Sosandar Plc (SOS) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone. Today, we're going to review the results for FY24. However, the main focus of the presentation is to look at our journey to increasing profitability and realizing the full potential of the brand. So to take you through the agenda for today, we'll take a moment to look at where we are now as a brand. Steve will cover financial results and Q1 trading update, which leads us into our focus on profitability. Within this, we're going to look at margin, scale, opening stores, and how stores will enhance margin and expanding the brand further. Hello, everyone. So just to kick off, I'm just going to summarize the key points that we're going to be covering in the presentation today. We've built a fantastic brand from scratch to achieve well over 40 million of turnover selling through multiple channels. We focused on building and growing scale to achieve that success. We're now at a scale where we can focus fully on realizing the profit potential of the business. We made the strategic decision in half two of last year to significantly reduce price promotions, and this proved highly successful in terms of driving margin and profitability. Then in Q1 of this financial year, we've reduced price promotional activity even further, and that has driven an even stronger uplifting margin of 670 basis points, achieving a margin of 63.4%. Yes, revenue has been impacted in Q1, as you would expect from that reduction in price promotion. But by prioritising margin and profitability rather than revenue, we've had a huge positive swing in PBT. So therefore, it's clear that the right course of action in order to drive sustainable profit is to continue with this focus on margin for the rest of the year, reducing price promotional activity to the same extent that we've r...