Beacon Lighting Group Ltd · ASX:BLX
Beacon Lighting — H1 FY2018 Earnings Presentation
29 slides from Beacon Lighting's earnings presentation, Feb 22, 2018
Slide 1: H1 FY2018 Results Presentation
For personal use only Beacon Lighting Group Limited H1 FY2018 RESULTS PRESENTATION 22 FEBRUARY 2018
Slide 2: Disclaimer
DISCLAIMER For personal use only The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, su
Slide 3: Contents
CONTENTS For personal use only 1 RESULTS OVERVIEW 2 TRADING PERFORMANCE 3 CASH FLOW, BALANCE SHEET, DIVIDEND 4 GROWTH STRATEGIES 5 H2 FY2018 OUTLOOK 6 QUESTIONS RESULTS PRESENTATION H1 FY2018 3
Slide 4: Please Note
For personal use only PLEASE NOTE For the purposes of this presentation, please note the following: • H1 FY2018 was for the 26 weeks ending 24 December 2017 • H1 FY2017 was for the 26 weeks ending 25 December 2016 • H1 FY2016 was for the 26 weeks ending 27 December 2015 • H1 FY2015 was for the 26 we
Slide 5: Results Overview
For personal use only 1 RESULTS OVERVIEW
Slide 6: H1 FY2018 Highlights
1 H1 FY2018 HIGHLIGHTS For personal use only • Record sales result at $122.4m increased by 12.0% • Company store retail sales increased by 14.2% • Commercial office sales increased by 19.2% • Online sales increased by 45.9% • Good progress continues to be made with the five emerging businesses • Str
Slide 7: H1 FY2018 Result
1 H1 FY2018 RESULT For personal use only $'000 H1 FY2017 H1 FY2018 Var $ Var % Sales 109,245 122,380 13,135 12.0% Gross Profit 67,803 79,723 11,920 17.6% Gross Profit Margin % 62.1% 65.1% Other Income 1,766 1,327 (439) (24.9%) % of Sales 1.6% 1.1% Operating Expenses (1) (54,432) (62,294) (7,862) 14.
Slide 8: Trading Performance
For personal use only 2 TRADING PERFORMANCE
Slide 9: Sales
2 SALES For personal use only SALES: $122.4m increased by 12.0% • Record first half year sales • Company Store sales increased by 14.2% • Commercial Offices sales increased by 19.2% • Beacon International sales increased by 37.5% Total Sales $m Sales Increase % 122.4 21.9% 109.2 98.5 90.8 74.5 12.7%
Slide 10: Company Store Comparative Sales
2 COMPANY STORE COMPARATIVE SALES For personal use only COMPARATIVE SALES: Increased by 1.8% • Strong comparative sales growth in VIC and SA • WA remains a challenging market • Comparative gross profit dollars increased by 4.4% • Comparative sales growth excluding impacted stores increased by 5.2% c
Slide 11: Gross Profit
2 GROSS PROFIT For personal use only Gross Profit $: Increased by 17.6% to $79.7m • Return to the regular marketing program has assisted in the recovery of the gross profit dollars and margins • Stronger AUD also helped improve gross profit margins • Gross profit dollars increased by 17.6% or $11.9m
Slide 12: Other Income
2 OTHER INCOME For personal use only Other Income: Decreased by 24.9% to $1.3m • Core marketing and royalty income continues to decline as franchise stores have been acquired • Continued to sell licences for the right to use the Group Intellectual Property in international markets Other Income $m 2.
Slide 13: Operating Expenses
2 OPERATING EXPENSES For personal use only Opex: Increased 1.1% of sales to $62.3m $'000 H1 FY2017 H1 FY2018 Var $ Var % Marketing 6,568 7,201 633 9.6% • Continued investment in the selling and distribution % of Sales 6.0% 5.9% expenses for established and new investments • Occupancy costs have incr
Slide 14: Earnings
2 EARNINGS For personal use only EBITDA: +23.9% to $18.8m EBIT: +23.4% to $16.9m 18.8 16.3 16.9 17.5 14.5 15.1 13.4 13.7 11.0 10.0 H1 FY14 H1 FY15 H1 FY16 H1 FY17 H1 FY18 H1 FY14 H1 FY15 H1 FY16 H1 FY17 H1 FY18 NPAT: +19.7% to $11.3m EBITDA Margin: 15.3% 11.1 11.3 17.8% 15.9% 15.3% 9.1 9.4 14.7% 13.
Slide 15: Cash Flow, Balance Sheet & Dividend
For personal use only 3 ASH FLOW, BALANCE SHEET C & DIVIDEND
Slide 16: Cash Flow
3 CASH FLOW For personal use only • Strong operating cash flow continues $'000 H1 FY2017 H1 FY2018 to be generated Cash Flow from Operations Receipts from Customers 122,079 135,438 • Capital expenditure $2.5m, including Payments to Suppliers & Employees (108,096) (123,533) $1.6m on new stores Other
Slide 17: Balance Sheet
3 BALANCE SHEET For personal use only Inventory $'000 DEC 2016 DEC 2017 • New Investments $4.3m Cash 8,270 16,193 Receivables 9,334 10,323 Debtors Inventories 53,617 59,582 • Commercial $4.2m Other 1,793 1,105 • Other $3.1m Total Current Assets 73,014 87,203 • Franchising $2.0m PPE 25,216 29,369 Int
Slide 18: Dividend
3 DIVIDEND For personal use only • Fully franked dividend of 2.5 cents per share for H1 FY2018 (compared to 2.35 cents per share for H1 FY2017) • Record date 5th March 2018 • Payment date 26th March 2018 • Annual payout ratio expected to be 50% to 60% of NPAT • Dividend reinvestment plan remains at
Slide 19: Growth Strategies
For personal use only 4 GROWTH STRATEGIES
Slide 20: Optimise Existing Stores
4 OPTIMISE EXISTING STORES For personal use only Beacon Lighting will target the growth of sales and profit through the optimisation of the existing stores network • Opened 15 new company stores in the last 19 months which will all mature in the coming years • Store rosters continue to be managed to
Slide 21: New Store Rollout
4 NEW STORE ROLLOUT For personal use only Beacon Lighting will continue to target the opening of six new company operated stores in Australia each year • Opened five new company stores at Carlton (NSW), Bayswater (VIC), Crows Nest (NSW), Gladesville (NSW) and Mentone (VIC). • Currently operate five
Slide 22: New Product Ranges
4 NEW PRODUCT RANGES For personal use only Beacon Lighting will offer an extensive range of the latest fashion, trend and energy efficient products to our customers • Designed and developed 393 exclusive new products for our customers • Continued expansion of premium products including architectural
Slide 23: Online and Social Media
4 ONLINE AND SOCIAL MEDIA For personal use only Beacon Lighting will continue to enhance our online presence in order to drive incremental sales • Online sales increased by 45.9% over H1 FY2017 • Successfully launched the Beacon Lighting store on the Amazon Australia website • Beacon International U
Slide 24: Emerging Businesses
4 EMERGING BUSINESSES For personal use only Beacon Lighting will target the growth of sales and profit in the emerging businesses • Beacon International continues to make exciting progress in the USA and European markets • Light Source Solutions Globes is growing strongly INTERNATIONAL COMMERCIAL SO
Slide 25: Acquisitions
4 ACQUISITIONS For personal use only Beacon Lighting intends to investigate and pursue local and international business opportunities that complement the core activities of the Group • Converted two Lights for You stores at Carlton (NSW) and Crows Nest (NSW) into Beacon Lighting stores • Converted t
Slide 26: Efficiency Gains
4 EFFICIENCY GAINS For personal use only Beacon Lighting will continue to target expense efficiency gains and manage the growth of expenses • New stores and the emerging businesses currently requiring investment ahead of their sales • As the new investments mature, expense efficiency gains can be ex
Slide 27: H2 FY2018 Outlook
For personal use only 5 H2 FY2018 OUTLOOK
Slide 28: H2 FY2018 Outlook
5 H2 FY2018 OUTLOOK For personal use only Beacon Lighting • Company stores comparative sales have experienced modest growth in the new half year • Gross profit dollar growth continues to be encouraging • Looking forward to advancing our market share in the retail lighting market • Emerging businesse
Slide 29: Questions
For personal use only 6 QUESTIONS
Beacon Lighting Group — H1 FY2018 Earnings Presentation on 6ix