Currys Plc · LSE:CURY
Currys — H1 2023/24 Earnings Presentation
15 slides from Currys's earnings presentation, Dec 14, 2023
Slide 1: Currys plc 2023/24 Interim Results
Currys plc 2023/24 Interim Results 14 December 2023
Slide 2: Group performance summary
Financial performance Group performance summary Revenue Adjusted EBIT Adjusted EPS £4,159m £31m Improved (7)% YoY +7% YoY +15% YoY Free cash flow H1 movement in Net Debt Total indebtedness £(10)m £(32)m £(1,482)m +£76m YoY +£117m YoY +£135m YoY 2
Slide 3: UK & Ireland - performance summary
Financial performance UK & Ireland - performance summary Currency Reported H1 2023/24 H1 2022/23 Like-for-like neutral change YoY change YoY Revenue £2,215m £2,292m (3)% (3)% (3)% Online share of business 43.3% 43.4% - - (10)bps Adjusted EBIT £15m £25m - (40)% (40)% Adjusted EBIT margin 0.7% 1.1% -
Slide 4: UK & Ireland adjusted EBIT margin bridge
Financial performance UK & Ireland adjusted EBIT margin bridge Gross margin +10bps +10bps (50)bps • Continued focus on drivers of gross margin: 1.1% • Services adoption • Monetising improved experience • Not chasing less profitable sales 0.7% • Supply chain cost savings • Offset by lower Mobile reva
Slide 5: Nordics - performance summary
Financial performance Nordics - performance summary Currency Reported H1 2023/24 H1 2022/23 Like-for-like neutral change YoY change YoY Revenue £1,653m £1,886m (6)% (6)% (12)% Online share of business 24.8% 22.9% - - 190bps Adjusted EBIT £12m £3m - 400% 300% Adjusted EBIT margin 0.7% 0.2% - 60bps 50
Slide 6: Nordics adjusted EBIT margin bridge
Financial performance Nordics adjusted EBIT margin bridge Gross margin +190bps 190bps (140)bps • Recovering almost all of gross margin downside in same period last year • Better balance of trading Operating expense to sales (140)bps 0.7% • Cost broadly stable in absolute terms • Increases due to inf
Slide 7: Greece - performance summary
Financial performance Greece - performance summary Currency Reported H1 2023/24 H1 2022/23 Like-for-like neutral change change YoY YoY Revenue £291m £295m (4)% (2)% (1)% Online share of business 5.0% 6.8% - - (180)bps Adjusted EBIT £4m £1m - 300% 300% Adjusted EBIT margin 1.4% 0.3% - 110bps 110bps O
Slide 8: Cash generation improved
Financial performance Cash generation improved Reported H1 2023/24 H1 2022/23 change Operating cash flow £62m £60m £2m Group profits in line with prior year Reduced due to tight cost control and lower Capital expenditure £(28)m £(56)m £28m transformation spend Adjusting items £(23)m £(25)m £2m Prope
Slide 9: Balance Sheet remains robust
Financial position Balance Sheet remains robust Total Indebtedness Pension deficit improving £(2,348)m £(2,276)m £(1,670)m £(1,506)m £(1,604)m £(1,482)m 500 0 (500) (1,000) (1,500) (2,000) (2,500) 18/19 19/20 20/21 21/22 22/23 H1 22/23 29 April 2023 Financial Return on Experience Contributions Demog
Slide 10: Outlook & guidance
Outlook Outlook & guidance Current year outlook (including Greece) • Trading since the end of the period has been consistent with the Board’s expectations • Capital expenditure of around £80m • Net exceptional cash costs of around £50m • Annual pension contribution of £36m • Group to finish the year
Slide 11: Getting Nordics back on track
Summary Getting Nordics back on track Nordics adjusted EBIT Gross margin improvement Cost reduction Central: Headcount reduction, Optimize linehaul strategy 1 Grow services adoption offshoring and contractor removal IT: Group CIO – procurement and synergies 2 Grow accessories adoption GNFR: Consolid
Slide 12: Continuing UK&I trajectory
Summary Continuing UK&I trajectory UK&I Gross margin Happier colleagues and Customers for life improvements customers UK credit customers 1.9m 2.1m 82 1.7m 1.4m 1.2m 0.9m 18/19 19/20 20/21 21/22 22/23 H1 23/24 Care & Repair plans 68 UK&I employee Satisfaction +6% +5ppts YoY YoY UK&I NPS + 14pts Yo3Y
Slide 13: Maintaining strong liquidity & balance sheet
Summary Maintaining strong liquidity & balance sheet Net debt & pension deficit £(820)m £(805)m £(313)m £(213)m £(346)m £(319)m <£(150)m 400 200 0 (200) (400) (600) (800) (1,000) 18/19 19/20 20/21 21/22 22/23 H1 23/24 Proforma FY 23/24* Net cash/(debt) Working capital facilities Pension deficit (IAS
Slide 14: Summary
Summary • Solid results, and progress, in a tough environment • Nordics now recovering, driven by gross margin improvement • No loss of momentum in UK&I - gross margin growing again and cost savings on track • Services growth driving improvements in gross margins and customer lifetime value • Strong
Slide 15: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology.