Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2022 Earnings Presentation
30 slides from Shaver Shop's earnings presentation, Aug 22, 2022
Slide 1: Shaver Shop Group 2022 Results Presentation
SHAVER SHOP GROUP LIMITED 2022 Results Presentation
Slide 2: Contents
CONTENTS 01 Highlights 02 Detailed financial results 03 FY2023 Priorities 04 Trading Update & Outlook 05 Appendices PRESENTATION 2022 2
Slide 3: Highlights
HIGHLIGHTS PRESENTATION 2022 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS > DIY personal care and grooming remains in high demand Sales > Total sales up 4.2% to $222.7 million (FY21 - $213.7 million) – Like for like1 sales up 3.5% including total online sales growth of 23.7% – Online sales represented 34.0% of total sales – Anecdotal feedback from sup
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS Customer > Store teams continue to deliver exceptional customer service Service with avg. NPS score of c. 88.4 (out of 100) in FY22 > Customers increasingly returning to stores but foot traffic remains well below pre-COVID levels > Sales conversion remains very high > Return t
Slide 6: Multichannel Model Was a Key Asset in FY22
MULTICHANNEL MODEL WAS A Total Sales Trend by Quarter KEY ASSET IN FY22 Q1 – SALES DOWN 5.1% > Widespread closure of stores across NSW, VIC, ACT due to government-imposed lockdowns (c 5,000 lost in-store trading days) > Shorter, snap lockdowns in other States > Very strong online sales growth partia
Slide 7: Customers Quickly Reverted to In-Store Shopping
CUSTOMERS QUICKLY REVERTED TO IN-STORE SHOPPING WITH IN-STORE SHARE INCREASING ACROSS FY22 Quarterly In-Store and Online Sales Contribution Trend FY22 Sales Channel Contribution 100% 90% 22.2% 31.9% 28.6% 80% 70% 55.6% 34% 60% 50% 66% 40% 77.8% 68.1% 71.4% 30% 20% 44.4% 10% 0% Q1 Q2 Q3 Q4 In-Store O
Slide 8: Online Sales Grew 23.7% in FY22
ONLINE SALES GREW 23.7% IN FY22 SUPPORTED BY INCREASED FULFILLMENT OPTIONS FOR CUSTOMERS Online sales grew 23.7% benefiting Online sales represented 34.0% of Increased delivery choices - strong from H1 lockdowns total sales in FY22 uptake of Express & Same Day 80.0 40.0% 100% 0.0% 0.2% 75.7 90% 70.0
Slide 9: Outstanding Customer Service Metrics
OUTSTANDING CUSTOMER SERVICE METRICS DELIVERING STRONG SALES CONVERSION AND IN-STORE SALES In-store sales only down $5.4m NPS Score of 88 (out of 100) In-store sales conversion also despite c.6,200 trading days lost remains world class remains very strong above 42% (lockdown) in FY22 90.0 44.0% 180.
Slide 10: Shaver Shop Exclusive Products Generated More Than 50% of Sales
SHAVER SHOP EXCLUSIVE PRODUCTS GENERATED MORE THAN 50% OF SALES AND APPROX. 60% OF GROSS PROFIT Shaver Shop has the one of the broadest ranges of men’s and women’s personal care and grooming appliances in Australia and New Zealand. Shaver Shop is leveraging its brand awareness and differentiated pro
Slide 11: Strong Gross Profit Margins at 43.9%
STRONG GROSS PROFIT MARGINS AT 43.9% Gross profit margins near all-time highs at FY22 category analysis 43.9% Hair removal categories remaining very strong 50.0% Massage Other 44.3% Temporary 43.9% 5% 3% 45.0% 41.4% 42.6% 41.9% Electric FHR 4% 40.0% 35.0% 30.0% Power Oral Care Hair Cutting 25.0% 15%
Slide 12: Financial Results
FINANCIAL RESULTS RESULTS PRESENTATION 2022 12
Slide 13: FY22 Profit & Loss
FY22 PROFIT & LOSS ROBUST SALES TOGETHER WITH STRONG GROSS PROFIT Profit & Loss Reported Reported Variance Variance A$m FY22 FY21 ($) (%) MARGIN (43.9%) DELIVERED FY22 NPAT OF $16.7M Sales 222.7 213.7 9.1 4.2% Gross profit 97.7 94.7 3.0 3.2% > Total sales up 4.2% achieved despite loss of 6,200 in-st
Slide 14: CODB Held Flat at 25.8% of Sales
CODB HELD FLAT AT 25.8% OF SALES CODB as a % of Total Sales > FY22 presented numerous operational challenges for retailers 2.2% which is reflected in changing cost structures 1.7% 1.4% > Employment costs reduced significantly as a percentage of sales 4.5% 4.6% 5.0% as rosters were reduced in Q1 and
Slide 15: Strong NPAT and EPS Result
STRONG NPAT AND EPS RESULT Second highest NPAT result in SSG’s history Basic EPS of 13.2 cents per share with Cash EPS of at $16.7m 14.2 cents (up from 7.4 cents in FY2019 – pre COVID) 15.5 1.3 14.2 1.0 9.5 cents $m 7.3 7.4 1.0 17.5 16.7 1.5 1.4 14.2 13.2 10.4 8.5 7.2 7.4 5.8 6.0 FY18* FY19* FY20 FY
Slide 16: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET AASB 16 AASB 16 NET CASH OF $9.4M AT 30 JUNE 22 (NO DEBT) AFTER A$m 30-Jun-22 30-Jun-21 Variance REPLENISHING $4M IN STOCK DURING THE YEAR Cash 9.4 7.4 2.0 Trade & other receivables 3.1 3.6 (0.6) > Shaver Shop continues to maintain a very prudent financial position Lease r
Slide 17: Operating Cash Flow Remains Robust
OPERATING CASH FLOW REMAINS ROBUST AT $28.3M NET CASH FLOW OF $2.0M FOR FY22 INCREASES NET A$m FY22 FY21 Variance CASH POSITION TO $9.4M AT YEAR-END NPAT 16.7 17.5 (0.8) > Operating cash flow was $28.3m - down $7.7m from FY21 given SSG Non-cash items: - was preparing for potential long-term lockdown
Slide 18: Attractive Capital Returns
ATTRACTIVE CAPITAL RETURNS FY22 dividends up 22.0% to 10.0 cents Balancing fiscal prudence while increasing dividends Final dividend up 10% to 5.5 cents (100% franked) has delivered 32.9% ROCE* in FY22 36.3% 32.9% 10.0 27.2% 8.2 5.5 18.8% 18.6% 4.5 4.8 5.0 4.2 2.5 2.7 2.4 4.5 3.2 1.8 2.0 2.1 FY18 FY
Slide 19: FY2023 Priorities
FY2023 PRIORITIES RESULTS PRESENTATION 2022 19
Slide 20: FY2023 Priorities
FY2023 PRIORITIES > Continue to expand product range and brand portfolio particularly in female categories > Return to “tried and true” face-to-face training of store teams in the lead up to key Christmas trading period > Continue to differentiate product range by securing exclusivity on new product
Slide 21: Trading Update & Outlook
TRADING UPDATE & OUTLOOK RESULTS PRESENTATION 2022 21
Slide 22: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK > Shaver Shop has experienced a pleasing start to FY23 with the table below summarising the key year to date (YTD - 1 July 22 to 18 August 22) trading results versus comparative COVID-impacted (FY22 and FY21) and non-COVID impacted (FY20) trading periods: vs FY22 vs FY21 v
Slide 23: Investment Summary
INVESTMENT SUMMARY Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation COVID-19 has accelerated DIY personal care adoption and introduced new customers to Shaver Shop Differentiated & resilient specialty retail business m
Slide 24: Appendices
APPENDICES RESULTS PRESENTATION 2022 24
Slide 25: Key Metrics Summary
KEY METRICS SUMMARY Reported Reported Comparable Accounting (AASB 16) FY2022 FY2021 Number of corporate stores 121 121 Number of franchise stores - - Total stores 121 121 Corporate store sales ($m) 222.7 213.7 Franchise store sales ($m) - 9.9 Total network sales ($'000) 222.7 223.6 Corporate store L
Slide 26: Consistent 16 Year Growth Trend
CONSISTENT 16 YEAR GROWTH TREND 15 year total network sales growth (ex Daigou) 250.0 Sales growth (ex Daigou) has been 200.0 consistent over15 years 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 Core business sales Daigou Sales RES
Slide 27: 5 Year - Annual P&L Performance Trend
5 YEAR - ANNUAL P&L PERFORMANCE TREND RESULTS PRESENTATION 2022 27
Slide 28: 5 Year - Half Yearly Performance Trend
5 YEAR - HALF YEARLY PERFORMANCE TREND RESULTS PRESENTATION 2022 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 RESULTS PRESENTATION 2022 30