Nick Scali Limited · ASX:NCK
Nick Scali — Macquarie Conference 2018
11 slides from Nick Scali's conference presentation, May 2, 2018
Slide 1: Nick Scali Limited Macquarie Conference
For personal use only Nick Scali Limited | NCK.ASX Macquarie Conference 2nd May 2018
Slide 2: Key H1-18 Highlights
Key H1-18 Highlights For personal use only • Sales increased 8.1% to $128.0m (HY17: $118.4m) Sales • Increase assisted by sales from new stores opened in FY17 and HY18 Profit • Gross margin increased by 90 bps to 62.6% Profit • NPAT increased 15.0% to $23.5m (HY17: $20.5m) Expenses • Operating expen
Slide 3: Earnings Summary
Earnings Summary For personal use only Profit and loss statement Summary Half-Year Ended 31 December HY18 HY17 Change (%) ($m) 0.8 Sales Revenue 128.0 118.4 + 8.1% 0.8 Cost of sales (47.9) (45.4) Gross Profit 80.1 73.0 + 9.7% 1.7 Other income 0.5 0.2 23.5 Operating expenses (45.0) (42.7) + 5.3% 20.5
Slide 4: Balance Sheet
Balance Sheet For personal use only Growing fixed asset base and efficient inventory management Balance sheet Summary Half-Year Ended 31 December ($m) HY18 FY17 • Strong cash position maintained Cash and term deposits 28.2 39.9 • Increase in inventory corresponds with new store Receivables 0.6 0.2 o
Slide 5: Cash Flow
Cash Flow For personal use only Strong operating cash flow (+10.9% yoy) supporting capex and dividend payments (+17.6% yoy) Cash flow statement Summary Half-Year Ended 31 December ($m) HY18 HY17 • Operating cash flow increased $2.0m yoy Receipts from customers 140.4 129.8 - Result of sales increase
Slide 6: Sales and NPAT growth
Sales and NPAT growth For personal use only Revenue (A$000) NPAT (A$000) 42.4% CAGR 14.7% CAGR 16.3% 32.1% 30.4% 37,236 232,908 53.1% 10.1% 203,045 11.0% 26,150 20.0% 155,743 16.3% 141,442 127,431 17,077 14,236 12,241 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 6
Slide 7: Profit margin and cost of business
Profit margin and cost of business For personal use only Profitability and cost of doing business continue to trend favourably NPAT to Sales CODB to Sales 300,000 48.0% 16.0% 16.0% 250,000 46.4% 46.0% 12.9% 232,908 45.3% 11.0% 44.0% 200,000 12.0% 44.3% 10.1% 203,045 9.6% 42.0% 150,000 155,743 8.0% 4
Slide 8: Long term store network target of stores (Australia and New Zealand)
Long term store network target of 75 stores (Australia and New Zealand) For personal use only Consistent growth in the store network including the first store in New Zealand FY18 store network Nick Scali brand store network growth 13 6 4 75 16 58 - 59 1 53 46 41 42 1 34 11 1 FY14 FY15 FY16 FY17 FY18
Slide 9: New Store Phasing
New Store Phasing For personal use only New stores are loss making during the initial opening phase and typically reach breakeven after 6 months Opening phase P1 P2 P3 P4 P5 P6 TOT New store assumptions: Sales Orders 400 400 400 400 400 400 2,400 • Based on store average annual sales orders of $4.8m
Slide 10: Thank you
For personal use only Thank you
Slide 11: Important notice and disclaimer
Important notice and disclaimer For personal use only Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based o