Shaver Shop Group Limited · ASX:SSG
Shaver Shop — Investor Presentation (February 2019)
23 slides from Shaver Shop's investor presentation, Feb 21, 2019
Slide 1: Investor Presentation 1H FY19 Financial Results
Shaver Shop Group Limited INVESTOR PRESENTATION 1H FY19 FINANCIAL RESULTS 21 February 2019
Slide 2: 1H FY19 Highlights
1 1H FY19 HIGHLIGHTS 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Ex Daigou Insert Foreo Insert Braun Strong operating Sales up cash flow image with S9 image woman 7.7% $17.8m Gross profit Online sales margin up Insert Dyson now c.12% 110bps to of total sales 42.7% Interim Dividend 1H FY19 Norm. Normalised Cash 2.0 cps EBITDA - $11.0m NPAT $7.
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS Omni-channel growth Total online sales up +10.6% (1H FY18 – 66.6%) New CMO and Head of E-commerce and Digital further strengthen leadership team On-line subscriber database increased c70% to 187,000 since 30 June 2018 Strong sales growth achieved over key promotional e
Slide 5: Key Challenges
KEY CHALLENGES × Complementary categories were soft overall leading to same store sales decline × Decline in Female Beauty (primarily driven by unprecedented demand in Daigou reseller channel in early 1H FY18) × Decline in massage – lack of new product innovation × Soft power oral care category resu
Slide 6: 1H FY19 Financial Review
2 1H FY19 FINANCIAL REVIEW 6
Slide 7: Underlying (ex Daigou) Sales Growing with Increased Margins
UNDERLYING* (I.E. EX DAIGOU) SALES GROWING WITH INCREASED MARGINS Underlying* Sales Growth +7.7% to $95.5m Norm.** gross profit margins up 110bps to 42.7% 120.0 50.0% 45.0% 42.5% 42.5% 42.7% 41.5% 41.6% 100.0 0.2 4.5 40.0% 95.5 80.0 88.7 35.0% 78.5 Sales (A$m) 30.0% 60.0 62.2 25.0% 40.0 20.0% 33.7 1
Slide 8: Underlying EBITDA Growing on Flat Underlying LFL Sales Growth
UNDERLYING EBITDA GROWING ON FLAT UNDERLYING L4L SALES GROWTH Underlying* (ex Daigou) EBITDA up $0.5m to Underlying LFL** sales flat in 1H FY19 due to $11.0m soft December quarter 14.0 14.0% 12.9% 12.9% 12.0% 12.0 1.1 0.0 10.0% Pro Forma EBITDA (A$m) 10.0 11.0 8.0% 10.5 6.9% 6.9% 10.0 9.5 6.0% 5.5%
Slide 9: Normalised Profit & Loss
NORMALISED PROFIT & LOSS Normalised* Normalised* Variance Variance • Total sales up 2.7% to $95.7m $000's 1H FY18 1HFY19 ($) (%) Sales 93,175 95,716 2,541 2.7% • Underlying (ex Daigou) sales up 7.7% Gross profit 38,726 40,895 2,169 5.6% • Gross margins up 110 bps to 42.7% Gross margin % 41.6% 42.7%
Slide 10: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET Statutory Statutory Statutory • Net cash of $4.2m (31 Dec 17 - $2.2m) $ millions 31-Dec-17 30-Jun-18 31-Dec-18 • Inventory decreased $3.4m from 31 Dec 17 despite 8 more stores in network Cash 9.5 2.9 14.0 • Average inventory per corporate store c.$280k at Trade & other rec
Slide 11: Strong Operating Cash Flow
STRONG OPERATING CASH FLOW Variance $'000 1H FY18 1HFY19 ($) • Strong operating cash flow of $17.8m in 1H FY19 EBITDA - reported 11,141 10,037 (1,104) • Decrease from 1H FY18 due previously disclosed Change in working capital and other 11,958 9,360 (2,598) one-off Philips stock purchase in late 2H F
Slide 12: Dividends & Dividend Policy
DIVIDENDS & DIVIDEND POLICY INCREASED • Board declared a 2.0 cps - 80% franked dividend Interim dividend increased to payable in April 2019 (1H FY18 – 1.8 cps fully 2.0 cps – 80% franked franked) 4.5 • Dividend policy increased to payout approximately 60-80% of annual cash NPAT as dividends (previou
Slide 13: 2H FY19 Priorities
HOBVER SHOP TRANSFORM YOURSELF™ 2H FY19 PRIORITIES 13
Slide 14: Key 2H FY19 Initiatives
KEY 2H FY19 INITIATIVES 5 full corporate store refits underway in several key doors Phase 1 launch of CRM for 360 degree view of customer Enhanced demand planning, procurement and payment solution for stock Ongoing enhancements to digital marketing and sales platforms across e- mail, website
Slide 15: Summary & Outlook
4 SUMMARY & OUTLOOK 15
Slide 16: Trading Update
TRADING UPDATE • Total same store sales growth of c.7.0% over the first 6-7 weeks (through 17 Feb 19) of 2H FY19 driven by: • Underlying (ex Daigou) same store sale growth of 8.1% through 17 Feb 19 • Growth across all States and Territories (excl. NT) – including NSW • Double digit like for like sal
Slide 17: Summary & Outlook
SUMMARY & OUTLOOK • Shaver Shop reiterates the guidance ranges provided in its FY18 full year results presentation that is expected to deliver a normalised EBITDA result between $12.0 million and $14.5 million • Solid normalised financial performance in 1H FY19 considering • reduction in Daigou rese
Slide 18: Appendices
Shaver Shop Group Limited APPENDICES
Slide 19: Key Metrics
KEY METRICS Normalised Normalised 1H FY18 1H FY19 Number of corporate stores 106 113 Number of franchise stores 9 8 Total stores 115 121 Corporate store sales ($'000) 93,175 95,716 Franchise store sales ($'000) 13,997 10,271 Total network sales ($'000) 107,172 105,987 Corporate store LFL sales growt
Slide 20: Corporate Store Numbers
CORPORATE STORE NUMBERS Corporate Store Profile 120 113 106* 6 1 95 8 100 4 8 80 7 80 Store numbers 16 56 60 8 8 106 95 40 18 80 30 4 56 20 10 30 16 16 0 FY13 FY14 FY15 FY16 FY17 FY18 1H FY19 Opening Buybacks Greenfields * Karrinyup, WA corporate store temporarily closed during significant centre re
Slide 21: Reported to Normalised Results Reconciliation
REPORTED TO NORMALISED* RESULTS RECONCILIATION Reported Normalised Reported Normalised $A 000s 1H FY18 Normalisation 1H FY18 1HFY19 Normalisation 1HFY19 Sales 93,175 93,175 95,716 95,716 Cost of goods sold (54,602) 154 (54,448) (54,821) (54,821) Gross profit 38,572 154 38,726 40,895 - 40,895 Gross m
Slide 22: 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 23: Thank You
Shaver Shop Group Limited THANK YOU
Shaver Shop Group — Investor Presentation (February 2019) on 6ix