Dusk Group Ltd. · ASX:DSK
Dusk — H1 FY2021 Earnings Presentation
19 slides from Dusk's earnings presentation, Feb 25, 2021
Slide 1: 1H FY21 Results Presentation
1H FY21 RESULTS PRESENTATION 25 February 2021 Peter King (CEO) & Kate Sundquist (CFO) |0
Slide 2: 1H FY21 Summary
1H FY21 Summary RECORD PERFORMANCE ▪ Sales of $90.9m +55% ▪ Total LFL1 sales +49% ▪ Store LFL sales +44% OMNI-CHANNEL STRATEGY DELIVERING ▪ Online sales +120% – Represents 8.3% of total sales EXCEPTIONAL GROSS MARGIN ▪ Gross margin $ up 63% to $61.6m (up 300bps to 67.7%) PRO FORMA EBIT2 +194% TO $28
Slide 3: Profit and Loss
Profit and Loss RECORD SALES AND PROFIT PRO FORMA RESULTS ▪ Total sales +55% $M 1H FY20 1H FY21 % Change ▪ LFL sales growth of +49% Revenue 58.6 90.9 55.2% ▪ Significant period of 20 store closures in Gross profit 37.9 61.6 62.5% Melbourne incurred during the period Gross profit % 64.7% 67.7% +300 b
Slide 4: Sales
Sales Record sales underpinned by strong LFL sales growth and new stores opened and annualising SALES ($M) AND LFL SALES GROWTH COMMENTARY 5.3% 11.1% 8.5% 8.1% 49.3% ▪ Outstanding LFL sales growth – +44% store LFL sales growth 90.9 – +120% online sales growth 58.6 – +49% total LFL sales growth 50.9
Slide 5: Sales Growth by Category
Sales Growth by Category dusk is growing across all categories and increasing mix towards high-margin ‘consumable products’ SALES BY CATEGORY SALES GROWTH BY CATEGORY 54% 68% 25% 24% 95% 66% 40.00 100.0% 30.6 90.0% non-candle sales 35.00 9.5% 27.8 80.0% 30.00 70.0% 19.8 25.00 60.0% 14.9% 33.6% 20.00
Slide 6: Online Channel
Online Channel Step change in the performance of dusk’s online channel – sales +120% on pcp ROLLING LTM ONLINE SALES ($M) COMMENTARY 18 143% ▪ Online sales rapidly approaching 16 growth 14 12.9 $13m p.a. 12 10.9 10 8.8 ▪ Strong growth in online channel 8 contribution to total sales 6.1 6 4.7 5.3 4.0
Slide 7: Loyalty Rewards Membership Growth
Loyalty Rewards Membership Growth Significant growth in dusk Rewards membership, transactions and sales DUSK REWARDS SIGN-UPS/RENEWALS (000’S)1 DUSK REWARDS SALES ($M) ~630k 53% growth 63% members 249 250 growth 54 at period 60 end 50 200 162 40 33 150 30 20 100 10 50 0 Total Total 1H FY20 1H FY21 1
Slide 8: Gross Margin and Gross Margin Drivers
Gross Margin and Gross Margin Drivers dusk is generating more transactions at higher values with stronger gross margins COMMENTARY AVERAGE TRANSACTION VALUE (ATV) ($) Gross margin drivers include: Growth driven by dusk Rewards and the introduction of the ▪ Our ability to control pricing and promotio
Slide 9: Cost of Doing Business
Cost of Doing Business Track record of improving operating leverage COMMENTARY PRO FORMA COST OF DOING BUSINESS (CODB) (% OF SALES) 50.0% 50.0% ▪ CODB% decreased, reflecting strong 45.7% sales growth achieved and benefits 45.0% 45.0% of fixed cost leverage 8.7% 40.0% 40.0% ▪ Employee costs set out o
Slide 10: Capital Management
Capital Management CASH FLOW STRONG BALANCE SHEET ▪ Cash conversion of earnings since IPO has been strong ▪ Inventory position clean ▪ Stock turns and terms of trade with suppliers continue to be ▪ Stock turns and GMROI materially improved refined ▪ Net cash at year end of $34.9m ▪ Repayment of $2.8
Slide 11: Generating Sustainable Future Growth
Generating Sustainable Future Growth Targeting long-term growth by leveraging core competencies to grow market share KEY DRIVER COMMENTARY ▪ 634,000 active dusk Rewards members with more than 141,000 added in 1H FY21 ▪ Members contribution approaching 60% of sales PAY-TO-JOIN ▪ Increased frequency a
Slide 12: Trading Update and FY21 Outlook
Trading Update and FY21 Outlook TRADING UPDATE First six weeks of 2H FY21 ▪ Continued strong comp growth - LFL sales +50% and LFL GM$ +60% ▪ Includes continued online sales growth of +59% ▪ Disciplined promotional strategy continues ▪ Four new stores committed to be opened prior to Mothers Day OUTLO
Slide 13: Questions ?
Questions ? 12
Slide 14: Appendix
Appendix 13
Slide 15: National Store Network
National Store Network STORE NETWORK NET STORE OPENINGS 118 Stores 1 28 17 1 11 10 9 7 32 6 3 26 Physical stores 3 (1) (1) Online store (3) (3) ▪ Opened six new stores in 1H FY21 - two in WA, one in QLD, FY17 FY18 FY19 FY20 1H FY21 and one in NSW, VIC and SA ▪ Secured four new stores for 2H FY21 – t
Slide 16: Like for Like Sales Performance
Like for Like Sales Performance dusk has delivered 15 consecutive quarters of LFL sales growth QUARTERLY LFL SALES – Q1 FY18 – Q2 FY21 FY18 FY19 FY20 1H FY21 12.7% 7.9% 17.5% 49.3% 70.8% 64.8% Average quarterly LFL sales growth of 9.6% across 11 quarters (pre-COVID-19) 43.2% 16.9% 13.1% 13.7% 10.9%
Slide 17: Pro Forma Profit and Loss
Pro Forma Profit and Loss PRO FORMA RESULTS $M 1H FY20 1H FY21 Revenue 58.6 90.9 Cost of sales (20.7) (29.4) Gross profit 37.9 61.6 Employee expenses (13.8) (17.0) Occupancy expenses (7.8) (8.0) Other expenses (5.1) (6.6) Cost of doing business (CODB) (26.7) (31.6) EBITDA 11.2 30.0 Depreciation (1.5
Slide 18: Balance Sheet
Balance Sheet BALANCE SHEET AS AT 27 DECEMBER 2020 $M Dec-201 Pro Forma Jun-20 Current assets Cash 34.9 5.0 Trade and other receivables 0.7 2.9 Inventories 18.7 11.2 Right of return assets 0.3 0.3 Prepayments 3.9 0.7 Total current assets 58.5 20.1 Non-current assets Property, plant and equipment 8.4
Slide 19: Disclaimer
Disclaimer Dusk Group Limited (‘dusk’) advises that the information in this presentation contains general background information about dusk’s activities as at the date of the presentation. It is information given in summary form and is based on information available to dusk that has not been indepen