Adore Beauty Group Ltd. · ASX:ABY
Adore Beauty — H1 FY21 Earnings Presentation
34 slides from Adore Beauty's earnings presentation, Feb 23, 2021
Slide 1: Results Presentation | H1 FY21
RESULTS PRESENTATION | H1 FY21 Results Presentation | H1 FY21 1
Slide 2: Record Half, Exceeded Prospectus Forecast
RECORD HALF, EXCEEDED PROSPECTUS FORECAST H1 FY21 Summary $96.2M 32.5% Record half Market leader5 REVENUE GROSS PROFIT MARGIN exceeding +85% ON PCP +1.4 PPTs ON PCP in a large addressable prospectus +8% ON PROSPECTUS1 +0.5 PPTs ON PROSPECTUS forecast1 with market with a significant strong active gro
Slide 3: Delivered Strong Performance in Key Operational Metrics
DELIVERED STRONG PERFORMANCE IN KEY OPERATIONAL METRICS CUSTOMER SATISFACTION (NPS1) ACTIVE CUSTOMERS2 (‘000) RETENTION3 R Returning Customers New Customers +82% 777 +4.2 pts 90 497 +82 427 80 65.5% 61.3% 70 251 60 280 176 50 CY19 CY20 FY20 CY20 1. The Net Promoter Score is ascertained by sending an
Slide 4: Delivered Continued Strong Performance in the Metrics We Care Most About
DELIVERED CONTINUED STRONG PERFORMANCE IN THE METRICS WE CARE MOST ABOUT #1 260+ 2 COUNTRIES PUREPLAY ONLINE BEAUTY 10.8k+ CURRENTLY OPERATE IN RETAILER IN AUSTRALIA1 BRANDS2 PRODUCTS2 AUSTRALIA AND NEW ZEALAND 4.9/5 82/100 777k+ 65.5% 46.6m+ 1.2m 1 day GOOGLE RATING SAME DAY 4PM NET PROMOTER ACTIVE
Slide 5: Market Opportunity
MARKET OPPORTUNITY Results Presentation | H1 FY21 5
Slide 6: Who We Are
WHO WE ARE Premium Brand Portfolio SKINCARE HAIR Overview ■ Australia's number one pureplay online beauty retailer1 MAKE UP ■ Founded in 2000, entered the New Zealand market in 2019 and listed on the ASX in October 2020 ■ Disrupted the traditional beauty model by transforming the online beauty shopp
Slide 7: Large, Highly Engaged Customer Base
LARGE, HIGHLY ENGAGED CUSTOMER BASE POWERED BY A STRONG CONTENT AND SOCIAL PLATFORM CY20 TRAFFIC AND DATABASE HIGHLIGHTS WEBSITE USERS (‘000) Australia NZ 23 1.5 DIGITAL CONTENT 18.5 46.6m website sessions1 2.4 million Beauty IQ Launched Mobile App content impressions1 1.3 in November 2020 1.4 milli
Slide 8: Large and Growing Addressable Market
LARGE AND GROWING ADDRESSABLE MARKET SUPPORTED BY STRUCTURAL TAILWINDS Adore Beauty is a market leader in the BPC market in Australia, and has a strong track record of growing faster than the market ■ Beauty and personal care (BPC) market in Australia is $11.2bn, with AUSTRALIAN BEAUTY AND PERSONAL
Slide 9: Accelerated Structural Shift to Online
ACCELERATED STRUCTURAL SHIFT TO ONLINE COVID-ACCELERATED ONLINE PENETRATION… DRIVING STRONG ONLINE GROWTH AND A SHIFT AWAY FROM BRICKS & MORTAR Australian Online BPC Retail Penetration1 Australian Online BPC market size (A$bn)1 3.2 24.9% US Online BPC retail penetration UK Online BPC retail penetrat
Slide 10: Record HY Performance
RECORD HY PERFORMANCE Results Presentation | H1 FY21 10
Slide 11: H1 Delivered Strong Performance in All Financial Metrics
H1 DELIVERED STRONG PERFORMANCE IN ALL FINANCIAL METRICS, EXCEEDING PROSPECTUS FORECAST REVENUE1 ($A MILLION) GROSS PROFIT MARGIN (%) EBITDA MARGIN2 (%) New Returning +85% +1.4 PPTS +1.9 PPTS +8% 96 +0.5 PPTS +1.7 PPTS 89 61 58 52 31.1 31.9 32.5 5.4 33 3.5 3.7 31 36 19 H1 FY20 H1 FY21 Prospectus H1
Slide 12: Income Statement
INCOME STATEMENT Adore Beauty delivered record H1 FY21 performance with strong growth exceeding prospectus forecast Record revenue ahead of prospectus forecast A$M H1 FY20 H1 FY21 ■ Revenue of $96.2m, 8% ahead of prospectus forecast of $89M1, up 85% on PCP Revenue 52.0 96.2 ■ Average order value (AO
Slide 13: Balance Sheet
BALANCE SHEET Adore Beauty is built on a debt-free and cash flow positive business model A$M as at 30 June 2020 31 December 2020 ■ Strong balance sheet with a closing balance of $25.9m and no debt Cash and cash equivalents 16.6 25.9 Inventory 14.7 15.5 ■ Adore’s business model is highly capital effi
Slide 14: Strong Track Record of Growth
STRONG TRACK RECORD OF GROWTH IN ALL KEY PERFORMANCE INDICATORS Pro forma historical FY18 FY19 CY19 FY20 CY20 (Actual) # new customers (‘000) 189 212 251 371 497 # retained customers (‘000) 87 146 176 219 280 # total active customers (‘000)1 276 358 427 590 777 Active customer retention2 55.6% 53.0%
Slide 15: We Are Pursuing a Balanced Growth Strategy
WE ARE PURSUING A BALANCED GROWTH STRATEGY, WITH OPERATING LEVERAGE TO COME OVER TIME WITH SCALE BENEFITS Short / mid term Longer term SUSTAINABLE GROWTH / WIN THE MARKET LEVERAGE SCALE / GROW PROFIT ■ Focus on increasing share in core categories, and expanding into adjacent categories ■ Continue to
Slide 16: Online Destination of Choice
ONLINE DESTINATION OF CHOICE Results Presentation | H1 FY21 16
Slide 17: Providing an Exceptional Customer Experience
PROVIDING AN EXCEPTIONAL CUSTOMER EXPERIENCE IS OUR TOP PRIORITY Relentless focus on customer experience has delivered consistently strong levels of customer satisfaction notwithstanding growing customer volumes and COVID-19 challenges H1 Achievements H2 Focus Areas CUSTOMER ■ Business model with ow
Slide 18: Delivered Strong Growth in Customer and Revenue Metrics
DELIVERED STRONG GROWTH IN CUSTOMER AND REVENUE METRICS ANNUAL REVENUE REVENUE CONTRIBUTION BY CUSTOMER COHORT ($A MILLION) PER ACTIVE CUSTOMER1 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 +3.4% 120 $213 $206 100 $204 80 $192 60 $178 40 20 H1FY17 H2FY17 H1FY18 H2F
Slide 19: Data-Driven Investment in Customer Acquisition
DATA-DRIVEN INVESTMENT IN CUSTOMER ACQUISITION Adore Beauty’s marketing strategy is to grow market share through increasing brand awareness, driving new customer acquisition, and increasing customer retention and lifetime value LTV / CAC1 - RETURN ON CUSTOMER ACQUISITION COSTS ■ Marketing and Advert
Slide 20: Strategic Initiatives and Outlook
STRATEGIC INITIATIVES AND OUTLOOK Results Presentation | H1 FY21 20
Slide 21: Strong Progress on Our Long-Term Growth Strategy
STRONG PROGRESS ON OUR LONG-TERM GROWTH STRATEGY We are executing on a clear strategy based on sustainably growing market share from a position of strength through driving brand awareness, new customer acquisition and returning customer retention KEY INITIATIVE PROGRESS SINCE IPO Grow brand awarenes
Slide 22: H1 FY21 Strategic Initiatives – Brand Awareness Campaign
H1 FY21 STRATEGIC INITIATIVES – BRAND AWARENESS CAMPAIGN Extension of TV campaign coupled with strong performance in key social channels increased brand awareness by 33% to 52% H1 FY21 MARKETING HIGHLIGHTS BRAND AWARENESS DIGITAL CONTENT 60% WEBSITE MOBILE APP EMAIL LIVE CHAT & PODCAST BEAUTY BLOG +
Slide 23: H1 FY21 Strategic Initiatives – Mobile App Launch
H1 FY21 STRATEGIC INITIATIVES – MOBILE APP LAUNCH Continue to leverage data to innovate the digital shopping experience - successfully launched the first phase of the Adore Beauty Mobile App LAUNCH AND DEVELOPMENT KEY FEATURES ■ Mobile App was built in content-first way to ■ Soft launched in Novembe
Slide 24: H1 FY21 Strategic Initiatives – Private Label Development
H1 FY21 STRATEGIC INITIATIVES – PRIVATE LABEL DEVELOPMENT ■ In December 2020 we launched a pilot project featuring six Adore Beauty branded products including cosmetic bags and facial rollers / gua sha ■ We are leveraging a combination of joint venture and agencies to progress the projects at speed,
Slide 25: Trusted Partnerships with Brands Underpin Our Strategy
TRUSTED PARTNERSHIPS WITH BRANDS UNDERPIN OUR STRATEGY H1 FY21 BRAND PARTNER HIGHLIGHTS ■ Expanded diverse brand portfolio - onboarded 33 new brands, including Nak haircare, Trophy Skin and Build out range authority Grown Alchemist ■ Built out adjacent Fragrance category which grew to 3.3% of sales,
Slide 26: Setting Up the Business for Future Growth
SETTING UP THE BUSINESS FOR FUTURE GROWTH Our strategic priorities position the business for sustainable long-term growth SIZE OF MARKET OPPORTUNITY New business lines, New geographies Adjacent Categories Offline Beauty & Personal Care $9.9 billion1 Online Beauty & Personal Care $1.3 billion1 HORIZO
Slide 27: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK ■ Adore Beauty experienced record levels of growth in the first half of FY21. As COVID-19 related restrictions ease we expect to deliver full year FY21 revenue growth above pre-COVID levels given the continued structural shift to online and strong retention of new customer
Slide 28: Adore Beauty is Australia's #1 Pureplay Online Beauty Retailer
ADORE BEAUTY IS AUSTRALIA’S #1 PUREPLAY ONLINE BEAUTY RETAILER WITH A SIGNIFICANT GROWTH OPPORTUNITY SUPPORTED BY STRUCTURAL TAILWINDS Market leader1 in a large, addressable ■ Adore Beauty’s online market leadership1 positions us to capture market share in a large and growing market with significant
Slide 29: Questions
QUESTIONS Results Presentation | H1 FY21 29
Slide 30: Appendices
APPENDICES Results Presentation | H1 FY21 30
Slide 31: Market Leadership in Online Beauty
MARKET LEADERSHIP IN ONLINE BEAUTY Adore Beauty has a unique customer value proposition • 260+ brands and 10.8k+ products (incl. exclusives) • Compelling range in Australia and New Zealand: premium, salon and niche • Beauty destination: Able to provide brands with access to Range a large, engaged cu
Slide 32: Proforma Adjustments to Statutory Income Statement
PROFORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT Statutory Actual Pro-forma Actual A$M 1HFY20 1HFY21F A$M 1HFY20 1HFY21F 1HFY20 1HFY21F Statutory NPAT (3.2) 2.5 Revenue 52.0 96.2 52.0 96.2 IPO and listing costs2 - 5.2 Cost of Sales (35.8) (64.9) (35.8) (64.9) One-off transaction costs3 3.7 0.7 Gro
Slide 33: 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 34: Results Presentation | H1 FY21
Results Presentation | H1 FY21 34