Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2021 Earnings Presentation
27 slides from Shaver Shop's earnings presentation, Aug 31, 2021
Slide 1: FY2021 Results Presentation
FY2021 RESULTS PRESENTATION 31 AUGUST 2021
Slide 2: FY2021 Highlights
FY2021 HIGHLIGHTS INVESTOR PRESENTATION 2
Slide 3: Record Financial Results at Top End of Guidance
RECORD FINANCIAL RESULTS AT TOP END OF GUIDANCE Sales > Record Sales up 9.6% to $213.7m (FY2020 - $194.9m) – Online sales up 41.1% to $61.2m – Above guidance range $211m to $213m > Online sales represented 28.6% of total revenue > NPAT up 68.3% to $17.5m (FY2020 - $10.4m) Earnings – Top end of guida
Slide 4: Operational Achievements
OPERATIONAL ACHIEVEMENTS Customer > NPS scores remain at, or near, all time highs Service > FY2021 in-store sales conversion up 9.0% to 43.25% in Australia > Increased investment in support office marketing and customer service role to support online sales growth > Safe & hygienic environment mainta
Slide 5: Strong Revenue Growth
Key revenue drivers ($Am) STRONG REVENUE GROWTH 220.0 215.0 210.0 Omni-retail strategy across online and in-store channels 205.0 17.8 delivering sales growth 200.0 > Omni-retail strategy was critical for success in a dynamic year 1.9 213.7 195.0 5.0 impacted by snap and long term lockdowns 2.5 190.0
Slide 6: Sales Trends Across FY2021
SALES TRENDS ACROSS FY2021 Quarterly total sales growth varied significantly vs FY20, however sales growth was consistently strong across all quarters compared to FY19 levels Quarterly Total Sales FY21 Quarterly Total Sales Growth % vs FY20 vs FY19 Q1 19.8% 36.4% Q2 12.1% 24.9% Q3 15.8% 28.7% Q4 -6.
Slide 7: Online Sales Represent 28.6% of Total Sales
ONLINE SALES REPRESENT 28.6% OF TOTAL SALES Opt-in database almost doubles to 800,000 with active online customers increasing 122% to 490,000 Online Sales Growth (Corporate Stores) Opt-in Database Membership 800,000 70.0 50.0% 61.2 45.0% 60.0 440,000 40.0% 234,000 50.0 35.0% 110,000 43.4 30.0% % of
Slide 8: Customer Service Excellence
CUSTOMER SERVICE EXCELLENCE Shaver Shop customer satisfaction at or near all time highs reflects the passion of our store teams Net Promoter Score (NPS) up to 89.1 out of 100 > Shaver Shop NPS is ‘world class’ > Typical NPS for a strongly executing retailer is in the range 88.2 89.4 88.6 88.7 89.1 o
Slide 9: How Shaver Shop Customers and We Are Adapting
HOW SHAVER SHOP CUSTOMERS AND WE ARE ADAPTING > Our customers have changed their work, education, leisure PEOPLE ARE ADAPTING TO DIY PERSONAL CARE lifestyles and locations and in the process have adapted to new AND GROOMING AT HOME personal grooming needs and habits. For example: – Men are growing b
Slide 10: FY2021 Financial Results Summary
FY2021 FINANCIAL RESULTS SUMMARY INVESTOR PRESENTATION 10
Slide 11: Record Sales and Profitability
RECORD SALES AND PROFITABILITY > No JobKeeper or other wage subsidies Profit & Loss Reported Reported Variance Variance $m FY2021 FY2020 ($) (%) > Record sales up 9.6% to $213.7m Sales 213.7 194.9 18.7 9.6% > Gross profit margin up 240bps to 44.3% driven by: Gross profit 94.7 81.6 13.1 16.0% Gross m
Slide 12: NPAT Up 68.3% Driven by LFL Store Contribution
NPAT UP 68.3% DRIVEN BY LFL STORE CONTRIBUTION Key Drivers of NPAT Growth ($Am) 20.0 18.0 0.6 0.3 0.1 0.4 0.1 16.0 17.5 14.0 7.3 12.0 10.0 8.0 6.0 10.4 4.0 2.0 - FY20 Reported LFL Stores Greenfields Buybacks Net Marketing Franchise Other, Corp. FY21 Reported NPAT (inc online) (part year) OPEX Royalt
Slide 13: Strong EPS Growth
STRONG EPS GROWTH BASIC EPS UP 66.2% TO 14.2 CENT PER SHARE 16 14 14.2 12 10 8 8.5 7.3 6 5.8 6.0 4 2 0 FY17 FY18 FY19 FY20 FY21 Note: FY17 to FY19 results are based on the old lease accounting standard (AASB117) and have not been restated to reflect the change in accounting policy related to cloud c
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET > Net cash of $7.4m – no debt ($30m undrawn facility) AASB 16 AASB 16 Increase $m 30-Jun-21 30-Jun-20 (Decrease) > Stock levels up $3.0m to $18.1m due to: Cash 7.4 12.6 (5.3) – Net increase of 4 stores across network Trade & other receivables 3.6 1.7 1.9 – Replenishment of stock
Slide 15: Operating Cash Flow of $36.0 Million
OPERATING CASH FLOW OF $36.0 MILLION > Strong operating cash flow of $36.0m in FY21 (FY2020 - $39.2m) was used to: $m FY2021 FY2020 Variance • Acquire last 6 remaining franchises for $14.8m NPAT 17.5 10.4 7.1 • Continue omni-retail investments - $1.6m Non-cash items: - • Return capital via dividends
Slide 16: Dividend Growth
DIVIDEND GROWTH FY21 dividends up 71% to 8.2 cents (fully franked) 9.0 8.2 8.0 > Consistent history of dividend growth > FY2021 Final Dividend (100% franked) up 85% to 5.0 cents per 7.0 share (FY2020 – 2.7 cents) 6.0 – Record date – 9 September 21 5.0 – Payment date – 23 September 21 4.8 5.0 4.5 > D
Slide 17: Trading Update & Outlook
TRADING UPDATE & OUTLOOK INVESTOR PRESENTATION 17
Slide 18: Future Growth
FUTURE GROWTH UNDERLYING TRENDS > Social media and desire for people to look and feel good every day > Trends towards DIY personal care and grooming – Shaver Shop estimated total addressable market - $7.8B > Global suppliers are investing heavily in new product innovation > Men are becoming more lik
Slide 19: Trading Update & Outlook
TRADING UPDATE & OUTLOOK > Year to date (YTD) trading in FY22 has been volatile and heavily impacted by government mandated lockdowns across NSW, VIC, QLD and now NZ > We have lost 2,844 in-store trading days (or c.41% of available in-store trading days) from 1 Jul 21 to 27 Aug 21 due to government
Slide 20: Investment Summary
INVESTMENT SUMMARY Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation COVID-19 has accelerated DIY personal care adoption and introduced new customers to Shaver Shop Differentiated & resilient specialty retail business m
Slide 21: Appendices
APPENDICES INVESTOR PRESENTATION 21
Slide 22: Key Metrics
KEY METRICS Reported Reported Comparable Accounting (AASB 16) FY2021 FY2020 Number of corporate stores 121 117 Number of franchise stores - 6 Total stores 121 123 Corporate store sales ($m) 213.7 194.9 Franchise store sales ($m) 9.9 15.8 Total network sales ($'000) 223.6 210.7 Corporate store LFL* s
Slide 23: Profit & Loss – AASB16 to AASB117 Reconciliation
PROFIT & LOSS – AASB16 TO AASB117 RECONCILIATION Reversal of Recognition of Reversal of Recognition of AASB16 Lease AASB 117 Pro Forma AASB16 Lease AASB 117 Pro Forma Reported Amortisation Operating AASB 117 Reported Amortisation Operating AASB 117 $Am FY2021 and Interest Lease Expense FY2021 FY2020
Slide 24: Cloud Computing Configuration Costs
CLOUD COMPUTING CONFIGURATION COSTS Reconciliation of impact of change in accounting policy on statement of profit & Loss IFRS Interpretations Committee provided updated guidance re: capitalisation of configuration and customisation costs for cloud based software (SaaS). As a result of this update,
Slide 25: Half Yearly Performance Over Last 5 Years
HALF YEARLY PERFORMANCE OVER LAST 5 YEARS AASB 117 AASB 117 AASB 117 AASB 117 AASB 117 AASB 117 AASB 16 AASB 16 AASB 16 AASB 16 1H FY17 2H FY17 1H FY18 2H FY18 1HFY19 2H FY19 1H FY20 2H FY20 1H FY21 2H FY21 Normalised Results ($ millions) Actual Actual Actual Actual Actual Actual Actual Actual Actua
Slide 26: 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 27: Thank You
THANK YOU INVESTOR PRESENTATION 27