Currys Plc · LSE:CURY
Currys — H1 2024/25 Earnings Presentation
18 slides from Currys's earnings presentation, Dec 12, 2024
Slide 1: Currys plc 2024/25 Interim Results
Currys plc 2024/25 Interim Results 12 December 2024
Slide 2: Group performance continues to strengthen
Financial performance Group performance continues to strengthen Revenue Adjusted EBIT Adjusted EPS £3,918m £41m 0.6p +1% YoY +52% YoY +1.7p YoY Free cash flow Closing net cash Pension deficit (IAS19) £50m £107m £(143)m +£46mYoY +£236m YoY +£45m YoY 2
Slide 3: UK & Ireland - performance summary
Financial performance UK & Ireland - performance summary Strong performance, with good growth from strategic initiatives Currency Reported H1 2024/25 H1 2023/24 Like-for-like neutral change YoY change YoY Revenue £2,342m £2,215m +5% +6% +6% Online share of business 45.2% 43.3% - - +190bps Adjusted E
Slide 4: UK & Ireland adjusted EBIT margin bridge
Financial performance UK & Ireland adjusted EBIT margin bridge Continued gross margin progress, while operating leverage offset cost increases Gross margin +10bps • Continued focus on drivers of gross margin: +20bps 1.0% • Solution selling • Services adoption +10bps • Monetising improved experience
Slide 5: UK&I investment
Financial performance UK&I investment Planned resumption of normal investment spending 100 90 80 £20m 70 £18m 60 £m 50 40 £65m £24m 30 £58m 20 10 £22m 0 2021/22 2022/23 2023/24 2024/25e Capital expenditure Investment operating expense Source: Currys internal information 5
Slide 6: Nordics - performance summary
Financial performance Nordics - performance summary Gaining market share in difficult market Currency Reported H1 2024/25 H1 2023/24 Like-for-like neutral change YoY change YoY Revenue £1,576m £1,653m (2)% (3)% (5)% Online share of business 25.5% 24.8% - - +70bps Adjusted EBIT £18m £12m - +46% +50%
Slide 7: Nordics adjusted EBIT margin bridge
Financial performance Nordics adjusted EBIT margin bridge Increased gross margin and tight cost control offset lower sales +80bps Gross margin +80bps • Gross margin now above level of three years ago 1.1% • Focus on strategic initiatives (40)bps 0.7% Operating expense to sales (40)bps • Costs down s
Slide 8: Cash generation improving
Financial performance Cash generation improving Cashflow improving on every item except the expected increase in capital expenditure H1 2023/24 Reported H1 2024/25 (Restated) change Operating cash flow £61m £55m +£6m Group profits increased on prior year Capital expenditure increasing but remaining
Slide 9: Balance Sheet continues to improve
Financial position Balance Sheet continues to improve Net cash of £107m and pension deficit of £(143)m Refreshed revolving credit facility: £(805)m £(313)m £(213)m £(346)m £(75)m £(36)m 400 £525m facility until 200 September 2028 0 (200) • Option to extend for an (400) additional year (600) • Suppor
Slide 10: Current year outlook & guidance
Outlook Current year outlook & guidance No change to guidance Current year outlook • Trading since the end of the period has been consistent with the Board’s expectations • The Group expects growth in profits and free cash flow • Includes the in-year impact of the UK Government budget measures Updat
Slide 11: Outlook - Impact of UK government budget
Outlook Outlook - Impact of UK government budget Around half of these costs were anticipated – plans in place to offset impact Will seek to mitigate remaining impacts through further cost saving measures Estimated full year impact Process improvement • £9m - National Living Wage increases Automation
Slide 12: Group focussed on improving cash generation
Outlook Group focussed on improving cash generation Expect cashflow generation improvement over and above profit growth in medium term 2022/23 2024/25 2023/24 Medium term guidance (Restated) Guidance Capital expenditure £(103)m £(48)m £(80)m Expected to remain below £100m Expected to reduce each yea
Slide 13: Nordics improvement based on focussing on controllables
Nordics improvement based on focussing on controllables Market share up, gross margin up and operating costs down Nordic market continues to decline Gross margin above historic levels Nordics B2C market growth YoY Nordics gross margin % 4% 2% 0% -2% -4% -6% -8% May-23 Aug-23 Nov-23 Feb-24 May-24 Aug
Slide 14: UK&I performance continues to strengthen
UK&I performance continues to strengthen Sales, gross margin and drivers of recurring revenue all growing Happier colleagues and Gaining market share and Customers for life customers improving gross margin UK credit customers Market share % 2.4m 2.3m 1.9m 82 1.4m 1.7m 1.2m 25.3% 25.0% 24.3% 19/20 20
Slide 15: Balance sheet strengthening
Balance sheet strengthening Net cash of £107m and pension deficit of £(143)m £(805)m £(313)m £(213)m £(346)m £(75)m £(36)m 400 200 0 (200) (400) (600) (800) (1,000) 19/20 20/21 21/22 22/23 23/24 H1 24/25 Net cash/(debt) Working capital facilities Pension deficit (IAS19) Total Source: Currys internal
Slide 16: Summary
Summary • Performance continuing to strengthen • Nordics growing market share and gross margins, controlling costs and growing profits in a difficult consumer environment • UK&I growing sales, gross margins and profits • Strategic initiatives performing well - Services, B2B and iD Mobile • Cashflow
Slide 17: Christmas gift ideas 2024
Christmas gift ideas 2024 Curved Health & Super-Size Air Fryers Gaming Headphones Beauty TV’s Monitors Bean-to-cup Console Drones AI Laptops Coffee Mobile Gaming Machines Source: https://www.currys.co.uk - Prices correct as of 11 December 2024 17
Slide 18: We help everyone enjoy amazing technology
We help everyone enjoy ~ amazing technology.