Douglas Ag · XETR:DOU
Douglas — Q1 FY2024/25 Earnings Presentation
38 slides from Douglas's earnings presentation, Feb 13, 2025
Slide 1: Financial Results & Business Highlights Q1 FY 2024/25
FINANCIAL RESULTS & BUSINESS HIGHLIGHTS Q1 FY 2024/25 Düsseldorf, 13 February 2025
Slide 2: Agenda
AGENDA 01 Overview 3 02 Q1 Financials 4 03 Strategy Update 18 04 Wrap-up + Q&A 28
Slide 3: Q1 highlights: omnichannel growth, profitable, positive bottom line
PROFITABLE POSITIVE OMNICHANNEL GROWTH BOTTOM LINE DEVELOPMENT Adjusted EBITDA: Net income: Store sales: +1.5% to €353.5m +30.2% to €163.0m +5.7% Reported EBITDA: Free Cash Flow (FCF): E-Com sales: +9.9% to €350.1m +7.6% to €494.5m +6.2% EBITDA margins: Adj.: 21.5% (-0.9ppts) Rep.: 21.3% (+0.8 ppts)
Slide 4: Q1 Financials
MARK LANGER, CFO Q1 FINANCIALS
Slide 5: Further increase in sales
Further increase in sales Q1 starts with solid growth into financial year 2024/25 SALES ADJUSTED EBITDA1 in m€ 1.556 1.646 in m€ 348 354 +5.8% +1.5% +5.3% lfl 22.4% 21.5% MARGINS Q1 2023/24 Q1 2024/25 Q1 2023/24 Q1 2024/25 − Ongoing sales momentum as customers continue to be attracted by − Higher pr
Slide 6: DACHNL Q1 2024/2025
DACHNL Q1 2024/2025 Solid sales development in both channels SALES ADJUSTED EBITDA1 − Sales increase driven by +5.3% (+3.4% lfl) growth in Store business and +7.5% in m€ in m€ in E-Com sales with a slow down since 731 December 688 +6.2% − Sales increase in Stores due to solid increased footfall with
Slide 7: France Q1 2024/2025
France Q1 2024/2025 Increase in sales and EBITDA despite flat market SALES ADJUSTED EBITDA1 − Sales increase driven by E-Com channel (+3.6%) while Store in m€ in m€ business increased by +1.6% 335 342 (+0.0%lfl) +2.1% − Lower footfall with slight decrease in conversion rate, a strong increase in bas
Slide 8: Southern Europe Q1 2024/2025
Southern Europe Q1 2024/2025 Ongoing sales growth in Stores and accelerated growth in E-Com SALES ADJUSTED EBITDA1 − Sales increase driven by +5.8% (+5.6% lfl) growth in Stores and in m€ in m€ +8.8% E-Com sales 249 234 +6.2% − Significant increase footfall in Stores ant constant conversion rate, sta
Slide 9: Central Eastern Europe Q1 2024/2025
Central Eastern Europe Q1 2024/2025 Strong sales growth with margin impacted by expansion program SALES ADJUSTED EBITDA1 − Sales increase driven by +12.2% growth in Stores (+8.1% lfl) driven by in m€ in m€ 29 net new stores opening in the last 255 12 months and +16.5% in E-Com +13.2% 226 − Sales inc
Slide 10: Parfumdreams/NICHE BEAUTY Q1 2024/2025
Parfumdreams/NICHE BEAUTY Q1 2024/2025 Strong growth in price competitive environment SALES ADJUSTED EBITDA1 − Sales increased by +9.8% (+9.3%lfl) − Strong increase in orders but smaller in m€ in m€ basket sizes 69 63 +9.8% − Competitive pricing as result of strategic positioning; less price pass- t
Slide 11: Sales Growth fueled by Omnichannel Business
Sales Growth fueled by Omnichannel Business Sales Q1 2024/2025 GROUP STORES E-COM in m€ in m€ in m€ − Significantly increased footfall and strong − E-Com continues to grow for the 11th increase in number of customers, partially due 1.646 to openings (36 net new stores in the last 12 consecutive quar
Slide 12: P&L – Net Income significantly positive
P&L – Net Income significantly positive Q1 2024/2025 in m€ Q1 2023/24 Q1 2024/25 ∆% Sales 1,555.5 1,646.4 5.8% − Gross profit: higher promotional Cost of raw materials, consumables and -861.9 -929.3 -7.8% intensity; Supplier bonus growth supplies and merchandise was behind the growth in sales Gross
Slide 13: Improved Net Working Capital in relation to sales; Capex program on track
Improved Net Working Capital in relation to sales; Capex program on track As of 31 December 2024 AVERAGE NET WORKING CAPITAL CAPEX in m€ in m€ +6.8% 230 245 +21.6% 5.5% 5.4% Average 19 23 NWC as % of Sales1 31.12.2023 31.12.2024 Q1 2023/24 Q1 2024/25 − Average Net Working Capital higher in line with
Slide 14: Free Cash Flow significantly improved
Free Cash Flow significantly improved Q1 2024/2025 in m€ 498 494 -3 71 -12 354 119 -34 Adj EBITDA CAPEX 1 Working TAX Others ³ Adj FCF EBITDA Free Cash Flow Capital ² Adjustments (Cash effect) 4 Q1 2023/24 348 -26 64 -12 100 474 -15 459 1 Excl. M&A-related investments (Cash Capex); 2 For details on
Slide 15: Continued significant reduction in leverage ratio
Continued significant reduction in leverage ratio As of 31 December 2024 AVAILABLE LIQUIDITY in m€ 803 714 TOTAL NET LEVERAGE1 ADJUSTED EBITDA² LTM 161 336 €13.9m used or 814 (RCF) (RCF) reserved for rental 4.0 765 guarantees (PY: €9.0m) in m€ 2.3 553 (cash) 467 (cash) Dec-23 Dec-24 Dec-23 Dec-24 De
Slide 16: Guidance for 2024/2025 unchanged
WIP Guidance for 2024/2025 unchanged Continuation of growth trajectory DOUGLAS Group 2023/24 2024/25 (m€) reported guidance Sales 4.451 4.700 to 4.800 Adjusted EBITDA 809 855 to 885 Average net working capital as % of sales 5.3% <5% Adj. EBITDA expected at lower end of EUR 855-885m range Net inc
Slide 17: Strategy Update
SANDER VAN DER LAAN, CEO STRATEGY UPDATE
Slide 18: "Let it Bloom" Strategy Execution well on Track
“Let it Bloom” Strategy Execution well on Track Deliver most Be the #1 BEAUTY Offer most relevant Build focused customer friendly DESTINATION and distinctive and efficient OMNICHANNEL in all our markets RANGE OF BRANDS OPERATING MODEL experience Brand Communication Category & Brands Multiformat Glob
Slide 19: Store Network Development
Store Network Development Ongoing expansion and modernization − Significant expansion boost in Q1: 21 new store openings, including a new flagship store in a prestige location in Zagreb, and 14 new openings in CEE; two franchises stores were closed in the same period − 5th DOUGLAS store opened in Be
Slide 20: E-Com: Innovation & Differentiation
E-Com: Innovation & Differentiation Diverse sales channels and brand building initiatives STRONG DEVELOPMENT OF SOCIAL BUSINESS NICHE BEAUTY DEVELOPING VERY WELL − Sales via social channels grew more than 100% vs. PY, driven − Very strong sales growth in Q1 mainly by sales activation through influen
Slide 21: Key Launch in Haircare: TYPEBEA
Key Launch in Haircare: TYPEBEA Exclusive launch underlines assortment strategy − Haircare continues to grow strongly: >10% vs. PY − Celebrity brands in high demand by customers − Exclusive launches are a key pillar of the DOUGLAS Group assortment strategy and a strong market differentiator ABOUT TY
Slide 22: Future OWAC Set-up
Future OWAC Set-up Q3 ‘26 Network of seven omnichannel warehouses Q3 ‘26 Q3 ‘26 Dates indicate currently planned go- live date of deliveries to respective country from corresponding OWAC Q3 ‘26 Bönen / Netherlands «BENOWAC» Germany Tender launched Q3 ‘25 Mszczonów / Poland (Niche-Beauty) Q3 ‘26 (Cor
Slide 23: Future OWAC Set-up
Future OWAC Set-up Q3 ‘26 Network of seven omnichannel warehouses Q3 ‘26 Q3 ‘26 Dates indicate currently planned go- live date of deliveries to respective country from corresponding OWAC Q3 ‘26 Bönen / Netherlands «BENOWAC» Germany Tender launched Q3 ‘25 Mszczonów / Poland (Niche-Beauty) Q3 ‘26 (Cor
Slide 24: Future OWAC Set-up
Future OWAC Set-up Q3 ‘26 Network of seven omnichannel warehouses Q3 ‘26 OWAC Italy Q3 ‘26 Dates indicate currently planned go- − Move into brand new warehouse; live date of deliveries to respective country from corresponding OWAC Go-live planned for Summer 2025 Q3 ‘26 Bönen / Netherlands «BENOWAC»
Slide 25: Future OWAC Set-up
Future OWAC Set-up Q3 ‘26 Network of seven omnichannel warehouses Q3 ‘26 Q3 ‘26 Dates indicate currently planned go- live date of deliveries to respective country from corresponding OWAC Q3 ‘26 Bönen / Netherlands «BENOWAC» Germany Tender launched Q3 ‘25 Mszczonów / Poland (Niche-Beauty) Q3 ‘26 (Cor
Slide 26: Closer Look at the North OWAC
Closer Look at the North OWAC Mszczonów / Poland − NOWAC will serve the strongly growing CEE market − More than 46,200m² of space – operated by long-term industry partner Arvato − Operations expected to commence in second half of 2025 − Facility will also entail a dedicated warehouse for DOUGLAS Gro
Slide 27: Wrap-up
SANDER VAN DER LAAN, CEO WRAP-UP
Slide 28: Summary
SUMMARY − Solid start into the financial year despite challenging economic environment − Strong October and November, slowdown in December and into 2025 − Profitable growth continues − Significantly improved net income due to decreased interest expenses and strong operational performance − Implement
Slide 29: Q&A
Q&A
Slide 30: Appendix
APPENDIX
Slide 31: Adjustments to EBITDA
Adjustments to EBITDA Q1 2024/2025 in m€ Q1 2023/2024 Q1 2024/2025 Reported EBITDA 318.4 350.1 Strategic projects; IPO in prior Consulting fees1 7.8 0.9 year Restructuring costs2 -0.6 0.8 PPA -0.1 - SOP 3 -2.7 0.2 Prior year mainly affected by Initial Public Offering (IPO) - 0.1 litigation risk prov
Slide 32: Selected Segmental KPIs
Selected Segmental KPIs Q1 2024/2025 REPORTED EBITDA CAPEX In m€ Q1 2023/24 Q1 2024/25 In m€ Q1 2023/24 Q1 2024/25 DACHNL 153.7 157.4 DACHNL 6.8 5.5 France 83.4 82.8 France 2.8 2.9 Southern Europe 67.8 65.7 Southern Europe 1.9 6.5 Central Eastern Europe 69.7 72.9 Central Eastern Europe 3.5 4.2 PD/NB
Slide 33: Deep Dive into like-for-like sales development
Deep Dive into like-for-like sales development Quarterly overview Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2024/25 DACHNL 8.2% 15.8% 11.2% 12.8% 5.2% France 3.4% 4.5% 4.3% -0.1% 0.9% Southern Europe 6.0% 7.4% 4.7% 10.4% 6.1% Central Eastern Europe 17.5% 19.4% 13.6% 12.4% 10.2% PD/NB 26.5% 20.4
Slide 34: Development of Net Working Capital
Development of Net Working Capital As of 31 December 2024 241 245 221 in m€ 149 115 NWC as % of X% 3.5% LTM Sales 5.6% 5.6% 5.0% 2.5% Q1 2023/24 Q2 2023/24 Q3 2023/24 Q4 2023/24 Q1 2024/25 Inventory 794.7 776.6 765.5 793.5 809.1 Trade accounts receivable 116.6 87.8 76.1 61.4 99.4 Trade accounts paya
Slide 35: Cash flow statement
Cash flow statement Q1 2024/2025 In m€ Q1 2023/2024 Q1 2024/2025 Net cash flow from operating activities 485.0 528.0 Net cash flow from investing activities -25.6 -33.5 Free cash flow 459.4 494.5 Net cash flow from financing activities -171.9 -126.8 Net change in cash and cash equivalents 287.5 367.
Slide 36: Financing structure since 15 April 2024
Financing structure since 15 April 2024 As of 31 December 2024 in m€ m€ x Adj. EBITDA1 Maturity Pricing Cash and Equivalents 467.0 RCF (€350m Volume) -0.1 Mar 29 E+2.00% Term Loan 800.2 Mar 29 E+2.25% Bridge facility 455.2 Mar 25 E+3.00% (can be extended twice by six months) IFRS 16 Liabilities 1,09
Slide 37: Store network across Europe
Store network across Europe As of 31 December 2024 NUMBER OF STORES DEVELOPMENT 1,884 1,903 30 September 2024 – 31 December 2024 Store openings 21 Store closures -2 Total 19 1,756 1,776 Store openings: 3 stores in DACHNL (AT, CH, BE), 0 in France, 3 in South Europe (IT, HR, SI) and 128 127 14 CEE (P
Slide 38: DOUGLAS Group
LOUGLAS GROUP