Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2023 Earnings Presentation
30 slides from Shaver Shop's earnings presentation, Aug 22, 2023
Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 22 AUGUST 2023 Transform Yourself
Slide 2: Contents
CONTENTS 01 FY23 HIGHLIGHTS 05 Appendices 02 DETAILED FINANCIAL RESULTS 03 FY24 PRIORITIES 04 TRADING UPDATE & OUTLOOK 2
Slide 3: FY23 Highlights
01 FY23 HIGHLIGHTS 3
Slide 4: FY23 Financial Highlights
FY23 Financial Highlights Sales up 0.8%% to Record gross profit margin Net profit after tax up 0.8% to Operating cash flow 224.5m 44.5% 16.8m 32.3m up 34.1% on pre-COVID (FY19) up 60bps on FY22 up 128% on pre-COVID (FY19) up 14.1% ($4.0m) on FY22 normalized NPAT Basic earnings per share (EPS) FY23 d
Slide 5: FY23 Operational Highlights
FY23 Operational Highlights Total transaction volume Online transactions fulfilled Net Promote Score (NPS) Ending stock levels (per store) 2.53m 378k 88.6 c180k New greenfield stores Click & collect Cost of Doing Business Marketing & advertising 2 13.4% 26.2% 3.2% of total online fulfilments % of to
Slide 6: Sales trends
5 Year Growth Trend ($m) Sales trends $194.9 $213.7 $222.8 $224.5 $167.4 SHAVER SHOP DELIVERED RECORD SALES OF $224.5M UP 0.8% VS FY22 > In-store sales recovered strongly (up 18.0% or $26.5m) as shoppers returned to traditional bricks & mortar shopping – Centre foot traffic remains well below pre-pa
Slide 7: Record gross profit and gross margins
Record gross profit and gross margins 5 Year Growth Trend ($m) $97.7 $99.9 $94.7 GROSS PROFIT OF ALMOST $100M WITH MARGINS UP $81.6 60BPS TO 44.5% $70.3 > Exclusive to Shaver Shop lines continue to deliver compelling customer value and strong profitability to SSG > Deliberate strategy to balance vol
Slide 8: Exclusive lines continue to perform
Exclusive lines continue to perform Almost 50% of sales and approximately 57% of gross Exclusive vs Non-Exclusive profit ($) were derived from lines exclusively sold at Contribution Shaver Shop in FY23 100% 90% > Shaver Shop offers a differentiated and highly relevant range of personal care and groo
Slide 9: Detailed Financial Results
02 DETAILED FINANCIAL RESULTS 9
Slide 10: Profit & loss
Profit & loss Profit & Loss Reported Reported Variance Variance A$ millions FY2023 FY2022 ($) (%) Sales 224.5 222.7 1.8 0.8% RECORD SALES, GP AND GP% RESULTS IN FY23 Gross profit 99.9 97.7 2.2 2.3% > Total sales up 0.8% to $224.5m Gross margin % 44.5% 43.9% 0.6% 1.5% – In-store sales up $26.5m to $1
Slide 11: Sales up 0.8% to $224.5m
Sales up 0.8% to Sales trend (in-store & online) $224.5m 250.0 40.0% 35.0% 200.0 RETURN TO TRADITIONAL IN-STORE SHOPPING HABITS 34.0% 30.0% AND STRONG SALES CONVERSION DROVE RECORD IN- 28.8% 25.0% Sales ($m) 150.0 STORE SALES 22.7% 22.7% 20.0% 100.0 15.0% > Personal care and grooming categories lend
Slide 12: CODB relatively flat at 26.2% of sales
CODB as a % of Total Sales CODB relatively flat at 26.2% of sales (up 40bps) 30.0% FY23 operating expenses as % of sales more reflective 25.0% 2.2% 1.7% 1.4% 1.4% of normal operations (prior 3 years - COVID-impacted) 4.2% 4.5% 4.6% 5.0% > Employment expenses increasing to 16.0% of sales reflects: 20
Slide 13: NPAT and EPS remained strong
NPAT and EPS remained strong SECOND HIGHEST NPAT RESULT IN SSG’S HISTORY BASIC EPS OF 13.1 CENTS PER SHARE WITH CASH AT $16.8M (UP 0.8% ON FY22) EPS OF 13.9 CENTS (UP FROM 7.4 CENTS IN FY2019 – PRE COVID) 15.5 1.4 14.2 13.9 1.0 0.8 9.5 1.0 7.4 17.5 16.7 16.8 1.3 14.2 13.2 13.1 10.4 8.5 7.4 6.0 FY19
Slide 14: Conservatively geared balance sheet
Conservatively geared balance sheet AASB 16 AASB 16 Net cash of $13.5M at 30 June 23 (no debt) A$ millions 30-Jun-23 30-Jun-22 Variance > Shaver Shop continues to maintain a very prudent financial position Cash 13.5 9.4 4.1 given costs of living pressures impacting consumer demand > Stock levels end
Slide 15: Operating cash flow up 14.1% to $32.3m
Operating cash flow up 14.1% to $32.3m A$ millions FY23 FY22 Variance Strong operating cashflow allowed continued investment into SSG operations and $12.8m to NPAT 16.8 16.7 0.1 returned to shareholders through fully franked Non-cash items: dividends Depreciation and amortisation expense 15.3 14.4 0
Slide 16: Attractive Capital Returns
ATTRACTIVE CAPITAL RETURNS FINAL DIVIDEND MAINTAINED AT 5.5 CENTS FULLY- FRANKED – FY23 DIVIDENDS UP 2.0% TO 10.2 CENTS 12.0 10.0 8.0 5.5 5.5 6.0 5.0 4.0 2.5 2.7 2.0 4.5 4.7 3.2 2.0 2.1 0.0 FY19 FY20 FY21 FY22 FY23 Interim/special dividend (cps) Final dividend (cps) BALANCING FISCAL PRUDENCE WHILE I
Slide 17: FY24 Priorities
03 FY24 PRIORITIES 17
Slide 18: FY24 Priorities
FY24 Priorities > Focus on key controllable metrics including: NPS, sales conversion, basket size and units per transaction and gross profit > Continue social media progress with increased number of relevant and relatable posts targeted at the younger demographic > Upgrade components of our “tech st
Slide 19: Trading Update & Outlook
04 TRADING UPDATE & OUTLOOK 19
Slide 20: Trading Update and Outlook
Trading Update and Outlook > Consistent with many other retailers, Shaver Shop is cycling very strong trading results from Q1 FY23 (up 17.5% on Q1 FY22) > Total sales for the period from 1 July 23 to 19 August 23 (year to date – YTD) versus the comparative period last year and pre- COVID (FY20) are
Slide 21: Investment Summary
Investment Summary Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation Products range is applicable to almost all demographics COVID-19 has accelerated DIY personal care adoption and introduced new customers to Shaver Sho
Slide 22: Appendices
05 APPENDICES 22
Slide 23: Key Metrics
Key Metrics Reported Reported Comparable Accounting (AASB 16) FY2023 FY2022 Number of corporate stores (30 June)* 123 121 Number of franchise stores - - Total stores 123 121 Corporate store sales ($m) 224.5 222.7 Franchise store sales ($m) - - Total network sales ($'000) 224.5 222.7 Corporate store
Slide 24: 5 Year Profit & Loss Summary
5 Year Profit & Loss Summary 24
Slide 25: 5 Year Half Yearly Profit & Loss Summary
5 Year – Half Yearly Profit & Loss Summary 25
Slide 26: 17 Year Total Network Sales Summary
17 Year Total Network Sales Summary (includes franchisee sales from ’07 to ‘21) 250.0 200.0 Network Sales ($m) 150.0 100.0 50.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Core business sales Daigou Sales 26
Slide 27: Remaining Franchise Buyback Tax Benefit
Remaining Franchise Buyback Tax Benefit Shaver Shop receives a tax deduction over five years for the cost of franchise right terminations that occurred through its franchise buy-back program. All franchises have not been bought back. The tax deduction improves operating cash flow for the Group by re
Slide 28: Shaver Shop Store Network (current)
Shaver Shop Store Network (current) TOTAL August 2023: 122 stores Target: 130-135 stores Northern Territory 1 store Queensland 26 stores Western Australia 16 stores New South Wales 32 stores South Australia ACT 7 stores 4 stores Victoria 26 stores New Zealand 8 stores Tasmania 2 stores 28
Slide 29: Important notice and disclaimer
Important notice and disclaimer This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at the date of this Prese
Slide 30: Thank you
Thank you