Premier Investments Limited · ASX:PMV
Premier Investments — H1 2021 Earnings Presentation
36 slides from Premier Investments's earnings presentation, Mar 24, 2021
Slide 1: Premier Investments Limited 2021 Half Year Results Overview
Premier Investments Limited 2021 Half Year Results Overview 24 March 2021 X 0
Slide 2: Agenda
Agenda Premier Investments Limited 1 1H21 overview 8 Industry restructure accelerating Premier Investments Limited 2 1H21 consolidated financial results 9 COVID-19 impacts on 1H21 Smiggle – strong global brand 3 Premier Retail – delivers record result 10 flourishing where children are back to school
Slide 3: 1H21 Overview
NEW UNITED AUSTRALIA JearAND KINGDOM PREMIER INVESTMENTS LIMITED 1H21 OVERVIEW
Slide 4: Premier Investments Limited 1H21 overview
1 Premier Investments Limited 1H21 overview Group result1, 2 – Statutory net profit after tax of $188.2 million, up 88.9% on 1H20 – Record Premier Retail sales of $784.6 million, up 7.2% on 1H20 – Global LFL sales up 18.2% on 1H20 on a constant currency basis – Record Peter Alexander sales of $207.7
Slide 5: 1H21 overview: strong balance sheet
1 Premier Investments Limited 1H21 overview Strong balance sheet – Strong balance sheet at end of 1H21 shows: – Investment in associate (Breville Group Limited) of $268.1 million. The market value of this investment is $1.0 billion (as at 30 January 2021) – Cash on hand of $497.2 million (up $297.5
Slide 6: Summarised consolidated income statement
2 Premier Investments Limited summarised consolidated income statement $'M 1H21 1H20 Premier Retail EBIT1 237.8 126.1 Premier Investments income from Associate (BRG) 16.9 13.9 Premier Investments other revenue (Interest, Rent & Other) 2.5 3.4 Premier Investments expenses (ex Premier Retail) (4.6) (3
Slide 7: Summarised consolidated balance sheet
2 Premier Investments Limited summarised consolidated balance sheet Balance Sheet $'M 30 Jan 2021 25 Jul 2020 Assets Cash and cash equivalents 497.2 448.8 Inventories 180.2 156.6 Property, plant and equipment 148.5 155.1 Right of Use assets 213.1 231.8 Other assets 22.5 40.9 Deferred tax assets 62.9
Slide 8: Premier Retail
PREMIER RETAIL
Slide 9: Premier Retail – Delivers record result
3 Premier Retail – Delivers record result – Premier Retail EBIT (Pre AASB 16) of $237.8 million, up 88.5% on 1H201 – Premier Retail EBIT % to sales (Pre AASB 16) of 30.3%, up 1,308 bps on 1H201 – Premier Retail Profit before tax (Pre AASB 16) of $236.7 million, up 90.1% on 1H201 – Premier Retail sal
Slide 10: Premier Retail performance
3 Premier Retail performance Pre AASB16 2 Pre AASB16 2 27 weeks 26 weeks 1H21 Rent Expense rebased to 12.7% $'000 to 30 Jan 2021 to 25 Jan 2020 Var LY of Sales Sales 784,614 732,074 +7.2% As a result of the accelerating retail LFL sales (constant currency) 18.2% 4.3% industry restructure underway, d
Slide 11: Premier Retail – Record Gross Margin up 286 bps
4 Premier Retail – Record Gross Margin up 286 bps • Premier Retail has seven iconic brands each with a strong, distinctive and competitive market position • Record Premier Retail Gross Margin up 286 bps to 65.4% in 1H21 Record Gross Profit Margins • In the midst of a global pandemic and despite the
Slide 12: Premier Retail – Delivers nine consecutive years of growth
4 Premier Retail – Delivers nine consecutive years of growth • Nine consecutive years of underlying EBIT growth in the critical summer season • 1H21 EBIT margin to sales (Pre AASB 16) up 1,308 bps on 1H20 to 30.3% • The Group’s long term strategies delivered significant operating leverage in 1H21 •
Slide 13: Peter Alexander – Delivers record growth
5 Peter Alexander – Delivers record growth $208 200 Sales 150 $145 $130 Sales AUD $m $114 $99 100 $87 $73 $63 $51 $44 50 $38 $32 - 1H10 1H11 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 1H21 Sales Peter Alexander - a unique and much loved designer brand 12
Slide 14: Peter Alexander – Powerful designer brand delivering record results
5 Peter Alexander – Powerful designer brand delivering record results • Peter Alexander is a unique and much loved designer brand • Record 1H21 sales of $207.7 million, up a record $62.9 million or 43.4% on 1H20, underpinned by strong LFL growth both in stores and online • Peter Alexander’s unique d
Slide 15: Apparel Brands – well positioned to deliver future growth
9 6 Apparel Brands – well positioned to deliver future growth • Apparel Brands 1H21 sales up 10.4% on 1H20 to $434.5 million • Apparel Brands 1H21 LFL sales growth of 18.5% was stronger than overall sales growth • Apparel Brands delivered three year LFL sales growth of 38.6% from 1H18 to 1H21 • Sign
Slide 16: Online – Contributes 20% of Group Sales
9 7 Online – Contributes 20% of Group Sales • Record online sales of $156.7 million, up $59.5 million Online Sales Growth or 61.3% on a previous record 1H20 and contributed 20.0% 20.0% 20.0% of total 1H21 sales (1H20: 13.3%) 180.0 156.7 • 2013 investment in centralised and specifically 160.0 customi
Slide 17: Industry Restructure Accelerating – Online growth accelerating
8 Industry Restructure Accelerating – Online growth accelerating • COVID-19 has accelerated the retail industry restructure already underway • Globally, the ongoing government mandated rolling temporary closures of stores and implementation of social distancing measures for instore shopping has sign
Slide 18: Industry Restructure Accelerating – Maximising channel profitability
8 Industry Restructure Accelerating – Maximising channel profitability • The accelerated swing in customer preference to shopping online has further increased Premier Retail’s focus on each store’s profitability. Premier Retail has closed 162 stores over the past seven years, including 51 stores in
Slide 19: COVID-19 impacts on 1H21 results
9 COVID-19 impacts on 1H21 results • Premier Retail’s priority has been to support team members, keep them in jobs and connected to the business during this once in a century health crisis • At various times during the half, it was government mandated that Premier Retail temporarily close stores in
Slide 20: COVID-19 impacts on 1H21 results – Smiggle a powerful global brand
9 COVID-19 impacts on 1H21 results – Smiggle a powerful global brand The impact of COVID-19 continued to be particularly severe on the Smiggle Global business in 1H21 as: • Governments mandated closures of retail stores across all regions • Schools closed for extended periods of time • International
Slide 21: Smiggle – A powerful global brand delivers record online sales
10 Smiggle – A powerful global brand delivers record online sales • Smiggle delivered record global online sales in 1H21 of $39.1 million, up 46.4% on 1H20, and contributed 27.5% of total Smiggle 1H21 sales (1H20: 13.8%) • Record online sales across all proprietary sites in Australia, New Zealand an
Slide 22: Smiggle – Powerful global brand flourishing where children are back at school
10 Smiggle – Powerful global brand flourishing where children are back at school • Smiggle is a powerful global brand • The key to Smiggle’s success is children attending school • In countries and markets where schools have reopened and these markets are largely free of COVID-19 restrictions, the br
Slide 23: Smiggle – Powerful global brand flourishing where children are back at school
10 Smiggle – Powerful global brand flourishing where children are back at school Smiggle International • In Malaysia, all children returned to school by 15 March 2021 after more than a 9 month absence. With all stores now open and families preparing for school return Smiggle’s has delivered LFL sale
Slide 24: Smiggle – Powerful global brand set to rebound and grow
10 Smiggle – Powerful global brand set to rebound and grow Smiggle has been strategically positioned for maximum EBIT growth as sales rebound due to the decisions previously made to reset Smiggle International’s asset base • Impaired all Smiggle store assets in Asia and Europe in 2H20 • Closed the f
Slide 25: Appendix A: Brand by brand performance
PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 26: Peter Alexander brand highlights
A Highlights • Record 1H21 sales of $207.7m, up a record $62.9m or 43.4% on 1H20, underpinned by strong LFL growth both online and in stores • Peter Alexander’s unique design led product, combined with the Group’s strategic decision to be in stock for the critical Q2 and Christmas trading period has
Slide 27: Just Jeans brand highlights
A Highlights • 1H21 Sales up 20.0% to $161.3m - a particularly pleasing result for the group’s iconic original brand • 1H21 LFL Sales up 27.3% - stronger than overall sales growth • 3 years of sustained LFL growth in the critical summer season, up 58.9% from 1H18 to 1H21 • Online Sales continue to d
Slide 28: Jay Jays brand highlights
A Highlights • 1H21 Sales up 21.3% to $116.6m • 1H21 LFL Sales up 28.8% - stronger than overall sales growth • 3 years of sustained LFL growth in the critical summer season, up 48.1% from 1H18 to 1H21 • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the stor
Slide 29: Dotti brand highlights
A Highlights • 1H21 LFL sales up 8.4% - stronger than overall sales growth • 3 years of sustained LFL growth in the critical summer season, up 24.4% from 1H18 to 1H21 • Continued improvement in gross margins being delivered through changes to sourcing strategy • Online Sales continued to grow ahead
Slide 30: Portmans brand highlights
A Highlights • 1H21 LFL sales up 6.6% - stronger than overall sales growth • 3 years of sustained LFL growth in the critical summer season, up 18.4% from 1H18 to 1H21 • In regions largely free of COVID-19 social distancing restrictions, Portmans sales were significantly stronger. 1H21 LFL Sales were
Slide 31: Jacqui E brand highlights
A Highlights • 3 year LFL Sales up 8.4% from 1H18 to 1H21 • Jacqui E has been significantly impacted by the temporary exodus of workers from CBD areas during the COVID-19 health crisis • In regions largely free of COVID-19 social distancing restrictions, Jacqui E sales were significantly stronger. 1
Slide 32: Smiggle brand highlights
A Highlights • The key to Smiggle’s success is children attending school. Pleasingly, in countries and markets where schools have re-opened largely free of COVID-19 restrictions, Smiggle is flourishing • Strong 1H21 LFL performance in Australia up 4.7% and NZ up 9.2%. The brands strength was further
Slide 33: Appendix B: Impact of AASB and other information
Appendix B: Impact of AASB 16 and other information dotti smifggie Jacaure eS portmans THE JUST GROUP 32
Slide 34: Appendix: Implementation of lease accounting standard AASB 16
B B Appendix: Implementation of lease accounting standard AASB 16 • The new lease accounting standard AASB 16 was adopted at the start of the FY20 reporting period effective from 28 July 2019 • The implementation of AASB 16 has significantly changed reported results, however the standard does not ha
Slide 35: Profit and Loss impact of AASB 16
Appendix: Premier Investments Limited B B Profit and Loss impact of AASB 16 Profit & Loss Pre AASB16 Pre AASB16 Post AASB16 Post AASB16 27 weeks 26 weeks 27 weeks AASB16 26 week s AASB16 $'M to 30 Jan 2021 to 25 Jan 2020 Var LY to 30 Jan 2021 Impact to 25 Jan 2020 Impact Sales 784.6 732.1 +7.2% 784.
Slide 36: Overview of Premier's non-IFRS financial information
B B Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with al