Card Factory Plc · LSE:CARD
Card Factory — FY2025 Earnings Presentation
28 slides from Card Factory's earnings presentation, May 7, 2025
Slide 1: Creating celebrations for all life's moments
Creating celebrations for all life's moments Card Factory plc FY25 Preliminary Results 7 May 2025
Slide 2: Agenda
Agenda Introduction Darcy Willson-Rymer Financial Performance and Outlook Matthias Seeger Strategy Update Darcy Willson-Rymer Summary Darcy Willson-Rymer Q&A Darcy Willson-Rymer & Matthias Seeger 2
Slide 3: Section 1: Darcy Willson-Rymer, CEO
Section 1 Darcy Willson-Rymer, CEO 3
Slide 4: Good progress at mid-point of 'Opening Our New Future' growth strategy
Good progress at mid-point of ‘Opening Our New Future’ growth strategy • Achieving growth ahead of the wider celebration occasions market*. • Added £80 million sales (+17%) and increased Adjusted PBT by +35% since FY23, despite high inflationary environment. • +7.3% store sales CAGR since FY23, refl
Slide 5: FY25 performance driven by strategic progress and financial discipline
FY25 performance driven by strategic progress and financial discipline • Effective execution of strategy drove revenue growth and profitability. • Highly profitable store estate grew revenues significantly ahead of the retail sector in FY25*. • Growing share of the celebrations occasions market thro
Slide 6: Section 2: Matthias Seeger, CFO
Section 2 Matthias Seeger, CFO 6
Slide 7: FY25 financial highlights
FY25 financial highlights Delivered top and bottom-line growth in line with expectations Revenue £542.5m (FY24: £510.9m) Strong underlying cash generation Adj. PBT +6.2% £66.0m (FY24: £62.1m) Disciplined capital allocation and robust +6.3% balance sheet Net Debt Investments in M&A accelerated strate
Slide 8: Strong, resilient revenue growth driven by effective execution of strategy
Strong, resilient revenue growth driven by effective execution of strategy +6.2% year-on-year growth • Total cardfactory store sales growth of +5.8% continued to outperform the wider retail sector. Partnerships • cardfactory LFL store sales growth of +3.4% Stores & Online +5.5 ppts +0.7 ppts similar
Slide 9: Sustained profit margins in challenging inflationary environment
Sustained profit margins in challenging inflationary environment Adjusted PBT margin in line with prior year Margin % Efficiency • Higher costs off-set by a combination of Increase in freight rates efficiencies, productivity and range savings in mostly offset by same store sales and range operating
Slide 10: Strong cash generation supported dividends and acquisitions
Strong cash generation supported dividends and acquisitions Underlying free cash generation of £29 80 million underpinned reduction in net £m debt of £9.7 million before acquisitions 60 23.2 58.9 (excluding one-off impacts) £9.7m 40 34.4 11.0 • Capex of £18.4 million was lower than 19.8 24.7 prior y
Slide 11: Free cash invested in high-return acquisitions and returned via progressive dividends
Free cash invested in high-return acquisitions and returned to shareholders via progressive dividends Capital Allocation Policy Free Cash Use of Total underlying free cash flow* Generation Free Cash generation of £56 million across £56.1m £57.8m FY24-FY25 Maintain a strong balance sheet • Return of
Slide 12: FY23-FY25: Delivering profitable growth against a challenging backdrop
FY23-FY25: Delivering profitable growth against a challenging backdrop Sales +£80m / +17% Adjusted PBT +£17m / +35% Sustainable, robust growth against a challenging backdrop Successfully off-setting inflation 6-7% p.a Sales growth excl. pricing £66m +47% +2.0% +5.2% CAGR £542m 4-5% p.a. CAGR CAGR 17
Slide 13: Success Factor: Growing the core profitably
Success Factor: Growing the core profitably Robust growth in retail stores business: FY23 FY24 FY25 Sales +31.3% +8.7% +5.8% # of Stores 1,032 1,058 1,090 % LFL +7.6% +7.7% +3.4% % of gift & celebration essentials 47% 50.5% 51.8% ABV £4.37 £4.73 £5.06 • More than 100 million shopper visits every yea
Slide 14: Success Factor: Managing Inflation, Protecting Margins
Success Factor: Managing Inflation, Protecting Margins Track record of successfully mitigating inflation ‘Simplify & Scale’ Structured multiyear programme 2-3% 2-3% 4-5% Efficiencies & Range & Inflation Productivity Pricing Efficient Range incl Pricing Efficient Efficient New Ways Purchasing of Work
Slide 15: FY26 Outlook: Continued growth
FY26 Outlook: Continued growth • Encouraging start to FY26 with trading to date in line with management expectations. • Good momentum continued across Valentine’s Day and Mother’s Day. • Well-positioned to continue growth behind strong value proposition and strategic focus areas. • ‘Simplify & Scale
Slide 16: Section 3: Darcy Willson-Rymer, CEO
Section 3 Darcy Willson-Rymer, CEO 16
Slide 17: Transforming cardfactory into a leading global celebrations group
Transforming cardfactory into a leading global celebrations group through our drivers of growth Stores: Card, Gifts & Online & Partnerships: Celebration Essentials: Omnichannel: Leverage and grow £13.4bn UK Celebration Deliver a seamless £80bn international profitable store estate Occasions addressa
Slide 18: Highly profitable store estate growing sales significantly ahead of the retail sector
Highly profitable store estate growing sales significantly ahead of the retail sector FY26 priorities: +32 net new stores opened in FY25. • Continue to grow store network at similar rates achieved in FY24 and FY25. • Further unlock gift and celebration essentials range expansion while In-store innov
Slide 19: Growing share of the celebration occasions market through card and gift leadership
Growing share of the celebration occasions market through leadership in card and gift and celebration essentials offer FY26 priorities: Strong LFL growth across gifts and celebration essentials of +5.7% driven by range expansion and development. • Leverage our leadership in card to underpin celebrat
Slide 20: Encouraging partnerships progress with new agreements and market entries
Encouraging partnerships progress with new agreements and market entries FY26 priorities: Accelerated plans to create international footprint through acquisitions. • Integration of acquired businesses and identify organic growth opportunities. • Continue positive discussions with new prospective par
Slide 21: Partnerships: Targeting future growth in North America
Partnerships: Targeting future growth in North America Garven acquisition provides in- Leveraging learnings from the Opportunities to introduce market experience and introduction of our proven card offer in North America expertise in the largest wholesale model in the US through existing Garven cele
Slide 22: Continued focus on developing our online offer and omnichannel propositions
Continued focus on developing our online offer and omnichannel propositions FY26 priorities: Range and proposition development driving profitable growth. • Rebalance offer and experience on ‘direct to recipient’. • Further online range curation to drive online attached gifting. Continued to develop
Slide 23: Delivering a sustainable future
Delivering a sustainable future FY26 priorities: Strategic focus on embedding sustainability consideration across the business. • Deliver net zero pathway activity. • Begin supply chain climate risk review. • Cellophane removal from all own label roll wrap. Progressed greenhouse gas emission reducti
Slide 24: Section 4: Darcy Willson-Rymer
Section 4 Darcy Willson-Rymer 24
Slide 25: FY25 Summary: Strategic progress and financial discipline driving performance
FY25 Summary: Strategic progress and financial discipline driving performance • Strong top and bottom-line growth driven by effective execution of strategy. • Revenue growth reflects strength of profitable store estate and developing celebrations offer. • Targeted acquisitions accelerating internati
Slide 26: A compelling growth opportunity: Our drivers of growth
A compelling growth opportunity: Our drivers of growth Reaching more customers, in Increasing our share of the Leveraging our vertically integrated more locations, through our £13.4 billion UK Celebrations model to drive efficiency and channels and markets. Occasions market. lowest cost to operate.
Slide 27: A compelling growth opportunity: Delivering sustainable, progressive returns
A compelling growth opportunity: Delivering sustainable, progressive returns By delivering on our growth drivers, we will deliver sustainable, progressive returns underpinned by profitable, cash-generative growth which beyond FY26 will target: • Mid-single-digit percentage sales growth each year. •
Slide 28: Section 5: Q&A
Section 5 Darcy Willson-Rymer, CEO Matthias Seeger, CFO 28