Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2019 Earnings Presentation
20 slides from Michael Hill International's earnings presentation, Aug 16, 2019
Slide 1: Annual Results Update
For personal use only ANNUAL RESULTS UPDATE 30 June 2019
Slide 2: Disclaimer
For personal use only DISCLAIMER Certain statements in this announcement 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 Micha
Slide 3: CEO and CFO Update
For personal use only Michael Hill International Limited CEO and CFO Update • FY19 Business Overview • Financial Summary • Group Results • FY20 • Q&A 3
Slide 4: FY19 Business Overview
FY19 Business Overview FY19 was a transitional year as the Company appointed a new CEO and strengthened the management team For personal use only • Strong heritage brand Founded in 1979, the Company is focused on evolving from a traditional retailer to a relevant, modern and differentiated jewellery
Slide 5: FY19 Financial Snapshot
FY19 Financial Snapshot For personal use only • Despite a challenging Q1, sales performance momentum recovered FY19 FY18* throughout the subsequent quarters, with FY19Q4 +0.7% • All segments suffered compressed margin during FY19H2 in order to Revenues $569.5m $575.5m stabilise sales performance Sta
Slide 6: Key Financial Results
Key Financial Results For personal use only $ 569.5m $ 34.6m 4.0c GROUP OPERATING REVENUE UNDERLYING EBIT DIVID END 2018: $575.5m* 2018: 40.1m 2018: 5.0c $ 39.0m 62.0 % OPERATI NG N ET CASHFLOW GROSS MARG IN 2018: $54.9m 2018: 63.7% $ 24.8m -3.3 % 46.8% NET DEBT SAME STORE EQUITY RATIO 2018: $28.0m
Slide 7: Operational Performance
Operational Performance For personal use only $ 16.0m* 32.5% E-COMMERCE SALES BRANDED COLLECTION SALES 2018: $11.1m* 10 11 $5m CODB -3.7% NEW STORES STORES ANNUALISED SAVINGS AUSTRALIA OPENED CLOSED RETAIL SEGMENT REVENUE** -4.1% NEW ZEALAND RETAIL SEGMENT REVENUE** +1.8% CANADA RETAIL SEGMENT REVEN
Slide 8: Group Results
Group Results • Group revenue declined by 1.1%, with same store sales up 0.7% for FY19Q4 For personal use only • Statutory EBIT of $21.1m, up from FY18 of $8.9m** • Underlying EBIT of $34.6m, down from $40.1m • Gross margin for the Group was down from prior year to 62.0% • Final dividend of AU 1.5 c
Slide 9: Michael Hill Australia
Michael Hill Australia For personal use only 9
Slide 10: Michael Hill Australia
Michael Hill Australia RETAIL S EG M E N T For personal use only • Revenue declined by 3.7% • Gross margin of 61.9%, down from 63.3% in prior year • EBIT of $32.9m down from $48.6m • Four new stores opened and eight underperforming stores closed, along with five Emma & Roe stores, resulting in a tot
Slide 11: Michael Hill New Zealand
Michael Hill New Zealand For personal use only 11
Slide 12: Michael Hill New Zealand
Michael Hill New Zealand RETAIL S EG M E N T For personal use only • Revenue reduced for the year by 4.1% to NZ$120.1m, with all store sales up in FY19Q4 • Same store sales declined by 4.5% for the year, with same store sales up 0.6% in FY19Q4 • EBIT of NZ$24.1m, a reduction of NZ$3.7m • The New Zea
Slide 13: Michael Hill Canada
Michael Hill Canada For personal use only 13
Slide 14: Michael Hill Canada
Michael Hill Canada RETAIL S EG M E N T For personal use only • Revenue grew by 1.8% to CA$133.1m • Same store sales decreased by 1.7% • Canada still presents a significant opportunity from a productivity perspective • EBIT of CA$9.8m, down due to higher labour costs • Four stores were opened and on
Slide 15: FY20
For personal use only FY20 15
Slide 16: Key Initiatives for FY20
Key Initiatives for FY20 For personal use only Building on the Strategic Priorities with Seven Key Initiatives 1. Continued focus on costs of doing business • Delivered the FY19 cost out program – annualised benefits of $5m • A further $5m savings identified that will fully annualise in FY21 • Conti
Slide 17: Key Initiatives for FY20
Key Initiatives for FY20 For personal use only 4. Acceleration of the Branded Collections strategy • Clear pathway to drive exclusive Branded Collection sales to 50% over the coming years • To assist with sales growth and margin opportunity with existing customers • Avenue to attract new customers t
Slide 18: Celebration of Years
Celebration of 40 Years For personal use only 18
Slide 19: New Brisbane City Flagship Store
New Brisbane City Flagship Store For personal use only 19
Slide 20: Thank you
For personal use only Thank you 20
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