Shaver Shop Group Limited · ASX:SSG
Shaver Shop — H1 2021 Earnings Presentation
24 slides from Shaver Shop's earnings presentation, Feb 19, 2021
Slide 1: H1 FY2021 Investor Presentation
Shaver Shop Group Limited H1 FY2021 Investor Presentation
Slide 2: H1 FY2021 Highlights
H1 FY2021 HIGHLIGHTS 2
Slide 3: H1 FY2021 Financial Highlights
H1 FY2021 Financial Highlights Sales > Record Sales up 15.0% to $123.6m – Corporate Store online sales up 102.0% – LFL sales up 17.3% > 24 months of consecutive LFL sales growth Earnings > No JobKeeper or other Government wage subsidies received > Gross margin up 340bps to 44.7% > Cost control led t
Slide 4: H1 FY2021 Operational Highlights
H1 FY2021 Operational Highlights Customer Service > NPS scores at, or near, all time highs > Sales conversion up 26% in Q2 FY2021 to 49.1% > Increased investment in support office marketing and customer service role to support online sales growth Omni Retail > Network online sales over $40m or 30% o
Slide 5: Exceptional online sales growth
Exceptional online sales growth Online sales represent 30.4% of total H1 FY2021 online sales increased 102% sales for Corporate stores 35.0% 120.0% 102.0% 120.0 100.0% 30.4% 30.0% 80.0% 70.7% 64.7% 100.0 60.0% 25.0% 40.0% 80.0 20.0% 8.8% % of total sales 20.0% 0.0% A$m 17.3% 1H FY18 1H FY19 1H FY20
Slide 6: Customer service excellence
Customer service excellence Net Promoter Score (NPS) (out of 100) Customer Experience (out of 10) 86 9.75 85 85.5 9.7 84 9.7 83 84 9.65 82 9.6 81 9.6 9.55 80 81 9.55 79 9.5 78 9.45 H1 FY2019 H1 FY2020 H1 FY2021 H1 FY2019 H1 FY2020 H1 FY2021 Sales conversion up 26% in Q2 FY2021 > High levels of engag
Slide 7: Financial Results Summary
Financial Results Summary 7
Slide 8: Record sales and profit growth
Record sales and profit growth Profit & Loss Reported Reported Variance Variance $m 1H FY21 1H FY20 ($) (%) > Total sales up 15.0% to $123.6m Sales 123.6 107.5 16.1 15.0% – LFL sales up 17.3% (includes Vic stores that were Gross profit 55.3 44.4 10.9 24.6% closed to in-store customers in Q1) Gross m
Slide 9: Strong margin expansion
Strong margin expansion Gross margins up 340bps to 44.7% > Gross profit up 24.6% to $55.3m driven by: 44.7% – Sales growth of 15.0% – Margin expansion – up 340bps to 44.7% > Strong margin expansion resulted from: 42.3% 41.9% 42.0% – Increased sales contributions from higher margin Hair 41.3% Cutting
Slide 10: CODB reduced 140bps to 22.7% of sales
CODB reduced 140bps to 22.7% of sales Operating leverage across key expenses > Store rosters well controlled to balance reduced foot traffic with maintaining service excellence in store 16.0% 14.3% > Increased Support Office headcount in marketing and 14.0% customer service 12.6% > Occupancy costs b
Slide 11: LFL store performance is the key driver of NPAT growth
LFL store performance is the key driver of NPAT growth A$m 18.0 16.0 0.1 0.0 0.4 0.5 14.0 12.0 7.3 10.0 8.0 14.2 6.0 4.0 7.6 2.0 - H1 FY20 LFL Stores Greenfields Buybacks Net Marketing Other, Corporate H1 FY21 NPAT NPAT OPEX Overheads 11 INVESTOR PRESENTATION H1 FY2021
Slide 12: Record NPAT of $14.2m up 86.1%
Record NPAT of $14.2m up 86.1% A$m 5 year NPAT* growth trend > Strong sales growth, gross margin expansion together 16.0 with operating expense leverage drove 86.1% growth in 14.0 14.2 NPAT to $14.2m 12.0 10.0 > No contribution from government wages subsidies (e.g. 8.0 JobKeeper) to H1 FY2021 result
Slide 13: Strong balance sheet
Strong balance sheet > Net cash (no debt) of $41.1m at 31 Dec 20 up from: AASB 16 AASB 16 AASB 16 $m 31-Dec-20 30-Jun-20 31-Dec-19 – $12.6m net cash at 30 June 20 Cash 41.1 12.6 19.4 – $8.4m net cash at 31 Dec 19 Trade & other receivables 0.9 1.7 5.1 > Significant working capital reduction: Lease re
Slide 14: Operating cash flow up 41.7% to $41.5m
Operating cash flow up 41.7% to $41.5m > Strong H1 trading result and significant reduction in H1 H1 $m FY2021 FY2020 Variance inventory position has released working capital NPAT 14.2 7.6 6.5 – c$5.6m improvement in H1 working capital movement vs pcp Non-cash items: - Depreciation and amortisation
Slide 15: Dividend growth
Dividend growth 6.0 > H1 dividend has consistently increased over the last 5 years 5.0 > H1 dividend up 52.4% to 3.2cps fully-franked reflects: 4.0 – Strong financial position and cash flow of SSG 2.7 – Recent acquisition of last 6 franchises for total 2.5 3.0 2.4 3.2 proceeds of c. $15.2m 2.4 – Cas
Slide 16: Trading Update & Outlook
Trading Update & Outlook 16
Slide 17: Trading Update and Outlook
Trading Update > Strong start to H2 FY2021 for the first 6 weeks (1 Jan 21 through 11 Feb 21) with Total Sales up 17.3% – LFL sales up 17.6% including online sales up 100.1% > DIY personal care and online sales trends continuing – Continued momentum in Hair Cutting, Hair Styling and Long Term Hair R
Slide 18: Investment Summary
Investment Summary Large and growing market driven by changing consumer preferences and new product innovation Significant potential to further increase market share Strong brand awareness in Australia Differentiated & resilient specialty retail businessmodel – Service excellence and unparalleled pr
Slide 19: Appendices
Appendices 19
Slide 20: Key Metrics
Key Metrics Reported Reported Comparable Accounting (AASB 16) H1 FY21 H1 FY20 Number of corporate stores 115 116 Number of franchise stores* 6 6 Total stores 121 122 Corporate store sales ($m) 123.6 107.5 Franchise store sales ($m) 8.8 8.4 Total network sales ($'000) 132.4 115.9 Corporate store LFL
Slide 21: Reconciliation to AASB 117 (previous lease standard)
Reconciliation to AASB 117 (previous lease standard) Recognition of Reversal of Recognition of Reversal of AASB 117 AASB 16 Pro Forma AASB 117 AASB 16 Pro Forma Reported Operating Depreciation 1H FY21 Reported Operating Depreciation 1H FY20 $Am 1H FY21 Lease Expense & Interest (AASB 117) 1H FY20 Lea
Slide 22: Historical financial results – normalised
Historical financial results – normalised* AASB 117 AASB 117 AASB 117 AASB 117 AASB 117 AASB 117 AASB 16 AASB 16 AASB 16 Normalised Results (A$m) 1H FY17 2H FY17 1H FY18 2H FY18 1HFY19 2H FY19 1H FY20 2H FY20 1H FY21 Actual Actual Actual Actual Actual Actual Actual Actual Actual Sales 78.5 64.1 93.4
Slide 23: Important notice and disclaimer
Important notice and disclaimer This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at the date of this Prese
Slide 24: H1 FY2021 Investor Presentation
Shaver Shop Group Limited H1 FY2021 Investor Presentation