Mulberry Group Plc · LSE:MUL
Mulberry — H1 2022 Earnings Presentation
23 slides from Mulberry's earnings presentation, November 2022
Slide 1: Mulberry Group Plc – Results for the Twenty-Six Weeks Ending 1 October 2022
MULBERRY GROUP PLC – RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OC TOBER 2022
Slide 2: Contents
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Contents Highlights 3 STR ATEGY OVERVIEW 13 Current Trading 4 Strategy — Our 4 Strategic Pillars 14 Strategic Pillar 1 — Omni-Channel Distribution 15 FINANCIAL REVIEW 5 Strategic Pillar 2 — International Development 15 Revenue 6 Strategic Pill
Slide 3: Highlights
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Highlights FINANCIAL HIGHLIGHTS — Group revenue during the period down 1% to £64.9m — Product innovation continued in the period with the launch of (2021: £65.7m) the Softie bag family in new colours and shapes continuing to attract a broad ra
Slide 4: Current Trading
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Current Trading — An improved trend in retail revenue for the eight weeks to 26 November 2022 compared to the same period last year, however there remains ongoing uncertainty in the economic and geopolitical environment — Gross margin in the s
Slide 5: Financial Review
Financial Review
Slide 6: Revenue
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Revenue £ MILLION 2022 2021 % CHANGE — Group revenue decreased by 1% in the period, with Q1 growth (+7%), being offset by a decline in retail sales in Q2, impacted by the more DIGITAL 16.3 19.1 (15%) challenging macro-economic environment, wit
Slide 7: International Revenue
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 International Revenue INTERNATIONAL MIX (AS A PROPORTION OF GROUP REVENUE) — International sales increased to 45% of total group sales (2021.22: 38%) driving revenue of £29.1m (2021.22: £26.3m) — Asia Pacific digital sales increased by 23%, dr
Slide 8: Omni-Channel Revenue
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Omni-Channel Revenue — Despite global digital sales being 15% lower than 2021, they have remained £ MILLION 2022 2021 % CHANGE above pre-COVID sales levels at 32% (2019: 24%) reflecting the permanent shift to this channel post COVID-19 UK 10.8
Slide 9: Group Income Statement
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Group Income Statement — Other operating expenses increased by 42% to UNAUDITED UNAUDITED AUDITED 26 WEEKS ENDED 26 WEEKS ENDED 53 WEEKS ENDED £48.6m (2021: £34.3m) with a view to supporting £ MILLION 1 OCTOBER 2022 25 SEPTEMBER 2021 2 APRIL 2
Slide 10: Group Balance Sheet
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Group Balance Sheet — Net working capital, which comprises inventories, AUDITED UNAUDITED UNAUDITED 53 WEEKS ENDED trade and other receivables and trade and other £ MILLION 1 OCTOBER 2022 25 SEPTEMBER 2021 2 APRIL 2022 payables increased by £2
Slide 11: Group Cash Flow
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Group Cash Flow — The net decrease in cash and cash equivalents of UNAUDITED UNAUDITED AUDITED 26 WEEKS ENDED 26 WEEKS ENDED 52 WEEKS ENDED £19.5m (2021: increase of £18.5m) included a £7.0m £ MILLION 1 OCTOBER 2022 25 SEPTEMBER 2021 27 MARCH
Slide 12: Capital Expenditure
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Capital Expenditure £ MILLION — Capital expenditure in stores and digital during the 7 period related to £1.4m refurbishments of UK stores £1.6 £2.1 £4.9 £6.4 £4.1 £5.3 which were delayed during the COVID-19 period, implementing the new store
Slide 13: Strategy Overview
Strategy Overview
Slide 14: Strategy – Our 4 Strategic Pillars
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Strategy — Our 4 Strategic Pillars OUR AIM IS TO BUILD MULBERRY AS A SUSTAINABLE GLOBAL LUXURY BR AND THROUGH FOUR STR ATEGIC PILL ARS N INTE U TIO RN AT IB IO TR N IS A D L EL D N EV AN EL ICH OP OMN ME NT E CO CL NS CY TA FE N LI N T L E N
Slide 15: Strategic Pillars 1 and 2 – Omni-Channel Distribution, International Development
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Strategic Pillar 1 Strategic Pillar 2 — Omni-Channel Distribution — International Development STR ATEGY: STR ATEGY: With a rich heritage in leather craftmanship and a reputation for innovation, we We are optimising our digital channels and glo
Slide 16: Strategic Pillar 3 – Constant Innovation
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Strategic Pillar 3 — Constant Innovation STR ATEGY: We continue to work with new materials and methods of creation and production, to adapt to changing customer tastes and to meet demand. At the same time, we are adding new services and transf
Slide 17: Strategic Pillar 4 – Sustainable Lifecycle
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Strategic Pillar 4 — Sustainable Lifecycle STR ATEGY: Our Made to Last manifesto sets us apart, and we extend the life of all our products through our Lifetime Service Centre, buy back offer, and The Mulberry Exchange. We aim for our business
Slide 18: Strategic Pillar 4 – Sustainable Lifecycle
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Strategic Pillar 4 — Sustainable Lifecycle — Sustainable materials in the Mulberry range include ECONYL, Better Cotton, Eco-Scotchgrain, Bio-Acetate, recycled polyester/nylon, and responsibly sourced down and feathers. All Mulberry green paper
Slide 19: Our aim is to build Mulberry as a sustainable global luxury brand
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Our aim is to build Mulberry as a sustainable global luxury brand through four strategic pillars. — Omni-channel distribution — International development — Constant innovation — Sustainable lifecycle Since the period ended, we have opened a ne
Slide 20: Appendix
Appendix
Slide 21: Store Detail
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Store Detail DEPARTMENT TOTAL CHANGES FROM TOTAL FREE STANDING SHOP-IN-SHOP 1 OCTOBER 2022 2 APRIL 2022 2 APRIL 2022 UK 15 24 39 40 -1 EUROPE 3 2 5 2 3 OWN STORES NORTH AMERICA 5 1 6 6 0 ASIA PACIFIC 20 18 38 37 1 TOTAL OWN STORES 43 45 88 85
Slide 22: Revenue by Product
RESULTS FOR THE T WENT Y-SIX WEEKS ENDING 1 OCTOBER 2022 Revenue by Product 2022 (HALF YEAR) 2021.22 2020.21 3% BAGS 5% 7% 20% ACCESSORIES, SMALL LEATHER GOODS & GIFTS 19% 15% OTHERS 80% 77% 74% Softie Quilted Bomber Micro Bayswater Sadie Sunglasses Khaki Portobello Blue Maple Havana & Teak Recycled
Slide 23: Slide 23