Adore Beauty Group Ltd. · ASX:ABY
Adore Beauty — FY2021 Earnings Presentation
30 slides from Adore Beauty's earnings presentation, Aug 30, 2021
Slide 1: Results Presentation FY21
RESULTS PRESENTATION | FY21 30 August 2021 Results Presentation | H1 FY21 1
Slide 2: Record FY21 Full Year Results
RECORD FY21 FULL YEAR RESULTS OUTPERFORMING GUIDANCE $179.3M 33.1% Market leader4 Record year outperforming REVENUE GROSS PROFIT in a large addressable guidance5 +48% ON PCP MARGIN including two +57% FY19-FY21 CAGR +1.2 PPTs ON PCP market with a significant record trading growth days in May opportun
Slide 3: Market Leadership in Online Beauty
MARKET LEADERSHIP IN ONLINE BEAUTY OPERATING IN A LARGE AND GROWING MARKET Early in the online adoption curve and Australia’s leading pureplay online beauty Operating in a large addressable market undergoing accelerated structural shift retailer2 with strong track record of growth AUSTRALIAN BEAUTY
Slide 4: Sustained Growth Across All Customer Metrics
SUSTAINED GROWTH ACROSS ALL CUSTOMER METRICS GROWING ACTIVE CUSTOMER BASE WHILE EXPANDING SHARE OF WALLET ACTIVE CUSTOMERS1 (‘000) ANNUAL REVENUE PER ACTIVE CUSTOMER1 Returning Returning New customers New customers +4% CAGR +51% CAGR +7% +39% $219 $204 $206 818 590 458 358 371 212 360 219 146 FY19 F
Slide 5: Retention Continues to Perform Strongly
RETENTION CONTINUES TO PERFORM STRONGLY LOYALTY-DRIVEN BUSINESS MODEL DELIVERING EXCEPTIONAL CUSTOMER RETENTION NUMBER OF CUSTOMERS ■ The COVID lockdowns drove a spike in new customer acquisition and returning customer repurchase New Returning 250 ■ Post lockdown, underlying growth in new and return
Slide 6: Delivered on Key FY21 Strategic Priorities
DELIVERED ON KEY FY21 STRATEGIC PRIORITIES OUTCOMES DRIVING IMPROVEMENTS ACROSS KEY METRICS STRATEGIC PRIORITY FY21 OUTCOMES DELIVERED Grow brand awareness and owned marketing channels Grew brand awareness from 39% to 58%1 Aim to reach the millions that haven't yet heard of us; increase Grew owned m
Slide 7: Record FY Performance
RECORD FY PERFORMANCE Results Presentation | H1 FY21 7
Slide 8: Record Financial Performance
RECORD FINANCIAL PERFORMANCE OUTPERFORMING GUIDANCE1 REVENUE ($A MILLION) GROSS PROFIT MARGIN (%) EBITDA2 ($A MILLION) +57% CAGR +3.1 PPTS +116% CAGR +48% +1.2 PPTS +53% 179 68 121 53 33.1 7.6 73 31.8 31 111 5.0 68 30.0 42 1.6 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Returning New Strong track r
Slide 9: Income Statement
INCOME STATEMENT RECORD REVENUE; AHEAD OF EXPECTATIONS Record revenue, outperforming guidance A$M FY20 FY21 % mvmt ■ Revenue of $179.3m, up 48% on PCP1 Revenue 121.1 179.3 48% ■ Average order value (AOV) was 1.8% up on PCP at $102.3 and Average Order Frequency (AOF) was in line with PCP at 2.1 Cost
Slide 10: Balance Sheet
BALANCE SHEET DEBT-FREE AND CASH FLOW POSITIVE BUSINESS, WELL POSITIONED TO GROW A$M as at 30 June 2020 30 June 2021 ■ Strong balance sheet with a closing cash balance of $29.0 million Cash and cash equivalents 16.6 29.0 and no debt Inventory 14.7 14.9 ■ Adore’s business model is highly capital effi
Slide 11: We Are Pursuing a Growth Strategy
WE ARE PURSUING A GROWTH STRATEGY WITH OPERATING LEVERAGE TO COME OVER TIME WITH SCALE BENEFITS Short / mid term Longer term SUSTAINABLE GROWTH / WIN THE MARKET LEVERAGE SCALE / GROW PROFIT ■ Increase share in core and adjacent product and service categories ■ Maintain market leadership position Rev
Slide 12: FY21 Operational Highlights
FY21 OPERATIONAL HIGHLIGHTS Results Presentation | H1 FY21 12
Slide 13: Operational Initiatives Driving Results
OPERATIONAL INITIATIVES DRIVING RESULTS HIGH LEVELS OF CUSTOMER SATISFACTION AND RETENTION CUSTOMER SATISFACTION REVENUE CONTRIBUTION BY NEW & KEY FY21 ACHIEVEMENTS RETURNING CUSTOMERS (A$ MILLION) ■ Owned inventory and customer fulfilment centre enabled responsive Returning Returning New New manage
Slide 14: Customer Lifetime Value Is Strong & Growing
CUSTOMER LIFETIME VALUE IS STRONG & GROWING UNDERPINNED BY DATA-DRIVEN INVESTMENT IN CUSTOMER ACQUISITION Marketing and advertising costs are an investment in customer ■ FY18 – FY21 AVERAGE LTV/CAC1 BY YEAR acquisition and engagement ■ Key ratio used to measure effectiveness is LTV (Lifetime Value)
Slide 15: Investing in 'Owned' Marketing Channels
INVESTING IN ‘OWNED’ MARKETING CHANNELS CONTENT IS CREATING A LOYAL, HIGHLY ENGAGED COMMUNITY FY21 OWNED MARKETING HIGHLIGHTS WEBSITE USERS (millions) DIGITAL CONTENT 25.0 Australia NZ NZ Australia 1.5 WEBSITE MOBILE APP EMAIL LIVE CHAT & PODCAST BEAUTY BLOG SERVICE 18.5 49M SESSIONS1 `$1m REVENUE 9
Slide 16: Driving Retention and Lifetime Value of Customer
DRIVING RETENTION AND LIFETIME VALUE OF CUSTOMER MOBILE APP LAUNCH LAUNCH AND SCALE KEY FEATURES ■ Launched Mobile App H1 FY21 ■ Mobile App was built in content-first way to ■ Driving higher levels of engage, retain and grow customer LTV engagement, conversion and AOV ■ Launched Native Mobile App (b
Slide 17: Sustainability & Diversity
SUSTAINABILITY & DIVERSITY A KEY PRIORITY FOR ADORE BEAUTY AND OUR BRAND PARTNERS DIVERSITY AND • Woman co-founder, woman CEO INCLUSION • Majority women on board and executive team • 82% of manager roles held by women PACKAGING • 100% of packaging and void fill is recycled and recyclable • Replacing
Slide 18: Strategy and Outlook
STRATEGY AND OUTLOOK Results Presentation | H1 FY21 18
Slide 19: Beauty and Personal Care Is an $11 Billion Market
BEAUTY AND PERSONAL CARE IS AN $11 BILLION MARKET EARLY IN THE ONLINE ADOPTION CURVE AND UNDERGOING ACCELERATED STRUCTURAL SHIFT STRONG TAILWINDS FOR FUTURE GROWTH BEAUTY AND PERSONAL CARE ONLINE ADOPTION CURVE1 ■ Beauty and personal care (BPC) market in Australia is $11.2b, with 40% forecast CAGR o
Slide 20: Integrated Media and Ecommerce Platform
INTEGRATED MEDIA AND ECOMMERCE PLATFORM POWERED BY BEAUTYIQ CONTENT COMBINES MEDIA AND ECOMMERCE IN AN INTEGRATED DIGITAL PLATFORM ENGAGING CONTENT OWNING THE FULFILMENT THROUGH A SEAMLESS DESTINATION FOR BEAUTY DISCOVERY ECOMMERCE EXPERIENCE Results Presentation | FY21 H1 FY21 20
Slide 21: Adore Beauty Is Pursuing a Growth Strategy
ADORE BEAUTY IS PURSUING A GROWTH STRATEGY FOCUSED ON THREE STRATEGIC PRIORITIES Transform the beauty shopping experience Our We will help customers feel more confident and fabulous every day by delivering an empowering, engaging aspiration and personalised beauty shopping experience underpinned by
Slide 22: Setting Up the Business for Future Growth
SETTING UP THE BUSINESS FOR FUTURE GROWTH WELL DEFINED STRATEGIC PRIORITIES LAYING THE FOUNDATIONS Our strategic priorities lay the SIZE OF MARKET OPPORTUNITY foundations and position the business for sustainable long-term growth New business lines, New geographies Adjacent Categories Offline Beauty
Slide 23: FY22 Is Focused on Growing Market Share
FY22 IS FOCUSED ON GROWING MARKET SHARE AND CEMENTING ONLINE MARKET LEADERSHIP STRATEGIC PRIORITY FY22 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
Slide 24: FY22 Outlook
FY22 OUTLOOK ■ Adore Beauty continues to benefit from the structural shift to online and ongoing retention of new customers added during COVID. ■ FY22 has started strongly, YTD revenue is up 26% on PCP1 with ongoing COVID-19 lockdowns boosting new customer growth and returning customer spend. We con
Slide 25: Market Leadership in Online Beauty
MARKET LEADERSHIP IN ONLINE BEAUTY WITH A SIGNIFICANT GROWTH OPPORTUNITY SUPPORTED BY STRUCTURAL TAILWINDS UNIQUE, SUSTAINABLE BUSINESS MODEL Record year Market leader1 in a large outperforming addressable guidance2 market with a including two Range significant record trading authority growth days i
Slide 26: Questions
QUESTIONS Results Presentation | H1 FY21 26
Slide 27: Appendix
APPENDIX Results Presentation | H1 FY21 27
Slide 28: Proforma Adjustments to Statutory Income Statement
PROFORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT Statutory Actual Pro-forma Actual A$M FY20 FY21 A$M FY20 FY21 FY20 FY21 Statutory NPAT (1.2) 0.8 Revenue 121.1 179.3 121.1 179.3 IPO and listing costs2 5.3 Cost of sales (82.6) (120.0) (82.6) (120.0) One-off transaction costs3 3.7 0.7 Gross Profit 3
Slide 29: 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 30: Results Presentation | H1 FY21
Results Presentation | H1 FY21 30