Robinsons Retail Holdings, Inc. · PSE:RRHI
Robinsons Retail — Q2 2024 Earnings Presentation
34 slides from Robinsons Retail's earnings presentation, Jul 30, 2024
Slide 1: First Half 2024 Unaudited Earnings Results
First Half 2024 Unaudited Earnings Results 30 July 2024
Slide 2: Agenda
Agenda 1 Performance Highlights 2 Store Network 3 Business Segments 4 Updates on Minority Investments 5 Organizational Changes in the Board of Directors and Officers of RRHI 6 Corporate Developments AT THE HEART OF MEANINGFUL RETAIL
Slide 3: 2Q2024 Performance Highlights
2Q2024 Performance Highlights Net Sales Same Store Gross Profit 47.8bn Sales Growth ₱ 11.6bn ₱ ▲ 3.1% 0.5% ▲ 5.2% Gross Margin: 24.2% +50bps EBIT Core Earnings Net Income ₱ 2.2bn 1.5bn to Parent ▲ 7.3% EBIT Margin: ₱ ▲ 15.3% ₱ 1.7bn ▲ 36.2% 4.6%, +20bps
Slide 4: 1H2024 Performance Highlights
1H2024 Performance Highlights Net Sales Same Store Gross Profit 93.7bn Sales Growth ₱ 22.5bn ₱ ▲ 3.0% 0.7% ▲ 4.4% Gross Margin: 24.0% +30bps EBIT Core Earnings Net Income ₱ 4.1bn 2.6bn to Parent ▲ 5.5% EBIT Margin: ₱ ▲ 12.1% ₱ 6.8bn ▲ 3.8x 4.4%, +10bps
Slide 5: Revenue Trends
Revenue Trends 2Q23 2Q24 1H23 1H24 2Q∆ 1H∆ Blended Same Store Sales Food 27.8 28.9 55.0 57.0 4.0% 3.7% Growth (SSSG) Drugstores 8.2 8.5 16.1 17.3 4.1% 7.2% 6.3% Department 3.6 3.8 6.8 7.0 5.7% 1.9% stores 3.6% DIY stores 3.0 2.9 5.9 5.6 -3.3% -4.8% Specialty 0.5% 0.7% 3.8 3.7 7.1 6.8 -3.1% -4.6% sto
Slide 6: Consolidated Results – P&L
Consolidated Results – P&L In ₱ mn 2Q23 2Q24 1H23 1H24 2Q∆ 1H∆ Net Sales 46,385 47,823 90,978 93,710 3.1% 3.0% SSSG 3.6% 0.5% 6.3% 0.7% Gross Profit 10,999 11,570 21,528 22,481 5.2% 4.4% Gross Margin 23.7% 24.2% 23.7% 24.0% EBITDA 3,881 4,007 7,523 7,680 3.2% 2.1% EBITDA Margin 8.4% 8.4% 8.3% 8.2% E
Slide 7: Net Sales and EBITDA Breakdown
Net Sales and EBITDA Breakdown Specialty stores, 7.3% Food, 62.2% Food, 60.8% Specialty stores, DIY stores, 6.0% 4.3% Department DIY stores, stores, 7.4% 9.5% Net Sales Department EBITDA stores, 5.1% (1H2024) (1H2024) Drugstores, 18.5% Drugstores, 18.9% 7
Slide 8: Store Network
Store Network Total of 2,401 stores plus 2,148 TGP Branches Metro Manila Luzon Visayas Mindanao Total Food 400 287 51 17 755 Luzon Drugstores1 144 436 338 164 1,082 Department Stores 8 20 12 9 49 Metro Manila DIY Stores 61 99 38 26 224 Visayas Specialty Stores 87 136 38 30 291 Total 700 978 477 246
Slide 9: Food Segment
Food Segment Net sales (₱ mm) Same Store Sales Growth ∆+3.7% 54,957 57,008 6.0% ∆+4.0% 27,811 28,928 2.7% 1.3% 0.9% 755 stores Robinsons 2Q2023 2Q2024 1H2023 1H2024 2Q2023 2Q2024 1H2023 1H2024 151 Supermarket Robinsons 131 Easymart Gross Profit (₱ mm) EBITDA (₱ mm) ∆+5.3% ∆+2.5% 15 Shopwise 12,198 1
Slide 10: Drugstore Segment
Drugstore Segment Net sales (₱ mm) Same Store Sales Growth (1) ∆+7.2% 10.6% 16,129 17,288 ∆+4.1% 8.2% 8,152 8,486 3.2% (0.1%) 1,082 owned stores 2Q2023 2Q2024 1H2023 1H2024 2Q2023 2Q2024 1H2023 1H2024 2,148 franchised stores Gross Profit (₱ mm) EBITDA (₱ mm) ∆+5.6% 1,452 664 Southstar Drug ∆+8.2% 1,
Slide 11: Department Store Segment
Department Store Segment Net sales (₱ mm) Same Store Sales Growth ∆+1.9% 11.9% 6,832 6,965 ∆+5.7% 6.5% 3,585 3,790 2.4% 1.3% 2Q2023 2Q2024 1H2023 1H2024 2Q2023 2Q2024 1H2023 1H2024 Gross Profit (₱ mm) EBITDA (₱ mm) 49 stores ∆+2.8% 2,105 2,165 ∆-2.9% ∆-1.8% ∆+6.7% 7.1% 6.6% 5.8% 5.6% 1,094 1,168 31.
Slide 12: DIY Segment
DIY Segment Net sales (₱ mm) Same Store Sales Growth ∆-4.8% 5,921 5,639 1.0% ∆-3.3% 3,019 (0.7%) 2,919 (3.2%) (4.8%) 2Q2023 2Q2024 1H2023 1H2024 2Q2023 2Q2024 1H2023 1H2024 224 stores Gross Profit (₱ mm) EBITDA (₱ mm) ∆+0.2% ∆+23.4% 197 Handyman 1,883 1,888 734 ∆+54.2% 595 ∆+5.5% 27 True Value 429 9
Slide 13: Specialty Segment
Specialty Segment Net sales (₱ mm) Same Store Sales Growth ∆-4.6% 4.8% 4.9% 7,140 6,810 ∆-3.1% 3,817 3,700 (3.8%) (5.2%) 2Q2023 2Q2024 1H2023 1H2024 2Q2023 2Q2024 1H2023 1H2024 Gross Profit (₱ mm) EBITDA (₱ mm) 291 stores ∆-38.8% 121 Appliances & Electronics ∆-1.7% 546 42 Toys 1,962 1,928 ∆-0.6% ∆-3
Slide 14: Working Capital
Working Capital 1H2023 1H2024 Cash Conversion Cycle 5.4 5.1 Receivable Days 25.3 20.3 Inventory 76.9 76.1 Days 60.9 Payable 57.1 Days 1H2023 1H2024 14
Slide 15: Balance Sheet
Balance Sheet June 30, 2023 June 30, 2024 in ₱ mn (Unaudited) (Unaudited) Cash & Cash Equivalents 8,199 11,449 Investment in Liquid Debt & Equity Securities 5,772 3,199 Total Assets 152,462 161,581 Total Debt 23,487 23,192 Total Equity 79,072 88,419 Return on Assets (trailing 12-months)* 3.3% 5.8% R
Slide 16: Capital Expenditures
Capital Expenditures Drugstores 18% Food 53% Department stores 10% DIY stores 8% Specialty stores 11% 1H2024 Organic Capex: ₱1.7 billion 16
Slide 17: Updates on Minority Investments
Updates on Minority Investments
Slide 18: Updates on O!Save (1H24)
Updates on O!Save (1H24) O!Save is a hard discount supermarket chain founded in 2021. It is operated by HD Retail Holding Pte Ltd, which RRHI has a 23% stake in. 270 280 sqm Number of Stores Average store size vs. 122 LY US$97mn 3 Distribution Centers Net Sales Pampanga, Rizal, vs. US$37mn LY Bulaca
Slide 19: Updates on G2M (1H24)
Updates on G2M (1H24) G2M Solutions Inc is a solution provider that effectively owns 100% of Growsari, a tech-enabled platform that helps the US$436mn 23 Philippines’ over one million sari-sari 1H24 Total Platform Value stores. Launched in 2016, Growsari's # of Key Cities business encompasses FMCG v
Slide 20: Organizational Changes in the Board of Directors and Officers of RRHI
Organizational Changes in the Board of Directors and Officers of RRHI
Slide 21: Leadership Transition Approved by the Board of Directors on July 25, 2024
Leadership Transition Approved by the Board of Directors on July 25, 2024 1. Mr. Lance Y. Gokongwei shall step down as Chairman and as a Director of RRHI to assume the role of Board Adviser of RRHI effective January 1, 2025. 2. Ms. Robina Gokongwei Pe shall transition to the role of Chairman of RRHI
Slide 22: Appointment of Stanley C. Co as President & CEO
Appointment of Stanley C. Co as President & CEO of Robinsons Retail effective January 1, 2025 • Appointed as President & CEO of Robinsons Retail effective January 1, 2025 • Current COO of Robinsons Retail handling Food, Drugstores, DIY, Appliances, Mass Merchandise, and Pets • Former Managing Direct
Slide 23: Election of Mr. Curtis Liu as Robinsons Retail Director
Election of Mr. Curtis Liu as Robinsons Retail Director effective September 1, 2024 • Appointed by the DFI Retail Group as Food CEO effective September 1, 2024, succeeding Mr. Choo Peng Chee • Has over 24 years of retail experience across Mainland China and Taiwan • Previously served as the Merchand
Slide 24: Corporate Developments
Corporate Developments
Slide 25: Extension of Share Buyback Program
Extension of Share Buyback Program Update on Current Share Additional Total Buyback Program As of July 29, 2024 Share Share 1.4bn Buyback Buyback Outstanding Shares Cumulative Number of Shares Repurchased 132.8mn ₱1.0bn ₱8.0bn Total Amount Repurchased Remaining Amount ₱6.9bn ₱1.1bn 25
Slide 26: Robinsons Retail ranked 105th in inaugural Fortune SEA 500
Robinsons Retail ranked 105th in inaugural Fortune SEA 500 26
Slide 27: Southstar, TGP open new distribution centers
Southstar, TGP open new distribution centers Southstar Drug DC Pasig City, Metro Manila TGP DC Consolacion, Cebu 27
Slide 28: Bringing communities together
Bringing communities together Pet Lovers Centre’s 1st Pet Wellness Walk Shopwise’s 1st Bike Fest 28 April 2024, Antipolo City 19 May 2024, Imus City Robinsons Supermarket’s 16th Fit and Fun Southstar Drug’s 13th Run for Wellness Wellness Buddy Run 16 June 2024, Quezon City 7 July 2024, Quezon City 2
Slide 29: 25 execs finish Ateneo management program
25 execs finish Ateneo management program 29
Slide 30: Guidance for 2024
Guidance for 2024 Net store additions SSSG target of of 90-110 2%-4% 20-40bps gain on Organic CAPEX of gross margins ₱4.0-6.0bn 30
Slide 31: Thank you!
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Slide 32: Income Statement
Income Statement For the Quarter Ended June 30 2023 (Unaudited) 2024 (Unaudited) Six Months Ended June 30 2023 (Unaudited) 2024 (Unaudited) Sales - net of sales discounts and returns 46,385 47,823 90,978 93,710 Cost of merchandise sold 35,386 36,253 69,450 71,229 Gross Profit 10,999 11,570 21,528 22
Slide 33: Balance Sheet
December 31 June 30 (Audited) (Unaudited) Balance Sheet == ae Cash and cash equivalents 43,173 41449 Trade and other receivables 2.948 2677 Merchandise inventories 29,668 29.780 Other current assets 4682 1601 Total Current Assets ABATL 45,507 Noncurrent assets Held For Sale 8318 Investment in debt a
Slide 34: Cash Flow
Cash Flow December 31 June 30 June 30 (Audited) (Unaudited) — (Unaudited) 2023 2023 2024 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 6173 2747 7,635 Depreciation and amortization including ROU amortization - PFRS 16 7,500 3.645 3,590 Retirement expense 317 85 132 Others including i
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