Beacon Lighting Group Ltd · ASX:BLX
Beacon Lighting — Investor Presentation (February 2023)
24 slides from Beacon Lighting's investor presentation, Feb 16, 2023
Slide 1: H1 FY2023 Results Presentation
H1 FY2023 RESULTS PRESENTATION 16 FEBRUARY 2023
Slide 2: Contents
CONTENTS 1 RESULTS OVERVIEW 2 FINANCIALS 3 STRATEGIC PILLARS OF GROWTH 4 H2 FY2023 OUTLOOK 5 QUESTIONS 6 APPENDIX BEACON LIGHTING GROUP H1 FY2023 RESULTS PRESENTATION 2
Slide 3: Results Overview
BEACON LIGHTING GROUP
Slide 4: Operational Highlights
1 OPERATIONAL HIGHLIGHTS RELAUNCHED NEW TRADE 21.5% BEACON PRODUCTS & TRADE SALES TRADE MERCHANDISE INCREASE NEW STORES 6.4% RECORD Pimpama (QLD) Company Store SALES Armadale (WA) Comparative for many of the Sales Increase New Businesses BEACON LIGHTING GROUP H1 FY2023 RESULTS PRESENTATION 4
Slide 5: Financial Highlights
1 FINANCIAL HIGHLIGHTS $164.7m 68.0% $48.2m Record Sales Gross Profit Margin EBITDA $21.1m $26.5m 4.3¢ Declared fully NPAT Cash franked dividend per share BEACON LIGHTING GROUP H1 FY2023 RESULTS PRESENTATION 5
Slide 6: H1 FY2023 Results
1 H1 FY2023 RESULTS $'000 H1 FY2022 H1 FY2023 Change $ Change % Sales 151,305 164,673 13,368 8.8% Gross Profit 105,961 112,045 6,084 5.7% Gross Profit Margin % 70.0% 68.0% Other Income(1) 426 542 116 27.2% % of Sales 0.3% 0.3% Operating Expenses(2) (57,085) (64,428) (7,343) 12.9% % of Sales 37.7% 39
Slide 7: Financials
2 | FINANCIALS BEACON LIGHTING GROUP Dean TRADE beam INTERNATIONAL, LIGHT SOURS CONNECTED
Slide 8: Sales
2 SALES SALES: Increased by 8.8% to $164.7 million • Company store comparative sales increased by 6.4% • Trade sales increased by 21.5% and online trade club sales increased by 22.6% • Record sales results for many of the new businesses • Variable weather has impacted upon the sales of fans and outd
Slide 9: Gross Profit
2 GROSS PROFIT GROSS PROFIT: Increased to $112.0 million Gross Profit $m (1) 112.0 106.0 • Gross product dollars increased by $6.1 million or 5.7% to $112.0 million 103.6 • Despite the increases in product related costs and the significant increase in trade sales, strong gross profit margins were ac
Slide 10: Operating Expenses
2 OPERATING EXPENSES OPEX: Increased by 1.4% of Sales to $64.4 million $'000 H1 FY2022 H1 FY2023 Change $ Change % • Continued investment in marketing with an increased focus on the Beacon Trade offer Marketing Expenses 7,322 8,260 938 12.8% • Inflation is impacting upon selling and distribution exp
Slide 11: Cash Flow
2 CASH FLOW • Receipts from customers reflecting the increase in sales $'000 H1 FY2022 H1 FY2023 • Payments to suppliers reflecting the increased investment in inventory Cash Flow from Operations and the significant reduction in supplier lead times Receipts from Customers 165,813 178,797 • Capital e
Slide 12: Balance Sheet
2 BALANCE SHEET • Increased investment in inventory to $107.1 million $'000 DEC 2021 DEC 2022 Cash 34,169 26,457 • Increase in trade sales is reflected in a receivables Receivables 8,320 9,318 increase to $9.3 million Inventories 83,438 107,074 • Borrowings have increased to $29.9 million Other 1,46
Slide 13: Dividend
2 DIVIDEND • The Dividend Reinvestment Plan (DRP) will be reinstated for the FY2023 interim dividend to support future Beacon Lighting investment opportunities • Shares issued pursuant to the DRP will be at a 5% discount to the market price • Declared a fully franked dividend of 4.3 cents per share
Slide 14: Strategic Pillars of Growth
3 STRATEGIC PILLARS OF GROWTH CUSTOMER | Underpinning everything we do at Beacon is a deep understanding of our customers’ needs. RETAIL TRADE eCOMMERCE NEW A R E WA R D I N G CU S TO M E R E X PE R I E N CE I N DU S TRY LE A D I N G TR A D E CLU B E N G AG I N G W E B S ITE S BUSINESS O N LI N E SA
Slide 15: Retail
3 RETAIL • Beacon Lighting now has 118 company stores and 2 franchise stores. Store network research (from December 2020) identified the potential for 184 Beacon Lighting stores in Australia • Company stores comparative sales for H1 FY2023 increased by 6.4% • Opened new stores in Pimpana (QLD) and A
Slide 16: Trade
3 TRADE • The number one priority for Beacon Lighting is to continue to have a positive impact upon the lives and businesses of our trade customers • Re-launched the Beacon Trade Club on the new technology platform in December 2022 • Total trade sales increased by 21.5% and Beacon Trade sales throug
Slide 17: eCommerce
3 eCOMMERCE • Beacon Lighting now has 14 dedicated business websites with the primary website being www.beaconlighting.com.au • Integrated the Beacon Lighting websites to the new Beacon Trade technology platform • Online Beacon Trade customer visits have increased by 60.0% while online Trade Club sa
Slide 18: New Businesses
3 NEW BUSINESSES • Beacon International sales in Europe and Hong Kong increased by 54.6% and 10.8% respectively • Beacon International USA sales to USA showrooms increased by 65.4% and accounts with new customers increased by 44.4% INTERNATIONAL • Total USA sales were impacted by a downturn in sales
Slide 19: Sustainability
3 SUSTAINABILITY • Beacon Lighting has installed 61 solar systems on our stores generating electricity during peak trading periods throughout the day • Energy efficient LED lights have been installed throughout all Beacon Lighting stores, Distribution Centres and Offices • Replaced all customer plas
Slide 20: H2 FY2023 Outlook
BEACON LIGHTING GROUP Get Dean INTERNATIONAL LIGHT SOURCE SOLUTIONS: CONNECTED
Slide 21: H2 FY2023 Outlook
4 H2 FY2023 OUTLOOK • Company store comparative sales are holding up well for the first seven weeks in H2 FY2023, remaining close to the record sales achieved during the same period last year. Furthermore they are significantly ahead of sales for the same period in H2 FY2021 • Improving the lives an
Slide 22: Questions
BEACON LIGHTING GROUP INTERNATIONAL SOURCE SOLUTIONS 5 | QUESTIONS | |) =
Slide 23: Appendix: Other Information
6 APPENDIX: OTHER INFORMATION DISCLAIMER The presentation contains “forward-looking statements”. All statements other than those of historical facts included in the presentation are forward-looking statements. Where the Group expresses or implies an expectation or belief as to future events or resul
Slide 24: www.beaconlighting.com.au
www.beaconlighting.com.au
Beacon Lighting Group — Investor Presentation (February 2023) on 6ix