Shaver Shop Group Limited · ASX:SSG
Shaver Shop — H1 FY2022 Earnings Presentation
23 slides from Shaver Shop's earnings presentation, Feb 21, 2022
Slide 1: H1 FY2022 Results Presentation
H1 FY2022 RESULTS PRESENTATION
Slide 2: H1 FY2022 Highlights
H1 FY2022 HIGHLIGHTS INVESTOR PRESENTATION 2022 2
Slide 3: H1 FY2022 Financial Highlights
H1 FY2022 FINANCIAL HIGHLIGHTS > Total Sales up 2.8% to $127.1m (H1 FY2021 - $123.6m) Sales – Total sales up 18.2% compared to H1 FY2020 (2 year growth) – 28% of available in-store trading days (6,169 days) lost to government imposed trading restrictions > Online sales up 37.2% to $51.6m (2 year gro
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS Customer > Safe & hygienic environment maintained in all stores Service > Store teams have managed exceptionally well with service metrics remaining at or near all time highs - average NPS of 88 for H1 FY2022 > Foot traffic strong on re-opening in NSW and VIC through Black Fri
Slide 5: Revenue Drivers
Total Sales Growth Trend REVENUE DRIVERS SSG’s strong multi-channel offering enabled online sales to significantly offset lower in-store sales caused 123.6 127.1 by Government mandated store closures in Q1 FY2022 107.5 > Total sales increased $3.5 million (or 2.8%) to $127.1m – Up 18.3% compared to
Slide 6: Quarterly Sales Trends Across H1 FY2022
QUARTERLY SALES TRENDS ACROSS H1 FY2022 Store closures across NSW and VIC significantly impacted Q1 sales growth. Q2 sales rebounded strongly as stores re-opened but then softened significantly in mid to late December as COVID-19 concerns escalated Quarterly Total Sales FY22 Quarterly Total Sales Gr
Slide 7: Strong Online Sales Performance
Online Sales Growth ($m) STRONG ONLINE SALES PERFORMANCE Online sales were up 37.2% to $51.6 million and represented 40.6% of total sales in H1 FY2022 51.6 37.5 > Continuing focus on delivering an engaging and personalized online 18.6 shopping experience > Online transaction volumes increased 37.2%
Slide 8: Product & Category Mix Is Evolving
PRODUCT & CATEGORY MIX IS EVOLVING H1 FY2022 – Category Contribution by Sales ($) Strong sales of Hair Cutting (Clip & Trim) products during extended lockdowns in Q1 FY2022, Other 3% transitioned increasingly to Long Term Hair Removal, Massage Temporary 6% Massage and Power Oral Care in Q2 FY2022 El
Slide 9: H1 FY2022 Financial Results Summary
H1 FY2022 FINANCIAL RESULTS SUMMARY INVESTOR PRESENTATION 2022 9
Slide 10: Profit & Loss
PROFIT & LOSS Profit & Loss Reported Reported Variance Variance > Sales up 2.8% to $127.1m (up 18.2% vs H1 FY2020*) A$m H1 FY2022 H1 FY2021 ($) (%) – Online sales up 37.2% to $51.6m (41% of total sales) Sales 127.1 123.6 3.5 2.8% – 28% (or 6,169 days) of available in-store trading days in Gross prof
Slide 11: OPEX Well Controlled
OPEX WELL CONTROLLED Operating expenses as % of total sales Total OPEX as a % of sales was flat in H1 FY2022 at 22.9% (H1 FY2021 – 22.9%) 14.0% 12.6% 12.0% 11.5% > Shaver Shop remained agile during H1 FY2022 adjusting OPEX spend to reflect the changing retail dynamics caused by COVID-19 10.0% > OPEX
Slide 12: NPAT Down 8.6% or $1.2m Due to Government Mandated Store Closures
NPAT DOWN 8.6% OR $1.2M DUE TO GOVERNMENT MANDATED STORE CLOSURES ACROSS H1 FY22 Key Drivers of NPAT ($Am) 16.0 0.7 1.1 14.0 0.1 0.1 0.3 0.6 12.0 13.1 10.0 8.0 14.3 6.0 4.0 2.0 - H1 FY2021 LFL Stores Greenfields Buybacks Temp/ Perm. Net Marketing Other, Fran. H1 FY2022 NPAT Closed Stores OPEX Fees,
Slide 13: EPS & Dividend Growth
Earnings per Share Growth (cents) EPS & DIVIDEND GROWTH Consistent interim dividend growth supported by strong EPS results 11.7 > Strong H1 FY2022 EPS result at 10.6 cents, up 74.5% vs 2 years 10.6 ago 6.1 > Interim dividend 4.5 cents (fully franked), up 1.3 cents or 40.6% – Interim dividend up 114%
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION AASB 16 AASB 16 AASB 16 > Net cash position (no debt) $36.3m at 31 Dec 21 A$m 31-Dec-21 30-Jun-21 31-Dec-20 – Up $28.9m from 30 June 21 reflecting strong H1 FY2022 Cash 36.3 7.4 41.1 trading performance and extended trading terms from Trade & other receivables 5.6 3.6 0.9 s
Slide 15: Operating Cash Flow $42.7m
OPERATING CASH FLOW $42.7M > Shaver Shop’s business model continues to generate strong H1 H1 operating cash flows enabling increased returns to A$m FY2022 FY2021 Variance shareholders through dividends while continuing to invest for growth NPAT 13.1 14.3 (1.2) Non-cash items: - > Investments for gro
Slide 16: Trading Update & Outlook
TRADING UPDATE & OUTLOOK INVESTOR PRESENTATION 2022 16
Slide 17: Trading Update & Outlook
TRADING UPDATE & OUTLOOK > Following a period of softer demand in December and early January as concerns over the COVID-19 omicron variant and case numbers peaked, trading conditions have improved in late January and February as customers increasingly return to shopping centres > A summary of sales
Slide 18: Investment Summary
INVESTMENT SUMMARY Segment leader inn both online and in-store Large and growing market driven by changing consumer preferences and new product innovation COVID-19 has accelerated DIY personal care adoption and introduced new customers to Shaver Shop Differentiated & resilient specialty retail busin
Slide 19: Appendices
APPENDICES PRESENTATION 2022 19
Slide 20: Key Metrics Summary
KEY METRICS SUMMARY Reported Reported Comparable Accounting (AASB 16) H1 FY2022 H1 FY2021 Number of corporate stores 121 116 Number of franchise stores - 6 Total stores 121 122 Corporate store sales ($m) 127.1 123.6 Franchise store sales ($m) - 8.4 Total network sales ($'000) 127.1 132.0 Corporate s
Slide 21: Change in Accounting Policy Reconciliation Cloud Software Customisation Costs
CHANGE IN ACCOUNTING POLICY RECONCILIATION CLOUD SOFTWARE CUSTOMISATION COSTS Expensing of Reversal of Expensing of Reversal of Expensing of Reversal of cloud cloud cloud cloud cloud cloud Reported software software Comparative Reported software software Comparative Reported software software Compar
Slide 22: Tax Benefit – Franchise Licence Termination
TAX BENEFIT – FRANCHISE LICENCE TERMINATION Franchise buy-back tax benefit ($m) 1.4 1.2 1.0 0.8 0.6 1.2 1.0 0.9 0.4 0.8 0.6 0.2 0.0 H1 FY22 FY22 FY23 FY24 FY25 Shaver Shop receives a tax deduction over five years for the cost of franchise right terminations that occur through its franchise buy-back
Slide 23: Thank You
THANK YOU PRESENTATION 2022 23