age of Mavi employees is 26 and 80% is below company strateg
Slide 9: 2023 Highlights
2023 HIGHLIGHTS
Slide 10: 2023 Highlights
2023 Highlights GROUP HIGHLIGHTS1 TURKIYE HIGHLIGHTS › Consolidated revenue realized at 26,293 TRYm, 26,293 TRYm 4,959 TRYm 31% 26% growing 25% yoy Revenue EBITDA Retail Sales Online Sales Growth Growth › EBITDA for the period is 4,959 TRYm resulting in 18.9% EBITDA margin (20,209 TRYm (4,870 TRYm p
Slide 11: Sales Channels
SALES CHANNELS
Slide 12: Revenue Evolution in Sales Channels (pre-IAS29)
Revenue Evolution in Sales Channels (pre-IAS29) Global Revenue (TRYm) Turkiye Revenue (TRYm) 93% 101% 20,209 84% 91% Channel 17,719 2,121 Growth 2023 1,541 4,427 2,841 94% 8,829 10,592 81% 1,172 5,359 793 112% 6,020 80% 2,782 573 1,342 13,337 3,267 2,463 788 13,662 318 719 99% 396 6,694 458 1,084 4,
Slide 13: Turkiye Retail
TURKIYE RETAIL
Slide 14: Turkiye Retail Operations
Turkiye Retail Operations # of Retail Stores Gross Selling Space in Turkiye (Sqm K) Net New Avg. Stores 6 7 2 7 Sqm/ 498sqm 501sqm 510sqm 519sqm Retail Store 167.7 174.5 336 159.4 164.0 320 327 329 2020 2021 2022 2023 2020 2021 2022 2023 › With 12 openings and five closures in 2023, number of retail
Slide 15: Like-for-Like Stores Sales Performance (pre-IAS29)
Like-for-Like Stores Sales Performance (pre-IAS29) 42.7% 141.8% 29.5% 99.8% 17.3% 73.3% Transaction1 1.1% (20.8%) # Growth (%) 20.9% (11.0%) 31.1% per-IAS29 2019 2020* 2021* 2022 2023 2019 2020* 2021* 2022 2023 86.7% › In 2023, traffic to stores grew 7% showcasing strong consumer 70.4% demand › With
Slide 16: Sales in Denim & Lifestyle Categories (pre-IAS 29)
Sales in Denim & Lifestyle Categories (pre-IAS 29) Denim Products (TRYm) Lifestyle Products (TRYm) 38% Knits/Jerseys 27% Shirts 10% Jackets 10% 95% 90% 1,293 1,370 94% 5,131 100% 663 721 3,628 2022 2023 2022 2023 2,642 1,819 Accessories Non-Denim Bottoms 6% 7% 90% 137% 2022 2023 2022 2023 825 938 43
Slide 17: Online Business
ONLINE BUSINESS
Slide 18: Online Sales Growth inc. Wholesale Partners (pre-IAS29)
Online Sales Growth inc. Wholesale Partners (pre-IAS29) Global Online Sales (TRYm) Turkiye Online Sales (TRYm) % Sales % Sales 8.7% 11.7% 9.0% 12.8% 2,355 94% 1,541 74% 234 Channel Growth 793 749 1,356 885 73% 27% 184 432 63% 793 120% 543 361 1,236 629 96% 2022 2023 2022 2023 International Online Sa
Slide 19: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS
Slide 20: Consolidated Gross Margins (pre-IAS29)
Consolidated Gross Margins (pre-IAS29) Revenue (TRYm) Gross Profit (TRYm) 49.8% 55.0% 52.9% 53.7% 84% 91% 104% 94% 20,209 10,858 10,592 5,602 6,020 3,311 3,267 1,626 Q4 2022 Q4 2023 2022 2023 Q4 2022 Q4 2023 2022 2023 › When adjusted for the interest rate impact, gross margin improves 340 bps* in Q4
Slide 21: Consolidated EBITDA and Net Income (pre-IAS29)
Consolidated EBITDA and Net Income (pre-IAS29) EBITDA exc.IFRS16 (TRYm) EBITDA inc.IFRS16 (TRYm) 15.2% 18.3% 19.5% 20.7% 19.3% 21.8% 23.5% 24.1% 121% 103% 4,182 108% 95% 4,870 2,063 2,491 1,101 1,315 498 631 Q4 2022 Q4 2023 2022 2023 Q4 2022 Q4 2023 2022 2023 Net Income exc.IFRS16 (TRYm) Net Income
Slide 22: Consolidated Audited Financial Results (Per-IAS29 as Reported)
Consolidated Audited Financial Results (Per-IAS29 as Reported) Revenue (TRYm) Gross Margin (TRYm) 49.2% 48.2% 25% 22% 26,293 12,674 21,038 10,358 2022 2023 2022 2023 EBITDA (TRYm) Net Income (TRYm) 20.0% 18.9% 9.2% 6.7% 18% (9%) 4,959 1,927 4,206 1,757 2022 2023 2022 2023 Note: Net Income attributab
Slide 23: Operational Cash Flow and Working Capital Management
Operational Cash Flow and Working Capital Management* Cash Conversion & Operational Cash Flow Main Working Capital Items 93% TRYm 2022 2023 90% Trade & Other Receivables 1,505 1,338 % Sales 7.2% 5.1% Inventories 4,005 3,609 2022 2023 % COGS 37.5% 26.5% TRYm 2022 2023 Trade & Other Payables 4,946 3,5
Slide 24: Capex and Leverage Ratios
Capex and Leverage Ratios* CAPEX (TRYm) Debt Breakdown (31 January 2024) % Sales 2.8% 2.3% Average Cost of Debt 6% 9% CAD 596 TRY 46.0% 580 TRY RUB 21.0% RUB CAD 7.4% 2022 2023 Blended 41.1% 85% Net Cash exc.IFRS16 (TRYm) › All of non-TRY debt (15% of total) is carried by Mavi CA and 26% Mavi RU – b
Slide 25: FY2023 Guidance vs Results (pre-IAS29)
FY2023 Guidance vs Results (pre-IAS29) Previous Revised Revised Actual Results (08.06.2023) (19.09.2023) (11.12.2023) (pre-IAS29) Consolidated Revenue Growth 75% ± 5% 80% + 85% + 91% 5 net new stores 8 net new stores 7 net new stores Turkiye Retail Stores Confirmed 7 store expansions 7 store expansi
Slide 26: FY2024 Management Guidance (pre-IAS29)
FY2024 Management Guidance (pre-IAS29) › Total consolidated sales growth of 70% ± 5% (pre-IAS29) › Turkiye retail stores : Net 15 openings and 10 expansions › EBITDA margin : 20% ±0,5% exc. IFRS16 and 23.5% ±0,5% inc. IFRS16 (pre-IAS29) › Net cash position increased › Capex to sales ratio of 5% (inc
Slide 27: Mavi once again named a global climate leader!
Mavi once again named a global climate leader! Mavi becomes the first and only Turkish apparel company to achieve double A Rating for Climate Change and Water Security by CDP THANK YOU ! Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 28: Audited Financial Statements Income Statement
Audited Financial Statements Income Statement TRYm 2022 2023 Change (%) Revenue 21,038 26,293 25% Cost of Sales (10,680) (13,620) 28% Gross Profit 10,358 12,674 22% Gross Margin 49.2% 48.2% Administrative Expenses (1,364) (1,733) 27% Selling and Marketing Expenses (6,153) (7,403) 20% R&D Expenses (1
Slide 29: Audited Financial Statements Balance Sheet
Audited Financial Statements Balance Sheet TRYm 31 January 2023 31 January 2024 Change (%) Assets Current Assets Cash and Cash Equivalents 5,349 4,854 (9%) Financial Investments 96 63 (34%) Trade Receivables 1,435 1,312 (9%) Inventories 4,005 3,609 (10%) Other Current Assets 511 307 (40%) Total Curr
Slide 30: Audited Financial Statements Cash Flow Statement
Audited Financial Statements Cash Flow Statement TRYm 2022 2023 Profit¹ 1,927 1,757 Adjustments 1,939 3,759 Cash Flow from Operating Activities 3,866 5,516 Δ in Net Working Capital² (311) (494) Income Tax Paid (669) (719) Net Cash from Operating Activities 2,887 4,304 Capex (580) (596) Other Investi
Slide 31: Global Operations as of 31 January 2024
Global Operations as of 31 January 2024 471 405 66 5 37 Monobrand Mono-Brand International ~4,000 6,201 HQ Countries Stores in Mono-Brand Points of Sale Employees Stores Turkey Stores TURKEY EUROPE RUSSIA Retail stores: 336 Retail stores: 1 Retail stores: 17 Franchise stores: 69 Wholesale doors: ~80
Mavi Giyim Sanayi Ve Ticaret A.S. — FY2023 Earnings Presentation on 6ix