Hallenstein Glasson Holdings Limited · NZX:HLG
Hallenstein Glasson — FY2004 Earnings Presentation
20 slides from Hallenstein Glasson's earnings presentation, Oct 24, 2004
Slide 1: Hallenstein Glasson Holdings Limited Annual Result 2004
Hallenstein Glasson Holdings Limited Annual Result 2004
Slide 2: 2004 Results
2004 RESULTS 2004 2003 ($000’s) ($000’s) •NET PROFIT 17,167 11,457 50% •PROFIT ON SALE OF PROPERTY 1,012 - •ADJUSTED TAX PAID PROFIT 16,154 11,457 41% •SALES 180,543 176,953 2% •EARNINGS PER SHARE 29.1 Cents 19.5 Cents 49% •ADJUSTED EARNINGS PER SHARE 27.4 Cents 19.5 cents 41% •DIVIDEND 24.0 cents 1
Slide 3: Key Features F2004
KEY FEATURES F2004 • Strong same store sales growth in both New Zealand and Australia over winter • Improved margin on sales • Closure of non contributing operations • Improved profitability in Australia • Buoyant consumer driven market Hallenstein Glasson Holdings Limited
Slide 4: Sales 2000 - 2004
SALES 2000 - 2004 SALES ($000's) 185000 180000 175000 170000 165000 160000 155000 150000 2000 2001 2002 2003 2004 Hallenstein Glasson Holdings Limited
Slide 5: Sales
SALES • Same store sales +5% • Total sales comparison includes HBKGIRL chain sold May 2004 • Wider product range introduced in Glassons • New brands introduced in Hallensteins • Larger store format in lower rent locations proving profitable for Hallensteins Hallenstein Glasson Holdings Limited
Slide 6: Tax Paid Profit 2000 - 2004
TAX PAID PROFIT 2000 - 2004 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2000 2001 2002 2003 2004 Hallenstein Glasson Holdings Limited
Slide 7: Lift in Profit 2004 Year
LIFT IN PROFIT 2004 YEAR • Turnaround in Australia $0.935m after tax • Improved margin on sales – tight control on markdowns – focus on higher margin product • Closure of non contributing operations – HBKGIRL – Hallensteins Australia ( 4 stores) Hallenstein Glasson Holdings Limited
Slide 8: Balance Sheet
Balance Sheet • Return on assets 39% (2003: 31%) • Return on equity 32% (2003: 26%) • Operating cash flow $20.038m (2003: $18.281) • Capital expenditure $4.713m (2003: $3.837) • Inventory $11.028m (2003: $10.847m) Hallenstein Glasson Holdings Limited
Slide 9: Outlook 2005
2005 • Retail environment will remain positive although interest costs and fuel costs will begin to have an impact soon • December represents 30% of sales for half • Recruiting suitable staff will remain difficult • Continued strength on $NZ will assist retaining margin • Near full employment will u
Slide 10: Australia
Australia • Same store sales +10% - stronger towards the end of the half • Currently operate 15 stores, 7 in Sydney, 8 in Melbourne • Further locations sought – New store in Melbourne opens November 04 • New management and buying strategy implemented March 2004 showing benefits • Sales and margin co
Slide 11: Australia store economics
• Store size is 140 m2 (half size of NZ store) • Employment costs are higher • Add-on costs – Medicare, superannuation, payroll tax etc • Rents are higher • Gross margin needs to be higher than NZ • Very aggressive competition • Significant room for growth
Slide 12: Hallensteins
Hallensteins • Larger format stores proving profitable – Albany (Auckland) – Botany (Auckland) – Cuba Mall (Wellington) – The Palms (Christchurch) – Palmerston North (just opened) – Christchurch City (to open December 2004) • Introducing premium brands to drive higher ticket price and margin • Staff
Slide 13: Hallensteins Palmerston North – new refit, extended selling space
Hallensteins Palmerston North – new refit, extended selling space Hallenstein Glasson Holdings Limited
Slide 14: Glassons
Glassons • New branding campaign – ‘Glassons……..is good for you’ • Widened product range – Accessories – Swimwear • Staff training Hallenstein Glasson Holdings Limited
Slide 15: Glassons re-branding campaign
Glassons re-branding Campaign Aimed at reinforcing market leadership position Hallenstein Glasson Holdings Limited
Slide 16: Hallenstein Glasson Holdings Limited
Hallenstein Glasson Holdings Limited
Slide 17: Glassons Breast Cancer Trust
Glassons Breast Cancer T This year raised $500,000 for the Breast Cancer Research Trust Develops and strengthens relationship with women in New Zealand
Slide 18: Operating Principals
OPERATING PRINCIPALS • Speed to market • Fashionable product – buyers constantly travel to gain fresh ideas • Competitive pricing • Exciting and fresh stores – continual refit program • Tight control of all business costs Hallenstein Glasson Holdings Limited
Slide 19: Staff Remuneration and Training
Staff Remuneration and Training • Significant investment made in new staff training program • Computer based – self paced and interactive, allows staff to train both in store, and away from the workplace • All staff complete training • New remuneration strategy to support selling skills – incentives
Slide 20: Question Time
Question Time
Hallenstein Glasson Holdings — FY2004 Earnings Presentation on 6ix