Mulberry Group Plc · LSE:MUL
Mulberry — FY2018 Earnings Presentation
25 slides from Mulberry's earnings presentation, June 2018
Slide 1: Preliminary Results
u berry Preliminary Results FOR THE YEAR ENDED 31 MARCH 2018
Slide 2: Index
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Index 1. FINANCIAL REVIEW 2. STRATEGY 3. CURRENT TRADING AND OUTLOOK 4. APPENDIX
Slide 3: Highlights
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Highlights 1. INTERNATIONAL PACE INCREASED — Completion of set up phase in Asia with significant investment during the year — New majority owned business agreed post year end to develop South Korea — Business development underway on store network, digit
Slide 4: 1. Financial Review
1.1.Financial FinancialReview Review 1. Financial Review
Slide 5: Revenue by channel
Revenue by channel ― ― ― ― ― Note: Digital included in Retail sales
Slide 6: Income Statement
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Income Statement £ MILLION 31 MARCH 2018 31 MARCH 2017 VARIANCE Revenue 169.7 168.1 +1% Gross profit 107.7 103.6 +4% Gross margin 63.5% 61.6% Operating expenses (net) (101.0) (96.5) +5% Operating profit 6.7 71 5% Other operating income 0.2 0.4 Profit Be
Slide 7: Profit bridge
PRELIMINARY RESULTS — YEAR ENDED MARCH 2018 Profit bridge £ million 2 +£3.8m -£2.0m 11 10 -£2.4m 9 8 | £7.5m 7 £6.9m 6 5 4 3 2 1 0 2016/17 Existing Asia start Asia 2017/18 PBT business up costs operating PBT profit expenses growth* * Existing Business includes the UK, Europe, North America, Wholesal
Slide 8: Operating expenses (net)
PRELIMINARY RESULTS — YEAR ENDED MARCH 2018 Operating expenses (net) 100 80 60 40 20 2016/17 £0.8m £101.0m Property, new store Marketing, A&P costs costs Net other costs 2017/18
Slide 9: Balance Sheet
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Balance Sheet BALANCE SHEET (£ MILLION) 31 MARCH 2018 31 MARCH 2017 VARIANCE Fixed assets and investments 34.4 36.6 6% Inventories 44.6 42.8 +4% Trade and other receivables 15.2 14.7 +4% Cash 25.1 21.1 +19% Current liabilities (31.1) (29.6) +5% Net asse
Slide 10: Capital Expenditure Analysis
Capital Expenditure Analysis
Slide 11: 2. Strategy
2. Strategy
Slide 12: Product
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Product NEW PRODUCTS GAINED FURTHER MOMENTUM — New silhouettes established (e.g. Bayswater Tote, Seaton) and animations of recently established lines (Bayswater with Strap, Zipped Bayswater, Amberley) — The Amberley range, featuring the distinctive “Rid
Slide 13: Marketing and Brand
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Marketing and Brand CUSTOMER DRIVEN, INTERNATIONAL FOCUS — First customer event held in London during February 2018 with Spring Summer 2018 collection instantly shoppable across Retail and Digital platforms — Increased focus on international with custom
Slide 14: Retail, Digital and Omni-channel
Retail, Digital and Omni-channel — • • • — • • • —
Slide 15: Retail, Digital and Omni-channel
Retail, Digital and Omni-channel
Slide 16: 3. Current Trading & Outlook
3. Current Trading & Outlook
Slide 17: International development
International development — — — — — — — — — —
Slide 18: Current Trading
Current Trading * LFL is defined as the year-on-year change in sales from stores which have been trading for 12 months after the store opening ** Regional splits include Digital sales; Digital sales increased by 14% in the year to 31 March 2018 and by 5% in the 10 weeks to 2 June 2018 — —
Slide 19: Outlook
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Outlook RETAIL — UK outlook is uncertain — International expected to grow: new businesses in Asia, growth in Europe and North America INTERNATIONAL — The Group anticipates that International will increase as a proportion of sales — Customer event planne
Slide 20: Outlook
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Outlook CAPEX — Anew design concept for the Group’s stores will be revealed with the new Regent Street store planned for Summer 2018. — Aroll out of the new concept across the global store network is expected to commence during 2019, leading to increase
Slide 21: Contacts
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Contacts HEADLAND Lucy Legh / Emma Ruttle — 020 3805 4822 MULBERRY INVESTOR RELATIONS Allegra Perry — 020 7605 6795 GCA ALTIUM Sam Fuller — 020 7484 4037 Tim Richardson — 020 7484 4040 BARCLAYS Nicola Tennent / Stuart Muress — 020 3134 9801 DIGITAL PLAT
Slide 22: 4. Appendix
"9 & more footing for the 05885 atthe RPI
Slide 23: Appendix – Revenue by region
PRELIMINARY RESULTS — YEAR ENDED 31 MARCH 2018 Appendix — Revenue by region £169.7m £168.1m £0.67 £0.8m — £10.8m \ £9.5m 11.50 I £11.7m | £25.2m £121.6m | £121.9m 2017/18 2016/17 @ UK m Europe mi Asia Pacific m North America m Middle East/Other 23
Slide 24: Appendix – Revenue by region/channel
Appendix – Revenue by region/channel Retail Wholesale Total Retail Wholesale Total
Slide 25: Appendix – Revenue by product
Appendix – Revenue by product *