Adore Beauty Group Ltd. · ASX:ABY
Adore Beauty — Shareholder Meeting (November 2023)
25 slides from Adore Beauty's shareholder meeting presentation, Nov 23, 2023
Slide 1: ASX Announcement: Annual General Meeting – Presentation and Addresses
Adore Beauty Group Limited ABN 78 636 138 988 ASX ANNOUNCEMENT 23 November 2023 Annual General Meeting – Presentation and Addresses For personal use only Adore Beauty Group Limited (ASX: ABY) (Adore Beauty) attaches a copy of the presentation and addresses to be made at today’s Adore Beauty Annual G
Slide 2: 2023 Annual General Meeting
For personal use only 2023 Annual General Meeting 23 November 2023 1
Slide 3: Adore Beauty Board & Management
Adore Beauty Board & Management For personal use only Marina Go Kate Morris James Height Sandra Birkensleigh Lisa Hennessy Chair Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Tamalin Morton Stephanie Carroll Chief Executive Officer
Slide 4: Meeting Arrangements
For personal use only Meeting Arrangements 3
Slide 5: Asking questions & voting
Asking questions & voting IN-PERSON AGM Only shareholders and proxyholders are able to ask questions For personal use only Yellow card – speak at the meeting and/or vote Blue card – speak at the meeting only Red card – not eligible to speak or vote at this meeting 4
Slide 6: Chair's Address
For personal use only Chair’s Address 5
Slide 7: CEO Report
For personal use only CEO Report 6
Slide 8: Revenue returns to growth; improved profitability in H2
Revenue returns to growth; improved profitability in H2 IMPROVED OPERATIONAL EFFICIENCY & COST MANAGEMENT H2 FY23 revenue increased 0.5% on H2 FY22 For personal use only Growth driven by multiple record sales events in H2, including Afterpay and Click Frenzy Mayhem Focus on high quality brands
Slide 9: Customer loyalty proving resilient
Customer loyalty proving resilient FY23 FINANCIAL SUMMARY $180.6M 32.8% $0.6M For personal use only Revenue Gross profit margin Reported EBITDA1 -9.6% on PCP -0.5 ppts on PCP +14% 3-year CAGR 801K 490K $27.8M Active customers2 Returning customers3 Cash4 -8% on PCP +4% on PCP -7.7% on PCP +11% 3-year
Slide 10: Value proposition driving repeat customer revenue
Value proposition driving repeat customer revenue FY23 REVENUE INSIGHTS Revenue Returning customer revenue For personal use only ($A Million) ($A Million) 14% CAGR 27% CAGR 9.6% 1.7% 200 179 181 59 43 68 121 140 138 53 111 140 138 111 68 68 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Returning customers
Slide 11: Almost 500K returning customers & growing
Almost 500K returning customers & growing FY23 CUSTOMER INSIGHTS Active customers1 Annual revenue per active customer2 For personal use only (‘000) ($) 11% CAGR 3% CAGR 8% 2% 872 818 801 399 311 590 458 229 371 225 219 472 490 360 205 219 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Returning customers N
Slide 12: FY performance reflects challenging environment
FY performance reflects challenging environment OPERATIONAL ADJUSTMENTS DRIVING IMPROVED PERFORMANCE IN H2 Revenue Gross profit margin EBITDA1 For personal use only ($A Million) (%) ($A Million) 14% CAGR 1 PPTS 50% CAGR 9.6% 0.5 PPTS 88% 33.3 7.6 199.7 179.3 180.6 33.1 32.8 5 5.3 121.1 31.8 0.6 FY20
Slide 13: Strategy to drive growth
Strategy to drive growth FOCUS ON CUSTOMER, BRAND AWARENESS & OPERATIONAL OPTIMISATION For personal use only 1. CUSTOMER CENTRICITY 3. OPERATIONAL OPTIMISATION State of Beauty data insights Marketing efficiency & effectiveness Enhance loyalty program Retail media Optimise customer/user exp
Slide 14: Long growth runway in resilient category
Long growth runway in resilient category AUSTRALIAN ONLINE SALES YEARS BEHIND UK & US MARKETS Large addressable market Online BPC sales accounted for $1.6b in Online sales in mature markets at 43% For personal use only Australian beauty & personal care (BPC) 2022, or 12.3% of total market Beauty &
Slide 15: Key margin expansion levers
Key margin expansion levers AREAS OF FOCUS For personal use only Revenue growth Improve gross profit margin Reduce expenses Pricing and promotional Increase scale Cost optimisation program review Improved marketing Improved brand awareness Partner support effectiveness, growing owned media channels
Slide 16: Phased investment in growth strategy
Phased investment in growth strategy TRADING UPDATE For personal use only Sales momentum continues; Q1 FY24 revenue of $47.5 million up 4.7% on PCP1 Active customers return to growth, up 1.5% on PCP to 803k Returning customers grow to a record 497k Executing on refined strategy with new laun
Slide 17: Questions
For personal use only Questions 16
Slide 18: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Adore Beauty Group Limited ACN 636 138 988 (Company). This An investor must not act on the basis of any matter contained in this presentation but must make its own presentation contains summary information about the Company and
Slide 19: Australia's Online Beauty Store
For personal use only AUSTRALIA’S ONLINE BEAUTY STORE WWW.ADOREBEAUTY.COM.AU 18
Slide 20: ABY Chair Address
ABY CHAIR ADDRESS FY23 was a challenging year for both Adore Beauty and the broader retail sector as we cycled two consecutive years of significant customer and revenue growth, while navigating high levels of inflation and subdued consumer sentiment. Against this backdrop, Adore Beauty demonstrated
Slide 21: For personal use only
Adore Beauty’s resilience in a challenging operating environment reflects the hard work and dedication of our entire team. I’d like to take this opportunity to acknowledge my fellow Directors, our management, and the wider Adore Beauty team for their efforts over the past year. Finally, I’d like to
Slide 22: 2023 AGM CEO Script
2023 AGM CEO SCRIPT Tamalin: Thank you, Marina. Good morning, everyone. For those who haven’t met me, I’m Tamalin Morton, the CEO of Adore Beauty Group. For personal use only Slide 7: Revenue returns to growth; improved profitability in H2 As Marina mentioned, FY23 was a challenging year for retaile
Slide 23: CEO Script: Slides 9 and 10
Slide 9: Value proposition driving repeat customer revenue Revenue in FY23 was underpinned by our valuable returning customers, who contributed 76% of all revenue, up from 70% in FY22. The graph on the right shows that despite the challenging environment, revenue contributions from returning custome
Slide 24: CEO Script: Slides 13 and 14
Slide 13: Long growth runway in resilient category Adore Beauty has a long growth runway, operating within the nation’s $12.8 billion beauty and personal care market. According to Euromonitor forecast data, the Australian online segment is expected to be a $2.9 billion market by 2027 - representing
Slide 25: For personal use only
Our continued focus on margin and cost optimisations are delivering ongoing benefits, and are supporting our profitability targets. We remain on track to achieve an EBITDA margin of 2-4% in FY24. Slide 16: Questions I’d like to take this opportunity to acknowledge the very talented Adore Beauty team
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