Shaver Shop Group Limited · ASX:SSG
Shaver Shop — H1 FY2023 Earnings Presentation
25 slides from Shaver Shop's earnings presentation, Feb 21, 2023
Slide 1: Shaver Shop Group Limited H1 FY2023 Results Presentation
SHAVER SHOP GROUP LIMITED H1 FY2023 RESULTS PRESENTATION 2023
Slide 2: Contents
CONTENTS 01 H1 FY23 Highlights 02 Financial Results Summary 03 Trading Update & Outlook 04 Appendices H1 FY23 Results Presentation 2023 2
Slide 3: H1 FY23 Highlights
H1 FY23 HIGHLIGHTS H1 FY23 Results Presentation 2023 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS > Total sales up 3.8% to $131.9m, a new first half record Sales > In-store sales up 33.5% to $100.8m as customers continue to switch back to traditional shopping habits and channels post COVID-19 > In-store sales represented 76% of total sales (H1 FY22 – 58.4%) > Softer sales ex
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS Customer > World class in-store NPS of 88.4 (out of 100) across H1 FY23 Service > Sales conversion1 was strong across key Christmas trading period partially offsetting significant declines in centre foot traffic in November and December (vs pcp and pre-COVID) > In-store traini
Slide 6: Positive Long-Term Sales Trend Continues
Total Sales Trend by Quarter POSITIVE LONG-TERM SALES TREND CONTINUES Q1 – SALES UP 17.5% (UP 33.5% VS Q1 FY20 - PRE-COVID) > In-store sales growth (cycling the COVID lockdown store closures in FY22) drove strong sales momentum across each month in Q1 Q1 Q2 > Online sales were down on the elevated l
Slide 7: Multi-Channel Offering Remains Critical but Preference for In-Store Shopping Is Evident
MULTI-CHANNEL OFFERING REMAINS CRITICAL BUT PREFERENCE FOR IN-STORE SHOPPING IN OUR CATEGORIES IS CLEARLY EVIDENT Quarterly In-Store and Online Sales Contribution H1 FY23 Sales Channel Contribution 100% 90% 21.6% 24.9% 80% 24% 70% 60% 50% 40% 78.4% 75.1% 30% 76% 20% 10% 0% Q1 Q2 In-Store Online In-s
Slide 8: Continuing Focus on Maximizing Gross Profit
H1 FY23 Gross Profit Growth ($m) CONTINUING FOCUS ON $55.3 $55.7 $58.5 MAXIMIZING GROSS PROFIT $44.4 $40.3 > Gross profit increased 4.9% to $58.5 million (a new H1 record for SSG) with gross margins increasing 50bps to 44.3% > SSG continues to focus on its strategy to: – Deliver excellent customer s
Slide 9: More Than 50% of Sales from Exclusive Lines
MORE THAN 50% OF SALES AND ALMOST 60% OF GROSS PROFIT FROM EXCLUSIVE (“ONLY AT SHAVER SHOP”) LINES Exclusive vs Non-Exclusive Contribution1 > Shaver Shop’s market leading range of hair removal devices is largely exclusive across: 100% 90% – Hair Clippers, Trimmers, Groomers 80% 49.0% 41.4% – Men’s E
Slide 10: Financial Results Summary
FINANCIAL RESULTS SUMMARY H1 FY23 Results Presentation 2023 10
Slide 11: H1 FY23 Profit & Loss
H1 FY23 PROFIT & LOSS NPAT UP 4.5% TO $13.7M DRIVEN BY SOLID SALES RESULT Profit & Loss H1 H1 Growth Growth A$m FY2023 FY2022 ($) (%) COMBINED WITH GROSS MARGIN AND OPEX FOCUS Sales 131.9 127.1 4.8 3.8% Gross profit 58.5 55.7 2.7 4.9% > Sales growth of 3.8% for H1 FY23 Gross margin % 44.3% 43.8% 0.5
Slide 12: Flat CODB at 23.0% of Sales
FLAT CODB AT 23.0% OF SALES CODB as a % of Total Sales > Strong cost management initiatives, particularly in Q2 FY23, 16.0% enabled Shaver Shop to keep costs of doing business (CODB) as a percentage of sales basically flat at 23.0% (H1 FY22 – 22.9%) 14.0% 13.6% > Increased salaries and wages as a %
Slide 13: Strong NPAT and EPS Result
STRONG NPAT AND EPS RESULT Strong H1 NPAT result of $13.7m up 4.5% on H1 Reported Basic EPS of 10.8 cents per share and Cash FY22 and Cash NPAT of $14.1m EPS of 11.1 cents 16.0 14.7 14.0 13.7 14.1 0.4 12.1 14.0 0.5 0.6 12.0 0.4 11.1 11.1 12.0 0.5 0.3 10.0 Cents per share 10.0 8.1 8.0 8.0 7.0 $m 6.8
Slide 14: Balance Sheet at December 2022
BALANCE SHEET AT 31 DECEMBER 2022 VERY STRONG FINANCIAL POSITION WITH $34.1M NET A$m 31-Dec-22 30-Jun-22 31-Dec-21 CASH AND NO DEBT AT 31 DECEMBER 22 Cash 34.1 9.4 36.3 > Cash balance reflects seasonal trends with Christmas stock Trade & other receivables 4.6 3.1 5.6 purchases (reflected in Trade Pa
Slide 15: Operating Cash Flow $39.0 Million
OPERATING CASH FLOW $39.0 MILLION STRONG OPERATING CASH FLOW AND NET CASH Reported Reported POSITION (NO DEBT) A$m H1 FY2023 H1 FY2022 Growth NPAT 13.7 13.1 0.6 > Operating cash flow remains very strong at $39.0m for H1 FY23 Non-cash items: > Cash balance of $34.1m and H1 operating cashflow reflects
Slide 16: Fully-Franked Interim Dividend Up 4.4% to 4.7 Cents
FULLY-FRANKED INTERIM DIVIDEND UP 4.4% TO 4.7 CENTS AND RETURN ON CAPITAL EMPLOYED OF 31.2% Continued dividend growth Strong return on capital employed1 36.3% 32.9% 31.2% 27.2% 5.5 5.0 18.6% 2.5 2.7 4.5 4.7 2.1 3.2 2.0 FY19 FY20 FY21 FY22 FY23 Interim/special dividend (cps) Final dividend (cps) FY19
Slide 17: Trading Update & Outlook
TRADING UPDATE & OUTLOOK H1 FY23 Results Presentation 2023 17
Slide 18: Trading Update & Outlook
TRADING UPDATE & OUTLOOK (based on unaudited management accounts) > From 1 January 23 to 18 February 2023, total sales were down 2.1% on the comparative FY22 period, which represents a moderate improvement in the sales growth rates observed in November and December > Sales compared to pre-pandemic l
Slide 19: Investment Summary
INVESTMENT SUMMARY Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation Products range is applicable to almost all demographics COVID-19 has accelerated DIY personal care adoption and introduced new customers to Shaver Sho
Slide 20: Appendices
APPENDICES H1 FY23 Results Presentation 2023 20
Slide 21: Key Metrics Summary
KEY METRICS SUMMARY Comparable Accounting (AASB 16) H1 FY23 H1 FY22 Number of corporate stores (at 31 Dec) 122 121 Number of franchise stores - - Total stores 122 121 Corporate store sales ($m) 131.9 127.1 Franchise store sales ($m) - - Total network sales ($'000) 131.9 127.1 Corporate store LFL in-
Slide 22: Half Yearly Results Summary
HALF YEARLY RESULTS SUMMARY H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 A$ millions Actual Actual Actual Actual Actual Actual Actual Sales 107.5 87.4 123.6 90.0 127.1 95.6 131.9 Cost of goods sold (63.1) (49.7) (68.4) (50.6) (71.4) (53.6) (73.5) Gross profit 44.4 37.8 55.3 39.4 55.7 42.0
Slide 23: Tax Benefit – Franchise Licence Termination
TAX BENEFIT – FRANCHISE LICENCE TERMINATION Franchise buy-back tax benefit ($m) 1.2 1.0 0.8 0.6 1.0 0.9 0.4 0.8 0.5 0.2 0.0 H1 FY23 FY23 FY24 FY25 Shaver Shop receives a tax deduction over five years for the cost of franchise right terminations that occur through its franchise buy-back program. This
Slide 24: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at the date of this Prese
Slide 25: Thank You
THANK YOU H1 FY23 Results Presentation 2023 25