Adore Beauty Group Ltd. · ASX:ABY
Adore Beauty — H1 FY22 Earnings Presentation
27 slides from Adore Beauty's earnings presentation, Feb 15, 2022
Slide 1: Results Presentation | H1 FY22
RESULTS PRESENTATION | H1 FY22 15 February 2022 Results Presentation | H1 FY21 1
Slide 2: Delivering Strong Revenue Growth
DELIVERING STRONG REVENUE GROWTH RECORD REVENUE DRIVEN BY VALUABLE RETURNING CUSTOMERS $113.1M 33.1% Market leader5 Strong start to REVENUE GROSS PROFIT in fast-growing FY22 with multiple $1.3b online record trading +18% ON PCP MARGIN +47% 2-YEAR CAGR +0.6 PPTs ON PCP beauty & days & strong AOV pers
Slide 3: More Returning Customers, Spending More
MORE RETURNING CUSTOMERS, SPENDING MORE EXPANDING SHARE OF WALLET REVENUE ($A MILLION) ACTIVE CUSTOMERS1 (‘000) ANNUAL REVENUE PER ACTIVE CUSTOMER1 +47% CAGR +43% CAGR +3.3% CAGR +18% +13% +5.3% $224 876 113 777 $213 $210 96 33 439 36 497 427 52 19 80 251 61 436 33 280 176 H1 FY20 H1 FY21 H1 FY22 CY
Slide 4: Subscription-like Retention Rates After Year One
SUBSCRIPTION-LIKE RETENTION RATES AFTER YEAR 2 CREATING MORE LOYAL RETURNING CUSTOMERS ■ COVID lockdowns accelerated new customer acquisition and returning customer repurchase NUMBER OF CUSTOMERS ■ Transition out of lockdown seeing return to more sustainable growth rates off elevated base ■ Returnin
Slide 5: Customer Lifetime Value Is Strong & Growing
CUSTOMER LIFETIME VALUE IS STRONG & GROWING CONTENT AND LOYALTY STRATEGY SUPPORTING RETENTION, REDUCING RELIANCE ON PAID CHANNELS ■ Key ratio to measure customer acquisition and engagement is LTV (Lifetime Value) / CAC (Customer Acquisition Cost)1 CY18 – CY21 AVERAGE LTV/CAC1 BY YEAR ■ Strong unit e
Slide 6: Strong Progress on Strategic Priorities
STRONG PROGRESS ON STRATEGIC PRIORITIES KEY INITIATIVES LAY FOUNDATIONS FOR LONG-TERM GROWTH STRATEGIC PRIORITY H1 FY22 OUTCOMES DELIVERED Mobile app Content-first app delivering increased engagement, conversion and AOV Build content-first mobile app to expand use of machine learning to combine tech
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Results Presentation | H1 FY21 7
Slide 8: Financial Performance: Record Half-Year Revenue
FINANCIAL PERFORMANCE RECORD HALF-YEAR REVENUE REVENUE ($A MILLION) GROSS PROFIT MARGIN (%) EBITDA1 ($A MILLION) +47% CAGR +1.9 PPTS +44% CAGR +18% +0.6 PPTS -27% 113 96 33 36 ZZZZZZ 52 33.1 5.2 19 32.5 80 3.8 61 31.1 1.8 33 H1 FY20 H1 FY21 H1 FY22 H1 FY20 H1 FY21 H1 FY22 H1 FY20 H1 FY21 H1 FY22 Ret
Slide 9: Income Statement
INCOME STATEMENT STRONG REVENUE GROWTH ENABLING RE-INVESTMENT IN STRATEGIC PRIORITIES Record revenue result A$M H1FY20 H1FY21 H1FY22 ■ Revenue up 18% on PCP to $113.1m; 2-year CAGR of 47% Revenue 52.0 96.2 113.1 ■ Average Order Value (AOV) up 5.4% on PCP to $106.71 and Average Order Frequency (AOF)
Slide 10: Balance Sheet
BALANCE SHEET WELL-FUNDED FOR GROWTH, CAPITAL EFFICIENT A$M as at 30 June 2021 31 Dec 2021 ■ Well-funded with a closing cash balance of $25.1 million and no Cash and cash equivalents 29.0 25.1 debt Inventory 14.9 21.9 ■ Capital efficient business model Other current assets 3.7 5.1 Other assets (non-
Slide 11: H1 FY22 Strategic Priorities Progress
H1 FY22 STRATEGIC PRIORITIES PROGRESS Results Presentation | H1 FY21 11
Slide 12: Mobile App Exceeding Expectations
MOBILE APP EXCEEDING EXPECTATIONS HIGHER LEVELS OF ENGAGEMENT, CONVERSION & AOV ■ Native iOS and Android mobile app launched in FY21; built in a content- first way to engage, retain and grow customer LTV ■ Scaling user base contributed 5.6% of revenue in Q1, increasing to 7.9% in Q2 ■ Driving higher
Slide 13: Investing in 'Owned' Marketing Channels
INVESTING IN ‘OWNED’ MARKETING CHANNELS CONTENT FOCUS SHOWING STRONG EARLY RESULTS IN REDUCING RELIANCE ON PAID CHANNELS H1 FY22 OWNED MARKETING HIGHLIGHTS CONTENT DRIVEN IMPRESSIONS (MILLION) ■ Disciplined investment in content engagement, brand building, and +16.5% growing organic channels, is sho
Slide 14: Operational Initiatives Supporting Scale and Results
OPERATIONAL INITIATIVES SUPPORTING SCALE AND RESULTS HIGH LEVELS OF CUSTOMER SATISFACTION AND RETENTION REVENUE CONTRIBUTION BY NEW & RETURNING KEY H1 FY22 ACHIEVEMENTS CUSTOMERS (A$ MILLION) ■ Owned inventory and customer fulfilment centre enables responsive management of customer volumes and stock
Slide 15: Leading the Way in Sustainability & Diversity
LEADING THE WAY IN SUSTAINABILITY & DIVERSITY DIVERSE REPRESENTION AND REDUCING ENVIRONMENTAL FOOTPRINT KEY H1 FY22 ACHIEVEMENTS DIVERSITY AND • Recognised as an Inclusive Employer by the Diversity INCLUSION Council of Australia • Industry-leading representation of women in leadership; majority wome
Slide 16: Strategy and Outlook
STRATEGY AND OUTLOOK Results Presentation | H1 FY21 16
Slide 17: Operating in $11.2B Beauty and Personal Care Market
OPERATING IN $11.2B BEAUTY AND PERSONAL CARE MARKET MARKET LEADER IN FASTEST GROWING SEGMENT ■ Beauty and Personal Care (BPC) in Australia is an Early in the online adoption curve and Large addressable market $11.2b market, with forecast CAGR of +3.8% to undergoing accelerated structural shift 20241
Slide 18: Integrated Content and E-commerce Platform
INTEGRATED CONTENT AND E-COMMERCE PLATFORM CONTENT, RANGE & EXCEPTIONAL CUSTOMER EXPERIENCE A SIGNIFICANT COMPETITIVE MOAT COMBINES MEDIA AND E- COMMERCE IN AN INTEGRATED PLATFORM ENGAGING CONTENT OWNING THE FULFILMENT THROUGH A SEAMLESS DESTINATION FOR BEAUTY DISCOVERY ECOMMERCE EXPERIENCE Results
Slide 19: Focused on Growing Market Share
FOCUSED ON GROWING MARKET SHARE AND CEMENTING ONLINE MARKET LEADERSHIP STRATEGIC PRIORITY FOCUS AREAS 1 • Build compelling product range and deepen brand RANGE partnerships AUTHORITY • Launch and scale private label 2 BEST ONLINE • Improve user experience and site conversion TRANSACTION • Expand dat
Slide 20: We Are Pursuing a Growth Strategy
WE ARE PURSUING A GROWTH STRATEGY INVESTING IN STRATEGIC INITIATIVES TO GROW FASTER THAN THE MARKET Short / mid term Longer term SUSTAINABLE GROWTH / WIN THE MARKET LEVERAGE SCALE / GROW PROFIT ■ Increase share in core and adjacent product and service categories ■ Maintain market leadership position
Slide 21: FY22 Outlook
FY22 OUTLOOK ■ Adore Beauty continues to benefit from the structural shift to online, which combined with new customer growth, high levels of retention, and growing brand awareness, strongly positions the Company for future growth. ■ The overall positive trading momentum seen in the first half has c
Slide 22: Market Leadership in Online Beauty
MARKET LEADERSHIP IN ONLINE BEAUTY WITH A SIGNIFICANT GROWTH OPPORTUNITY SUPPORTED BY STRUCTURAL TAILWINDS UNIQUE, SUSTAINABLE BUSINESS MODEL Strong start to Market leader1 in a large FY22 with addressable multiple record market with a trading days & Range significant strong AOV authority growth gro
Slide 23: Questions
QUESTIONS Results Presentation | H1 FY21 23
Slide 24: Appendix
APPENDIX Results Presentation | H1 FY21 24
Slide 25: Proforma Adjustments to Statutory Income Statement
PROFORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT Statutory Actual Pro-forma Actual A$M H1 FY20 H1 FY21 H1 FY22 A$M H1 FY20 H1 FY21 H1 FY22 H1 FY20 H1 FY21 H1 FY22 Statutory NPAT (3.2) 2.5 2.0 Revenue 52.0 96.2 113.1 52.0 96.2 113.1 IPO and listing costs2 0.0 5.3 Cost of sales (35.8) (64.9) (75.7)
Slide 26: Disclaimer
DISCLAIMER This presentation has been prepared by Adore Beauty Group Limited ACN 636 138 988 An investor must not act on the basis of any matter contained in this presentation but (Company). This presentation contains summary information about the Company and must make its own assessment of the Grou
Slide 27: Results Presentation | H1 FY21
Results Presentation | H1 FY21 27