Universal Store Holdings Ltd. · ASX:UNI
Universal Store — H1 FY2024 Earnings Presentation
29 slides from Universal Store's earnings presentation, Feb 22, 2024
Slide 1: H1 FY24 Results Presentation
H1 FY24 Results Presentation Brisbane, 22rd February 2024 Universal Store Holdings Limited (ASX:UNI) encloses for immediate release its H1 FY24 Results Presentation. Authorised for release by the Board of Directors of Universal Store Holdings Limited. For more information, please contact: Alice Barb
Slide 2: H1 FY24 Results Presentation
H1 FY24 RESULTS PRESENTATION 22 FEBRUARY 2024 UNIVERSAL STORE HOLDINGS LIMITED ACN 169 039 721 Universal Store Holdings Ltd ABN 94 628 836 484
Slide 3: Agenda
H1 FY24 RESULTS PRESENTATION AGENDA PRESENTERS CONTENTS Alice Barbery Renee Jones H1 FY24 Overview CEO CFO Financial Results ◼ 14 years at Universal Store ◼ 5 years at Universal Store Business Updates ◼ 30+ years’ industry experience ◼ 20+ years’ experience across retail and service industries Tradi
Slide 4: H1 FY24 Overview
Universal Store H1 FY24 OVERVIEW
Slide 5: UNI Group H1 FY24 Highlights
H1 FY24 RESULTS PRESENTATION UNI GROUP H1 FY24 HIGHLIGHTS UNI ACHIEVED 8.1% UNDERLYING EBIT GROWTH DRIVEN BY GROSS MARGIN IMPROVEMENT, STRONG CODB CONTROL AND FULL PERIOD OWNERSHIP OF CTC Underlying EBIT1 of $30.8 1 4 Perfect Stranger retail format expanded to 11 stores with million, up $2.3 million
Slide 6: UNI Group H1 FY24 Financial Highlights
H1 FY24 RESULTS PRESENTATION UNI GROUP H1 FY24 FINANCIAL HIGHLIGHTS GROUP SALES +8.5% AND STATUTORY NPAT+16.7% VS PCP1 $158.0M -5.4% 26.6 cents Sales +8.5% US LFL Sales2 Adjusted EPS5 (+0.4% excl. CTC) 59.7% $22.2M $27.4M Gross Margin Online Sales Net Cash at Half +80bps 14.1% of sales Year6 $30.8M
Slide 7: UNI Group Year Trends
H1 FY24 RESULTS PRESENTATION UNI GROUP 5 YEAR TRENDS PHYSICAL STORES (#) US LFL SALES GROWTH (%)² UNI has delivered H1 sales CAGR of 28.5 +13.4% (FY20-FY24)¹ 10 10 8 11 3 Universal Store 5-year average LFL sales 11.0 growth of +6.3% 5Yr average LFL +6.3% 75 77 79 0.8 65 67 History of opening 5-10 ne
Slide 8: UNI Group Sales Performance
H1 FY24 RESULTS PRESENTATION UNI GROUP SALES PERFORMANCE H1 FY20–FY24 SALES1 (A$M) Group Sales up +65% vs FY20, representing a CAGR of +13.4% (H1 FY20- FY24) Headline growth driven by: • the continued growth of US with 18.2 average LFL growth +6.3% over 5 6.4 years2 4.1 6.6 • the launch of Perfect S
Slide 9: Financial Results
Universal Store FINANCIAL RESULTS
Slide 10: UNI Group Profit & Loss (Post AASB16)
H1 FY24 RESULTS PRESENTATION UNI GROUP PROFIT & LOSS (POST AASB16) SALES Underlying Results ($m) Dec-23 Dec-22 % Change • UNI Sales $158.0 million (+8.5% vs pcp) • Universal Store sales $133.2m (-1.4% vs pcp), US LFL -5.4%¹ Sales 158.0 145.7 8.5% • Perfect Stranger sales $6.6m (+59.7% vs pcp) Gross
Slide 11: UNI Group Gross Margin
H1 FY24 RESULTS PRESENTATION UNI GROUP GROSS MARGIN CONTINUED IMPROVEMENTS IN GROSS MARGIN (+80BPS) Group results were supported by incremental margin GROUP GROSS PROFIT vs MARGINS (%) contributions from the acquired CTC brands (THRILLS, Worship) ($m) (%) $100 $94.3 60.0% Private brand penetration m
Slide 12: UNI Group Costs of Doing Business
H1 FY24 RESULTS PRESENTATION UNI GROUP COSTS OF DOING BUSINESS COST OF DOING BUSINESS¹ WELL-MANAGED, NOTWITHSTANDING INFLATIONARY PRESSURES GROUP HEADLINE GROWTH Net employee costs savings of $0.4 million 1 despite 6.3% increase in retail award rates including super contribution % increase • $0.1 mi
Slide 13: UNI Group Balance Sheet
H1 FY24 RESULTS PRESENTATION UNI GROUP BALANCE SHEET Net cash position of $27.4 million1, representing a substantial Statutory Balance Sheet (A$m) Dec-23 Jun-23 increase from $6.6 million in June 2023, inclusive of payments for the first CTC DVC ($3.0m) and final FY23 Total Current assets 74.4 53.0
Slide 14: UNI Group Cashflow
H1 FY24 RESULTS PRESENTATION UNI GROUP CASHFLOW Operating Cashflow (A$m) Dec-23 Dec-22 Change EBITDA 45.7 39.2 6.5 EBITDA growth of $6.5 million versus Non-cash items in underlying EBITDA (0.5) 0.2 (0.7) pcp Change in inventories1 1.4 (8.2) 9.6 Change in trade payables 7.1 8.3 (1.2) Decrease in inve
Slide 15: FY24 Business Updates
Universal Store FY24 BUSINESS UPDATES 3 . NE oe En i \ j f F y j 4 j , as aL ey x 5
Slide 16: UNI Sustainability Targets
UNI SUSTAINABILITY TARGETS CONTINUE TO WORK TOWARDS A SUSTAINABLE FUTURE BY EMBEDDING OUR SUSTAINABILITY TARGETS TREAD LIGHTLY EXPECT TRANSPARENCY CLIMATE ACTION Reduce our impact. Put an end to poor working conditions Reverse climate change and take Preserve our resources. and improve lives of work
Slide 17: Universal Store Update
H1 FY24 RESULTS PRESENTATION UNIVERSAL STORE UPDATE Financial Results: US REVENUE ($m)1 H1 H2 234 • Sales were down 1.4%, given the subdued trading environment 210 205 • LFL sales -5.4%, and GP% inline with pcp 155 99 • Underlying US EBIT (incl PS) was down $0.7m vs pcp1 92 98 59 New Store Rollout:
Slide 18: Perfect Stranger Update
H1 FY24 RESULTS PRESENTATION PERFECT STRANGER UPDATE ▪ Pleasing performance of the PS retail format continued. H1 FY24 sales of PS REVENUE ($m)1 $6.6 million1, +59.7% versus pcp with all stores profitable H1 H2 ▪ PS Online continues to perform well, up +96.3% versus pcp, with the focus 8.9 remaining
Slide 19: CTC Update
H1 FY24 RESULTS PRESENTATION CTC UPDATE ▪ In H1 FY24 CTC delivered $25.3 million in gross sales1 with robust sell- through and consistent demand from key wholesale accounts, including Universal Store CTC SALES¹ ($ MILLION) Brand H1FY24 YoY% ▪ The THRILLS brand maintains strong consumer appeal, with
Slide 20: Trading Update
TRADING UPDATE 4
Slide 21: H2 FY24 UNI Trading Update
H1 FY24 RESULTS PRESENTATION H2 FY24 UNI TRADING UPDATE Sales performance during the first Continuing to improve gross seven weeks of H2 FY24; margins, through proactive measures to keep stock consistently ▪ US sales up +4.5%, with LFL fresh and appealing to customers growth up +1.0%, cycling +8.4%
Slide 22: Appendix
Universal Store APPENDIX
Slide 23: Appendix 1: Group Overview
H1 FY24 RESULTS PRESENTATION APPENDIX 1: GROUP OVERVIEW Australia’s premier A grower of businesses, Customer focused, Focused on results, owner and operator of with excellence in detail oriented, risk management, youth and young adult culture, retail execution nimble, multi-channel and fostering fas
Slide 24: Appendix 2: Store Footprint
H1 FY24 RESULTS PRESENTATION APPENDIX 2: 1 STORE FOOTPRINT #79 Universal Store stores #10 THRILLS stores #11 Perfect Stranger stores NT 19 QLD 4 6 WA SA 4 22 13 NSW 5 5 ACT 2 TOTAL GROUP VIC 100 STORES* 1 17 TAS 1 * Plus web store for each brand. 23
Slide 25: Appendix 3: P&L Underlying to Statutory Reconciliation
H1 FY24 RESULTS PRESENTATION APPENDIX 3: P&L UNDERLYING TO STATUTORY RECONCILIATION $million Note Dec-23 Dec-22 1 Transaction costs relate to legal, Statutory EBITDA 45.7 39.2 advisors and accounting costs Transaction costs 1 0.0 2.0 incurred with respect to the FV of contingent consideration 2 (0.7
Slide 26: Appendix 4: H1FY24 Consolidation Overview ($M)
H1 FY24 RESULTS PRESENTATION APPENDIX 4: H1FY24 CONSOLIDATION OVERVIEW ($M) CTC US & PS¹ UNI Underlying Results ($m) (6mths) (6mths) Elimination2 Group Note: The elimination relates to sales and margin on sales from CTC to Universal Store. Sales 25.3 139.8 (7.1) 158.0 Gross Profit 12.0 82.2 0.1 94.3
Slide 27: Appendix 5: Group Sales Overview
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 5: GROUP SALES OVERVIEW Pre CV-19 CV-19 affected period Post CV-19 period Growth% Growth% CAGR H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY24 (vs H1 (vs H1 (H1 FY20 to FY23) FY20) H1 FY24) $m $m $m $m $m Universal Store (retail format) Stores 89.6 103.9 86.2 116
Slide 28: Disclaimer
H1 FY24 RESULTS PRESENTATION DISCLAIMER The material contained in this This presentation may contain forward- To the extent permitted by law, presentation has been prepared by looking statements with respect to the no responsibility for any loss arising Universal Store Holdings Limited ABN 94 operat
Slide 29: Universal Spirit
H1 FY24 RESULTS PRESENTATION UNIVERSAL SPIRIT The unique ability to create memorable and positive experiences for all. Creating an experience that is fun, open and based on kindness. The environment that enables a person to be their best. 28
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