Sports Direct International Plc Interim Results FY19 H1 For 26 weeks - - PowerPoint PPT Presentation

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Sports Direct International Plc Interim Results FY19 H1 For 26 weeks - - PowerPoint PPT Presentation

Nov 16, 2022 454 likes •646 views

Sports Direct International Plc Interim Results FY19 H1 For 26 weeks ended 28 October 2018 13 December 2018 FORWARD LOOKING INFORMATION This presentation may contain forward-looking statements, beliefs or opinions, including statements with

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Sports Direct International Plc Interim Results FY19 H1 For 26 weeks ended 28 October 2018 13 December 2018

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FORWARD LOOKING INFORMATION

This presentation may contain forward-looking statements, beliefs or opinions, including statements with respect to management's current views and expectations of future events, and the Company’s future financial condition and results of

  • perations. No representation is made that any of these statements, beliefs or opinions will come to pass. There are a number
  • f factors that could cause actual results and developments to differ materially from those expressed or implied by these

statements, beliefs or opinions. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements, beliefs or opinions.

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SPORTS DIRECT at a glance

  • Resilient UK Retail performance in a difficult market – FY19 H1 sales of £1.3bn
  • 486 stores in the UK under the Sportsdirect.com fascia
  • 38 stores under the Flannels and other Premium fascia with 59 House of Fraser stores acquired
  • Powerful online presence, multi-language, multi-currency, multi-platform
  • Depth of product offering – good, better and best product
  • European stores portfolio – FY19 H1 sales of £300m
  • 252 stores across mainland Europe
  • Rest of World Retail – FY19 H1 sales of £100m
  • 80 stores in the US and in Asia Pacific
  • Strong relationships with leading Sports and Premium brands
  • Our world famous own brands, examples being Everlast, Slazenger, Karrimor, sold to wholesale customers and licensed

worldwide

  • Strong balance sheet to build on our success and to execute our elevation strategy

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GROUP HIGHLIGHTS

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FY19 H1: GROUP HIGHLIGHTS

5 1. Free cash flow is defined as operating cash flow after working capital, made up of underlying EBITDA plus realised foreign exchange gains and losses, less corporation tax paid and movements in working capital, but pre-capex. 2. Underlying EBITDA, underlying profit before taxation and underlying EPS exclude realised foreign exchange gains/losses in selling and administration costs, exceptional costs, disposal of subsidiaries and the profit/loss on sale of strategic investments.

  • Excluding acquisitions, and on a currency

neutral basis, revenue increased by 0.2%

  • Excluding acquisitions and on a currency

neutral basis, underlying EBITDA was up 14.6%

  • Free cash flow of £69.0m (pre capex) vs

£46.2m in prior period

  • Capital expenditure of £98.2m, including

£39.8m of property assets

  • Net debt of £505.5m from £397.1m at 29

April 2018 (FY18 H1: £471.7m)

  • Substantial financial resource, bank facility

total £913.5m, with £847.5m extended to November 2022 FY19 H1 (£m) FY18 H1 (£m) ∆ pcp Group revenue 1,791.8 1,714.6 4.5% Group gross margin 41.5% 38.6% 290 bps Underlying EBITDA (pre HoF) 180.3 156.1 15.5% House of Fraser (31.5 )

  • -

Underlying EBITDA (incl. HoF) 148.8 156.1 (4.7%) Underlying PBT 64.4 88.0 (26.8%) Underlying EPS 7.3p 11.3p (35.4%) Reported PBT 74.4 45.8 62.4% Reported EPS 8.7p 4.9p 77.6%

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£m FY19 H1 FY18 H1 Change (%) Underlying EBITDA 148.8 156.1

  • 4.7%

Depreciation & amortisation (71.6) (63.9) Net interest (12.8) (4.2) Underlying profit before tax 64.4 88.0

  • 26.8%

Exchange gains and losses 17.6 15.1 IFRS 9 foreign exchange fair value adjustments (5.9) (36.3) Profit on sale of properties

  • 16.7

Impairments of brands & goodwill

  • (5.0)

Investment costs (1.7) (32.7) Reported profit before tax 74.4 45.8 +62.4%

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FY19 H1: SUMMARY UNDERLYING EBITDA TO PROFIT RECONCILIATION

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FINANCIAL REVIEW

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FY19 H1: GROUP REVENUE BRIDGE

  • Excluding acquisitions, Group revenue increased by 0.2% on a currency neutral basis

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FY19 H1: UNDERLYING EBITDA BRIDGE

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REVENUE & GROSS MARGIN(1) OPERATING COSTS & UNDERLYING EBITDA

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FY19 H1: UK SPORTS OVERVIEW

£m FY19 H1 FY18 H1 Change (%) Store wages 83.6 93.6

  • 10.7%

Premises costs 95.3 95.9

  • 0.6%

Other costs 141.4 110.7 +27.7% Total operating costs 320.3 300.2 +6.7% Underlying EBITDA 148.3 154.0

  • 3.7%

Associates (0.6) (8.5) Underlying EBITDA 147.7 145.5 +1.5%

(1) Gross margin is Retail margin excluding wholesale, fitness and

  • ther
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REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA

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FY19 H1: PREMIUM LIFESTYLE OVERVIEW

£m FY19 H1 FY18 H1 Change (%) Store wages 5.9 3.7 +59.5% Premises costs 8.1 6.4 +26.6% Other costs 13.5 10.7 +26.2% Total operating costs 27.5 20.8 +32.2% Underlying EBITDA 2.5 0.7 +257.1%

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REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA

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FY19 H1: HOUSE OF FRASER

£m FY19 H1 Store wages 23.5 Premises costs 26.3 Other costs 16.8 Total operating costs 66.6 Underlying EBITDA (31.5)

*Gross Transaction Value (GTV) is the total sales excluding VAT and after deducting returns and discounts

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REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA

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FY19 H1: EUROPEAN SPORTS OVERVIEW

£m FY19 H1 FY18 H1 Change (%) Store wages 45.8 52.0

  • 11.9

Premises costs 34.0 36.2

  • 6.1

Other costs 37.1 31.7 +17.0 Total operating costs 116.9 119.9

  • 2.5%

Underlying EBITDA 19.2 13.5 +42.2%

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REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA

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  • FY17 H1 includes Malaysia only
  • Bobs & EMS acquired May 17, FY18 margin includes

revaluation to inventory

FY19 H1: REST OF WORLD OVERVIEW

£m FY19 H1 FY18 H1 Change (%) Store wages 17.8 16.0 +11.3 Premises costs 9.9 8.3 +19.3 Other costs 17.4 10.4 +67.3 Total operating costs 45.1 34.7 +30.0% Underlying EBITDA (4.9) (20.9) +76.6%

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REVENUE OPERATING COSTS & UNDERLYING EBITDA

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FY19 H1: WHOLESALE & LICENSING OVERVIEW

£m FY19 H1 FY18 H1 Change (%) Wages 6.1 6.6

  • 7.6

Advertising & promotion 2.8 4.0

  • 30.0

Other costs 8.7 10.2

  • 14.7

Total operating costs 17.6 20.8

  • 15.4%

Underlying EBITDA 15.8 17.3

  • 8.7%
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FY19 H1: NET DEBT BRIDGE

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FY19 H1: CASH FLOW

£m FY19 H1 FY18 H1 Underlying EBITDA 148.8 156.1 Exchange gains & losses 17.6 15.1 Taxes paid (17.7) (20.3) Working capital - Inventory (93.0) (144.0)

  • Debtors/Creditors & other

13.3 39.3 Free cash flow 69.0 46.2 Acquisitions (including debt) (90.0) (11.9) Purchase of strategic investments (47.1) (131.6) Proceeds on disposal of investments 52.7

  • Investment income

3.1 0.8 Purchase of properties (39.8) (80.0) Proceeds from sale of freehold properties

  • 42.2

Other capital expenditure (58.4) (19.9) Purchase of own shares

  • (133.7)

Revaluation of cash balances in other currencies 10.5 2.5 Finance costs and other financing activities (8.4) (4.3) Increase in Net debt (108.4) (289.7)

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Thank You

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