Universal Store Holdings Ltd. · ASX:UNI
Universal Store — FY2022 Earnings Presentation
32 slides from Universal Store's earnings presentation, Aug 26, 2022
Slide 1: Universal Store Holdings Limited Investor Presentation (ASX Announcement)
ASX ANNOUNCEMENT 26 August 2022 UNIVERSAL STORE HOLDINGS LIMITED INVESTOR PRESENTATION Universal Store Holdings Limited (ASX:UNI) attaches its FY22 Investor Presentation relating to UNI’s FY22 financial results announcement. Authorised for lodgement by the Board of Universal Store Holdings Limited.
Slide 2: FY22 Results Presentation
UNIVERSAL STORE HOLDINGS LIMITED ACN 169 039 721 FY22 RESULTS PRESENTATION 26th AUGUST 2022
Slide 3: Agenda and Presenters
FY22 FULL YEAR RESULTS PRESENTATION AGENDA PRESENTERS Alice Barbery Renee Jones CEO CFO ◼ 12 years at Universal Store ◼ Commenced at Universal Store in 2019 ◼ 30+ years’ industry experience ◼ 20+ years’ experience across retail and service industries CONTENTS 1. Overview 3. Priorities 5. Appendices
Slide 4: Overview
FY22 FULL YEAR RESULTS PRESENTATION OVERVIEW 1 3
Slide 5: Highlights
FY22 FULL YEAR RESULTS PRESENTATION HIGHLIGHTS ROBUST RESULTS DESPITE COVID-19 DISRUPTIONS $208M Underlying 2 Underlying 1 $23.9M Sales EPS $30.9M EBIT (1.4%)YoY up (29.8%)YoY up Net Cash at +34.3% on FY20 28.9 cents +30.4% on FY20 year end (3.0%) +38.6% YoY $20.6M Final Dividend LFL Sales 10.5 cps.
Slide 6: Momentum Continues Despite COVID-19 Disruptions
FY22 FULL YEAR RESULTS PRESENTATION MOMENTUM CONTINUES DESPITE COVID-19 DISRUPTIONS Solid results despite the ongoing 8Yr average LFL 13% COVID-19 challenges including 2 mandated lockdowns and restrictions Physical Stores (#) LFL Sales Growth (%) 28.5 78 65 67 60 Total sales $208.0m down 1.4% with 5
Slide 7: Year in Review
FY22 FULL YEAR RESULTS PRESENTATION YEAR IN REVIEW FY22 PROVIDED ONGOING CHALLENGES AND WE ARE PROUD OF HOW OUR TEAM RESPONDED Store Closures by Region * • During H1, mandated store lockdowns and • Continued to build thriving youth fashion brands and restrictions impacted our teams and customers ret
Slide 8: Financial Results
FY22 FULL YEAR RESULTS PRESENTATION FINANCIAL RESULTS 2 7
Slide 9: Profit & Loss
FY22 FULL YEAR RESULTS PRESENTATION PROFIT & LOSS SALES PERFORMANCE • Sales $208.0m, down $2.8m or 1.4% on FY21 1 Underlying Results FY22 FY21 % Change • Group LFL down 3.0% 1 • Stores sales down 6.9%, with LFL down 9.5% Sales 208.0 210.8 (1.4) • 2 Online sales $35.7m, representing 17.2% of total Gr
Slide 10: Sales Growth
FY22 FULL YEAR RESULTS PRESENTATION SALES GROWTH SOLID PERFORMANCE DESPITE LOCKDOWNS WITH OVERALL Mandated store closures resulted in 3,192 of overall trading days SALES DOWN 1.4% ON FY21 AND UP 34.3% ON FY20 being lost during the year. 1 We estimated the sales impact GROUP LFL GROWTH GROUP HEADLINE
Slide 11: Sales Performance by Channel
FY22 FULL YEAR RESULTS PRESENTATION SALES PERFORMANCE BY CHANNEL Total Sales growth only down CAGR 1.4% despite significant store (FY18-FY22) closure periods as a result of FY18–FY22 SALES COVID-19 pandemic. (H1 down 17% 208.0 8.2% and H2 up 7.4%) 210.8 Group LFL sales growth down 25.8 35.7 63% 3.0%
Slide 12: Gross Margin
FY22 FULL YEAR RESULTS PRESENTATION GROSS MARGIN PRIVATE BRAND % OF TOTAL SALES STRONG PRODUCT GROSS 40.2% 43.0% MARGIN UP 40BPS 29.0% 30.3% Private brand demand resulted in contribution growing from 40.2% 24.6% to 43.0% of total sales in FY22 Our ability to meet customer needs and our speed to FY18
Slide 13: Costs of Doing Business
FY22 FULL YEAR RESULTS PRESENTATION COSTS OF DOING BUSINESS UNDERLYING CODB INCREASED TO SUPPORT GROWTH AND INCLUDES PARTIAL NORMALISATION OF FY20/21 LEVELS WHICH Total CODB % rises to 41.1% WERE SUPPRESSED AS A RESULT OF COVID-19 DISRUPTIONS adversely impacted by lost sales due to H1 mandated lockd
Slide 14: Balance Sheet
FY22 FULL YEAR RESULTS PRESENTATION BALANCE SHEET (A$ million) STATUTORY BALANCE SHEET FY22 FY21 Total Current assets 59.8 53.5 Cash ended the year at $38.8m an Cash 38.8 33.4 improvement of $5.4m on FY21 due Trade Receivables 2.4 2.4 to strong cash generation Inventories 18.0 17.7 Current Tax Asset
Slide 15: Underlying Cashflow
FY22 FULL YEAR RESULTS PRESENTATION UNDERLYING CASHFLOW (A$ million) FY22 FY21 Change Underlying EBITDA 35.7 48.7 (13.0) Strong cashflow delivered again Change in inventories (0.3) (4.0) 3.7 in FY22 with high levels of Change in trade payables 0.7 1.2 (0.5) EBITDA cash conversion Change in other wor
Slide 16: Group Priorities
FY22 FULL YEAR RESULTS PRESENTATION GROUP PRIORITIES 3 15
Slide 17: FY22 Priority Update
FY22 PRIORITY UPDATE WE CONTINUE TO EXECUTE ON OUR STRATEGIC PRIORITIES WHILST MITIGATING RISKS ASSOCIATED WITH THE TURBULENT TRADING ENVIRONMENT NEW STORE ROLLOUT OPTIMISE PRODUCT MIX CUSTOMER 1 • 13 new stores opened since IPO • FY22 product gross margin (excl. • Our average LFL store growth over
Slide 18: Customer Led Strategy
FY22 FULL YEAR RESULTS PRESENTATION CUSTOMER LED STRATEGY Our customer is socially active, digitally native, mobile centric, and in a period of discovery and self-expression. We listen to and analyse our customer’s ever-changing wants and needs to deliver an exceptional experience. This means consta
Slide 19: Digital Priorities
FY22 FULL YEAR RESULTS PRESENTATION DIGITAL PRIORITIES +28.4% +3.3% $108 Growth in Net Unique Average basket size of online FY22 Conversion NUV (new unique visitors (NUV) vs FY21 (Compared to $91 in store) visitors) up from 3.1% FY21 FY23 plan Perfect Stranger Web store • Enhance and grow our Custom
Slide 20: Perfect Stranger Update
FY22 FULL YEAR RESULS PRESENTATION PREFECT STRANGER UPDATE Historical Context Insights and Focus • Perfect Stranger (PS) was created in 2014 as a versatile, trend-setting • More feminine store environment label to fill gaps in our range that were not catered for by our 3rd • Warm and service orienta
Slide 21: Sustainability Priorities
SUSTAINABILITY PRIORITIES DEVELOPMENT & IMPLEMENTATION OF KEY SUSTAINBILITY AND ENVIRONMENTAL TARGETS TREAD LIGHTLY EXPECT TRANSPARENCY CLIMATE ACTION Reduce our impact. Put an end to poor working Reverse climate change and Preserve our resources. conditions and improve lives of take action to end t
Slide 22: Outlook
FY21 FULL YEAR RESULTS PRESENTATION OUTLOOK 4 21
Slide 23: FY23 Outlook
FY22 FULL YEAR RESULTS PRESENTATION FY23 OUTLOOK WE ARE ENCOURAGED BY EARLY FY23 SALES MOMENTUM LEADING INTO SPRING AS SOCIAL EVENTS AND FESTIVALS REEMERGE. WE ALSO CYCLE A PERIOD OF SIGNIFICANT STORE CLOSURES LAST YEAR, RESULTING IN LESS MEANINGFUL COMPARATIVE RESULTS In the first 8 weeks of FY23 t
Slide 24: Appendix
FY22 FULL YEAR RESULTS PRESENTATION APPENDIX 5 23
Slide 25: Appendix 1: Universal Store - Overview
FY22 full year results presentation APPENDIX 1: UNIVERSAL STORE - OVERVIEW A leading Australian youth-focused apparel retailer and brand curator with customer centricity at its core Who is Universal Store? Who is our quintessential customer? Omni-channel retailer Millennials and Gen Z Fashion focuse
Slide 26: Appendix 2: Underlying Profit & Loss Statement
FY22 full year results presentation APPENDIX 2: UNDERLYING PROFIT & LOSS STATEMENT $m Notes FY18 FY19 FY20 FY21 FY22 Physical store revenue 107.2 137.9 141.3 185.0 172.3 % growth 28.7% 2.5% 30.9 (7.1%) Online revenue 5.1 8.5 13.6 25.8 35.7 % growth 66.7% 60.0% 90.3 38.6% Revenue 112.3 146.5 154.9 21
Slide 27: Appendix 3: Underlying Performance Trends by Half
FY22 full year results presentation APPENDIX 3: UNDERLYING PERFORMANCE TRENDS BY HALF Sales by period ($m) H1 vs H2 mix Sales by Channel ($m) H1 H2 Annual Group LFL H1 H2 B&M Online Online % Store # FY18 60.5 51.8 112.3 14% 53.9% 46.1% 107.2 5.1 4.5% 52 FY19 79.0 67.5 146.5 16% 53.9% 46.1% 138.0 8.5
Slide 28: Appendix 4: P&L Underlying to Statutory Reconciliation
FY22 FULL YEAR RESULTS PRESENTATION APPENDIX 4: P&L UNDERLYING TO STATUTORY RECONCILIATION $m Note FY22 FY21 Statutory EBITDA 57.1 61.9 1. Transaction costs relate to legal, advisors and accounting costs incurred with Transaction costs 1 6.7 respect to the preparation of the IPO. Incremental public
Slide 29: Appendix 5: Cash Flow Underlying to Statutory Reconciliation
FY22 FULL YEAR RESULTS PRESENTATION APPENDIX 5: CASH FLOW UNDERLYING TO STATUTORY RECONCILIATION $m Note FY22 FY21 1. MEP expense relates to employee share based expenses EBITDA 57.1 61.9 2. Incremental public company cost Non-cash items in EBITDA: primarily relate to additional Directors’ fee, Dire
Slide 30: Appendix 6: Store Footprint
APPENDIX 6: STORE FOOTPRINT NT 1 QLD 22 WA 13 4 SA NSW 19 ACT 2 VIC TOTAL STORES 16 78 1 Plus two web stores (Universal Store and Perfect Stranger) 29
Slide 31: Disclaimer
FY22 FULL YEAR RESULTS PRESENTATION DISCLAIMER The material contained in this This presentation may contain forward- To the extent permitted by law, presentation has been prepared by looking statements with respect to the no responsibility for any loss arising Universal Store Holdings Limited ABN 94
Slide 32: Universal Spirit
FY22 FULL YEAR RESULTS PRESENTATION UNIVERSAL SPIRIT The unique ability to create memorable and positive experiences for all. Creating an experience that is fun, open and based on kindness. The environment that enables a person to be their best. 31
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