Annual results
FY24
11 September 2024
Annual results FY24
1 Introduction
2 Financial review
3 Unlocking our full potential
4 Q&A
2
Introduction
Nick Wilkinson
CEO
3
FY24: balancing growth and grip
+4.1%
Total sales
growth
51.8%
FY23: 50.1%
Gross margin
+6.2% 7.7%
FY23: 7.1%
Volume growth | Market share1 | |
£205m | £132m | |
FY23: £193m | FY23: £160m | |
Profit before | Free cash | |
tax | flow3 | |
+5.1%
Active customers
growth2
43.5p
FY23: 42p
Ordinary dividend
per share
- GlobalData UK combined homewares and furniture markets, excluding kitchen cabinetry and bathroom furniture, for the period July 2023 to June 2024. Prior year comparative restated
- Growth in unique active customers who have transacted at least once in the 12 months to June 2024. Management estimates using Barclays data
- Free cash flow is defined as net cash generated from operating activities less capex (net of disposals), net interest paid (including leases) and loan transaction costs, and repayment of principal element of lease liabilities
Annual results FY24 | 4 |
A unique, specialist proposition driving strong returns
A winning and advantaged
business model:
Market leading brand
Low share of a c.£24bn1 highly fragmented market
Specialist product proposition
Broad appeal across income and age groups
Total retail system
Thriving store and digital channels
Unique operating model
Own-brand product design and committed supplier partners
Growth
Sustainable
profits
Compelling runway to grow share of a large,
fragmented addressable market
Consistent track record of share gains over
recent and long-term history
Continued investment for sustainable growth,
maintaining stable operating margin
Resilient track record of performing through all
economic cycles
Well-established values
Growth mindset, frontline focus and long-term decisions
High cash conversion
G | Financial strength | |||||||||||||
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Cash
returns
Well-established framework for returning cash
to shareholders
oach to s |
1 GlobalData UK combined homewares and furniture markets, excluding kitchen cabinetry and bathroom furniture, for the period July 2023 to | 5 |
June 2024, including VAT |
FY24: delivering for all our stakeholders
Colleagues
- Continued focus on colleague retention, which increased to 89%1
- Continued to drive change through our colleague network groups
- Launched 'Reach' development programme for colleagues from underrepresented ethnic groups
Suppliers
- 99% of suppliers paid on time
- Encouraged suppliers to adopt Higg index tool to underpin better manufacturing programmes
- Continued to build volumes and relationships with committed supplier partners
Customers
- Continued to optimise Dunelm.com through faster website and 'back in stock' notifications
- Improved ease of shopping with interest free credit and cross-channel gift cards
- Expanded Conscious Choice range to c.26% of own-brand product
Planet
- First homewares specialist with SBTi validated targets across Scope 1, 2 and 3 carbon emissions
- Further reduced our Scope 1 intensity2, now 53% below FY19 base year
- Partnered with 'Too Good to Go' in our
Pausa cafes to reduce food waste
Communities
- 125,000 gifts donated to local good causes through 'Delivering Joy' campaign
- Expanded our Home-to-Home scheme, where customers can donate pre-loved homewares to those in need
- Launched new partnership with Age UK, committing to raise £2m in three years
Shareholders
- Continued strong cash returns, with £158m paid in dividends
- Integrated our 'Good & Circular' ESG ambitions into our strategy and ways of working
- Maintained long-term focus and invested for sustainable and profitable growth
- Retention is the percentage of colleagues from the start of the financial year (July 2023) who remained employed until the end of the financial year (June 2024), excluding any planned leavers
- The reduction in Scope 1 carbon emissions in tonnes per £m of revenue, compared to our baseline of FY19
Annual results FY24 | 6 |
Confident in future market share gains
- Our vision is to be the UK's most trusted and valuable brand for homewares and furniture
- Market share gains continue across allcategories1, including those where Dunelm share is already mid-teens
- Confident the current consumer environment presents significant opportunity for further share growth
- Evolved focus areas frame our priorities and investments, with visibility to next market share milestone and beyond
10%
7.7%
5.0%
FY19 2FY242Medium termReaching 10% market share milestone in medium term
- See appendix for category level analysis of GlobalData UK data for calendar year 2023 vs 2019
- GlobalData UK combined homewares and furniture markets, excluding kitchen cabinetry and bathroom furniture, for the period July to June
Annual results FY24 | 7 |
Financial review
Karen Witts
CFO
8
Financial summary
FY24 | FY23 | YoY | |
Sales | £1,706.5m | £1,638.8m | +4.1% |
Gross margin | 51.8% | 50.1% | +170 bps |
Operating cost % sales | 39.3% | 38.0% | +130 bps |
Profit before tax | £205.4m | £192.7m | +6.6% |
Diluted earnings per share | 74.4p | 75.0p | (0.8%) |
FY24 | FY23 | YoY | |
Free cash flow1 | £132.2m | £160.4m | (£28.2m) |
Net debt2 | £55.6m | £30.7m | +£24.9m |
Ordinary dividend | 43.5p | 42.0p | +3.6% |
Special dividend | 35.0p | 40.0p | n/a |
- Free cash flow is defined as net cash generated from operating activities less capex (net of disposals), net interest paid (including leases) and loan transaction costs, and repayment of principal element of lease liabilities
- Excluding lease liabilities
Annual results FY24 | 9 |
Driving profitable growth
Another year of profitable growth and strong cash returns underpinned by:
Continued market share gains | Stable operating margins | ||
• Outstanding value and choice for our customers | Optimising gross margins through: | ||
• Price discipline across quality tiers | |||
• | Increased customer numbers | • Forward visibility of input costs | |
• Management of product specification | |||
• Growth primarily driven by volume | • | Sourcing skills | |
• | Strengthening digital proposition | Managing operating costs: | |
• Volume-driven variable cost increases | |||
• New stores across multiple formats | • | Ongoing (wage) inflation | |
• | Continuous productivity improvement | ||
• | Consistent market outperformance | • Investment for growth and efficiency | |
Annual results FY24 | 10 |