Lovisa Holdings Ltd. · ASX:LOV
Lovisa — H1 FY2024 Earnings Presentation
19 slides from Lovisa's earnings presentation, Feb 22, 2024
Slide 1: Lovisa Holdings Limited FY24 Half Year Results
Lovisa Holdings Limited FY24 HALF YEAR RESULTS VICTOR HERRERO CHIEF EXECUTIVE OFFICER CHRIS LAUDER CHIEF FINANCIAL OFFICER
Slide 2: Forward-looking statements
Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about future events of Lovisa H
Slide 3: Contents
CONTENTS 1. HALF YEAR OVERVIEW 2. FINANCIAL OVERVIEW 3. TRADING PERFORMANCE – Sales & Gross margin 4. EARNINGS 5. CASHFLOW AND BALANCE SHEET 6. STORE GROWTH & NEW MARKETS 7. STRATEGY RECAP 8. TRADING UPDATE AND OUTLOOK 9. SUMMARY 10. APPENDICES 3
Slide 4: FY24 Half Year Overview
FY24 HALF YEAR OVERVIEW • Total sales up 18.2% on prior half year reflecting • Store network growth across all regions, including continued growth in the store network significant new growth opportunity markets in mainland China and Vietnam • Global comparable store sales for the period down 4.4% co
Slide 5: Financial Overview
FINANCIAL OVERVIEW ($000) (Statutory) HY24 HY23 Variance Profit growth continues Revenue 373,024 315,483 18.2% • Revenue up 18.2% on HY23 with comparable store sales down 4.4% Gross profit 301,148 253,196 18.9% • Gross Margin % again strong at 80.7% EBITDA 128,364 103,940 23.5% • Net Interest higher
Slide 6: Trading Performance - Sales
TRADING PERFORMANCE - SALES Total Sales (A$M) Sales growth continues $350 • Global Sales Revenue up 18.2% to $373m, with continued strong $300 Sales ($AUDm) store network growth offsetting impact of negative comparable $250 store sales in the period $200 $373 $150 $315 • Improving sales trend in Q2
Slide 7: Trading Performance - Gross Margin
TRADING PERFORMANCE – GROSS MARGIN Further gross margin improvement 90.0% Historical Gross Margins 80.0% • Gross profit increased 18.9% to $301.1m 70.0% • Gross Margin was again strong up 40 basis points to 80.7% 60.0% • Ongoing management of pricing structures has 50.0% allowed continued gross marg
Slide 8: Earnings
EARNINGS $100.0 Earnings growth maintained EBIT1 Growth $m $80.0 • EBIT up 16.3% to $81.6m, NPAT up 12% to $53.5m $60.0 • CODB higher due to growth in the store network and inflationary pressures, however offset by CEO LTI expense lower at $6m $40.0 $81.6 $70.1 compared to $15m in the prior half yea
Slide 9: Cash Flow
CASH FLOW (A$000s) HY24 HY23 Continued investment in store rollout (Statutory) Cash from operating activities 149,543 115,837 • Cash flow from operating activities $150m, up 29.1% Net interest paid (8,859) (4,999) • Capital expenditure of $14.3m includes 68 new company Tax paid (13,384) (12,753) own
Slide 10: Balance Sheet
BALANCE SHEET Balance Sheet remains strong (A$000s) (Statutory) HY24 FY23 HY23 • Inventory holdings increased at a slower rate than sales and store Cash 58,516 31,650 50,038 network growth, with clean stock position at the end of the period Receivables 20,670 23,412 22,803 Inventories 63,713 60,098
Slide 11: Store Growth
STORE GROWTH Global expansion continued with 74 new stores opened Store number growth • 74 new stores opened in the period offset by 21 Country HY24 FY23 HY23 Var 6 mths New Stores Relocations Closures Var YOY closures/relocations, with constant focus on Australia New Zealand 175 27 168 27 163 26 7
Slide 12: New Markets
NEW MARKETS CHINA Po Park Guangzhou VIETNAM Saigon Centre 12
Slide 13: Strategy Recap
STRATEGY RECAP Our strategic plans remain in place OUR PAST OUR FUTURE OUR PRESENT Continued expansion both in existing and 14 years ago we set out to develop a fast We are well on the way in establishing a new markets with the same successful fashion jewellery concept to meet global brand disciplin
Slide 14: Trading Update
TRADING UPDATE • Trading for the first 7 weeks of 2H24 saw comparable store sales for this period up 0.3% on 2H23. Total sales for this period are up 19.6% on the same period in 2H23. • Since the end of the half year, we have opened 9 new stores, with the store network currently at 860 including our
Slide 15: Summary
SUMMARY • Sales performance solid for the half year, with growth from new store rollout offsetting weaker comparable store sales • Improving sales trend in Q2 • Global expansion continued with 74 new stores opened during the period, and a total network of 854 stores at period end • 3 new markets ope
Slide 16: Appendices
Lise APPENDICES
Slide 17: Appendix 1: Non-IFRS financial information
APPENDIX 1 ASIC Regulatory Guide 230 Disclosing non-IFRS financial information In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Lovisa Holdings Limited is required to make a clear statement about the non-IFRS information included in the Profit announcement and presentati
Slide 18: Appendix - Profit & Loss Statement
APPENDIX 2 – PROFIT & LOSS STATEMENT HY24 HY23 ($’000) Variance Statutory Statutory Revenue 373,024 315,483 18.2% Cost of sales (71,876) (62,287) 15.4% Gross profit 301,148 253,196 18.9% Employee expenses (102,972) (89,146) 15.5% Property expenses (20,343) (12,189) 66.9% Distribution expenses (14,63
Slide 19: Thank You
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