Marimekko Oyj · OMXHEX:MEKKO
Marimekko Oyj — Q3 2019 Earnings Presentation
29 slides from Marimekko Oyj's earnings presentation, Nov 6, 2019
Slide 1: Marimekko Interim Report 1–9/2019
1–9/2019 Marimekko Interim Report 6 November 2019 Tiina Alahuhta-Kasko
Slide 2: Q3/2019: net sales +15%, comparable operating profit +24%
Q3/2019: net sales +15%, comparable operating profit +24% + Net sales rose by 15%, growth generated primarily by Finnish retail and wholesale sales as well as licensing income and wholesale sales in the Asia- Pacific. + Sales in Finland grew by 14% and international sales by 17%. + Comparable operat
Slide 3: Key figures
Key figures Q3/2019 • Net sales EUR 34.5 million (29.8) • Brand sales EUR 64.4 million (54.9) • EBITDA EUR 11.0 million (6.8) • Comparable EBITDA EUR 11.0 million (6.9) • Operating profit EUR 7.8 million (6.2) • Comparable operating profit EUR 7.8 million (6.3) • Earnings per share EUR 0.79 (0.60) •
Slide 4: Net sales and operating profit
Net sales and operating profit
Slide 5: Net sales Q3/2019: +15% to EUR 34.5 million
Net sales Q3/2019: +15% to EUR 34.5 million (29.8) 40 2018 35 2019 34.5 30 29.1 • retail sales +16% 27.1 29.7 • wholesale sales +6% 25 29.8 28.2 EUR million 20 24.1 International sales +17% to EUR 14.8 million (12.7) 15 • retail sales +15% +13% +3% +15% • wholesale sales +4% 10 • increased licensing
Slide 6: Net sales 1–9/2019: +10% to EUR 90.7 million
Net sales 1–9/2019: +10% to EUR 90.7 million (82.1) 120 2018 2019 111.9 100 • retail sales +12% 90.7 • wholesale sales +6% 80 82.1 EUR million 60 56.3 International sales +12% to EUR 41.5 million (36.9) 52.3 • retail sales +8% 40 • wholesale sales +11% 27.1 • increased licensing income 20 24.1 +13%
Slide 7: Growth primarily in Finland, Asia-Pacific and EMEA
Growth primarily in Finland, the Asia-Pacific region and EMEA, with sales of fashion and bags & accessories increasing Net sales: EUR 90.7 million (82.1) Net sales by market area 1-9/2019 Net sales by product line 1-9/2019 21% 26% (20) (25*) 39% (36) 7% (8) 54% (55) 10% (9) 7% 35% (8) (39*) Finland
Slide 8: Global footprint
Global footprint 56% of Marimekko stores & shop-in-shops located outside home market Around 150 stores in 15 countries, e-commerce reaching customers in 32 countries Global retail footprint 9/2019 Net sales by channel, incl. e-commerce 120 200 100 180 161 80 160 159 153 EUR million 153 147 66 64 60
Slide 9: 147 Marimekko stores at the end of September 2019
147 Marimekko stores* at the end of September 2019 180 160 140 153 159 161 120 144 153 133 147 100 108 80 90 84 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1-9/2019 Asia-Pacific 21 22 27 37 46 52 60 65 70 66 North America 5 11 16 23 23 24 23 16 6 ** 6 EMEA 4 5 5 4 3 4 3 2 1 1 Scandinavia
Slide 10: Marimekko brand sales +17% in Q3/2019
Marimekko brand sales +17% in Q3/2019 In Q3/2019, 61% of the brand sales came from abroad (60). 250 67% 70 Brand sales by market area 1-9/2019 63% 62% 62% 60% 200 60 248 199 37% 50 193 International sales, % 37% (46) (29) 150 177 177 40 EUR million Finland Scandinavia 5% 100 30 EMEA 7% (10) 14% (4)
Slide 11: Comparable operating profit for Q3/2019 improved
Comparable operating profit for Q3/2019 improved, boosted by sales growth 9,0 25% 23% Operating profit EUR 7.8 million (6.2), +26% 8,0 7.8 7,0 21% 20% Comparable operating profit EUR 7.8 million (6.3), +24% 6,0 6.3 15% 5,0 13% + Growth in net sales, in particular retail and wholesale sales in Finlan
Slide 12: Comparable operating profit for 1–9/2019 grew
Comparable operating profit for 1–9/2019 grew, thanks to increased sales and improved relative sales margin 16,0 25% Operating profit EUR 14.1 million (16.5), -14% 23% • Operating profit for the comparison 14,0 period included a nonrecurring 14.1 taxable capital gain of EUR 6.0 20% 12,0 million due
Slide 13: Key figures
Key figures 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/ EUR million 2019 2018 % 2019 2018 % 2018 Net sales 34.5 29.8 15 90.7 82.1 10 111.9 International sales 14.8 12.7 17 41.5 36.9 12 48.3 % of net sales 43 42 46 45 43 EBITDA ** 11.0 6.8 62 23.5 18.4 27 20.2 Comparable operating profit 7.8 6.3 24 14.
Slide 14: Events during the period
Events during the period
Slide 15: Marimekko Kioski – a unisex streetwear collection
Marimekko Kioski – a unisex streetwear collection • Marimekko Kioski features some of our most iconic prints on unisex streetwear which currently enjoys growing popularity in the fashion world. • Pre-launch at Dover Street Market in Ginza, Tokyo, with many of the items selling out in just hours. • T
Slide 16: New leather bag line
New leather bag line • New leather bag collection launched in August, inspired by the timeless design language of our classic bag styles. • The new range enables us to offer even more complete looks and outfits from our collections to our customers, expressing the Marimekko style to the fullest. • T
Slide 17: Target's 20 Years of Design for All
Target’s 20 Years of Design for All Marimekko’s bold prints part of the Anniversary Collection • Marimekko was featured as one of the 20 brand collaboration partners in the US retailer Target ’s Anniversary Collection celebrating 20 years of designer partnerships. • The original 2016 limited-edition
Slide 18: Outlook
Outlook
Slide 19: Market outlook and growth targets for 2019 (1/2)
Market outlook and growth targets for 2019 (1/2) Finland Also • Finland represents about half of the company’s net sales. • Marimekko has become aware of cases of grey exports and has taken due action. The control of the cases has a weakening • Sales in Finland are expected to grow on the previous y
Slide 20: Market outlook and growth targets (2/2)
Market outlook and growth targets (2/2) • The key drivers of the company's growth are • its own e-commerce and other online sales channels • partner-led retail in Asia • increasing the sales per square metre of existing stores in Finland and the international markets. • The main thrust in new openin
Slide 21: Financial guidance for 2019
Financial guidance for 2019 (as revised on 14 October 2019) The Marimekko Group's net sales for 2019 are forecast to be higher than in the previous year and comparable operating profit is also expected to be higher than in the previous year, amounting to approximately EUR 17 million. In its half-yea
Slide 22: Share price, previous 12 months
Share price, previous 12 months (as per 30 September 2019) Marimekko Corporation Nasdaq Helsinki 22
Slide 23: Appendices
Appendices
Slide 24: Income statement
Income statement EUR million 7-9/2019 7-9/2018 1-9/2019 1-9/2018 NET SALES 34.5 29.8 90.7 82.1 Other operating income 0.2 0.1 0.5 6.3 Use of materials and consumables* -11.5 -9.9 -31.3 -29.6 Employee benefit expenses -6.5 -6.0 -20.2 -18.6 Depreciation and impairments -3.2 -0.6 -9.4 -2.0 Other operat
Slide 25: Balance sheet
Balance sheet EUR million 30.9.2019 30.9.2018 EUR million 30.9.2019 30.9.2018 Non-current assets 40.4 5.2 Equity 36.7 39.0 Inventories 23.9 22.5 Financial liabilities 25.6 0.2 Other non-current Other current assets 7.0 8.4 - - liabilities Cash and cash 20.9 17.7 Current liabilities 29.9 14.6 equival
Slide 26: Cash flow statement
Cash flow statement EUR million 1-9/2019 1-9/2018 CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN 23.5 12.3 WORKING CAPITAL Change in working capital 0.7 -3.3 CASH FLOW FROM OPERATING ACTIVITIES BEFORE FINANCIAL 24.2 9.1 ITEMS AND TAXES Financial items and taxes -3.0 -2.6 CASH FLOW FROM OPERATI
Slide 27: Largest shareholders
Largest shareholders Quoted on Nasdaq Helsinki - Consumer goods Ownership by sector, - 1999, I list 30 September 2019 - 2002, main list Households Financial and insurance corporations Market cap ~ EUR 227.9 million Non-financial corporations and housing corporations Non-profit institutions 10,682 sh
Slide 28: For more information
For more information Tiina Alahuhta-Kasko, President and CEO Phone +358 9 758 71 tiina.alahuhta-kasko@marimekko.com Elina Anckar, CFO Phone +358 9 758 7261 elina.anckar@marimekko.com Anna Tuominen, Communications Director Phone +358 40 584 6944 anna.tuominen@marimekko.com marimekko.com company.marim
Slide 29: marimekko
marimekko