Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Investor Presentation (February 2019)
15 slides from Michael Hill International's investor presentation, Feb 27, 2019
Slide 1: FY19H1 Results
FY19H1 RESULTS 31 DECEMBER 2018 1
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation constitute forward-looking statements. Forward-looking statements are statements (other than statements of historical fact) relating to future events and the anticipated or planned financial and operational performance of Michael Hill International
Slide 3: Michael Hill – FY19H1 Results
Michael Hill – FY19H1 Results • CHAI R’S OVE RVI EW • FI NANCIAL R ESU LTS • CEO’S U PDATE 3
Slide 4: Chair's Overview
CHAIR’S OVERVIEW • Since the beginning of 2018, Michael Hill International (MHJ) has been working through a significant program of transformation to recalibrate its future strategy: • Prioritise strategic focus on the Michael Hill Brand – closure of Emma & Roe and US • Five strategic shifts critical
Slide 5: By Christine Hill
BY CHRISTINE HILL
Slide 6: Key Performance Results
KEY PERFORMANCE RESULTS $ 19.5m 62.6% N ET P R O F IT G ROSS MARG I N AFTE R TAX 29.6m$29.6m $ $9.5m 2.5c UNDERLYING E B I T 6 8.3% E- C O M MERCE DIVI D E N D U N DE R LYI N G E B IT GROWTH 2018: 2.5c $ 20.7m 20.0% BRANDED COLLECTION N ET DE BT SALES 2018: $23.0m $ 315.4m 6 N EW STOR ES G R O U P R
Slide 7: Group Results
GROUP RESULTS • Statutory net profit after tax increased by 125% to $19.5m (FY18H1: $8.7m) • Statutory earnings before interest and tax increased by 88% to $28.5m (FY18H1: 15.1m) • Underlying earnings before interest and tax declined by 16% to $29.6m (FY18H1: $35.2m) • Operating revenues declined by
Slide 8: Michael Hill Australia
MICHAEL HILL AUSTRALIA R ETAI L S E G M E N T • The segment was heavily impacted by the shift away from a high frequency of deep discount event days during FY19Q1, although improvements were made over the Christmas trading period • Operating revenues declined by 5.1% to $175.5m • EBIT slowed to $24.
Slide 9: Michael Hill Canada
MICHAEL HILL CANADA R ETAI L S E G M E N T • Revenue grew by 0.9% to CA$74.4m • EBIT declined by 17.4% to CA$8.6m, due to increased investment in the company’s workforce and higher labour costs arising from mandatory indexation and market forces • Gross margin was stable at 61.8% • Canada remains a
Slide 10: Michael Hill New Zealand
MICHAEL HILL NEW ZEALAND R ETAI L S E G M E N T • Revenue of NZ$65.8m were down 5.6% from NZ$69.7m in the prior year • EBIT of NZ$15.1m, down 4.5% from prior year • Gross profit margin lifted 100 basis points for the half to 62.7% • A focus on retail costs partially offset the impact of a decline in
Slide 11: 11
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Slide 12: CEO's Update
CEO’s UPDATE • A significant opportunity to modernise our retail offering: a new operating model; brand, product, store and e-commerce initiatives; and cost efficiencies • The five strategic shifts provide the framework: focus will be on differentiation and execution • Talented and experienced manag
Slide 13: Summary of Key Initiatives (1/2)
SUMMARY OF KEY INITIATIVES (1/2) 1. Execution in January 2019 of a cost reduction programme delivering $5 million in annualised savings. Initiatives targeting a further $5 million in annualised cost savings. • Initial cost reduction programme focussed on head office overheads • Further initiatives t
Slide 14: Summary of Key Initiatives (2/2)
SUMMARY OF KEY INITIATIVES (2/2) 5. Productivity improvements in the Canadian market • Focus on retail fundamentals to deliver a considerable uplift in store productivity, consistent with the Australian and New Zealand markets 6. Targeted activation of scalable digital and omni-channel strategies •
Slide 15: Thank You
THANK YOU michael hill. INTERNATIONAL LIMITED 15
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