Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (February 2021)
16 slides from Nick Scali's investor presentation, Feb 4, 2021
Slide 1: HY21 Results Presentation
4 FEBRUARY 2021 Nick Scali Limited (NCK.ASX) HY21 Results Presentation
Slide 2: Results Overview
Results Overview Key performance metrics for the half-year ended 31 December 2020 presented below 1H FY21 Highlights • Written sales orders and revenue at record levels, with 58% growth in like- • Sales orders: $191.1m (PY: $126.1m) for-like sales orders and 24% sales revenue growth • Revenue: $171.
Slide 3: Trading & Sales Orders
Trading & Sales Orders Positive trading momentum continued in the half across Australia & New Zealand Written Sales Orders $’m Trading Commentary Sales momentum maintained throughout first half of financial year, with comparable store sales orders up 58% on H1 FY20 Total written sales orders up
Slide 4: Sales Revenue
Sales Revenue Total sales revenue up 24% to $171.1m, supported by an order bank which reached an all time record high at 31 December 2020 Sales Revenue $m Sales Commentary Total sales revenue up 24% to $171.1m Order bank up 146% on 1H FY20. Outstanding order bank expected to convert to sales rev
Slide 5: Profit & Loss
Profit & Loss 1H FY21 Underlying EBITDA of $60.2m, up 94% on 1H FY20 1H FY21 1H FY20 Change Gross Margin Sales revenue 171.1 137.5 + 33.6 Improvement in the groups gross margin resulting from reduced SKU discounting Cost of sales (61.6) (51.9) - 9.7 Gross profit 109.5 85.6 + 23.9 Operating Expense
Slide 6: Cashflow
Cashflow Strong cashflow generation with 1H FY21 operating cashflow of $53.5m, up 222% on 1H FY20 H1 21 H1 20 Change Cashflow commentary Underlying EBITDA1 60.2 31.0 + 29.2 Threefold increase in operating cashflow, due to increase in Increase in working capital 8.3 (4.1) + 12.4 EBITDA, negative wo
Slide 7: Balance Sheet
Balance Sheet Net assets of $110.3m at 31 December 2020, prior to adjusting for AASB16 31 Dec 30 Jun Change Inventory 2020 2020 30 Assets Showrooms DCs Transit Jun 15.1 13.6 7.6 20 Cash 87.6 63.0 + 24.6 Inventory- In Transit 12.4 7.6 + 4.8 31 Inventory- On Hand 28.3 28.7 - 0.4 Showrooms DCs Transit
Slide 8: Property
Property Property portfolio of 37,000sqm which is expected to be further enhanced via expansion and redevelopment opportunities Location State/ Date acquired Site area NLA (sqm) Territory (sqm) Commentary Auburn NSW December 2017 4,763 5,469 37,000sqm of land held by the group, predominately adjac
Slide 9: Online & Digital Offering
Online & Digital Offering Continued growth in the Company’s online offering with $8.8m of written sales orders in 1H FY21 Online Commentary Online sales orders of $8.8m for 1H FY21 — Casegoods continue to represent majority of sales orders — Average transaction value of $1,900+ — Attractive online
Slide 10: New Zealand Summary
New Zealand Summary Strong performance in New Zealand supported by the opening of a flagship showroom in Wairau Park during the half NZ Sales Order & Sales Revenue Growth (1H FY20 vs 1H FY21) New Zealand Commentary 140% One additional store opened in Wairau Park, New Zealand during the half, takin
Slide 11: Future Growth
Future Growth Nick Scali has several levers to drive sustained revenue and earnings growth PAGE 10
Slide 12: Store Network
Store Network Growth in the store network with further opportunities to grow targeting at least 85 showrooms across Australia and New Zealand Store network at 31 December 2020 Jun 20 Opened Closed Dec 20 Nick Scali Australia 55 1 - 56 New Zealand 3 1 - 4 Total 58 2 - 60 Two new NSF stores opened in
Slide 13: Outlook
Outlook Continued trading momentum during January 2021 expected to contribute to further sales revenue growth in 2H FY21 Store Network The company expects to open two showrooms in the second half of the financial year, taking new store openings for FY21 to 4 stores Trading and Profitability Sale
Slide 14: Important notice and Disclaimer
Important notice and Disclaimer Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information availabl
Slide 15: Appendix: Supplementary Information
A APPENDIX Supplementary Information
Slide 16: Underlying P&L Reconciliation
Appendix A Underlying P&L Reconciliation Reconciliation of reported to underlying results presented below HY21 HY21 HY20 HY20 AASB16 AASB16 One-offs Underlying Reported Underlying Reported Sales revenue 171.1 - 171.1 137.5 - - 137.5 Cost of sales (61.6) - (61.6) (51.9) - - (51.9) Gross profit 109.5