Dusk Group Ltd. · ASX:DSK
Dusk — Investor Presentation (August 2021)
21 slides from Dusk's investor presentation, Aug 27, 2021
Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION 27 August 2021 Peter King (CEO) & Kate Sundquist (CFO) |0
Slide 2: FY21 Summary
FY21 Summary RECORD SALES PERFORMANCE ▪ Sales of $148.6m +47.4% ▪ Total LFL1 sales +32.7% OMNI-CHANNEL STRATEGY DELIVERING ▪ Online sales $11.2m +27.0% – Represents 7.5% of total sales EXCEPTIONAL GROSS MARGIN ▪ Gross margin up 54.4% to $101.3m (up 308 bps to 68.2%) PRO FORMA EBIT2 +224.7% TO $38.4m
Slide 3: Profit and Loss
Profit and Loss RECORD SALES AND PROFIT PRO FORMA RESULTS ▪ Total sales +47.4% $M FY20 FY21 % Change ▪ LFL sales growth of +32.7% Revenue 100.8 148.6 47.4% ▪ Significant periods of store closures across multiple States (especially Victoria) due to Gross profit 65.6 101.3 54.4% COVID-19 Gross profit
Slide 4: Sales
Sales Record sales underpinned by strong LFL sales growth and new stores opened and annualising SALES ($M) AND LFL SALES GROWTH COMMENTARY 6.0% 12.7% 7.9% 17.5% 32.7% ▪ Outstanding LFL sales growth 148.6 – +32.7% total LFL sales growth – +32.9% store LFL sales growth 100.8 – +27.0% online sales grow
Slide 5: Sales Growth by Category
Sales Growth by Category dusk is growing strongly across all categories and increasing mix towards high-margin ‘consumable products’ SALES BY CATEGORY SALES GROWTH BY CATEGORY 45% 54% 30% 32% 69% 67% 80.0% 49.2 47.6 55.00 non-candle sales 70.0% 10.3% 45.00 60.0% 33.8 50.0% 13.4% 33.1% 35.00 30.8 40.
Slide 6: Online Channel
Online Channel Another step change in the performance of dusk’s online channel – sales +27% on pcp ONLINE SALES ($M) COMMENTARY 18.067% CAGR 27% 16.0 growth ▪ Online sales $11.2m, up 27.0% 14.0 ▪ Online penetration at 7.5% 12.0 11.2 10.0 8.8 ▪ Key initiatives underway and 8.0 upcoming: 6.0 4.5 4.0 3
Slide 7: Loyalty Rewards Membership Growth
Loyalty Rewards Membership Growth Significant growth in dusk Rewards membership, transactions and sales DUSK REWARDS NEW SIGN-UPS/RENEWALS (000’S)1 DUSK REWARDS SALES ($M) ~688k 49% 55% growth 413 growth members 450 89 at period 400 100 90 end 350 278 80 57 300 70 60 250 50 200 40 30 150 20 100 10 5
Slide 8: Gross Margin and Gross Margin Drivers
Gross Margin and Gross Margin Drivers dusk is generating more transactions at higher values with stronger gross margins COMMENTARY AVERAGE TRANSACTION VALUE (ATV) ($) Gross margin drivers include: Growth driven by dusk Rewards and the introduction of the ▪ Our ability to positively manage pricing an
Slide 9: Cost of Doing Business
Cost of Doing Business Track record of improving operating leverage COMMENTARY PRO FORMA COST OF DOING BUSINESS (CODB) (% OF SALES) 60.0% 60.0% ▪ CODB% decreased, reflecting strong sales growth achieved and benefits 50.4% of fixed cost leverage 50.0% 50.0% ▪ Employee costs set out opposite are 9.7%
Slide 10: Capital Management
Capital Management OPERATING CASH FLOW STRONG BALANCE SHEET ▪ Cash conversion of earnings since IPO has been strong ▪ Inventory position clean and stock levels restored to ‘normal’ ▪ Terms of trade with suppliers continue to be refined delivering trading levels superior outcomes ▪ Stock turns and GM
Slide 11: Generating Sustainable Future Growth
Generating Sustainable Future Growth Targeting long-term growth by leveraging core competencies to grow market share KEY DRIVER COMMENTARY ▪ 688,000 active dusk Rewards members and growing (525,000 vs pcp) ▪ $10 fee maintained for a 2 year membership period PAY-TO-PLAY ▪ Members contribution represe
Slide 12: Trading Update and Outlook
Trading Update and Outlook YTD TRADING UPDATE FY22 OUTLOOK For the first seven weeks of FY22: ▪ While the duration of the current lockdowns is unknown, we expect it to ultimately represent a temporary disruption to our ▪ Extensive disruptions have resulted in ~35% of potential trading business days
Slide 13: Questions?
Questions ? 12
Slide 14: Appendix
Appendix 13 | 13
Slide 15: National Store Network
National Store Network STORE NETWORK NET STORE OPENINGS 122 Stores 1 30 17 1 11 10 10 9 7 33 3 26 Physical stores 4 (1) (1) Online store (3) (3) ▪ Opened 10 new stores in FY21 – 3 in QLD, 2 in WA, 2 in FY17 FY18 FY19 FY20 FY21 NSW, and 1 in VIC, SA and Tasmania ▪ Secured 7 new stores for FY22 – 2 in
Slide 16: Like for Like Sales Performance
Like for Like Sales Performance dusk has delivered 17 consecutive quarters of LFL sales growth from Q4 FY17 to Q3 FY21 QUARTERLY LFL SALES – FY18 to FY21 FY18 FY19 FY20 FY21 12.7% 7.9% 17.5% 32.7% - Cycling +70.8% 70.8% - NSW Bondi cluster 64.8% emerging - VIC snap lockdown again 43.2% 44.5% Average
Slide 17: Pro Forma Profit and Loss
Pro Forma Profit and Loss PRO FORMA1 RESULTS $M FY20 FY21 Revenue 100.8 148.6 Cost of sales (35.2) (47.3) Gross profit 65.6 101.3 Employee expenses (25.3) (31.7) Occupancy expenses (15.7) (16.3) Other expenses (9.8) (11.9) Cost of doing business (CODB) (50.8) (59.9) EBITDA 14.8 41.4 Depreciation (2.
Slide 18: Pro Forma Adjustments
Pro Forma Adjustments PRO FORMA ADJUSTMENTS TO THE STATUTORY RESULTS $M FY20 FY21 Statutory EBITDA 30.7 48.6 Impact of AASB16 (12.6) (13.6) Rental concessions received (1.0) (0.3) Net JobKeeper benefit (2.3) - Public company costs (0.7) - IPO costs 0.7 6.6 Pro forma EBITDA 14.8 41.4 Statutory NPAT 9
Slide 19: Pro Forma Cash Flows
Pro Forma Cash Flows PRO FORMA1 RESULTS $M FY20 FY21 Pro forma EBITDA 14.8 41.4 Capex (4.4) (3.8) Change in Inventory 3.4 (5.8) Change in Trade Creditors 2.6 (2.5) Change in Other Working Capital Items 0.3 4.8 Net Cashflow before financing and tax 16.7 34.1 Cashflow : EBITDA Conversion % 113% 82% Co
Slide 20: Balance Sheet
Balance Sheet BALANCE SHEET AS AT 27 JUNE 2021 $M 2020 2020 2021 Statutory Pro Forma1 Statutory Current assets Cash 28.4 5.0 21.4 Trade and other receivables 2.9 2.9 0.7 Inventories 8.6 11.2 14.4 Right of return assets 0.3 0.3 0.4 Prepayments 0.7 0.7 1.0 Total current assets 40.9 20.1 37.9 Non-curre
Slide 21: Disclaimer
Disclaimer This presentation has been prepared by Dusk Group Limited (‘dusk’). It is general information on dusk and its subsidiaries (‘dusk Group’) current as at 27 August 2021. It is in summary form and is not necessarily complete. It should be read together with the company’s consolidated financi