Puuilo Oyj · OMXHEX:PUUILO
Puuilo Oyj — H1 2023 Earnings Presentation
25 slides from Puuilo Oyj's earnings presentation, September 2023
Slide 1: A successful summer season – strong growth in the number of customers
A SUCCESSFUL SUMMER SEASON – STRONG GROWTH IN THE NUMBER OF CUSTOMERS PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 2: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 2
Slide 3: Key figures Q2/2023 (May – July)
Key figures Q2/2023 (May – July) GROWTH PROFITABILITY EVENTS DURING THE REPORTING PERIOD ▪ Net sales increased in like-for-like stores and in +17.0% (+11.9%) 20.0% (20.2%) new stores. The growth was originated from strong EBITA margin (adj.) growth in the number of customers in like-for-like Net sal
Slide 4: Key figures H1/2023 (February – July)
Key figures H1/2023 (February – July) GROWTH PROFITABILITY EVENTS DURING THE REPORTING PERIOD ▪ Net sales increased in like-for-like stores and in +14.3% (+7.2%) 16.6% (16.4%) new stores. The increase was due to the continued EBITA margin (adj.) strong growth in the number of customers in like- Net
Slide 5: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 6: Net sales was driven by the strong growth in the number of customers
NET SALES DEVELOPMENT Net sales was driven by the strong growth in the number of customers Q2/2023 +17.0% +14.3% ▪ Net sales increased by 17.0% and like-for-like store +11.9% 104.4 169.3 net sales by 8.1%. Quarterly net sales exceeded 100 MEUR for the first time. 89.2 148.1 ▪ Net sales increased in
Slide 7: Gross margin increased, supported by a decrease in logistics costs and the product mix
PROFIT DEVELOPMENT Gross margin increased, supported by a decrease in logistics costs and the product mix +0.7% -points. Q2/2023 +1.0% -points. -0.7% -points. ▪ Gross margin increased and was 37.1%. 37.2% 37.1% 36.9% 36.5% 35.9% ▪ Gross margin level was mainly supported by lower cost of logistics an
Slide 8: Adjusted EBITA and relative profitability increased
PROFIT DEVELOPMENT Adjusted EBITA and relative profitability increased +2.8 M€ +4.0 M€ Q2/2023 Q2/2021 +1.2 M€ 20.9 28.2 ▪ Adjusted EBITA increased by 2.8 MEUR ▪ Relative profitability was 20.0% of net sales. 18.0 24.2 16.8 ▪ The increase in gross margin level had a positive effect on EBITA. ▪ Cost
Slide 9: Inventory levels have decreased as planned, and inventory turnover improves
INVENTORIES Inventory levels have decreased as planned, and inventory turnover improves Q2/2023 +21.8 M€ -4.8 M€ ▪ The inventories amounted to 88.2 MEUR 93.1 88.2 ▪ The inventory levels have decreased to the normal level compared to the same time last 71.2 year despite of five new stores. The new st
Slide 10: Cash and cash equivalents at a record high due to strong cash flow
CASH FLOW Cash and cash equivalents at a record high due to strong cash flow +9.5 M€ Q2/2023 +2.4 M€ +21.1 M€ 42.3 ▪ Operating free cash flow was 32.0 MEUR. 32.0 29.6 ▪ Operative free cash flow was positively impacted by strong net sales growth, decreased inventory to the 32.8 normal level and solid
Slide 11: Net debt to EBITDA ratio decreased. Financial position is very strong.
BALANCE SHEET Net debt to EBITDA ratio decreased. Financial position is very strong. Net debt* / adj. EBITDA Cash and cash equivalents at the end of the reporting period, MEUR Q2/2021 H1/2023 1.5 x ▪ Puuilo’s financial position is very 50.1 strong. 1.2 x ▪ The ratio of net debt to adjusted 37.8 EBIT
Slide 12: Key figures
KEY FIGURES Q2 / 2023 (1 May 2023 – 31 Jul 2023) ▪ Net sales increased by 17.0% (+11.9%) and were EUR 104.4 million (89.2) ▪ Like-for-like store net sales increased by 8.1% (+7.9%) ▪ Online store net sales decreased by 4.3% (-1.6%) ▪ Gross profit was EUR 38.7 million (32.5) and gross margin was 37.1
Slide 13: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 14: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 14
Slide 15: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 16: Outlook
OUTLOOK Puuilo specifies the outlook for the financial year 2023 given in its financial statements release on 30 March 2023 and repeated in the Q1 business Net debt to adjusted EBITDA below 2.0x. By the end of financial year 2025 with annual organic sales growth in excess of 10%. review on 14 June 2
Slide 17: Store openings in FY 2023
Store openings in FY 2023: • Vantaa Porttipuisto, opened 30 March 2023 • Vihti’s Nummela, opened 8 June 2023 • Kerava, opened 17 August 2023 • Helsinki Konala • Vantaa Varisto The aim for 2024 is to open at least 4 new stores! PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 17
Slide 18: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 19: PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023
Slide 20: Puuilo as an investment
Puuilo as an investment A leading player in the Successful concept Growing store network Growth clearly growing discount based on wide product and online store outperforming the retail market in assortment, low prices, market, high Finland perceived low price level profitability and strong and conve
Slide 21: Significant room to expand store network with proven ramp-up process
Significant room to expand store network with proven ramp-up process STORE NETWORK GROWTH NEW POTENTIAL STORE LOCATIONS1) EFFICIENT LAUNCH PROGRAM ~60 42 46 50 54 58 62 37 34 30 27 Current concept 23 19 FY17 FY18 FY19 FY20 FY21 FY22 Medium term potential Notes: 1) Management estimate; 2) Based on av
Slide 22: Strong like-for-like growth driven by increasing store traffic
Strong like-for-like growth driven by increasing store traffic Notes: 1) FY2022 excluding Lieto, which opened in Jan 2023. PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 22
Slide 23: The brand awareness and consideration of Puuilo is growing
The brand awareness and consideration of Puuilo is growing – still a lot of growth potential Aided brand awareness – Which discount store do you prefer to shop at? Recognize at least by name What other stores would you also consider? 98% 98% X 96% 53% 49% 42% X 11/2020 12/2021 12/2022 Spontaneous br
Slide 24: Increasing market share - customer satisfaction at good level
Increasing market share - customer satisfaction at good level NPS Good assortment Price level Good location (2021 40) Source: Customer research commissioned by Puuilo in May 2023 (n15500) PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 24
Slide 25: Long track record of strong sales growth and profitability
Long track record of strong sales growth and profitability 296 270 239 170 136 18,1% 17,9% 115 16,5% 14,1% 14,5% 90 77 63 51 < FAS IFRS > FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 PUUILO PLC | HALF-YEAR FINANCIAL REPORT, FEBRUARY-JULY 2023 25