Nick Scali Limited · ASX:NCK
Nick Scali — HY18 Earnings Presentation
11 slides from Nick Scali's earnings presentation, Feb 7, 2018
Slide 1: HY18 Results Presentation
For personal use only Nick Scali Limited | NCK.ASX HY18 Results Presentation 7th February 2018
Slide 2: Key Highlights
Key Highlights For personal use only • Sales increased 8.1% to $128.0m (HY17: $118.4m) Sales • Like for like sales growth of +2.6% for Nick Scali Furniture stores • Increase assisted by sales from new stores opened in FY17 and HY18 Profit • Gross margin increased by 90 bps to 62.6% Profit • NPAT inc
Slide 3: Sales and NPAT growth
Sales and NPAT growth For personal use only Sales up 8.1% from comp store growth of +2.6%, with NPAT continuing to benefit from scale Revenue (A$000) NPAT (A$000) CAGR CAGR 15.6% 31.5% 15.0% 8.1% 44.7% 23,514 15.5% 32.0% 20,451 127,953 40.7% 118,369 8.3% 102,459 27.6% 14,131 77,630 71,691 10,046 7,8
Slide 4: Profit margin and cost of business
Profit margin and cost of business For personal use only Profitability and cost of doing business continue to trend favourably NPAT to Sales CODB to Sales 200,000 20.0% 48.0% 18.4% 180,000 17.3% 46.0% 160,000 13.8% 16.0% 140,000 44.0% 12.9% 43.9% 120,000 11.0% 127,953 12.0% 42.0% 118,369 100,000 102
Slide 5: Earnings Summary
Earnings Summary For personal use only Profit and loss statement Summary Half-Year Ended 31 December HY18 HY17 Change (%) ($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 6: 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 • Total inventory of $31.2m due to new store openings Receivables 0.6 0.
Slide 7: Cash Flow
Cash Flow For personal use only Strong operating cash flow (+10.9% yoy) supporting capex and dividend payments (+17.6% yoy) Cash flow statement Summary Half-Year Ended 31 December ($m) HY18 HY17 • Operating cash flow increased $2.0m yoy Receipts from customers 140.4 129.8 - Result of sales increase
Slide 8: Store network
Store network For personal use only Consistent growth in the store network including the first store in New Zealand Current store network Nick Scali brand store network growth 12 6 4 52 46 16 41 42 1 34 1 11 1 FY14 FY15 FY16 FY17 HY18 • Six new Nick Scali Furniture stores - five in Australia in Cann
Slide 9: Outlook
Outlook For personal use only New stores The six new stores opened in first half FY18 have performed above expectations. Three of the new stores are located in the "Home-Co" centres previously occupied by Masters. The "Home-Co" centres are generating excellent traffic and we expect to open a number
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