Shaver Shop Group Limited · ASX:SSG
Shaver Shop — H1 FY24 Earnings Presentation
22 slides from Shaver Shop's earnings presentation, Feb 26, 2024
Slide 1: H1 FY24 Results Presentation
H1 FY24 RESULTS PRESENTATION Transform Yourself
Slide 2: Contents
CONTENTS 01 H1 FY24 Highlights 02 Detailed Financial Results 03 H2 FY24 Priorities 04 Trading Update & Outlook 05 Appendices 2
Slide 3: H1 FY24 Highlights
01 H1 FY24 HIGHLIGHTS 3
Slide 4: H1 FY24 Highlights
H1 FY24 Highlights Sales down 3.7% to Net profit after tax Operating cash flow Net cash at 31 Dec 23 127.0m 12.5m 34.9m 31.9m down 8.6% vs pcp down $2.2m vs 31 Dec 22 Online sales flat on pcp at Interim dividend Net promoter score Sales conversion* 31.1m 4.7c 88.6 44.8% and 24.4% of total sales (up
Slide 5: Sales drivers
Sales drivers Online and in-store sales trends Total sales declined 3.7% to $127.0m due to foot traffic declines outside our stores and slightly lower 140.0 45.0% sales conversion, offset partially by higher transaction 40.6% 40.0% values. Online sales were flat vs pcp. 120.0 31.1 31.1 35.0% > Outsi
Slide 6: Quarterly trading patterns
Quarterly trading patterns Sales Growth (Decline) % Trading patterns improved in Q2 FY24 compared to Q1 with rate of sales decline improving. Total sales remain 25.3% significantly higher than pre-COVID levels (FY20). > While foot traffic rate of decline was higher in Q2 compared to Q1, improvements
Slide 7: Gross profit margin up 10bps to 44.4%
Gross profit margin up 10bps to 44.4% 5 Year Gross Margin (%) Trend 44.7% 44.4% 44.3% 43.8% Maintaining significantly higher gross profit margins (post COVID) despite changes in category and product mix 41.3% > Continually revising promotional pricing strategy to achieve the right balance between dr
Slide 8: Detailed Financial Results
02 DETAILED FINANCIAL RESULTS 8
Slide 9: Financial performance
Financial performance SLIGHT GROSS MARGIN EXPANSION AND PROACTIVE Profit & Loss A$m Reported H1 FY24 Reported Variance Variance H1 FY23 ($) (%) COST MANAGEMENT LARGELY MITIGATED SOFTER Sales 127.0 131.9 (4.9) (3.7%) DEMAND AND UNDERLYING COST INFLATION PRESSURES Gross profit 56.4 58.5 (2.0) (3.5%) >
Slide 10: Flat costs of doing business (CODB)
Flat costs of doing business (CODB) H1 CODB Drivers ($m) 35.0 1.0 0.1 0.8 0.1 30.0 0.1 25.0 20.0 30.3 15.0 30.4 10.0 5.0 - H1 FY23 CODB Employment Occupancy Marketing & Operational Other Expenses H1 FY24 CODB Advertising Expenses (overheads) > Increase in employment costs was largely due to store ro
Slide 11: Financial position
Financial position HEALTHY LIQUIDITY POSITION WITH NET CASH OF AASB 16 AASB 16 AASB 16 A$m 31-Dec-23 30-Jun-23 31-Dec-22 $31.9M AT 31 DEC 23 Cash 31.9 13.5 34.1 > Net cash position reflects seasonal high point (consistent with Trade & other receivables 5.3 2.1 4.6 prior years) given stock suppliers
Slide 12: Cashflow drivers
Cashflow drivers 60.0 Net cashflow bridge ($m) 50.0 1.8 7.7 40.0 6.9 30.0 34.9 20.0 31.9 10.0 13.5 - Opening net cash balance Operating cashflow Property and IT Lease principal payments Dividends Closing net cash balance investments > Strong operating cash flow of $34.9m (AASB 16). As noted in FY23
Slide 13: Dividends and capital management
Dividends and capital management INTERIM DIVIDEND HELD STEADY AT 4.7 CPS (100% FRANKED) 12.0 10.0 8.0 5.5 5.5 6.0 5.0 4.0 2.7 2.0 4.5 4.7 4.7 3.2 2.1 0.0 FY20 FY21 FY22 FY23 FY24 Interim/special dividend (cps) Final dividend (cps) > Dividend payout ratio (% of cash EPS) increased vs H1 FY23 > Attrac
Slide 14: H2 FY24 Priorities
03 H2 FY24 PRIORITIES 14
Slide 15: H2 FY24 Priorities
H2 FY24 PRIORITIES > Offer customers unparalleled value for money and customer service to further improve Shaver Shop’s market position and share in our core categories > Continue focusing on operational excellence to maximise every sales/customer engagement opportunity (particularly given shopping
Slide 16: Trading Update
04 TRADING UPDATE 16
Slide 17: Trading Update
Trading Update > Total sales for the period from 1 Jan 24 to 22 Feb 24 (H2 FY24 period to date – H2 TD) versus the comparative period last year : 1 Jan 24 to 22 Feb 24 (H2 TD) (c. 7.5 weeks) vs FY23 Total sales growth +0.9% Like for like sales growth1 -0.7% > Total sales growth +0.9% H2 TD is improv
Slide 18: Investment Summary
Investment Summary Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation Products range is applicable to almost all demographics Differentiated & resilient specialty retail business model – Service excellence and unparallel
Slide 19: Appendices
05 APPENDICES 19
Slide 20: Key Metrics
Key Metrics Reported Reported Comparable Accounting (AASB 16) H1 FY24 H1 FY23 Number of corporate stores (31 Dec) 123 122 Number of franchise stores - - Total stores 123 122 Corporate store sales ($m) 127.0 131.9 Franchise store sales ($m) - - Total network sales ($'000) 127.0 131.9 Corporate store
Slide 21: 5 Year Half Yearly Profit & Loss Summary
5 Year – Half Yearly Profit & Loss Summary AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 17 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Normalised Results ($ millions) Actual Actual Actual Actual Actual Actual Actual Actual Actual Sales 107.5 87.4 1
Slide 22: Thank you
Thank you