Premier Investments Limited · ASX:PMV
Premier Investments — FY2014 Earnings Presentation
34 slides from Premier Investments's earnings presentation, Sep 17, 2014
Slide 1: Premier Investments Limited Full Year 2014 results overview
Premier Investments Limited Full Year 2014 results overview 17 September 2014
Slide 2: Agenda
Agenda 1 Premier Investments FY14 overview 2 Premier Investments FY14 consolidated financial results 3 Premier Retail performance 4 Gross margin 5 CODB reductions continuing 6 Premier Retail online strategy delivering 7 Premier Retail investing in growth 8 Smiggle International delivering 9 Peter Al
Slide 3: Premier Investments Limited FY14 Overview
PREMIER INVESTMENTS LIMITED FY14 OVERVIEW 2
Slide 4: Premier Investments FY14 overview
1 Premier Investments FY14 overview • Group profit – Underlying net profit before tax of $106.0 million, up 10.3%1 – Reported net profit after tax of $73.0 million – Reported net profit after tax in FY13 (after adjusting for the $105.2 million non cash one-off reclassification) was $69.3 million – I
Slide 5: Premier Investments FY14 overview
1 Premier Investments FY14 overview • Premier continuing to grow – Underlying profit before tax up 13.4% to $87.0 million – Total sales up 6.2%1 – LFL sales up 4.7%1 – All brands achieved positive LFL sales growth in 2H14 (2H14 LFL sales up 4.8%) – Peter Alexander continuing to grow – sales up 21.4%
Slide 6: Premier Investments FY14 consolidated income statement
2 Premier Investments FY14 consolidated income statement 52 weeks to 52 weeks to $m 26 July 2014 27 July 2013 Premier revenues (ex Premier Retail) 23.9 23.8 Premier expenses (ex Premier Retail) (4.4) (4.4) Premier Retail EBIT – underlying 92.8 83.7 Finance costs (6.3) (7.0) Net profit before one off
Slide 7: Premier Investments summarised consolidated balance sheet
2 Premier Investments summarised consolidated balance sheet $m 26 Jul 2014 27 Jul 2013 Assets Cash and cash equivalents 313.3 313.2 Inventories 98.5 84.0 Property, plant and equipment 109.0 83.4 Other assets 32.1 41.4 Investment in associates 188.4 185.5 Intangible assets 854.6 854.5 Total assets 1,
Slide 8: Premier Retail
PREMIER RETAIL
Slide 9: Premier Retail performance: highlights
3 Premier Retail performance: highlights • Underlying1 PBT up 13.4% to $87.0 million • Underlying1 EBIT up 10.9% to $92.8 million • Underlying1 EBIT margin up 44 bps to 10.4%2 • Non-recurring investment costs incurred of $7.6 million – Smiggle UK market entry, $3.1 million – Supply chain transformat
Slide 10: Premier Retail performance: underlying financial results
3 Premier Retail performance: underlying financial results 52 weeks 52 Weeks $000 to 26 July 2014 to 27 July 2013 Var LY Sales1 888,426 836,454 6.2% LFL sales +4.7% -1.8% Gross Profit1 551,492 521,359 5.8% Gross margin (%)1 62.1% 62.3% -25bps Employee Expenses2 (224,688) (209,685) 7.2% % sales 25.3%
Slide 11: Gross margin
4 Gross margin • Gross margin continues to be strong, despite Gross margin — 4 year history unseasonably warm winter weather, a slow down post budget and a highly competitive market • New direct sourcing initiatives improving intake margins and quality • Renewed focus on markdown management in highl
Slide 12: CODB reductions continuing
5 CODB reductions continuing • Costs of doing business1 reduced by 38bps as a CODB % sales1 % of sales as a result of the ongoing organisation wide cost efficiency program implemented as part of the strategic review • Rent expense decreased by 31bps as a % of sales, with total rent declining by 55bp
Slide 13: Premier Retail online strategy delivering
6 Premier Retail online strategy delivering • Online sales up 30.5% for FY14; 2H14 online sales up 37.5% Online sales growth – Portmans and Dotti online sales grew by 39% and 61% respectively • Online sales continuing to exceed industry growth – Just Group online sales up 30.5% – Retail online sales
Slide 14: Premier Retail investing in growth
7 Premier Retail investing in growth 322 stores received capital investment including 45 new stores that were opened in FY14 • 8 new stores opened across Australia • 4 stores relocated into larger formats • 9 new Myer concession stores opened • 27 stores received additional children’s wear fixtures
Slide 15: Premier Retail investing in growth
7 Premier Retail investing in growth • 4 new stores opened across Australia • 1 store refurbished in New Zealand • 1 new store opened in New Zealand • 1 store expanded • 113 stores received fixture upgrades • 7 stores refurbished across Australia and New Zealand • New store concept under development
Slide 16: Smiggle International: United Kingdom
8 Smiggle International: United Kingdom • 8 stores opened in 2H14 • 10 new stores confirmed for 1H15 • 18 stores will therefore be trading by December 2014 for key Christmas period. • Secured “zero compromise” locations in key centres including: – Westfield London (White City) – Birmingham Bullring
Slide 17: Smiggle International: United Kingdom
8 Smiggle International: United Kingdom Smiggle Kingston, UK opened March 2014 Smiggle Stratford, UK opened February 2014 Smiggle Brighton, UK opened March 2014 Smiggle Bath, UK opened July 2014 16
Slide 18: Smiggle International: Singapore and Malaysia
8 Smiggle International: Singapore and Malaysia Smiggle Singapore Smiggle Malaysia • 18 stores trading and very profitable • Continuing to review opportunities for our first stores • Our 19th store will open at Great World City in 1H15 • No compromise on quality of centres and store locations within
Slide 19: Peter Alexander growth continues
9 Peter Alexander growth continues Three year strategic growth plan on track • Sales growth in FY14 delivered in line with the 3 year plan • New store growth continues to be a focus for the next 2-3 years – 5–10 stores planned to open across FY15 and FY16 in Australia, with 4 confirmed to open befor
Slide 20: Supply Chain transformation underway
10 Supply Chain transformation underway New Australian national distribution centre • Construction was completed in January 2014 • Internal fit out and commissioning is well advanced • 3 brands currently operating from new facility – Dotti, Just Jeans and Jacqui E • Non-recurring investment costs of
Slide 21: Supply Chain transformation underway
10 Supply Chain transformation underway Singapore & New Zealand • New Zealand DC downsized and reconfiguration completed in FY13 with full benefits being realised in FY14 • Singapore third party logistics established in FY13 providing material margin benefit to Smiggle Singapore in FY14 UK • Third p
Slide 22: Summary
11 Summary Smiggle International driving future growth • Smiggle performing well in all core markets with sales exceeding $100 million for the first time • Smiggle UK successfully launched with 18 stores trading by Christmas 2014 and 25 to 30 stores expected to be opened by the end of FY15 • All sto
Slide 23: Summary
11 Summary Core brands strategies on track • Strong sales across FY14 despite a highly competitive and volatile consumer market • LFL growth achieved in all core brands in 2H14 • Just Jeans delivered strong results from the new focus on product • Strong sales growth in Dotti, Portmans and Jacqui E c
Slide 24: Dividends
DIVIDENDS 23
Slide 25: Final dividend
12 Final dividend • The Premier Board has declared an increased final fully franked dividend of 20 cps (FY13: 19 cps) • Brings full year dividends to 40 cps fully franked (FY13: 38 cps fully franked) • The Board’s decision to pay a dividend is always shaped by: – Assessment of the result – Outlook f
Slide 26: Premier Retail brand by brand performance
PREMIER RETAIL BRAND BY BRAND PERFORMANCE
Slide 27: Overview of Results
13 Overview of Results Sales $105.2m Var LY +17.4% Store movements July 13 Open Close July 14 Australia 112 5 1 116 New Zealand 23 – – 23 Singapore 16 2 – 18 UK – 8 – 8 151 15 1 165 Highlights • Strong LFL growth in both Summer and Winter seasons in all 3 core markets • Successful UK market launch i
Slide 28: Overview of Results
13 Overview of Results Sales $122.2m Var LY +21.4% Store movements July 13 Open Close July 14 Australia 51 8 – 59 New Zealand 8 – – 8 Myer Concession – 9 – 9 59 17 – 76 Highlights • Strong total sales growth and LFL sales growth across the year • Online continues to grow strongly – Launched peterale
Slide 29: Overview of Results
13 Overview of Results Sales $206.9m Var LY +5.4% Store movements July 13 Open Close July 14 Australia* 199 3 6 196 New Zealand 45 – – 45 244 3 6 241 * Includes one group store Highlights • Total sales up 5.4%, with LFL sales far higher • Brand is one year into its 'Anchored in Denim' strategy under
Slide 30: Overview of Results
13 Overview of Results Sales $112.1m Var LY +3.9% Store movements July 13 Open Close July 14 Australia 90 2 4 88 New Zealand 12 – – 12 102 2 4 100 Highlights • Total sales up 3.9% • LFL sales significantly stronger • Opened 2 new stores – Shellharbour and Birkenhead Point • Closed 2 loss making stor
Slide 31: Overview of Results
13 Overview of Results Sales $111.7m Var LY +3.1% Store movements July 13 Open Close July 14 Australia 88 4 2 90 New Zealand 21 – – 21 109 4 2 111 Highlights • Total sales growth 3.1% • LFL sales growth stronger • Online sales grew by 61% on last year well ahead of the market with : – New “Store to
Slide 32: Overview of Results
13 Overview of Results Sales $68.8m Var LY +3.7% Store movements July 13 Open Close July 14 Australia 80 3 3 80 New Zealand 21 – 1 20 101 3 4 100 Highlights • Total sales up 3.7% with LFL sales growth significantly stronger • Continued emphasis on product development and ranging: – Fit and colour –
Slide 33: Overview of Results
13 Overview of Results Sales $161.4m Var LY -3.5% Store movements July 13 Open Close July 14 Australia 184 – 6 178 New Zealand 36 1 2 35 220 1 8 213 Highlights • New merchandise and promotion strategy is cutting through – Re-established and invested in “famous for” product categories and ensuring an
Slide 34: Appendix: Overview of Premier's non-IFRS financial information
A Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with all