Lovisa Holdings Ltd. · ASX:LOV
Lovisa — Shareholder Meeting (October 2018)
14 slides from Lovisa's shareholder meeting presentation, Oct 30, 2018
Slide 1: Lovisa Holdings Limited 2018 Annual General Meeting
Lovisa Holdings Limited 2018 Annual General Meeting
Slide 2: Welcome to the Annual General Meeting
Welcome to the Annual General Meeting of Lovisa Holdings Limited Michael Kay Chairman
Slide 3: FY18 highlights: EBIT, NPAT, revenue, stores, dividend
EBIT up 26% NPAT $36.0M $51.1M up 24% Like for Like Sales Revenue up 21.4% +6.8% $217.0M Total Stores Final Dividend 326 14.0 CPS Net increase of 38 stores Fully Franked 3
Slide 4: Shane Fallscheer, Managing Director
ANNUAL GENERAL MEETING Shane Fallscheer Managing Director 4
Slide 5: Full Year Overview
FULL YEAR OVERVIEW • EBIT up 26% to $51.1m • We continue to invest in the structure of the business to support global growth, with • Comparable store sales growth of 6.8% investment in rollout of new territories, • Gross margin increased to 80.0% due to global support structures and the expanded con
Slide 6: Trading Performance - Sales
TRADING PERFORMANCE - SALES Comparable sales up 6.8% 240 220 200 180 160 Sales ($AUDm) 140 120 100 $217.0 $178.7 80 $153.5 60 $134.3 $105.7 40 20 0 FY14 FY15 FY16 FY17 FY18 • Total Global Sales Revenue up 21.4% to $217m • Comparable store sales up 6.8% driven by strong performance of Christmas and B
Slide 7: Trading Performance – Gross Margin
TRADING PERFORMANCE – GROSS MARGIN Gross margin increased to 80.0% • Gross profit increased 23% to Gross Margin at Constant Currency* $173.6m FY18 FY18 FY17 • Gross Margin was 80.0% up 120 Currency USD 0.75 0.72 0.72 basis points from 78.8% in the prior year Sales 217,010 217,010 178,746 • Gross Mar
Slide 8: Cash Flow and Balance Sheet
CASH FLOW AND BALANCE SHEET Strong Cash Flow and Balance Sheet with (A$000s) FY18 FY17 Net Cash 21,057 11,039 Significant Capacity Available To Fund Growth Receivables 4,881 3,615 Inventories 14,945 13,127 • Strong cash flow with operating cash conversion at 104% Derivatives 1,429 - Total current as
Slide 9: Store Growth
STORE GROWTH International Rollout Continues with a Net Increase of 38 Stores Store number growth Est. Store • Number of international stores growing with offshore Country FY18 FY17 Var territories now 54% of the store network Capacity Australia 151 145 6 150+ • Net increase of 38 stores for the yea
Slide 10: Operational Update
OPERATIONAL UPDATE • We continue to focus on investment in people and processes to ensure we remain efficient as we grow and able to execute on our strategic plans • Key operational and IT changes complete/underway: • Move of our third party logistics hub from Hong Kong to Qingdao China complete • C
Slide 11: People Update
PEOPLE UPDATE • Mark Cripsey appointed as Chief Operating Officer, and will join the business in November • Mark joins the company from Myer, where he was most recently Chief Operating Officer. Prior to that Mark was GM Online at Coles, and also spent time at Tesco and Accenture • We are also please
Slide 12: Summary
SUMMARY • EBIT of $51.1m and 80% gross margin (79% on constant currency) • Comparable store sales growth of 6.8% • Lift in margin following tight inventory management and strong Christmas and Boxing Day sales period • CODB investment well managed to focus on laying the platform for future growth • T
Slide 13: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • We continue to cycle particularly strong comparable store sales delivered over recent years, with growth above our long term target range delivered in each of the past 4 years, which will make a continuation of the comparable store sales momentum delivered in FY18 more c
Slide 14: Forward-looking statements disclaimer
Some of the information contained in this presentation contains “forward - looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about future events of Lovisa