Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (August 2022)
16 slides from Nick Scali's investor presentation, Aug 22, 2022
Slide 1: FY22 Results Presentation
FY22 Results Presentation 22 August 2022
Slide 2: FY22 Summary
FY22 Summary Sales growth Plush acquisition Written sales orders of $473.8m, up 18.0% on FY21 Acquisition of Plush-Think Sofas completed Sales revenue of $441.0m, up 18.2% on FY21 November 2021for $102.5m, with integration now substantially complete (Includes eight months of Plush sales orders and r
Slide 3: Sales Orders & Trading
Sales Orders & Trading FY22 Outstanding Order Bank $m vs FY21 Group Nick Scali Plush Jun 22 Total Written Sales Orders 473.8 + 18.0% 133.5 51.8 Jun 21 Nick Scali 110.9 Total Written Sales Orders, by Brand - Nick Scali 375.1 - 6.6% - Plush 98.7 n/a1 Commentary • Nick Scali sales order growth impacted
Slide 4: Revenue
Revenue Sales revenue ($’m) Revenue growth (%) vs FY21 Total +18.2% Commentary • Despite elevated opening order bank at 1 July 2021, 2.3 88.8 and similar levels of trading to FY21, Nick Scali 28.8 28.8 revenue down due to Covid disruption causing delayed shipments, particularly during the 441.0 23.1
Slide 5: Financial Performance
Financial Performance FY21 FY22 Gross Profit Margin Sales revenue 373.0 441.0 Cost of sales (136.3) (172.0) 63.5% 63.5% 62.5% 61.0% Gross profit 236.8 269.0 54.8% Other income 1.6 1.6 Operating expenses (79.3) (107.4) Group Nick Scali Plush Depreciation (30.9) (38.6) Finance costs (7.0) (9.3) • Nick
Slide 6: Cashflow
Cashflow Operating Cashflows • Cash of $79.8m generated from operating activities (incl. Opening Cash 106.9 operating lease payments and interest payments) Net Increase in Borrowings Operating 79.8 • Five year $65.0m corporate facility secured to fund Plush Cashflows acquisition, with $10.0m repaid
Slide 7: Balance Sheet
Balance Sheet Jun 21 Jun 22 Inventory – On hand Cash & deposits 106.9 74.6 Inventory – In transit 11.7 22.5 Nick Scali Plush Inventory – On hand 35.0 48.0 DCs Jun 22 Showrooms Showrooms 23.1 18.3 6.6 Property – At net book value 83.4 97.4 Plant & equipment 15.2 15.1 Nick Scali DCs Leased assets 170.
Slide 8: Nick Scali Online
Nick Scali Online Written Sales Orders ($m) Written Sales Order Growth • Nick Scali Online written sales orders of $29.3m, up 59.9% on FY21, driven by temporary store closures and launch of transactional websites • Written sales orders in H2 FY22 up 35.8% on H2 FY21, reflective of comparable growth
Slide 9: Plush Acquisition & Integration
Plush Acquisition & Integration Further Synergies Expected in FY23 Overview Gross Margin • Acquisition of 100% of Plush-Think Sofas Pty Ltd completed on 1 November 2021 for $102.5m • Replacement of 50% of range with new models and wider price range • Leveraging of existing NCK supplier base for bett
Slide 10: Store Network
Store Network Western Australia Nick Scali: 6 Queensland Jun New Jun Plush: 4 Nick Scali: 12 Plush: 8 2021 Stores 2022 Target New South Wales Nick Scali Nick Scali: 20 Plush: 17 Australia 57 - 57 73 New Zealand 4 1 5 13 61 1 62 86 Plush1 Australia 46 - 46 85-90 New Zealand - - - 5-10 46 - 46 90-100
Slide 11: Property
Property Location Date Net Lettable Property Values $m Acquired Area (m2) - Historical Cost 104.8 - Current Book Value (Cost, less depreciation) 97.4 Auburn, NSW Dec 2017 5,469 Auburn, NSW Feb 2020 788 FY22 Expenditure $m Alexandria, NSW Jul 2010 1,680 • Redevelopment of existing Fyshwick site 4.8 C
Slide 12: Outlook
Outlook Jul FY23 FY23 Outlook $m vs FY22 vs FY20 • Given the elevated order book at the end of June, and the incremental sales revenue from the Plush business, the Group Company expects sales revenue for H1 FY23 to be Total Written Sales Orders 43.2 + 64.1% + 103.8% materially above the previous yea
Slide 13: Q&A
Q&A nickscali
Slide 14: Disclaimer & Important Information
Disclaimer & Important Information Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information avail
Slide 15: Appendix 1 – FY22 NPAT Reconciliation
Appendix 1 – FY22 NPAT Reconciliation Reported One-off Items Underlying Acquisition Restructuring Costs Costs Sales revenue 441.0 - - 441.0 Cost of sales (172.0) - - (172.0) Gross profit 269.0 - - 269.0 Other income 1.6 - - 1.6 Operating expenses (111.8) 3.3 1.0 (107.4) Depreciation (41.6) - 3.0 (38
Slide 16: Appendix 2 – FY22 EBIT Reconciliation
Appendix 2 – FY22 EBIT Reconciliation FY21 FY22 Gross Margin 236.8 269.0 Other Income 1.6 1.6 Operating Expenses (79.3) (111.8) One-off items in Operating Expenses - Acquisition Costs - 3.3 - Restructuring Costs - 1.0 Underlying EBITDA 159.1 163.2 Reported Depreciation & (30.9) (41.6) Amortisation O