Nick Scali Limited · ASX:NCK
Nick Scali — H1 FY2019 Earnings Presentation
11 slides from Nick Scali's earnings presentation, Feb 6, 2019
Slide 1: HY19 Results Presentation
Nick Scali Limited | NCK.ASX HY19 Results Presentation 6th February 2019
Slide 2: Key Highlights
Key Highlights • Sales increased 10.3% to $141.1m (HY18: $128.0m) Sales • Flat like for like sales growth Gross Profit • Gross margin increased by 20 bps to 62.8% (HY18: 62.6%) Net Profit • NPAT increased 8.0% to $25.4m (HY18: $23.5m) Expenses • Operating expenses increased by 90bps to 36.1% of sale
Slide 3: Sales and NPAT growth
Sales and NPAT growth Sales up 10.3% due to new stores opened in FY18 and HY19 Revenue (A$000) NPAT (A$000) CAGR CAGR 26.1% 8.0% 16.1% 15.0% 10.3% 44.7% 25,387 8.1% 23,515 15.5% 141,078 32.0% 20,451 127,953 118,369 40.7% 102,459 14,131 77,630 10,046 HY15 HY16 HY17 HY18 HY19 HY15 HY16 HY17 HY18 HY19
Slide 4: Profit margin and cost of business
Profit margin and cost of business Sales and NPAT % CODB (as % of Sales) 200,000 20.0% 18.4% 18.0% 17.3% 180,000 41.2% 160,000 16.0% 13.8% 39.5% 140,000 12.9% 141,078 120,000 127,953 12.0% 118,369 36.1% 36.1% 35.2% 100,000 102,459 80,000 8.0% 77,630 60,000 40,000 4.0% 20,000 0 0.0% HY15 HY16 HY17 HY
Slide 5: Earnings Summary
Earnings Summary Profit and loss statement Summary Half-Year Ended 31 December HY19 HY18 Change (%) 1.4 ($m) 0.3 3.4 0.2 Sales Revenue 141.1 128.0 + 10.3% 0.3 Cost of sales (52.5) (47.9) Gross Profit 88.6 80.1 + 10.6% Other income 0.6 0.5 25.4 23.5 Operating expenses (51.0) (45.0) + 13.3% EBITDA 38.
Slide 6: Balance Sheet
Balance Sheet Stable asset base and working capital requirements provide solid base for future growth Balance sheet Summary Half-Year Ended 31 December ($m) HY19 FY18 HY18 • Strong cash position maintained Cash and term deposits 38.2 36.6 28.2 • Total inventory of $37.1m, up $0.9m due to new store o
Slide 7: Cash Flow
Cash Flow Strong operating cash flow (+17.2% YOY) Cash flow statement Half-Year Ended 31 December ($m) HY19 HY18 10.1 Receipts from customers 156.0 140.4 Payments to suppliers/employees (122.8) (111.7) 6.6 Interest received 0.5 0.4 2.1 38.2 Income tax paid (10.1) (9.0) Operating Cash Flow 23.7 20.2
Slide 8: Store network
Store network Consistent growth in the store network in both Australia and New Zealand Current store network Nick Scali Furniture store network growth 14 6 4 55 51 15 42 45 41 1 2 12 1 FY15 FY16 FY17 FY18 HY19 • Four new Nick Scali Furniture stores opened, three in Queensland (Mackay, Morayfield and
Slide 9: Outlook
Outlook Capital management An interim dividend of 25.0 cents per share will be paid, representing an increase in the payout ratio to 80% The Board’s intention is to increase the full year payout ratio from the previous year’s, so as to deliver superior returns to shareholders in FY19 New stores Four
Slide 10: Thank you
nickscali SRA QQ aN WS Thank yo
Slide 11: Important notice and disclaimer
Important notice and disclaimer Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information availabl