Shaver Shop Group Limited · ASX:SSG
Shaver Shop — Investor Presentation (August 2019)
27 slides from Shaver Shop's investor presentation, Aug 26, 2019
Slide 1: FY19 Results Investor Presentation
Shaver Shop Group Limited FY19 RESULTS INVESTOR PRESENTATION 26 August 2019 Cameron Fox CEO & Managing Director Larry Hamson CFO & Company Secretary
Slide 2: FY19 Highlights
FY19 HIGHLIGHTS Shaver Shop delivered a very strong second half performance leading to sales, gross margin and EBITDA growth in FY19 Underlying (Ex- Daigou) LFL Sales Insert Braun Online* Sales up 4.8% S9 image up 30.0% Normalised Normalised EBITDA Operating Cash Insert Dyson $13.5m Flow $12.5m Norm
Slide 3: Strong Sales Growth
STRONG SALES GROWTH Sales rebounded strongly in 2H FY19 leading to positive same store sales growth for the year Total Underlying* Sales Growth – 11.8% 180 • Total sales up 8.0% to $167.4m 160 0.3 140 12.1 5.4 • Underlying (ex Daigou) sales up 11.7% 120 100 • Underlying (ex Daigou) like for like (LF
Slide 4: Omni Retail Investments Supporting Growth
OMNI RETAIL INVESTMENTS SUPPORTING GROWTH Ongoing improvements in online user experience and more effective and engaging digital marketing has reinvigorated online sales growth Total Network - Online Sales Growth (%) • User experience (UX) upgrades and ongoing improvements online have delivered impr
Slide 5: Core Category Growth
CORE CATEGORY GROWTH Hair Removal and Hair Styling categories are growing strongly • Core business categories delivered the strong result • Hair Removal categories drove 5.6% LFL sales growth • Total Complementary categories grew underlying* LFL sales by 2.6% • Hair Styling grew strongly • “Daigou e
Slide 6: Financial Results Summary
FINANCIAL RESULTS SUMMARY 6
Slide 7: Normalised Profit & Loss
NORMALISED* PROFIT & LOSS Normalised Normalised Variance Variance • Total sales up 8.0% ($12.4m) to $167.4m $000's FY19 FY18 ($) (%) • Underlying (ex Daigou) sales up 11.7% or $17.6m Sales 167.4 155.0 12.4 8.0% • Underlying LFL sales growth 4.8% (2H FY19 – 11.9%) Gross profit 71.4 64.2 7.1 11.1% • D
Slide 8: Gross Profit Margins Restored
GROSS PROFIT MARGINS RESTORED Gross profit up 11.1% ($m) • Total gross profit up 11.1% to $71.4m • Normalised gross profit margins up 120 basis points to 42.6% due to: • Reduced contribution from Daigou reseller channel • Improved category and supplier mix • Improved supplier alignment with SSG prom
Slide 9: Underlying & Normalised CODB% Consistent with FY2018
UNDERLYING & NORMALISED CODB% CONSISTENT WITH FY2018 Normalised CODB % of Underlying* Sales • Normalised CODB flat at 35.6% of underlying* (ex- Daigou) sales (FY2018 – 35.5%) • Employee benefits increase year over year due to previously disclosed: • Investments in national support office roles (prim
Slide 10: Underlying EBITDA Up 12.9% or $1.5m to $13.4m
UNDERLYING* EBITDA UP 12.9% OR $1.5M TO $13.4M Underlying* EBITDA Growth 16.0 • Strong growth in underlying (ex Daigou) EBITDA due to: • Underlying LFL sales growth of 4.8% 14.0 2.5 0.1 • Gross margin recovery to 42.6% 12.0 1.2 • Successfully mitigated cost increases associated with fair work wage i
Slide 11: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET • Strong balance sheet with conservative gearing Statutory Statutory • Net debt of $6.4m (FY18 - $8.4 million) $m 30-Jun-19 30-Jun-18 Variance • Average inventory per store c. $225k (in-line with prior Cash 3.9 2.9 1.0 year) Trade & other receivables 2.1 2.7 (0.5) • Increa
Slide 12: Strong Operating Cash Flow
STRONG OPERATING CASH FLOW • Strong operating cash flow of $12.5 million (FY18 operating cash flow result benefited by one-off (c$3m) working capital reduction associated with Philips stock Variance purchase in Q4 FY17) $m FY19 FY18 ($) EBITDA 12.5 12.2 0.3 • Net capex - $3.8 million Change in worki
Slide 13: Impact of New Lease Accounting Standard
IMPACT OF NEW LEASE ACCOUNTING STANDARD • New lease accounting standard (AASB16) commences 1 July 2019 (FY20) 1 Jul 19 – Pro forma balance sheet impacts $m • Operating leases now treated as finance leases with: Increase in assets $31.6 – 32.8m • Right of use (ROU) asset • Lease liability (present va
Slide 14: Strategic Priorities
3 STRATEGIC PRIORITIES 14
Slide 15: Key Growth Priorities
4 KEY GROWTH PRIORITIES • Our goal is to be the best in class omni channel retailer in our category Best in class • Online sales up 30.0% in FY19 and now represent 12.6% of total network sales • Improved user experience (Ux) delivering increased conversion omni retail • Leveraging marketplace and af
Slide 16: Omni Retail Enhancements
OMNI RETAIL ENHANCEMENTS Investments have led to 2H FY19 online sales growth of 63% driven (in part) by improvements Ux and fulfillment • Fulfilling online orders from stores with a User sophisticated order management solution Experience Optimisation Increasing • Replicating in-store customer experi
Slide 17: New Engaging Store Designs
NEW ENGAGING STORE DESIGNS Full store refit program is driving incremental sales growth across key doors • 8 full store refits including 2 store relocations completed in the last 9 months • Incremental sales results are encouraging • 5-10 refits expected through remainder of FY20 • New store layout
Slide 18: New Zealand Earnings Improvement
NEW ZEALAND EARNINGS IMPROVEMENT Strong growth opportunities expected to improve scale and profitability in NZ • Several growth opportunities for FY20 • Launched ghd in NZ in April ‘19 Significant addition to product range and provides strong opportunity for growth • Opening new store – Westfield
Slide 19: Strong Start to FY20
SH9VER SHOP TRANSFORM YOURSELF™ STRONG START TO FY20 19
Slide 20: Strong Start to FY20
STRONG START TO FY20 • Encouraging start to FY20 with LFL sales up 9.5% over the first 7 weeks • Christmas trading season remains critical to full year results • Continuing to invest for long term growth in FY20 • Incremental marketing investment – expected to return to levels roughly in-line with F
Slide 21: Summary
SUMMARY Strong finish to FY19 Differentiated specialty retail model focused on customer service, innovative and exclusive products at competitive prices Store refit program delivering incremental sales results NZ business improving with solid growth initiatives being implemented for FY20 S
Slide 22: Thank You
Shaver Shop Group Limited THANK YOU Questions?
Slide 23: Appendices
APPENDICES 23
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: Reconciliation of Statutory to Normalised Results
RECONCILIATION OF STATUTORY TO NORMALISED RESULTS Reported Normalised Reported Normalised $A 000s FY18 Normalisation FY18 FY19 Normalisation FY19 Sales 155.0 155.0 167.4 167.4 Cost of goods sold (90.9) 0.2 (90.8) (96.1) (96.1) Gross profit 64.1 0.2 64.2 71.4 71.4 Gross margin % 41.3% 41.4% 42.6% 42.
Slide 26: Key Metrics
KEY METRICS Normalised Normalised FY19 FY18 Number of corporate stores 113 106 Number of franchise stores 8 9 Total stores 121 115 Corporate store sales ($m) 167.4 155.0 Franchise store sales ($m) 18.1 22.4 Total network sales ($m) 185.6 177.4 Corporate store LFL sales growth % - Total 1.1% -3.4% Co
Slide 27: Store Network at 26 August 19
STORE NETWORK AT 26 AUGUST 19 121 outlets in ANZ: 115 corporate stores and 6 franchises 27
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