Puuilo Oyj · OMXHEX:PUUILO
Puuilo Oyj — H1 2024 Earnings Presentation
20 slides from Puuilo Oyj's earnings presentation, Sep 12, 2024
Slide 1: Strong growth in customer traffic resulted in resilient net sales and EBITA growth
Strong growth in customer traffic resulted in resilient net sales and EBITA growth Half-year financial report, February-July 2024 Puuilo Plc 12 September 2024 Juha Saarela, CEO Ville Ranta, CFO
Slide 2: Our agenda today
Our agenda today Key figures and main events Financial development Outlook for financial year 2024 Strategy and long-term financial targets Q&A PUUILO | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2024 SEE THE HEAT, BEAT THE HEAT. KEMPTEN INFRARED THERMOMETER: 19,99 € COME AND GET IT?
Slide 3: Q2 key figures and main events
▪ Two new stores were opened during the period (Forssa Net sales Gross margin and Tampere Lahdesjärvi) ▪ The strong growth in customer traffic continued in both new and old stores. The increase in number of Like-for-like net sales EBITA margin (adj.) customers was the main driver of sales growth ▪ G
Slide 4: H1 key figures and main events
▪ Four new stores were opened during the period (Nokia, Net sales Gross margin Ylöjärvi, Forssa and Tampere Lahdesjärvi) ▪ The strong growth in customer traffic continued in both new and old stores. The increase in customer traffic was Like-for-like net sales EBITA margin (adj.) the main driver of s
Slide 5: Financial development
Slide 6: Net sales and customer traffic development
▪ Net sales increased by 14.9% and like-for- like store net sales by 2.1% ▪ The customer traffic increased in like-for-like stores by approx. 4.7% ▪ In all stores, the Q2 customer traffic increased by approx. 18.2% ▪ The average basket size decreased by approx. 2.8% relative to the comparison period
Slide 7: Gross margin increased
▪ Gross margin increased to 37.6% of net sales ▪ Margin improvement was driven by a favourable sales mix and sales growth in private label products ▪ Gross margin increased to 37.2% of net sales ▪ Margin improvement was driven by a favourable sales mix and sales growth in private label products ▪ Ad
Slide 8: Adjusted EBITA increased
▪ Adjusted EBITA increased by 3.9 M€ ▪ Relative profitability was 20.7% of net sales, increasing from the comparison period ▪ Good gross margin and cost control were the drivers behind profitability development ▪ In relative terms, personnel expenses were below the comparison period ▪ Adjusted EBITA
Slide 9: Inventories amounted to 100.9 M€
▪ Inventories amounted to 100.9 M€ ▪ The increase in absolute inventory level is primarily due to the inventories of seven new stores ▪ In addition, the volume of private label products increased ▪ Puuilo aims to further improve inventory turnover in the future
Slide 10: Operating free cash flow
▪ Operating free cash flow was 31.7 M€ ▪ Operating free cash flow was supported by strong profitability and cash inflows from net working capital changes, slightly offset by new store openings ▪ Puuilo continued to increase the imports of private label products in line with the current strategy ▪ Ca
Slide 11: Net debt and long-term loans
▪ The ratio of net debt to adjusted EBITDA is in line with the long-term target (below 2.0x) ▪ The ratio of net debt to adjusted EBITDA excluding the impact of IFRS 16 was 0.3x ▪ Puuilo’s long-term loans from financial institutions were 50.0 M€ (69.9 M€) at the end of the period ▪ Net debt excluding
Slide 12: Key figures summary for Q2 and H1
▪ Net sales increased by 14.9% (+17.0%) and were EUR 119.9 million (104.4) ▪ Like-for-like store net sales increased by 2.1% (+8.1%) ▪ Online store net sales increased by 10.6% (-4.3%) ▪ Gross profit was EUR 45.1 million (38.7) and gross margin was 37.6% (37.1%) ▪ Adjusted EBITA was EUR 24.8 million
Slide 13: Outlook for financial year 2024
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Slide 14: Puuilo specifies the outlook for the financial year 2024
Puuilo specifies the outlook for the financial year 2024 given in its financial statements release on 27 March 2024 and repeated in the Q1 business review on 13 June 2024. Puuilo now forecasts that the net sales for the financial year 2024 will be EUR 380-400 million and the adjusted operating profi
Slide 15: Strategy and long-term financial targets
yr PUUILO | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2024
Slide 16: Long-term financial targets
Net sales above EUR 600 million Target to reach EUR >105 Puuilo aims to distribute at least Net debt to adjusted EBITDA by the end of financial year 2028 million adjusted EBITA by the 80% of net income each financial below 2.0x (ends Jan-2029) end of financial year 2028 (ends year to its shareholder
Slide 17: New store economics
Notes: 1) Management estimate; 2) Based on average of 10 most recent store openings. Based on pricing margin (POS).
Slide 18: Upcoming store openings
▪ Oulu Karjasilta, opened 11 September 2024 ▪ Äänekoski, opens during late autumn ▪ Kirkkonummi, opens after the turn of the year ▪ Lohja, opens during spring of 2025 ▪ Mäntsälä, opens during summer of 2025 ▪ ... several negotiations in process, of which we will provide more information later on
Slide 19: Finnish retail market indices
Notes: 1) Source for Retail and Specialty retail indices: Statistics Finland, Turnover of trade. Source for Discount retail index: Finnish Commerce Federation and Statistics Finland, index comprises of 33 Finnish discount retailers excl. LIDL Finland.
Slide 20: Q&A
Q&A Contact requests: ir@puuilo.fi investors. puuilo.fi NEXT FINANCIAL REPORTS AND EVENTS 11 Dec 2024 Business review Q3 (February - October 2024) PUUILO | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2024