Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2024 Earnings Presentation
33 slides from Shaver Shop's earnings presentation, Aug 26, 2024
Slide 1: FY24 Results Presentation - Transform Yourself
FY24 RESULTS PRESENTATION Transform Yourself
Slide 2: Contents
CONTENTS 01 Strategic overview 02 FY24 highlights 03 Financial Results 04 FY25 Priorities 05 Trading Update & Outlook 06 Appendices 2
Slide 3: Strategic Overview
01 STRATEGIC OVERVIEW 3
Slide 4: Shaver Shop Snapshot
Shaver Shop Snapshot Founded in 1986 Market leader in Trusted and respected growth sector specialty retail brand with high DIY grooming, personal care, hair AU brand awareness of 87% - and beauty appliances for men Highly differentiated model and women – focussed on with lack of direct competition p
Slide 5: Business Fundamentals
SHAVER SHOP GROWTH DRIVERS Store Network 3 Key Growth Strategies Optimisation Range Expansion (category creep into adjacencies, product innovation) Strategic Category Management (Exclusives, leadership in range breadth and depth, private brand) Conservative balance sheet and proven profitability to
Slide 6: FY24 Highlights
02 FY24 HIGHLIGHTS 6
Slide 7: FY24 Results Overview
FY24 Results Overview Sales down 2.3% to Net profit after tax Gross profit margin % Operating cash flow 219m 15.1m 44.4% 34.1m Online sales F24 100% franked dividends Net cash at 30 June 24 Net promoter score 23% 10.2cps 13.3m 89 of total sales (same as FY23 payout) Out of 100 7
Slide 8: FY24 – progress against key priorities
FY24 – progress against key priorities SIGNIFICANT PROGRESS IN EXECUTING SHAVER SHOP STRATEGIC IMPERATIVES TO MAINTAIN OUR POSITION AS THE LEADING SPECIALTY RETAILER ACROSS ANZ IN OUR CORE CATEGORIES • Secured exclusive 5 year distribution licence for growing Skull Shaver range of products Strategic
Slide 9: Sales trend
Quarterly Sales Growth % (vs FY23) Sales trend 0.8% > Challenging retail environment with outside foot traffic1 down 13% -1.4% vs FY23 across ANZ -1.9% -2.3% > Consumer remains very price conscious, with focus on key promotional events > Key gift giving periods (Black Friday, Christmas, Boxing Day,
Slide 10: In-Store Metrics and Online Metrics
In-Store Metrics Online Metrics Outside foot traffic down Sales conversion Unique visitors Sales conversion -13% 43.3% 10.5m 3.2% Transaction volumes down Avg Transaction Value up Active customers Average Transaction Value up -6.1% +3.6% 330k +7.0% 10
Slide 11: World class customer service metrics
World class customer Net Promoter Score service metrics 90.0 88.9 88.8 89.0 88.4 88.6 88.0 > Net promoter score remained at “best in class” level at 88.8 (out 87.0 of 100) 86.0 > Despite softer consumer demand, in-store sales conversion 85.0 84.8 remained near all time highs at 43.3% 84.0 > Customer
Slide 12: Gross profit trend
Gross Profit Margin (%) Trend Gross profit trend 44.5% 44.4% 44.3% 43.9% > Gross profit margins were 44.4% in FY24 (near all time high) despite category mix changes towards: – Long term hair removal solutions (IPL) 41.9% – Hair Styling > Shaver Shop identified these as core opportunities in FY24 alb
Slide 13: Financial Results Summary
03 FINANCIAL RESULTS SUMMARY 13
Slide 14: FY24 profit & loss
FY24 profit & loss > Sales down 2.3% to $219.4m – In-store sales down $5.0m or 2.9% – Online sales down $0.1m or 0.1% > Gross profit margins relatively flat at 44.4% > CODB was tightly controlled, only increasing 0.7% in absolute terms (or $0.4m) despite inflationary cost pressures – As a percentage
Slide 15: Cost of doing business (CODB)
Cost of doing business CODB - % of total sales (CODB*) 18.0% 17.1% 16.0% 16.0% Shaver Shop tightly controlled CODB leading to 0.7% (or $0.4m) increase in absolute terms. 14.0% > Biggest inflationary cost impact was in employment expenses 12.0% driven by 5.75% FWA minimum wage increase effective 1 Ju
Slide 16: Balance Sheet
Balance Sheet > Balance sheet remains solid AASB 16 AASB 16 > Net cash (no debt) of $13.3m at 30 June 24 (down $0.2m) A$m 30-Jun-24 30-Jun-23 Variance despite $3.4m Skull Shaver payment in June 24 Cash 13.3 13.5 (0.2) > Stock position remains clean – up $1.2m to $23.1m or c. $187k per store at 30 Ju
Slide 17: Strong operating cashflow
Strong operating cashflow > Operating cashflow up $1.1m to $34.1m – Supported by $3.8m trade payable balance due 1 July 24 A$m FY24 FY23 Variance which will impact FY25 operating cashflow NPAT 15.1 16.8 (1.7) > Skull Shaver 5-year exclusive licence payment of $3.4m paid Non-cash items: in late June
Slide 18: Capital Management
Capital Management Dividend Payout Trend FINAL DIVIDEND OF 5.5 CENTS PER SHARE (FULLY FRANKED) BRINGING FY24 DIVIDENDS TO 10.2 CENTS PER SHARE (FULLY FRANKED) 5.5 5.5 5.5 > FY24 dividends (10.2 cps) represents payout of c. 88% of reported NPAT and c.82% of Cash NPAT 5.0 > SSG dividends have increase
Slide 19: FY25 Priorities
05 FY25 PRIORITIES 19
Slide 20: FY25 Key Priorities
FY25 Key Priorities > Successfully launch new Transform U brand > Leverage new Skull Shaver 5-year exclusive distribution agreement > Drive category and range expansion with new brands > Continue optimising store network to generate incremental returns: – Relocations within centres – Refits to lates
Slide 21: Strategic category management and range expansion activities
Strategic category management and range expansion activities > Showcase Skull Shaver as an example of Shaver Shop providing a turnkey go to market strategy in ANZ for innovative global brands > Introduce new products and brands to stimulate consumer demand and conversion opportunities > Product inno
Slide 22: Transform U private brand
> Shaver Shop’s first, genuine private brand offering aimed at: – Filling existing gaps – Leveraging Shaver Shop deep domain knowledge of customer wants and needs – Designing products (in collaboration with manufacturing partners) that meet customer appetite for quality, performance and value for mo
Slide 23: Store design evolution
Store design evolution Joondalup, WA Refit (July ‘23) > Continue to evolve Shaver Shop in-store design to: – Create an engaging shopping experience – Reflect latest branding – Improve passer-by visibility and awareness – Improve tactility – Reflect a contemporary look and feel – Showcase our “house
Slide 24: Trading Update & Outlook
05 TRADING UPDATE & OUTLOOK 24
Slide 25: Trading Update and Outlook
Trading Update and Outlook > Following a strong end of financial year promotion, sales have moderated in July and August > Total sales growth and like for like for the period from 1 July 24 to 22 August 24 (year to date or YTD) versus the prior comparative period are set out in the table below: 1 Ju
Slide 26: Investment Summary
Investment Summary Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation Products range is applicable to almost all demographics Differentiated & resilient specialty retail business model – Service excellence and unparallel
Slide 27: Appendices
06 APPENDICES 27
Slide 28: Key Metrics Summary
Key Metrics Summary Reported Reported Comparable Accounting (AASB 16) FY2024 FY2023 Number of corporate stores (30 June) 123 123 Number of franchise stores - - Total stores 123 123 Corporate store sales ($m) 219.4 224.5 Franchise store sales ($m) - - Total network sales ($'000) 219.4 224.5 Corporate
Slide 29: 5 Year Profit & Loss
5 Year Profit & Loss AASB 16 AASB16 AASB16 AASB16 AASB16 FY20 FY21 FY22 FY23 FY24 Normalised Results ($ millions) Actual Actual Actual Actual Actual Sales 194.9 213.7 222.7 224.5 219.4 Cost of goods sold (113.4) (119.0) (125.0) (124.6) (121.9) Gross profit 81.6 94.7 97.7 99.9 97.5 Gross margin % 41.
Slide 30: 5 Year Balance Sheet
5 Year Balance Sheet AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 A$m 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 Cash 12.6 7.4 9.4 13.5 13.3 Trade & other receivables 1.8 3.6 3.1 2.1 2.9 Lease receivables 2.2 - - - - Inventory 15.1 18.1 22.2 22.0 23.1 Plant & Equipment 10.8 10.6 10.7 10.6 11.2 Rig
Slide 31: Shaver Shop Store Network (current)
Shaver Shop Store Network (current) TOTAL August 2024: 123 stores Target: 130-135 stores Northern Territory 1 store Queensland 26 stores Western Australia 16 stores New South Wales 32 stores South Australia ACT 7 stores 4 stores Victoria 27 stores New Zealand 8 stores Tasmania 2 stores 31
Slide 32: 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 33: Thank you
Thank you