Cettire Ltd. · ASX:CTT
Cettire — FY2024 Earnings Presentation
30 slides from Cettire's earnings presentation, Aug 29, 2024
Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION 29 AUGUST 2024 1
Slide 2: Content
CONTENT 3 FY24 RESULTS 21 FY25 TRADING UPDATE & OUTLOOK 26 APPENDIX 2
Slide 3: FY24 Results
FY24 RESULTS JACQUEMUS CETTIRE
Slide 4: FY24 Highlights
FY24 HIGHLIGHTS STRONG PERFORMANCE ACHIEVED ACROSS ALL KEY METRICS DEMONSTRATING ABILITY TO GROW RAPIDLY WHILE REMAINING PROFITABLE AND SELF FUNDING FY24 Reported4 +81% +78% $32.5m ~$79m +64% Gross revenue 1 Sales revenue 1 Adjusted EBITDA 3 Net cash vs Active customers 2 to $978.3m to $742.3m $46m
Slide 5: FY24 Strategic Progress
FY24 STRATEGIC PROGRESS CETTIRE CONTINUED TO DELIVER STRONG PROFITABLE GROWTH AND EXECUTE ON ITS CORE STRATEGIC PRIORITIES $742.3m Sales revenue H1 H2 $416.2m $209.9m $92.4m $22.9m $0.5m $5.7m 3 FY18 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA margin2 10% 12% 12% (10)% 7% 4% Profitable growth execution Sup
Slide 6: Demand and Supply
2 DEMAND AND SUPPLY 6
Slide 7: Continued Customer Momentum
CONTINUED CUSTOMER MOMENTUM WELL-POSITIONED TO CONTINUE TO DRIVE LONG TERM REVENUE GROWTH AND ENHANCE LIFETIME VALUE Active Customers1,4 Share of gross revenue from Repeat customers spending more repeat customers1,2,3 per order1,3 692K $887 $843 $805 42% 39% $689 50% $647 $623 423K 260K 58% 61% 50%
Slide 8: Customer Growth and Frequency Driving Increasing Spend
CUSTOMER GROWTH AND FREQUENCY DRIVING INCREASING SPEND Gross revenue/active customer1,2,3,4 Orders/active customer $1,413 $1,274 1.73x $1,084 $1,106 1.68x $963 $826 1.55x 1.48x 1.26x 1.18x Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Active Customers1,3 9k 30k 115K 260k 423k 692k 1. Active Customers ar
Slide 9: Increased Marketing Investment With Stable Delivered Margins
INCREASED MARKETING INVESTMENT WITH STABLE DELIVERED MARGINS INCREASED MARKETING SUPPORTED GROSS AND NET CUSTOMER ADDS AT ATTRACTIVE PER CUSTOMER MARGINS Customer acquisition cost1,2 Delivered margin per active customer 1,3,4 (Last 12 months) (Last 12 months) $226 $224 $130 $96 FY23 FY24 FY23 FY24 D
Slide 10: Global Expansion Driving Scale and Diversification
GLOBAL EXPANSION DRIVING SCALE AND DIVERSIFICATION PROPRIETARY STOREFRONT AND LOCALISATION FACILITATING NEXT LAYER OF PROFITABLE GROWTH Gross Revenue1,2 growth across markets Emerging Markets share of Gross Revenue1,2 31% 112% 27% 70% "Established" "Emerging" FY23 FY24 ~56% of revenue3 ~6% of revenu
Slide 11: Storefront Developments Enabling Localisation
STOREFRONT DEVELOPMENTS ENABLING LOCALISATION PLATFORM ADVANCEMENTS VIA LOCALISATION FEATURES IS A KEY STRATEGIC PRIORITY FY21 FY24 Geographic markets 53 54 Languages English only 7 Currencies 3 17 Localised payment options 3 Many Key factors driving localisation strategy: Depth of demand for luxury
Slide 12: China Direct Platform Launch
CHINA DIRECT PLATFORM LAUNCH AS THE WORLD’S LARGEST LUXURY MARKET, CHINA REFLECTS AN IMPORTANT STRATEGIC OPPORTUNITY • The Company confirmed launch of its direct platform in mainland China on 23 June 2024, via www.cettire.cn • Cettire remains disciplined in taking a measured approach, broadening the
Slide 13: Supply Chain Momentum
SUPPLY CHAIN MOMENTUM SUPPLY CHAIN CONTINUES TO GROW STRONGLY PROVIDING DIVERSITY AND LOW CONCENTRATION RISK Brand database Product database Seller stock value 1 2 1 2 Published Brands Total Database Published Products 1 Total Database 2 Published Stock Value Total Database >2,500 >2,500 >500,000 >5
Slide 14: Supply Chain – Wholesale Channel Large and Growing
SUPPLY CHAIN – WHOLESALE CHANNEL LARGE AND GROWING STRATEGY TO WORK DIRECTLY WITH BRANDS AND 3RD PARTY INVENTORY HOLDERS TO HAVE THE LARGEST AND MOST DIVERSE SUPPLY CHAIN, MITIGATING RELIANCE ON SINGLE POINT SOURCING Wholesale channel is a critical, growing channel – represents half the industry (US
Slide 15: Supply Chain Governance
SUPPLY CHAIN GOVERNANCE CETTIRE CONTINUES TO OFFER ONE OF THE LARGEST SELECTIONS OF PERSONAL LUXURY ITEMS ONLINE FROM A DIVERSE AND DEEP BASE OF GLOBAL LUXURY GOODS SUPPLIERS Global brands: Cettire’s supply chain: • Cettire works directly with luxury brands or with established >2,500 distributors in
Slide 16: Organisational Capabilities & Financial Performance
3 ORGANISATIONAL CAPABILITIES & FINANCIAL PERFORMANCE 16
Slide 17: Enhancing Organisational Capability
ENHANCING ORGANISATIONAL CAPABILITY AS THE COMPANY CONTINUES TO SCALE AND MATURE INTERNAL CAPABILITIES WILL INCREASE AND BOARD SIZE AND COMPOSITION WILL EVOLVE Team: Talent acquisition priorities: • Continued build out of engineering, operations and Ability to source the best talent by leveraging cu
Slide 18: Financial Performance
FINANCIAL PERFORMANCE HIGHLY FLEXIBLE COST BASE ENABLING SUSTAINED PROFITABILITY $’000 Unaudited FY24 FY23 • Continued strong revenue growth, sales revenue +78% Y/Y Sales revenue 742,255 416,227 • Marginal uptick in refund rate in H2, driven by geographic mix and modest increase in underlying refund
Slide 19: Balance Sheet
BALANCE SHEET CASH GENERATION SUPPORTED BY OPERATING PROFITS AND ATTRACTIVE WORKING CAPITAL CYCLE¹² • Closing cash $79.0 million, zero financial debt Jun Jun $’000 Unaudited 2024 2023 • Operating cash flow driven by FY24 operating surplus (cash profit) and favourable working capital dynamics Cash an
Slide 20: Capital Light Business Model Underpins Self Funding Cash Generation
CAPITAL LIGHT BUSINESS MODEL UNDERPINS SELF FUNDING CASH GENERATION CETTIRE’S GROWTH IS RAPID AND CAPITAL EFFICIENT Exceptional growth achieved since IPO: Sales Revenue ($m)1 • Sales revenue has grown ~30x organically since FY19 $742.3 • ~700k active customers $416.2 Capital-light no inventory model
Slide 21: FY25 Trading Update & Outlook
4 FY25 TRADING UPDATE & OUTLOOK 21
Slide 22: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK Current observations: How Cettire is responding: • Since the start of FY25, sector trading conditions remain soft • Our business model is highly flexible, enabling quick adaptation to market conditions and cycles • Increased promotional activity remains prevalent as the re
Slide 23: Leveraging Business Model to Maximise Market Share and Profit
LEVERAGING BUSINESS MODEL TO MAXIMISE MARKET SHARE AND PROFIT PROVEN ABILITY TO QUICKLY ADJUST OPERATING SETTINGS AND COST PROFILE TO ADAPT TO CHANGING MARKET CONDITIONS – DELIVERING GROWTH AND/OR PROFIT THROUGH DIFFERENT CYCLES CY23 Case study Agile and flexible model creates multiple levers to sup
Slide 24: FY25 Strategic Priorities
FY25 STRATEGIC PRIORITIES Profitable growth • Focused execution on profitable growth strategy in core fashion and accessories verticals execution • Continued growth across Established and Emerging markets, enabled by localisation Supply and Demand • Marketing investment to grow customer base and lif
Slide 25: Cettire Exits FY24 Stronger and Well Positioned for Growth
CETTIRE EXITS FY24 STRONGER AND WELL POSITIONED FOR GROWTH Large global customer base that continues to grow significantly in number and transaction frequency High-quality suppliers providing access to inventory that supports one of the largest online luxury goods offering in the world Business mode
Slide 26: Appendix
APPENDIX _CEITIRE.
Slide 27: Income Statement Reconciliations
INCOME STATEMENT RECONCILIATIONS Statutory EBITDA to Adjusted EBITDA reconciliation Statutory NPAT to Adjusted NPAT reconciliation $’000s FY24 FY23 $’000s FY24 FY23 Statutory EBITDA 24,287 25,820 Statutory NPAT 10,474 15,965 Share-based payments 1,957 443 Share-based payments 1,957 443 Unrealised FX
Slide 28: Significant Opportunity for Growth With Online Penetration and Market Consolidation
SIGNIFICANT OPPORTUNITY FOR GROWTH WITH ONLINE PENETRATION AND MARKET CONSOLIDATION THE P E RS O NA L L UX URY GO O D S M A RKE T IS E X P E C TE D TO BE > US $ 6 00B GL O BA L IND US TRY BY 2 030 Share of global personal luxury goods market (US$ billions) Online Segment Offline Segment Global Perso
Slide 29: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The information contained in this document and discussed at this presentation (collectively, the Presentation) has been prepared by Cettire Limited (ACN 645 474 166) (Cettire or the Company). The Presentation is subject to the conditions outlined below. Your receipt o
Slide 30: Global Online Luxury Retailer
G LO B A L O NLI NE LU X U RY RE TA I LE R WWW. C E TTI RE . C O M 30