Beacon Lighting Group Ltd · ASX:BLX
Beacon Lighting — Investor Presentation (February 2024)
24 slides from Beacon Lighting's investor presentation, Feb 15, 2024
Slide 1: H1 FY2024 Results Presentation
H1 FY2024 RESULTS PRESENTATION 15 FEBRUARY 2024
Slide 2: Contents
CONTENTS 1 RESULTS OVERVIEW 2 FINANCIALS 3 STRATEGIC PILLARS OF GROWTH 4 H2 FY2024 OUTLOOK 5 QUESTIONS 6 APPENDIX BEACON LIGHTING GROUP H1 FY2024 RESULTS PRESENTATION 2
Slide 3: Results Overview
1 RESULTS OVERVIEW
Slide 4: Financial Highlights
1 FINANCIAL HIGHLIGHTS $164.9m $46.4m $18.1m Record Sales EBITDA NPAT 69.4% $36.4m $97.2m Gross Profit Margin Cash(1) Inventory (1) Cash includes Other Financial Assets being a term deposit. BEACON LIGHTING GROUP H1 FY2024 RESULTS PRESENTATION 4
Slide 5: Operational Highlights: Trade
1 OPERATIONAL HIGHLIGHTS BEACON • Beacon TRADE Benefits 25.9% TRADE NO. 1 PRIORITY • New TRADE Products • New TRADE Merchandise STORE TRADE SALES INCREASE NEW STORES RELOCATED POSITIVE SUPPORT Mount Baker (SA) Mildura (VIC) COMPARATIVE CENTRE Devonport (TAS) Warrawong (NSW) STORE SALES to above our
Slide 6: H1 FY2024 Result
1 H1 FY2024 RESULT $'000 H1 FY2023 H1 FY2024 Change $ Change % Sales 164,673 164,857 184 0.1% Gross Profit 112,045 114,337 2,292 2.0% Gross Profit Margin % 68.0% 69.4% Other Income(1) 542 503 (39) (7.2%) % of Sales 0.3% 0.3% Operating Expenses(2) (64,428) (68,444) (4,016) 6.2% % of Sales 39.1% 41.5%
Slide 7: Financials
2 FINANCIALS
Slide 8: Sales
2 SALES SALES: Increased by 0.1% to $164.9 million • Company store comparative sales increased by 0.1%. • Store Trade sales increased by 25.9%. • Total Trade sales increased by 22.9%. • Online sales increased by 17.6%. Sales $m 164.7 164.9 151.3 151.3 122.5 H1 FY20(1) H1 FY21 H1 FY22 H1 FY23 H1 FY24
Slide 9: Gross Profit
2 GROSS PROFIT GROSS PROFIT: Increased to $114.3 million Gross Profit $m 112.0 114.3 106.0 • Gross profit dollars increased by $2.3 million to be 69.4% of sales. 103.6 • Being a vertically integrated business, Beacon Lighting has effectively managed the supply chain from factory to customer. 78.9 •
Slide 10: Operating Expenses
2 OPERATING EXPENSES OPEX: Increased by 6.2% of Sales to $68.4 million $'000 H1 FY2023 H1 FY2024 Change $ Change % • Continued investment in marketing with an increased focus on trade. • Inflation is impacting upon many expenses. Marketing Expenses 8,260 8,676 416 5.0% • Depreciation has increased,
Slide 11: Cash Flow
2 CASH FLOW • Payments to suppliers reflecting the reduced investment in inventory. $'000 H1 FY2023 H1 FY2024 • Capital expenditure of $5.2 million to support future growth. Cash Flow from Operations • Dividend payment of $6.6 million after the dividend reinvestment. Receipts from Customers 178,797
Slide 12: Balance Sheet
2 BALANCE SHEET • Increased cash and term deposit to $36.4 million. $'000 DEC 2022 DEC 2023 • Increase in Trade is reflected in the receivables increase to $12.5 million. Cash / Other Financial Assets 26,457 36,404 Receivables 9,318 12,482 • Reduced inventory to $97.2 million. Inventories 107,074 97
Slide 13: Dividends
2 DIVIDENDS The Dividend Reinvestment Plan (DRP) remains in place Declared a fully franked dividend of 4.1 cents per share for H1 FY2024 (compared to 4.3 cents in H1 FY2023) H1 FY2024 DIVIDEND: Record date 1 March 2024 Payment date 15 March 2024 Annual payout ratio expected to be 50% to 60% of Net P
Slide 14: Strategic Pillars of Growth
3 STRATEGIC PILLARS OF GROWTH CUSTOMER | Underpinning everything we do at Beacon is a deep understanding of our customers’ needs. STORES TRADE eCOMMERCE NEW A R E WA R D I N G CU S TO M E R E X PE R I E N CE I N DU S TRY LE A D I N G TR A D E CLU B E N G AG I N G W E B S ITE S BUSINESS O N LI N E SA
Slide 15: Stores
3 STORES • Beacon Lighting now has 123 stores, with 121 company stores and 2 franchise stores. • Opened new stores in Mount Baker (SA), Mildura (VIC), Warrawong (NSW) and Devonport (TAS). Relocated the Cranbourne (VIC) store. • Company stores comparative sales increased by 0.1% in H1 FY2024, buildin
Slide 16: Trade
3 TRADE • Throughout H1 FY2024, the number one priority for Beacon Lighting was to positively impact the lives and businesses of our Trade customers. • Introduced formal Trade specific processes and practices to all stores: attract and onboard, product selection, order and receive, and service and s
Slide 17: eCommerce
3 eCOMMERCE • Beacon Lighting now has 16 different business websites, with the primary websites being www.beaconlighting.com.au and www.beacontrade.com.au • Online sales increased by 17.6% to be 11.6% of company store sales. • Online visitation to the Trade website increased by 40.5%, while online T
Slide 18: New Businesses
3 NEW BUSINESSES • Flat sales for Beacon International. • Beacon International USA achieved a sales increase. • Beacon International returned to exhibiting at the Hong Kong Lighting Fair. • Continued to support the Custom Lighting, Connected Light Solutions, Masson For Light, and Light Source Soluti
Slide 19: Sustainability
3 SUSTAINABILITY • Beacon Lighting has installed 65 solar systems on our stores and distribution centres, generating electricity during peak trading periods throughout the day. • Used the latest energy efficient LED lighting in all new stores, store renovations, and the new Beacon Group Support Cent
Slide 20: H2 FY2024 Outlook
4 § H2 FY2024 OUTLOOK BEACON LIGHTING GROUP TRADE COMMERCIAL INTERNATIONAL LIGHT SOURCE SOLUTIONS
Slide 21: H2 FY2024 Outlook
4 H2 FY2024 OUTLOOK • Company store sales momentum remains consistent with H1 FY2024. • Positively impacting the lives and businesses of our Trade customers continues to be the number one priority for Beacon Lighting. • The Trade sales positive momentum has continued into H2 FY2024. • Open new compa
Slide 22: Questions
BEACON LIGHTING GROUP Beavon ¢ Beacon Commenciat a INTERNATIONAL LIGHT SOURCE SOLUTIONS, CONNECTED CUSTOM UGHTING QUESTIONS
Slide 23: Appendix: Other Information
6 APPENDIX: OTHER INFORMATION DISCLAIMER The presentation contains “forward-looking statements”. All statements other than those of historical facts included in the presentation are forward-looking statements. Where the Group expresses or implies an expectation or belief as to future events or resul
Slide 24: www.beaconlighting.com.au
www.beaconlighting.com.au
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