Universal Store Holdings Ltd. · ASX:UNI
Universal Store — FY2023 Earnings Presentation
28 slides from Universal Store's earnings presentation, Aug 24, 2023
Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 24 AUGUST 2023 UNIVERSAL STORE HOLDINGS LIMITED ACN 169 039 721 Universal Store Holdings Ltd ABN 94 628 836 484
Slide 2: Agenda
FY23 RESULTS PRESENTATION AGENDA PRESENTERS CONTENTS Alice Barbery Renee Jones CFO 1. FY23 Overview CEO 2. Financial Results ◼ 13 years at Universal ◼ 4 years at Universal Store 3. Priority Update Store ◼ 20+ years’ experience ◼ 30+ years’ industry across retail and service 4. Trading Update & Outlo
Slide 3: FY23 Overview
FY23 RESULTS PRESENTATION FY23 OVERVIEW 1 3
Slide 4: UNI Group FY23 Group Highlights
FY23 RESULTS PRESENTATION UNI GROUP FY23 GROUP HIGHLIGHTS UNI DELIVERED ROBUST SALES GROWTH AND MANAGED COSTS AND INVENTORY FOR A MORE SUBDUED CONSUMER ENVIRONMENT WHICH EMERGED IN H2 Record sales from the Group 1 4 Perfect Stranger as a retail and all business units. Margins format has expanded to
Slide 5: UNI Group FY23 Financial Highlights
FY23 RESULTS PRESENTATION UNI GROUP FY23 FINANCIAL HIGHLIGHTS GROUP SALES +26.5% AND UNDERLYING NPAT+21.9% VS PCP1 $263.1M +1.2% 35.2 cents Sales +26.5% LFL Sales2 Underlying EPS4 (+17.1% excl. CTC) (excl. THRILLS stores) +13.9% 59.0% $37.1M $6.6M Gross Margin Online sales Net Cash at Year +0.7ppt v
Slide 6: UNI Group Continues to Deliver Solid Results
FY23 RESULTS PRESENTATION UNI GROUP CONTINUES TO DELIVER SOLID RESULTS PHYSICAL STORES (#) LFL SALES GROWTH (%)2 10 28.5 Total sales $263.1m 4Yr average LFL +9.4% 3 8 (+26.5% versus pcp), cycling store closure periods during H1 FY22¹ 11.0 75 77 Group LFL sales +1.2% 2 year on year 65 67 (+27.2% vers
Slide 7: Financial Results
FY23 RESULTS PRESENTATION FINANCIAL RESULTS 2 7
Slide 8: UNI Group Profit & Loss
FY23 RESULTS PRESENTATION UNI GROUP PROFIT & LOSS1 SALES Underlying Results ($m) FY23 FY22 % Change • Sales $263.1m (+26.5% versus pcp) Sales 263.1 208.0 26.5% • Group LFL +1.2%2 Gross Profit 155.3 121.3 28.0% • B&M Store sales +23.9% with LFL sales +2.4%2 % Sales 59.0% 58.3% +0.7ppt • Online sales
Slide 9: UNI Group Sales Growth
FY23 RESULTS PRESENTATION UNI GROUP SALES GROWTH SOLID PERFORMANCE UP +26.5% ON FY22 AND UP +69.8% ON FY20 Overall sales +26.5% year-on-year (+69.8% versus FY20) GROUP SALES GROUP HEADLINE GROWTH GROUP LFL SALES1 1 8 new stores opened in FY23 GROWTH 69.8% GROWTH GROUP LFL GROWTH 27.2% (3 Universal S
Slide 10: UNI Group Gross Margin
FY23 RESULTS PRESENTATION UNI GROUP GROSS MARGIN CONTINUED IMPROVEMENTS IN GROSS MARGIN (+70BPS) Contributing to the continued strength of the product gross margins was private brand penetration increasing to 45% of ($m) (%) sales1 in FY23 (from 43% in FY22); and impacts of one-time $180 60.0% mark
Slide 11: UNI Group Costs of Doing Business
FY23 RESULTS PRESENTATION UNI GROUP COSTS OF DOING BUSINESS 1 Employee costs affected by substantial closure periods in the previous year and GROUP HEADLINE GROWTH 1 a 5.1% increase in retail award rates 88.1 leading to a $10.3m increase in spending • $8.0m increase in store wages ($6.2m in H1 from
Slide 12: UNI Group Balance Sheet
FY23 RESULTS PRESENTATION UNI GROUP BALANCE SHEET Strong net cash of $6.6m1 as the Group comfortably Statutory Balance Sheet (A$m) FY23 FY22 financed the $18.3m CTC acquisition from free cash flow (October 31, 2022), in addition to making investments into a Total Current assets 51.4 59.8 new DC/Offi
Slide 13: UNI Group Cashflow
FY23 RESULTS PRESENTATION UNI GROUP CASHFLOW Operating Cashflow (A$m) FY23 FY22 Change Underlying EBITDA 67.2 57.1 10.1 Continued EBITDA growth +$10.1m versus FY22 Non-cash items in underlying EBITDA 0.4 0.0 0.4 Change in inventories (2.4) (0.3) (2.1) Change in trade payables (1.3) 0.7 (2.0) Increas
Slide 14: Priorities
FY23 RESULTS PRESENTATION FY23 PRIORITIES 3 14
Slide 15: UNI FY23 Priority Update
UNI FY23 NEW STORE ROLLOUT DIGITAL GROWTH PRIORITY UPDATE ▪ Group: Eight new stores opened in FY23, ten acquired THRILLS stores. Group total now 95 ▪ Online represented 14.1% of total sales in FY23 (up from 8.8% in FY20) ▪ Continued to scale digital and eCommerce capacity ▪ US: Three new stores open
Slide 16: Universal Store Sustainability Targets
UNIVERSAL STORE SUSTAINABILITY TARGETS CONTINUE TO WORK TOWARDS A SUSTAINABLE FUTURE BY EMBEDDING OUT OUR SUSTAINABILITY TARGETS TREAD LIGHTLY EXPECT TRANSPARENCY CLIMATE ACTION Reduce our impact. Put an end to poor working conditions Reverse climate change and take Preserve our resources. and impro
Slide 17: Perfect Stranger Update
FY23 RESULTS PRESENTATION PERFECT STRANGER UPDATE ▪ We are pleased with the performance to date of the PS retail format. FY23 sales of $8.9m, +187% versus FY22 with all stores REVENUE (A$ MILLION)1 profitable1 ▪ PS Online achieves a weekly run rate surpassing $1m annually, with strategic emphasis no
Slide 18: CTC Performance Update
FY23 RESULTS PRESENTATION CTC PERFORMANCE UPDATE ▪ CTC achieved $41.8m in sales in FY23, with strong sell through and consistent demand from CTC’s key wholesale accounts (including from Universal Store) 1 CTC SALES1 ($ MILLION) Brand FY23 YoY% ▪ The THRILLS brand continues to be highly sought sales
Slide 19: Trading Update & Outlook
FY23 RESULTS PRESENTATION TRADING UPDATE & OUTLOOK 4 19
Slide 20: FY24 UNI Trading Update
FY23 RESULTS PRESENTATION FY24 UNI TRADING UPDATE Sales performance during the first Management expects a further 4-6 seven weeks of FY24; US stores in FY24, plus 5-8 new PS stores and 1-2 new THRILLS stores ▪ US sales down -4.2%, with LFL growth down -8.8%, cycling +5.9% last year1 ▪ CTC wholesale
Slide 21: Appendix
FY23 RESULTS PRESENTATION APPENDIX 5 21
Slide 22: Appendix 1: P&L Underlying to Statutory Reconciliation
FY23 RESULTS PRESENTATION APPENDIX 1: P&L UNDERLYING TO STATUTORY RECONCILIATION $million Note FY23 FY22 Statutory EBITDA 65.4 57.1 1 Transaction costs relate to legal, advisors and accounting costs Transaction costs 1 1.8 0.0 incurred with respect to the acquisition of CTC business Underlying EBITD
Slide 23: Appendix 2: FY23 Consolidation Overview
FY23 RESULTS PRESENTATION APPENDIX 2: FY23 CONSOLIDATION OVERVIEW ($M) CTC US¹ UNI Underlying Results ($m) (8mths) (12mths) Elimination2 Group Note: The elimination primarily results to sales (and margin) by CTC to Universal Sales 25.7 243.7 (6.3) 263.1 Store. Gross Profit 12.6 143.9 (1.2) 155.3 % S
Slide 24: Appendix 3: Business Unit Operational Update
FY23 RESULTS PRESENTATION APPENDIX 3: BUSINESS UNIT OPERATIONAL UPDATE Area FY23 sales of $234.8m FY23 sales of $8.9m FY23 sales of $41.8m1 (before inter-co eliminations) Sales and Channel Mix 85.8% B&M stores, 14.2% online 88.1% B&M stores, 11.9% online 73.3% wholesale, and 26.7% DTC (incl 10.4% on
Slide 25: Appendix 4: Group Overview
FY23 RESULTS PRESENTATION APPENDIX 4: GROUP OVERVIEW Australia’s premier A grower of businesses, Customer focused, Focused on results, owner and operator of with excellence in detail oriented, risk management, youth and young adult culture, retail execution nimble, multi-channel and fostering fashio
Slide 26: Appendix 5: Store Footprint
FY23 RESULTS PRESENTATION APPENDIX 5: 1 STORE FOOTPRINT #77 Universal Store stores #10 THRILLS stores #8 Perfect Stranger stores NT 19 QLD 4 6 WA SA 4 21 13 NSW 4 2 ACT 2 TOTAL GROUP VIC STORES* 2 16 95 * Plus web store for each brand. TAS 1 26
Slide 27: Disclaimer
FY23 RESULTS PRESENTATION DISCLAIMER The material contained in this This presentation may contain To the extent permitted by law, presentation has been prepared by forward-looking statements with respect no responsibility for any loss arising Universal Store Holdings Limited to the operations and bu
Slide 28: Universal Spirit
FY23 results presentation UNIVERSAL SPIRIT The unique ability to create memorable and positive experiences for all. Creating an experience that is fun, open and based on kindness. The environment that enables a person to be their best. Authorised for release by the Board of Directors of Universal St
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