Warrix Sport Pcl · SET:WARRIX
Warrix Sport Pcl — Warrix Sport Public Company — Q3 2024 Earnings Presentation
47 slides from Warrix Sport Pcl's earnings presentation, Nov 21, 2024
Slide 1: 3Q24 Analyst Meeting
SPORT PUBLIC COMPANY LIMITED 3Q24 Analyst Meeting 21 November 2024
Slide 2: Agenda
Agenda 01 3Q24 Financial Performance 02 2025 Key Strategies 03 Business Update and Outlook 04 Q&A 2
Slide 3: 3Q24 Financial Performance
01 3Q24 Financial Performance 3
Slide 4: 3Q24 Financial Performance (Separate)
3Q24 Financial Performance (Separate) Unit: THB million Separate P&L Statement 3Q23 2Q24 3Q24 %QoQ %YoY 9M23 9M24 %YoY Revenues from core operation 317 346 396 14% 25% 821 1,064 30% COGS 160 188 192 2% 20% 427 540 26% Gross Profit 157 158 204 29% 30% 394 524 33% Other Income 4 5 4 -26% 6% 19 16 -16%
Slide 5: 3Q24 Financial Performance (Consolidated)
3Q24 Financial Performance (Consolidated) Unit: THB million Consolidated P&L Statement 3Q23 2Q24 3Q24 %QoQ %YoY 9M23 9M24 %YoY Revenues from core operation 325 350 429 22% 32% 831 1,106 33% COGS 166 190 214 13% 29% 436 568 30% Gross Profit 160 160 214 34% 34% 396 538 36% Other Income 4 5 4 -26% 8% 1
Slide 6: Key Financial Performance: Revenues by Channel
Key Financial Performance Revenues Breakdown By Channel 3Q24 YoY & QoQ Growth by Channel +105% YoY +80% QoQ 137 +12% YoY +14% QoQ +17% YoY -57% QoQ 106 94 93 83 79 +4% YoY +206% YoY -91% YoY +39% YoY 67 +17% QoQ +229% QoQ +3% QoQ +3% QoQ 53 +11% YoY -4% YoY +114% YoY 45 46 45 -16% QoQ -10% QoQ +162%
Slide 7: Key Financial Performance: Revenues by Channel
Key Financial Performance Revenues Breakdown By Channel +105% 3Q23 3Q24 +47% 9M23 9M24 137 301 +14% +12% 273 +67% 240 106 94 205 210 +17% +24% +70% 67 +4% +206% 53 126 126 45 46 -91% 45 +11% +39% -4% +114% 102 +125% -91% +37% 87 +13% +67% 35 25 28 50 51 20 44 11 10 12 22 24 32 13 14 2 5 5 3 6 4 5 9
Slide 8: Key Financial Performance: Revenues by Product
Key Financial Performance Revenues Breakdown By Product 3Q24 YoY & QoQ Growth by Product +46% YoY +31% QoQ 169 +28% YoY +1% YoY 129 +9% QoQ +13% QoQ +18% YoY +11% QoQ 116 88 77 81 +86% YoY -18% YoY +318% YoY -4% YoY 66 69 69 +17% QoQ -38% QoQ +763% QoQ -10% QoQ 53 47 53 26 10 13 8 6 3 5 5 5 1 2 2 Ma
Slide 9: Key Financial Performance: Revenues by Product
Key Financial Performance Revenues Breakdown By Product 3Q23 3Q24 +52% 9M23 9M24 +46% 169 394 +14% +18% +28% +9% 116 259 248 +47% +1% 217 77 88 186203 69 167 66 -18% +318% 53 53 113 +48% +152% +39% +13% +86% -4% 26 43 10 8 6 17 22 31 13 14 1 2 5 5 4 6 National Team Football Club Collection Made to O
Slide 10: Key Financial Performance
Key Financial Performance Unit: THB’m Revenues Gross Profit Margin 1,106 59% 60% 60% 831 56% 56% 891 49% 50% 429 697 48% 49% 325 350 46% 48% 47% 46% 46% 288 365 261 215 44% 64 62 64 134 3Q23 2Q24 3Q24 9M23 9M24 3Q23 2Q24 3Q24 9M23 9M24 Licensed Non- Licensed Licensed Non-Licensed Total Unit: THB’m E
Slide 11: Key Financial Performance: Costs and Expenses
Key Financial Performance Unit: THB’m Cost of Sales and Services Unit: THB’m Selling Expenses 54% 25% 31% 27% 28% 31% 52% 51% 340 51% 50% 37 51 1,106 232 25 63 33 110 118 45 82 12 15 10 15 20 189 10 21 22 129 17 45 61 61 831 3Q23 2Q24 3Q24 9M23 9M24 Advertising & Promotion People cost Rental & Servi
Slide 12: Balance Sheet
Balance Sheet Unit: THB’m Assets Liabilities & Equity Unit: THB million Unit: THB million +2% YTD +2% YTD 1,800 1,800 1,831 1,831 51 58 211 Intangible assets 46 202 175 Trade and other current 325 141 166 Cash and cash equivalents 107 payables 48 39 153 Interest Bearing Debt Right-of-use assets 114
Slide 13: 2025 Key Strategies
02 2025 Key Strategies 13
Slide 14: 2025 Key Strategies
2025 Key Strategies Brand Building - Improve brand positioning: stretch brand awareness to regional active & lifestyle brand to capture new-wider target groups and growing brand awareness of its non-license products. - Enhance communication of each sales channels. - Strengthen ‘Run Hub’ as Lifestyle
Slide 15: 2025 Key Strategies: Brand Building
2025 Key Strategies Brand Building - Improve brand positioning: stretch brand awareness to regional active & lifestyle brand to capture new-wider target groups and growing brand awareness of its non-license products. - Enhance communication of each sales channels. ▪ Register Warrix as not only footb
Slide 16: 2025 Key Strategies: Run Hub Community
2025 Key Strategies Brand Building - Strengthen ‘Run Hub’ as Lifestyle Sport Community: By bridging 3 main activities lead to products and services sales opportunities. Including opportunities to enhance non-football products at QSNCC shop. City Run on Every Saturday Basketball TETS 2025 x 6 events
Slide 17: Focus on Direct to Customer
2025 Key Strategies Focus on Direct to Customer (Own Channels from 54% in 2023 to 65% in 2025) - Expand distribution channel, mainly focus on own channels; 24 new (temporary) shops and online. - Increasing high margin product mix. - AI-Driven Efficiency. 2023A 9M24A 2025F Non-own Own Non-own Own Non
Slide 18: 14th Own (Temporary) Shop – Siam Premium Outlet
14th Own (Temporary) Shop – Siam Premium Outlet ▪ Location : Siam Premium Outlet ▪ Selling Area: 130 SQM ▪ Opening Date : 16 September 2024 19
Slide 19: 2025 E-commerce Channel
2025 E-commerce Channel Own-Channel Marketplace +1XX% +XX% Uplift Uplift 2024 2025F 2024 2025F Own-Channel Growth Drivers: Marketplace Growth Drivers: • Website UX/UI and CRM Investment: Enhanced user • Onsite Media Utilization: Leveraged platform traffic to experience boosted conversion rates. driv
Slide 20: AI-Driven Efficiency
AI-DRIVEN EFFICIENCY Business Transformation Project Features: BENEFITS: 1. Product inquiry by text and image Revenue Gain 2. Instant Buy 3. FAQ from KM Product inquiry by text and image Instant Buy FAQ from KM 21
Slide 21: AI-Driven Efficiency
AI-DRIVEN EFFICIENCY Business Transformation Project • Chat Summary: 53.90% of chats were resolved by the bot, 10.32% were closed by an admin, and 35.78% were MTO cases, which are exclusively handled by admins. BENEFITS: Revenue Gain • Chat without MTO: When excluding MTO cases, 83.93% of chats were
Slide 22: 2024 Key Strategies: New Partnership
2024 Key Strategies New Partnership - Expand new partnership through licensing strategy to diverse customer target groups in SEA. - Potential new business expansion related to health and lifestyle. Official Licenses Corporate & Project Educational & Academy Licenses International Distributor New Spo
Slide 23: Business Update & Outlook
03 Business Update & Outlook 24
Slide 24: Warrix International in Recovery
Warrix Internation in Recovery 2025 WARRIX STORES - REGIONAL WARRIX International: ▪ Myanmar (Distributor) ▪ Cambodia ▪ Malaysia (Distributor) MM : 1 Distributors ▪ Singapore (Distributor) WARRIX Holding: CB : TBC ▪ Adidas Retail ▪ Adidas E-commerce Operated by MY : 2 Stores Universal Sports SG : 1
Slide 25: Warrix International in Recovery: Malaysia
Warrix Internation in Recovery: Malaysia Warrix x Universal Sports 1. Partnership with a Strong Distributor We have successfully partnered with a reputable distributor in Malaysia to drive our brand presence and ensure effective market penetration. This partnership facilitates seamless operations ac
Slide 26: Warrix International in Recovery: Malaysia
Warrix Internation in Recovery: Malaysia Warrix x Universal Sports ▪ Launched First Warrix Concept Store by Galaxy Sports (operated by USS) at Central I City in November 2024. 28
Slide 27: Warrix International in Recovery: Singapore
Warrix Internation in Recovery: Singapore 1. Appointment of USS as Distributor Warrix Singapore operations will be supported by USS appointed as the primary distributor. This partnership is expected to streamline logistics and distribution for both offline and online channels, including PFI stores.
Slide 28: Leveraging new partnership to penetrate Chinese market
Leveraging new partnership to penetrate Chinese market Himaxx x Warrix (Trademark Licensing) ▪ Launched F/W 2024 Collection in first Himaxx Outlet Store since September to 12 stores at the present. (Himaxx now has 30 branches around Shanghai and aims to reach 100+ branches by 2025) ▪ Opportunities t
Slide 29: First Look of Warrix Fall/Winter 2024 Collection
First Look of WARRIX Fall/Winter 2024 Collection (Trademark Licensing) 31
Slide 30: Warrix Run Hub: Strategies 2025
Warrix Run Hub : Strategies 2025 Commercial Part Health Service Part “ New Products & Services, Medical Services: More Personalized & Specialized ” 1. Weight management 2. Hormone (Height growth, Menopause) Physiotherapy: 3. Medicine & Supplement 1. Personalized Therapy Programs Fit Junction: 2. New
Slide 31: Warrix Shop Siam Square: Strategies 2025
Warrix Shop Siam Square : Strategies 2025 ▪ Target foreign customers nearby Pathumwan area and hotels. ▪ Organize events at the shop. ▪ Broadcasting events, products, and promotions via various channels. ▪ TikTok live selling. ▪ Adjust product assortments.
Slide 32: Activity Roadmap Q2-Q4/2024
Activity Roadmap Q2-Q4/2024 Q2 Q3 Q4 WORLD CUP FIFA DAY FIFA DAY Qlf. 5,10 SEP 16,19Nov FOOTBALL EVENT 6,11 JUN KC CUP ASEAN MITSUBISHI TBA 2024 8DEC-5JAN ระเริ งรัน TETS TETS PRACHUAB KANCHANABURI SARABURI 1-2JUN 10-11AUG 31AUG-1SEP RUNNING EVENT SHOPEE RUN 22 SEP RUNNING COMMUNITY OLYMPIC PARIS TH
Slide 33: Activity Roadmap 2025
Activity Roadmap 2025 FOOTBALL EVENT RUNNING EVENT TBC TBC TBC TBC TBC TBC OTHER SPORT EVENT LIFESTYLE EVENT 36
Slide 34: 2026 Sales Target
2026 Sales Target Target 2026 Gross Sales > THB ~2,700m 100 % Sales in 2026 300 150 Services ~ 4% NEW 430 Oversea ~ 11% Health ~ 5% 1,238 Licensed ~ 15% 1,062 20 4 211 Existing 655 228 1,805 648 696 1 4 147 147 140 1,007 830 549 507 504 Non-Licensed ~ 65% 2019 2020 2021 2022 2023 2026 Non-Licensed L
Slide 35: Q&A and Disclaimer
Q&A For more information, please contact IR Department ir@warrix.co.th or 094 310 7103 Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or purchase for share in Warrix Sport Public Company Limited (“WARR
Slide 36: Appendix
05 Appendix 45
Slide 37: Sport Apparel Industry Outlook
Sport Apparel Industry Outlook ▪ The sport apparel goods market in Thailand is worth approximately THB 30 billion. ▪ Recovered to pre-COVID-19 level, and on an uptrend with prospect to grow 15-20% per year premised on increasing in health awareness as more people are committed to leading healthier a
Slide 38: Thailand Annual Garment Consumption
Thailand Annual Garment Consumption 51.1 T-shirt 17% 111.7 Others 37% 34.9 300 Shirt 12% mn pcs 27.9 Polo 9% 25.6 Sportwears 48.8 9% Pants 16% Thailand Annual Garment Consumption 2020 (mn pcs) Sources : Mckinsey sporting goods 2021-2022 report, Manager Daily news the mall group research 2018, Market
Slide 39: Industry Outlook
Industry Outlook Thailand's Sports Industry Top 5 Sports Contributing to the Industry in 2023 Unit: THB million Unit: THB million 14,018 7% +13% YoY 27,252 Football 207,888 14% 184,723 Running 168,973 73,983 130,581 38% Volleyball 32,417 Badminton 17% 46,301 24% Boxing 2021A 2022A 2023A 2024F Sports
Slide 40: Key Financial Performance
Key Financial Performance Unit: THB’m Revenues Gross Profit Margin 1,225 59% 1062 55% 54% 696 655 648 1013 834 48% 44% 46% 45% 42% 549 509 508 46% 42% 41% 44% 41% 43% 41% 147 147 140 229 211 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Licensed Non-Licensed Licensed Non-Licensed Total Unit: THB
Slide 41: Key Financial Performance
Key Financial Performance Unit: THB’m Cost of Sales and Services Unit: THB’m Selling Expenses 59% 58% 28% 27% 30% 27% 24% 55% 326 54% 52% 255 37 47 198 200 22 181 30 1,225 21 18 37 63 17 30 23 41 19 30 33 166 179 1,063 118 100 130 2019 2020 2021 2022 2023 Advertising & Promotion People cost Rental &
Slide 42: Key Financial Performance
Key Financial Performance Unit : Million Baht 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Total A/R 327.2 245.9 344.3 357.1 294.8 317.6 400.5 Total Inventory 558.8 540.3 555.2 529.9 545.5 543.3 559.7 Total A/P 270.2 144.1 180.0 202.4 173.1 189.0 211.2 Total Assets 1906.6 1658.9 1735.7 1799.7 1771.5 1729.3 18
Slide 43: Company Overview
06 Company Overview 52
Slide 44: Key Milestones
Establishment period Transformation from sport apparel to active and lifestyle Listed Co., Win the rights to produce the Myanmar national football team sportswear products ▪ Warrix Holding Pte. Ltd. was founded ▪ Opening 1st Physiotherapy & Transforming to WARRIX 2017-2018 was founded Performance St
Slide 45: Warrix at a glance
Wiarrix at a slance Innovation & Design & Unbreakable Jersey Exclusive technology by WARRIX | ead ie egaeee2- Strong Partnership => 2 National Football team licenses i international licenses >30 Clubs licenses G Educational licenses _6 Sponsorship licenses Extensive Distribution Channel 3 Flagship S
Slide 46: Extendable business
Warrix Key Product Portfolio Expanding portfolio and products Football Running Basketball Golf Table Tennis Sport Equipment Sportswear [Photo] Training Footwear Innerwear Streetwear Lifestyle Active & Extendable business Lifestyle Physiotherapy & RUN HUB Performance Studio Health Trail / Marathon Ru
Slide 47: Warrix Product Portfolio at a Glance
Warrix Product Portfolio at a Glance Non - Licensed products (81%) Licensed products (18%) Classic Product National Team, Football Club, and Other Licensed Product with simple design, wear in classic and trendy ways for every occasion Warrix exclusive products with the official right to support the
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