Super Retail Group Limited · ASX:SUL
Super Retail — FY2024 Earnings Presentation
49 slides from Super Retail's earnings presentation, Aug 22, 2024
Slide 1: Super Retail Group Full Year Results 2024
2024 Super Retail Group Full Year Results Authorised for release by the Board of Super Retail Group Limited 22 August 2024 Anthony Heraghty Group Managing Director & Chief Executive Officer
Slide 2: Group highlights
Group highlights SUPER RETAIL GROUP 2
Slide 3: Executive summary
Executive summary Revenue growth and gross margin expansion offset by cost inflation • Group sales up 2 per cent to $3.9 billion • Group gross margin up 10bps to 46.3 per cent • Segment EBIT down 9 per cent to $400 million • Segment PBT down 12 per cent to $343 million • Statutory NPAT down 9 per ce
Slide 4: Record sales of $3.9 billion
Record sales of $3.9 billion The Group has delivered another year of record sales driven by investment in our digital capability and store network SALES GROWTH GROUP SALES ($m) BY BRAND LIKE-FOR-LIKE TOTAL SALES GROWTH SALES GROWTH (%) (%) 2 3 (2) (1) 3,803 3,883 (1) 5 3,453 3,551 2,825 0 3 TOTAL GR
Slide 5: Gross margin increased to 46.3 per cent
Gross margin increased to 46.3 per cent Gross margin improved by 10bps. Lower PBT margin reflects increase in cost of doing business due to impact of inflation GROUP GROUP CODB AS GROUP PBT GROSS MARGIN A % OF SALES1 MARGIN Rebased above pre Higher CODB due to PBT margin remains COVID-19 levels impa
Slide 6: Customer highlights
Customer highlights Club members represented 77 per cent of Group sales ACTIVE CLUB CLUB MEMBER CLUB MEMBER MEMBERS1 NPS % OF SALES 11.5m (UP 1.2M) 69 (UP 2) 77% (UP 4%) CLUB MEMBER CLUB MEMBER CLUB MEMBER CLUB MEMBER NPS (UP 1) NPS (UP 1) NPS (UP 2) NPS (UP 3) 68 66 73 70 CLUB MEMBER CLUB MEMBER CL
Slide 7: Investment in our loyalty programs is driving growth in active club member metrics
Investment in our loyalty programs is driving growth in active club member metrics Active Club Members1 (m) Club Member NPS Club Member share of Group Sales 11.5 77% 67 69 73% 10.3 65 70% 61 63 9.2 63% 59% 8.0 6.6 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 SUPER RETAI
Slide 8: Store network highlights
Store network highlights Targeting 25 new store openings in FY25 NEW TARGETED NEW STORES STORE CURRENT OPENED IN OPENINGS IN STORES FY24 FY25 759 28 25 FY24 NEW FY24 NEW FY24 NEW FY24 NEW STORES STORES STORES STORES 11 1 7 9 TARGETED TARGETED TARGETED TARGETED FY25 NEW FY25 NEW FY25 NEW FY25 NEW STO
Slide 9: Supercheap Auto store network highlights
Supercheap Auto store network highlights FY24 FY25 • Opened 11 new stores • Targeting 10 new store openings • Completed 28 store refurbishments • Undertaking 28 store refurbishments SUPER RETAIL GROUP 9
Slide 10: rebel store network highlights
rebel store network highlights FY24 FY25 • Added 5 rCX stores including flagship • Targeting 4 new store openings store at Melbourne’s Emporium • Upgrading 3 stores to rCX large format • 20 rCX stores now open • Undertaking 6 store refurbishments SUPER RETAIL GROUP 10
Slide 11: BCF store network highlights
BCF store network highlights FY24 FY25 • Opened 7 new stores • Targeting 5 new store openings • Opened Mackay superstore • 2 new superstores at Hervey Bay and Cannington • 17 in-store tackle stores now open • Opening 10 in–store tackle stores SUPER RETAIL GROUP 11
Slide 12: Macpac store network highlights
Macpac store network highlights FY24 FY25 • Opened 9 new stores • On track to open 100th retail store • Targeting 6 new store openings SUPER RETAIL GROUP 12
Slide 13: Digital and omni-retail highlights
Digital and omni-retail highlights CLICK & Online sales have grown by 9 per cent to $485 million ONLINE SALES COLLECT GROUP % OF TOTAL % OF ONLINE ONLINE SALES SALES SALES FY24 BRAND SALES BY CHANNEL $485m 13% 45% HOME % OF SALES 4 YEAR CAGR DELIVERY COMPLETED IN ONLINE TOTAL % OF ONLINE IN STORE SA
Slide 14: Group financial performance and brand highlights
Group financial performance and brand highlights SUPER RETAIL GROUP 14
Slide 15: Group results
Group results $m FY24 FY23 Change Total sales1 3,882.6 3,802.6 2.1% Total segment EBITDA 738.6 767.6 (3.8%) Segment D&A (338.2) (329.6) 2.6% Total segment EBIT 400.4 438.0 (8.6%) Net finance costs (57.8) (47.4) 21.9% Normalised segment PBT 342.6 390.6 (12.3%) Segment income tax expense (100.5) (117.
Slide 16: Segment results
Segment results $m FY24 FY23 Segment Sales PBT Sales PBT Supercheap Auto 1,497.9 202.9 1,447.9 204.0 rebel 1,291.6 102.4 1,309.1 146.0 BCF 879.1 54.3 839.9 51.0 Macpac 222.4 18.8 216.4 28.7 Group and (8.4) (35.8) (10.7) (39.1) Unallocated Total 3,882.6 342.6 3,802.6 390.6 SUPER RETAIL GROUP 16
Slide 17: Supercheap Auto highlights
Supercheap Auto highlights Supercheap Auto is Australia and New Zealand’s favourite specialty automotive parts and accessories retail business1 • Record full year sales and record EBIT • Record club member net promoter score • In-store service program undertook a record number of fitments (over 830,
Slide 18: Supercheap Auto sales increased by 3 per cent to $1.50 billion
• Total sales increased by 3 per cent to $1.50 billion driven by new store openings $m FY24 FY23 Change and like-for-like sales growth • Like-for-like sales growth of 2 per cent reflected growth in transaction volumes and higher average transaction value (ATV) Sales 1,497.9 1,447.9 3.5% • Auto maint
Slide 19: rebel highlights
rebel highlights rebel is Australia’s leading sporting goods and apparel retailer. Our goal is to inspire all Australians to live their sporting dreams and passion • Relaunched rebel active loyalty program - 3.9 million members contributing 77% of sales and spending more per customer than ever befor
Slide 20: rebel's financial results for the period
• rebel’s financial results for the period reflect the one-off impact of revenue deferral relating to its new points-based club member loyalty program of $7 million1 $m FY24 FY23 Change • Total sales fell by 1 per cent to $1.29 billion • Like-for-like sales decreased by 2 per cent reflecting lower t
Slide 21: BCF highlights
BCF highlights BCF is Australia’s favourite1 outdoor retailer, with stores in every Australian state and territory • Record full year sales • Club member sales increased to 90 per cent of sales • Biggest ever year of fishing sales • Strong growth in other key strategic categories – 4x4, Caravan & To
Slide 22: BCF sales increased by 5 per cent to $879 million
• Total sales increased by 5 per cent to $879 million driven by new store openings $m FY24 FY23 Change • Like-for-like sales fell by 1 per cent as higher transaction volumes were offset by a modest decline in ATV Sales 879.1 839.9 4.7% • Fishing and touring delivered strong category growth • Segment
Slide 23: Macpac highlights
Macpac highlights Macpac products are made by adventurers for adventurers. We design products that are functional, technical and robust to help equip outdoor enthusiasts to adventure better • Record full year sales • Successfully leveraged Group store network - 11% of Macpac sales in Australia were
Slide 24: Macpac sales increased by 3 per cent to $222 million
• Total sales increased by 3 per cent to $222 million driven mainly by new store $m FY24 FY23 Change openings • Like-for-like sales were slightly above the pcp as a result of higher transaction volumes Sales 222.4 216.4 2.8% • Like-for like sales increased by 8 per cent in New Zealand but declined b
Slide 25: Group and unallocated
Group and unallocated • Group and unallocated includes corporate costs not allocated to segments and customer, omni, digital and loyalty development costs $m FY24 FY23 Change • Total group and unallocated costs have decreased by approximately $3 million compared to the pcp Segment PBT (35.8) (39.1)
Slide 26: Group balance sheet
Group balance sheet $m 29 Jun 24 1 Jul 23 • Total inventory increased by $58 million compared to the pcp, reflecting Inventory both an increase in unit volume and COGS inflation • Total average inventory to sales of 21 per cent, in line with the previous Supercheap Auto 306.0 285.3 period rebel 246.
Slide 27: Group cash flow
Group cash flow • Operating cash flow of $635 million was $81 million below pcp primarily because the Group made $133 million in income tax $m FY24 FY23 Change payments in FY24 compared to $64 million in FY23 • Cash conversion was strong Operating cash flow 635.4 716.4 (11.3%) • Total capital expend
Slide 28: Returns, capital ratios and fx
Returns, capital ratios and fx • Statutory EPS of 106 cents and normalised EPS of 107 cents FY24 FY23 Change • The Board has determined to pay a fully franked final dividend of 37 cents per share Normalised EPS (cents) 107.2c 121.1c (11.5%) • The Board has also determined to pay a fully franked spec
Slide 29: Corporate strategy
Corporate strategy SUPER RETAIL GROUP 29
Slide 30: Our strategy
1 GROW THE FOUR Our strategy CORE BRANDS Growing annual 2 LEVERAGE CLOSENESS TO OUR CUSTOMER customer value PRIMARY VALUE Ensuring organic growth and 3 CONNECTED OMNI-RETAIL SUPPLY CHAIN LEVERS capital discipline 4 Being an SIMPLIFY THE efficient BUSINESS omni-retailer 5 EXCEL IN OMNI-RETAIL EXECUTI
Slide 31: Delivering on our strategy in FY24
Delivering on our strategy in FY24 GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • 5-year Brand strategies • Active customer growth remains • Delivery of the new automated • C
Slide 32: Positive start for the new rebel Active loyalty program
Positive start for the new rebel Active loyalty program Outcome Increase visitation On track 3.9m ACTIVE CLUB MEMBERS1 Drive uplift in new member sign ups On track % of active club members earning points 84% 3.3m CLUB MEMBERS HAVE EARNED POINTS1 % of active club members redeeming points 34% GP impac
Slide 33: Leveraging closeness to customer through loyalty and personalisation
Delivering on our strategy – leveraging closeness to customer through loyalty and personalisation Leveraging closeness to our CLUB MEMBER SALES % OF GROUP SALES1 customer Club members represented more than three quarters of Group sales in FY24 The new rebel Active loyalty program was successfully la
Slide 34: Sustainability and team
Sustainability and team SUPER RETAIL GROUP 34
Slide 35: Super Retail Group team member engagement
Super Retail Group team • • More than 12,400 team members participated in the Group’s May 2024 engagement survey This represented a record participation rate of 78 per cent member engagement • The Group’s engagement score increased by 1 pt to 81 - 2 pts above the global benchmark. Survey components:
Slide 36: Sustainability strategy: people
Sustainability Community Diversity in strategy: people leadership $1.4m 37% Team engagement Female representation at Group total giving senior leadership level1 Advocate - I would recommend this as to charitable a great place to work causes in FY24 Engagement 50% 85 vs Benchmark 81 Reflect Reconcili
Slide 37: Sustainability strategy: planet
Sustainability strategy: planet1 62% 1,254,042L 140,835 Diversion rate for Recycled litres of oil Recycled car batteries waste material in through Supercheap through Supercheap stores, offices and Auto Auto distribution centres2 115,242 10% $350,000 Recycled pairs of Percentage increase Contributed
Slide 38: Dividends and capital management
Dividends and capital management SUPER RETAIL GROUP 38
Slide 39: Dividends and capital management
Dividends and capital management • The Group applies the following key principles in relation to dividends and capital management: - Dividend payout policy – pay ordinary dividends equating to 55 per cent to 65 per cent of underlying NPAT, fully franked - Balance sheet – maintain conservative credit
Slide 40: Trading update
Trading update SUPER RETAIL GROUP 40
Slide 41: FY25 trading update
FY25 trading update Like-for-Like Sales Growth Total Sales Growth FY25 v FY24 FY25 v FY24 (Weeks 1 to 7) (Weeks 1 to 7) Supercheap Auto 4% 6% rebel 1% 1% BCF 3% 5% Macpac 9% 15% Group Total 3% 5% • The Group has made a strong start to FY25, delivering three per cent like-for-like sales growth and fi
Slide 42: FY25 trading update
FY25 trading update • The Group is targeting capex in FY25 of $165 million – to fund its store development program, a new distribution centre, enhancements to its customer loyalty programs and cyber, omni and digital capability • As previously flagged, the Group expects duplicated operating expenses
Slide 43: Appendix – Performance trends and segment notes
Appendix 1 – Performance trends and segment notes SUPER RETAIL GROUP 43
Slide 44: Super Retail Group has a network of over 750 stores across Australia and NZ
Super Retail Group has a network of over 750 stores across Australia and NZ NT 6 QLD 3 1 2 178 87 38 46 7 WA Supercheap Auto (341 stores) 72 SA ACT 32 15 20 5 NZN rebel (159 stores) 49 16 56 21 11 14 3 4 4 3 5 NSW BCF (162 stores) 33 23 196 Macpac (97 stores) 85 51 44 16 VIC 145 58 38 29 20 NZS TAS
Slide 45: FY24 like-for-like sales growth by brand (H1/H2 split)
FY24 like-for-like sales growth by brand (H1/H2 split) LIKE-FOR-LIKE SALES GROWTH BY BRAND H1 FY24 H2 FY24 FY24 (WEEK 1 TO 26) (WEEK 27 TO 52) (WEEK 1 TO 52) 3% 1% 2% (3%) (2%) (2%) 2% (4%) (1%) 0% 0% 0% Total Group 1% (1%) 0% SUPER RETAIL GROUP 45
Slide 46: Segment note FY24
Segment note FY24 SUPER RETAIL GROUP 46
Slide 47: Segment note FY23
Segment note FY23 SUPER RETAIL GROUP 47
Slide 48: Performance trends
Performance trends Reported Sales ($m) Reported Total Segment PBT ($m) 3,803 3,883 436 3,453 3,551 391 2,825 350 343 2,570 2,710 2,422 2,466 2,239 191 202 207 210 149 156 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Reported EPS (c) Normalised R
Slide 49: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Super Retail Group Limited ABN 81 108 676 204 ("SRG"). It provides summary information about the activities of SRG and its subsidiaries current as at the date of this presentation. The information in this presentation is of a gen