Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (February 2023)
14 slides from Nick Scali's investor presentation, Feb 6, 2023
Slide 1: FY23 Half Year Results Presentation
FY23 Half Year Results Presentation 6 February 2023
Slide 2: FY23 Half Year Summary
FY23 Half Year Summary Sales growth Profitability Sales revenue of $283.9m, up 57.4% on H1 FY22 Group gross profit margin 62.0%, up 1.0% on FY 22 and up 2.5% compared to 2H FY22 Written sales orders of $210.3m, up 3.4% on H1 FY22 1 Underlying net profit after tax of $60.6m, up 70.2% on H1 (H1 FY22 i
Slide 3: Revenue & Written Sales Orders
Revenue & Written Sales Orders Revenue 1H FY23 $283.9m Written Sales Orders 1H FY23 $210.3m Growth versus 1H FY22 +57.4% Growth versus 1H FY22 +3.4% Commentary Commentary • Record deliveries achieved in the first half driven by large • Nick Scali brand sales orders declined 3.0%, cycling off opening
Slide 4: Financial Performance
Financial Performance 1H FY22 1H FY23 Sales revenue 180.3 283.9 Gross Profit Margin Cost of sales (66.4) (107.8) • Group margin 1H FY23 improved 1.0% compared to Gross profit 113.9 176.1 FY22 and improved 2.5% compared to 2H FY22 Other income 0.7 2.0 • Nick Scali 1H FY23 margin of 62.5% is consisten
Slide 5: Cashflow
Cashflow Operating Cashflows Opening Cash • Cash of $35.1m generated from operating activities & Deposits 74.6 (including operating lease payments and interest payments) compared to $24.2m 1H FY22 Change in Borrowings Operating Cashflows 35.1 • Balance on five year $65.0m November 2021 corporate fac
Slide 6: Balance Sheet
Balance Sheet Jun 22 Dec 22 Inventory – Onhand Cash & deposits 74.6 68.9 Inventory – In transit 22.5 13.0 Nick Scali Plush Inventory – On hand 48.0 50.3 DCs Showrooms Jun 22 Showrooms 23.1 6.6 18.3 Property – At net book value 97.4 105.1 Plant & equipment 15.1 15.5 Nick Scali Plush DCs Showrooms Lea
Slide 7: Nick Scali Brand Online
Nick Scali Brand Online Written Sales Orders ($m) Written Sales Order Growth Nick Scali Brand • January 2023 online written sales orders $4.0m, 13% above January 2022 • Online written sales order of $12.0m, cycling off H1 FY22 16.6 which benefitted from temporary store closures due to Covid 19 lockd
Slide 8: Store Network
Store Network Western Australia Nick Scali: 6 Queensland Jun New Dec Plush: 4 Nick Scali: 15 Plush: 10 2022 Stores 2022 Target Nick Scali New South Wales/ACT Nick Scali: 19 Plush: 14 Australia 57 1 58 73 New Zealand 5 - 5 13 62 63 86 Plush Australia 45(1) 1 44(1) 85-90 New Zealand - - - 5-10 45 - 44
Slide 9: Plush Retail Initiatives
Plush Retail Initiatives Retail improvements undertaken • New showroom concept for Plush launched in December 2022 • Plush visual merchandising guidelines implemented to support consistent ranging of products across showrooms • Sales of new product range have driven margin improvement to over 60% fr
Slide 10: FY Outlook
FY 23 Outlook FY23 Outlook • January is our strongest trading month and was better than our expectations • We had anticipated a slowdown compared to the Covid 19 boom yet trading remains better than pre Covid 19 despite rising interest rates • Nick Scali brand January written sales orders were 12.1%
Slide 11: Q&A
Q&A nickscali tot
Slide 12: Disclaimer & Important Information
Disclaimer & Important Information 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 avail
Slide 13: Appendix – NPAT Reconciliation
Appendix 1 –NPAT Reconciliation H1 FY22 H1 FY23 Reported One-off Underlying Reported items(1) and Underlying Sales revenue 180.3 - 180.3 283.9 Cost of sales (66.4) - (66.4) (107.8) Gross profit 113.9 - 113.9 176.1 Other income 0.7 - 0.7 2.0 Operating (44.5) 2.9 (41.6) (64.8) expenses Depreciation (1
Slide 14: Appendix – EBIT Reconciliation
Appendix 2 –EBIT Reconciliation 1H FY22 1H FY23 Gross Margin 113.9 176.1 Other Income 0.7 0.9 Operating Expenses (44.5) (64.8) One-off items in EBITDA - Acquisition costs Plush 2.9 - Underlying EBITDA 73.0 112.2 Reported Depreciation & (17.9) (21.0) Amortisation Underlying EBIT 55.1 91.2 14