Candy Club — Shareholder Meeting (May 2022)
32 slides from Candy Club's shareholder meeting presentation, May 30, 2022
Slide 1: Annual General Meeting May 2022
For personal use only ANNUAL GENERAL MEETING MAY 2022 AUTHORISED BY THE BOARD OF DIRECTORS 1
Slide 2: Disclaimer
DISCLAIMER This presentation (the Presentation) is provided by Candy Club Holdings Ltd ACN 629 598 778 (ASX.CLB) (Candy Club or CLB). For personal use only LIMITED PURPOSE OF THE PRESENTATION NO INVESTMENT ADVICE The Presentation does not purport to contain all information the recipient of the Pres
Slide 3: Contents
For personal use only 1 Executive summary 2 Financial summary CONTENTS 3 Company updates 4 Company overview 5 Appendix 3
Slide 4: Executive Summary
For personal use only SUMMARY EXECUTIVE 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY For personal use only ABOUT US FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS Candy Club Holdings Limited (ASX: CLB) is a US In the FY2021, Candy Club nearly doubled its net Candy Club continued to meet or exceed all based confectionery company that is focused on its revenue to US$16.
Slide 6: Financial Summary
For personal use only SUMMARY FINANCIAL 6
Slide 7: B2B Revenue Growth
B2B REVENUE GROWTH For personal use only B2B Year Over Year GROSS Revenue ($000's) 6,000 For FY2021, Candy Club more than 5,000 doubled its B2B revenue, US$14.5 million from US$6.7 million for FY2020. 4,000 In 1Q FY2022, Candy Club total gross 2019 B2B revenue reached US$3.9m, a 3,000 2020 growth of
Slide 8: FY2021 Financials
FY2021 FINANCIALS For personal use only PROFIT & LOSS (US$) Candy Club’s total net revenue in FY2021 FY2020 FY2021 YoY CHANGE grew 91% YoY, increasing from $8.7m ACTUAL ACTUAL FY2020 to $16.5m FY2021 B2B Wholesale $6.65 million $14.47 million 118% Candy Club’s outstanding performance in B2C Subscrip
Slide 9: 1Q FY2022 Financials
1Q FY2022 FINANCIALS For personal use only PROFIT & LOSS (US$) Candy Club’s net revenue in 1Q FY2022 1Q FY2021 1Q FY2022 YoY CHANGE grew 10% YoY to US$4.29 million on the ACTUAL ACTUAL back of its 16% growth in B2B segment. B2B Wholesale $3.36 million $3.88 million 16% Gross margins for the quarter
Slide 10: Company Updates
For personal use only UPDATES COMPANY 10
Slide 11: Strategic Opportunities for Candy Club
STRATEGIC OPPORTUNITIES FOR CANDY CLUB For personal use only Candy Club has appointed and FocalPoint Partners LLC, an expert in food and beverage, to help it explore strategic opportunities in the US. FocalPoint has been in discussions with a range of investors including private equity, venture capi
Slide 12: Company Overview
For personal use only COMPANY OVERVIEW 12
Slide 13: Company Background
COMPANY BACKGROUND For personal use only Founded in 2015, Candy Club started as a pureplay business-to-consumer (B2C) subscription-only business. +16% 31,000* B2B revenue growth Total retail doors Candy Club pivoted its strategy in 2019, to focus on YoY in 1Q FY2022 selling its products to brick and
Slide 14: Key Benefits of the Candy Category to Retailers
KEY BENEFITS OF THE CANDY B2B MARKET CATEGORY TO RETAILERS OPPORTUNITY For personal use only Reliable gross Long Defensive margins shelf life product Increases average High ROI & lack High turnover order value of markdowns rate Candy Club has identified a massive untapped opportunity in this sector.
Slide 15: White Space Strategy
WHITE SPACE STRATEGY For personal use only In September 2019 Candy Club identified under-utilised counter Candy Club offers retailers and eCommerce websites the space at premium retailers across the US as a growth opportunity to offer their customers a “premium candy store opportunity and an untappe
Slide 16: Distribution Strategy
DISTRIBUTION STRATEGY For personal use only CANDY CLUB HAS BUILT A ROBUST B2B CUSTOMER ACQUISITION NATIONAL AND REGIONAL B2B STRATEGY THAT INCLUDES MULTIPLE REVENUE STREAMS INCLUDING: CUSTOMERS INCLUDE: Dedicated internal sales 3rd party selling agents & brokers staff which focuses on with extremely
Slide 17: Product Differentiation Is Candy Club's Strength
PRODUCT DIFFERENTIATION IS CANDY CLUB’S STRENGTH For personal use only Confetti Drops Gummy Dinos Sour Pink Cadillacs Rainbow Sour Belts Chocolate Pretzels Blue Razz Laces 17
Slide 18: Building Brand Awareness
BUILDING BRAND AWARENESS For personal use only Candy Club’s experienced management team use its vast network of contacts to secure major media coverage in many of America’s top celebrity publications cost free, as evidenced by this Easter’s media coverage 9.6M Weekly Audience | 4/5/2021 4.5M Weekly
Slide 19: Why We Are Winning
WHY WE ARE For personal use only WINNING – RETAILERS AND CONSUMERS LOVE OUR PRODUCTS Faire and Tundra are two of the most prominent online wholesale platforms that carry Candy Club’s products. Candy Club’s retailer satisfaction ratings are outstanding as Faire averages at 4.9 out of 5 while on Tundr
Slide 20: Thank You
For personal use only THANK YOU 20
Slide 21: Appendix
For personal use only APPENDIX 21
Slide 22: Our Story
OUR STORY For personal use only Our Founder saw an opportunity to bring the fun of an old-fashioned candy store directly to people’s homes. After some research and lots of questions asked, he began offering monthly subscription boxes of cute jars filled with fun candy — and Candy Club was born. As t
Slide 23: Candy Club Timeline
CANDY CLUB TIMELINE For personal use only 2015 2016 2017 2018 2019 2020 2021 • Founded by • Focused on • Customer • Australian • IPO on ASX • B2C turns • Began selling its Keith Cohn adding scale and experience roadshow and profitable on products • Launched B2B validating all KPI enhancements pre-IP
Slide 24: Executive Board: Keith Cohn
EXECUTIVE BOARD only More than 20 years of experience in the consumer industry, a 4x serial entrepreneur and use startup executive. Founder & CEO, Vendare Media, a leading adtech company with 300 employees and annual personal sales of US$150 million. Founder & CEO, Bardon Advisors, a boutique adtech
Slide 25: Executive Board: James Baillieu
EXECUTIVE BOARD only Mr Baillieu brings a wealth of corporate experiences to Candy Club, having previously served as Non-Executive Chairman of use BidEnergy Limited (ASX: BID), which was the best performing stock on ASX under his leadership. Mr Baillieu was also an early investor in Aconex Limited (
Slide 26: Executive Board: Andrew Clark
EXECUTIVE BOARD only Mr Clark joined Candy Club Board with a wealth of knowledge gained in executive and senior leadership positions whilst use working for more than 20 years in the Consumer Goods sector. Domestic and global roles held in large multinational and national public businesses and smalle
Slide 27: Executive Board: Kan Tang
EXECUTIVE BOARD only Founding Partner of Asia Summit Capital, a private equity firm focused on consumer growth and the technology sector in use Indonesia and Southeast Asia. Kan co-founded Asianlogic which was listed on UK’s AIM stock exchange in 2007 raising over US$100 million and successfully per
Slide 28: Executive Management: Nicholas Giordano
EXECUTIVE MANAGEMENT only Financial Executive and CPA with 20+ years of experience in high growth start-ups in the consumer goods industry. use Proven track record of achieving strategic, financial and operational goals driving corporate profitability. personal Recently held positions prior to joini
Slide 29: Executive Management: Cameron Lofink
EXECUTIVE MANAGEMENT only Supply Chain professional with more than 12 years of function experience. use Established and improved Supply Chain capabilities at a range of different company sizes – Specializing in driving efficiency, improving margin and end to end personal supply chain analysis Domest
Slide 30: Executive Management: Chad Burbach
EXECUTIVE MANAGEMENT only Executive with 20+ years of overall experience; 17+ years in marketing, business development and use operations roles within high growth eCommerce start ups. Prior to Candy Club was Head of Marketing & personal Partnerships at The Bouqs Co., overseeing all aspects of market
Slide 31: Executive Management: Tracey Moses
EXECUTIVE MANAGEMENT only Bringing over 20+ years in Marketing and General Management, focused on branding and consumer experience, Ms. Moses joined use Candy Club with experience in a variety of sectors including CPG, Med Device, Retail and eCommerce. Tracey owned her own consulting practice for 7
Slide 32: Executive Management: Ivana Placko
EXECUTIVE MANAGEMENT only Ms. Placko joined Candy Club with over 15 years of experience working with stakeholders, vendors and use clients around the world implementing Technology solutions. She spent 10 years in London with the Gallup Organization managing technology roadmap and personal internatio