Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (March 2020)
45 slides from Premier Investments's investor presentation, Mar 20, 2020
Slide 1: Premier Investments Limited – 2020 Half-year Results Presentation
20 March 2020 Company Announcements Office Australian Securities Exchange Premier Investments Limited – 2020 Half-year Results Presentation Please find attached for immediate release to the market the half-year results presentation for the 26 weeks ended 25 January 2020 for Premier Investments Limit
Slide 2: Premier Investments Limited 2020 Half Year Results Overview
Premier Investments Limited 2020 Half Year Results Overview 20 March 2020 X 0
Slide 3: Agenda
Agenda Premier Investments Limited Smiggle - Accelerated global growth 1 1H20 overview 8 strategy far exceeded expectations Premier Investments Limited 2 1H20 consolidated financial results 9 Peter Alexander - Delivers record result 3 Premier Retail - Delivers record result 10 Premier Retail summary
Slide 4: 1H20 Overview
p) ~~ t4 PREMIER INVESTMENTS LIMITED 1H20 OVERVIEW
Slide 5: Premier Investments Limited 1H20 overview
1 Premier Investments Limited 1H20 overview Group profit – Net profit after tax (Pre AASB 16) of $99.6 million, up 12.2% on 1H191 – Net profit before tax (Pre AASB 16) of $136.9 million, up 12.4% on 1H191 – Record Premier Retail EBIT (Pre AASB 16) of $126.1 million, up 10.7% on 1H191 – Record Premie
Slide 6: 1H20 overview: exceptional cash flow and strong balance sheet
1 Premier Investments Limited 1H20 overview Exceptional cash flow and strong balance sheet – Net cash generated (operating cash flow less investing activities) for the half of $133.0 million, up $38.8 million or 41% on 1H191 – The strong cash flow allowed the group to: • Pay a record final FY19 divi
Slide 7: Summarised consolidated income statement
2 Premier Investments Limited summarised consolidated income statement $'M 1H20 1H19 Results Pre AASB 161 Premier Retail EBIT 126.1 113.9 Premier Investments income from Associate (BRG) 13.9 12.2 Premier Investments other revenue (Interest, Dividend, Rent & Other) 3.4 3.8 Premier Investments expense
Slide 8: Summarised consolidated balance sheet
2 Premier Investments Limited summarised consolidated balance sheet Balance Sheet Pre AASB16 1 Pre AASB16 1 $'M 25 Jan 2020 27 Jul 2019 Assets Cash and cash equivalents 199.8 190.3 Inventories 2 197.9 171.2 Property, plant and equipment 198.5 210.9 Other Assets 33.9 43.7 Deferred tax assets 43.9 40.
Slide 9: Premier Retail
PREMIER RETAIL
Slide 10: Premier Retail - Delivers record result
3 Premier Retail - Delivers record result • Record sales of $732.1 million up 7.6% on 1H19 • Like-for-like (LFL) sales up 4.3% on 1H19 on a constant currency basis • Record EBIT (Pre AASB 16) of $126.1 million, up 10.7% on 1H191 • Record EBIT % to sales (Pre AASB 16) of 17.2%, up 48 bps on 1H191 • R
Slide 11: Premier Retail performance
3 Premier Retail performance 2 2 Pre AASB16 Pre AASB16 26 weeks 26 weeks $'000 to 25 Jan 2020 to 26 Jan 2019 Var LY Sales 732,074 680,201 +7.6% LFL sales (constant currency) 4.3% 4.6% Gross Profit 457,834 428,662 +6.8% Gross margin (%) 62.5% 63.0% -48bps Employee Expenses 1 (163,231) (157,102) +3.9%
Slide 12: Premier Retail – Delivers consecutive years of growth
4 Premier Retail – Delivers 8 consecutive years of growth • 8 consecutive years of first half EBIT growth in the critical summer season • 1H20 EBIT margin to Sales (Pre AASB 16) up 48 bps on 1H19 • Key Gross Margin and CODB strategies delivering 17.2% 16.7% 17.0% 130.0 16.3% 126.1 15.8% 120.0 113.9
Slide 13: Premier Retail - Gross margin strategies continue to deliver
4 Premier Retail - Delivers record result Gross Margin Strategies continue to deliver • During the reporting period, Premier Retail traded through Brexit uncertainty in Britain, protests in Hong Kong, devastating bushfires in Australia and a continuing fall in the Australian dollar. These pressures
Slide 14: Premier Retail - Delivers CODB reduction
4 Premier Retail - Delivers CODB reduction of 94 bps CODB – Store Profitability Focus • 33 stores closed during the last 12 months, a total of 134 stores closed over the last 7 years, as part of the ongoing program to close unprofitable stores • As consumers continue to increase their online shoppin
Slide 15: Premier Retail – Investment continues in store network
5 Premier Retail – Investment continues in store network Premier Retail continues to invest in new stores, upgrades and refurbishments to deliver sustainable sales growth 158 stores received capital investment, including 12 new stores and 6 new Smiggle International Concessions opened in 1H20 In 1H2
Slide 16: Apparel Brands - Deliver strong 1H20 sales growth
9 6 Apparel Brands - Deliver strong 1H20 sales growth • Apparel Brands 1H20 LFL sales growth of 7.5% was stronger than overall sales growth, with 21 stores closed during the last 12 months as part of the ongoing program to close unprofitable stores • Apparel Brands have delivered 2 year LFL Sales Gr
Slide 17: Online - Delivers record sales
9 7 Online - Delivers record sales • Record Online sales of $97.2 million, up 28.4% on a previous record 1H19 • Online sales growing to 14.6% of the respective 120.0 14.6% 15.0% markets’ sales in 1H20 Online Sales Growth 12.9% 97.2 • New Zealand Websites successfully launched in 100.0 12.0% 2H19 for
Slide 18: Smiggle delivers record 1H20 global retail sales up 14.2%
8 Smiggle delivers record 1H20 global retail sales up 14.2% • Record global retail sales including wholesale partners sales to consumers up 14.2% on 1H19 • Record reported revenue in 1H20 of $193.7 million up 8.3% on 1H19 • The four pathways to growth strategy previously announced is far exceeding e
Slide 19: Wholesale - roll out far exceeding expectations
8 Wholesale - roll out far exceeding expectations Wholesale Update - existing partners • At the end of 1H20 Smiggle is represented in over 250 doors in 9 countries with a combined population of over 700 million – well ahead of our previously announced target to grow to 350+ doors within 12-24 months
Slide 20: Wholesale partners all delivering on the brand’s high standards
8 Wholesale partners all delivering on the brand’s high standards Qatar Kuwait Oman United Arab Emirates 18
Slide 21: Wholesale partners all delivering on the brand’s high standards
8 Wholesale partners all delivering on the brand’s high standards Indonesia Philippines Thailand 19
Slide 22: Wholesale partners all delivering on the brand’s high standards
8 Wholesale partners all delivering on the brand’s high standards Canada Pakistan South Korea 20
Slide 23: Smiggle - Disney: first ever global collaboration a huge success
8 Smiggle - Disney: first ever global collaboration a huge success Smiggle collaboration with Disney • Highly successful first ever global collaboration with Disney studios • Frozen 2 and Star Wars ranges launched to coincide with movie releases worldwide • Results and response from Smiggle fans hav
Slide 24: Smiggle summary – record results
8 Smiggle summary – record results Smiggle summary • Record global retail sales including wholesale partners sales to consumers up 14.2% on 1H19 • Record revenue in 1H20 of $193.7 million up 8.3% on 1H19 • The four pathways to growth strategy previously announced is far exceeding expectations and de
Slide 25: Peter Alexander – Delivers record result
9 Peter Alexander – Delivers record result 150 $145 Sales $130 120 $114 $99 $87 Sales AUD $m 90 $73 $63 60 $51 $44 $38 $32 30 - 1H10 1H11 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 (Note 1) Sales Notes: 1. 1H16 excludes non-comparable 27th week of sales 23
Slide 26: Peter Alexander – Strong growth continued
9 Peter Alexander – Strong growth continued • Record Sales up 11.1% to $144.8 million underpinned by strong LFL sales growth in both Australia and New Zealand • 7 new stores opened in 1H20: Chatswood West (NSW), Hornsby (NSW), Eastgardens (NSW), Fashion Spree (NSW), Helensvale (QLD), Perth DFO (WA)
Slide 27: Premier Retail summary 1H20
10 Premier Retail summary 1H20 Smiggle record result • Record global retail sales including wholesale partners sales to consumers up 14.2% on 1H19 • Record revenue in 1H20 of $193.7 million up 8.3% on 1H19 • The four pathways to growth strategy previously announced is far exceeding expectations and
Slide 28: Premier Retail summary 1H20
10 Premier Retail summary 1H20 Peter Alexander – Delivers record result • Record Sales up 11.1% to $144.8 million underpinned by strong LFL sales growth in both Australia and New Zealand • Strong and focused management team led by Judy Coomber (Managing Director: Peter Alexander and Dotti) and Peter
Slide 29: Premier Retail – COVID-19 update
10 Premier Retail – COVID-19 update • Our absolute priority is the safety and wellbeing of our teams and we will continue to support all customers and communities in the countries we operate in. • Premier Retail closed 1H20 with 19% more inventory than 1H19. This solid opening and current inventory
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Slide 31: Balance Sheet strength
11 Balance Sheet strength Exceptional cash flow and strong balance sheet – Net cash generated (operating cash flow less investing activities) for the half of $133.0 million, up $38.8 million or 41% on 1H19 – The strong cash flow allowed the group to: • Pay a record final FY19 dividend of $58.6 milli
Slide 32: Record Dividends
11 Record Dividends • Due to the 1H20 record Premier results, the continued strengthening of Premier’s balance sheet and the Board’s confidence in the long term strategies of both the Premier Retail business and the Breville business, the Premier Board has approved an increased record interim ordina
Slide 33: Appendix A: Brand by brand performance
PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 34: Smiggle highlights and results overview
A Highlights • Record global retail sales including wholesale partners sales to consumers up 14.2% on 1H19 • Record revenue in 1H20 of $193.7 million up 8.3% on 1H19 • The four pathways to growth strategy previously announced is far exceeding expectations • Smiggle brand at end 1H20 represented in o
Slide 35: Peter Alexander highlights and results overview
A Highlights • Record Sales up 11.1% to $144.8 million underpinned by strong LFL sales growth in both Australia and New Zealand • All Peter Alexander departments delivered solid LFL growth in 1H20, with an outstanding Christmas and January sale period • Strong and focused management team led by Judy
Slide 36: Just Jeans highlights and results overview
A Highlights • 1H20 Sales up 9.6% to $134.4m - a particularly pleasing result for the group’s original brand now celebrating its 50th anniversary • 1H20 LFL sales up 8.9%. • 2 year LFL Sales up 24.8% from 1H18 to 1H20 • Just Jeans has a strong, distinctive and competitive market position • Different
Slide 37: Jay Jays highlights and results overview
A Highlights • 1H20 Sales up 4.2% to $96.1 million delivering a strong result for the brand • 1H20 LFL sales up 6.8% - stronger than overall sales growth • 2 year LFL Sales up 15.0% from 1H18 to 1H20 • 10 stores were closed in the last 18 months as part of the ongoing program to close unprofitable s
Slide 38: Dotti highlights and results overview
A Highlights • 1H20 Sales up 8.2% to $57.5 million • 1H20 LFL sales up 11.8% were stronger than overall sales, with continued improvement in profit margins being delivered through changes to sourcing strategy. • 2 year LFL Sales up 14.8% from 1H18 to 1H20 • 11 stores were closed in the last 18 month
Slide 39: Jacqui E highlights and results overview
A Highlights • 1H20 Sales up 8.1% to $40.0 million • 1H20 LFL sales up 8.9% - stronger than overall sales growth • 2 year LFL Sales up 11.2% from 1H18 to 1H20 • 3 stores were closed in the last 18 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT
Slide 40: Portmans highlights and results overview
A Highlights • 1H20 LFL sales up 1.5% - stronger than overall sales growth • 2 year LFL Sales up 11.1% from 1H18 to 1H20 • 4 stores were closed in the last 18 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT positive for the brand despite the he
Slide 41: Appendix B: Impact of AASB and other information
Appendix B: Impact of AASB 16 and other information doth sitgge, scone BP ETE ST GROUP 39
Slide 42: 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 1H20 reporting period effective from 28 July 2019 • The implementation of AASB 16 has significantly changed reported results, however the standard does not ha
Slide 43: Profit and Loss impact of AASB 16
Appendix: Premier Investments Limited B B Profit and Loss impact of AASB 16 Statutory Statutory Profit & Loss Pre AASB16 Pre AASB16 Post AASB16 26 weeks 26 weeks 26 week s AASB16 $'M to 25 Jan 2020 to 26 Jan 2019 Var LY to 25 Jan 2020 Impact Sales 732.1 680.2 +7.6% 732.1 Gross Profit 457.8 428.7 +6.
Slide 44: Balance Sheet impact of AASB 16
Appendix: Premier Investments Limited B B Balance Sheet impact of AASB 16 Statutory Statutory Balance Sheet Pre AASB16 Pre AASB16 Post AASB16 AASB16 $'M 25 Jan 2020 27 Jul 2019 25 Jan 2020 Impact Assets Cash and cash equivalents 199.8 190.3 199.8 2 Inventories 197.9 171.2 197.9 Property, plant and e
Slide 45: 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
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