Slides
Page 1
1 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION • Group sales at $252.2m, an increase of 2.6% and underlying sales at $250.9m, an increase of 8.0% (1) • Company store comparative sales increase of 7 .2% • Online sales at $16.2m, an increase of 50.6% • Group NPAT at $22.2m, an increase of 38.5% and underlying NPAT at $19.1m, an increase of 16.8% (1) • Significant profit made on the sale and leaseback of the Parkinson Distribution Centre (QLD) • Purchased the Beacon Lighting franchise store at Myaree (WA) and the premium lighting design store, Custom Lighting in Malvern (VIC) • Managed the closure of Beacon Energy Solutions • Established a strong net cash position for the Group 1 (1) Underlying result for FY2019 and FY2020 (refer page 7) FINANCIAL HIGHLIGHTS H1 FY2025 RESULTS PRESENTATION 20 FEBRUARY 2025 For personal use only
Page 2
2 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION CONTENTS RESULTS OVERVIEW FINANCIALS STRATEGIC PILLARS OF GROWTH H2 FY2025 OUTLOOK QUESTIONS APPENDIX 1 2 3 4 5 6 For personal use only
Page 3
3 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION • Group sales at $252.2m, an increase of 2.6% and underlying sales at $250.9m, an increase of 8.0% (1) • Company store comparative sales increase of 7 .2% • Online sales at $16.2m, an increase of 50.6% • Group NPAT at $22.2m, an increase of 38.5% and underlying NPAT at $19.1m, an increase of 16.8% (1) • Significant profit made on the sale and leaseback of the Parkinson Distribution Centre (QLD) • Purchased the Beacon Lighting franchise store at Myaree (WA) and the premium lighting design store, Custom Lighting in Malvern (VIC) • Managed the closure of Beacon Energy Solutions • Established a strong net cash position for the Group 1 (1) Underlying result for FY2019 and FY2020 (refer page 7) FINANCIAL HIGHLIGHTS 1 RESULTS OVERVIEW For personal use only
Page 4
4 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION 1 FINANCIAL HIGHLIGHTS $170.6m Record Sales $47.4m EBITDA 69.3% Gross Profit Margin $17.6m NPAT 4.9% Operating Expense Increase $48.0m Cash(1) (1) Cash and cash equivalients (including other financial assets). For personal use only
Page 5
5 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION 1 25.3% Store Trade Sales Increase NEW STORES Chatswood (NSW)(1) Port Stephens (NSW) Shepparton (VIC) Bendigo (VIC)(2) 210+ Team members received “Trade Immersion Training” RECORD Trade Club Members VIP Customers 34.2% Online Trade Sales Increase beacontrade.com.au 9.2% Online Retail Sales Increase beaconlighting.com.au Designed and Developed 307 New Innovative Products OPERATIONAL HIGHLIGHTS (1) Chatswood (NSW) is a relocation for the Killara (NSW) store now closed. (2) Bendigo (VIC) store was a relocation. For personal use only
Page 6
6 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION 1 H1 FY2025 RESULT (1) Other Income includes other revenue, other income and a share of net profits of associates. (2) Operating Expenses exclude depreciation, amortisation and finance costs. (3) Refer to Appendix 1 for further information on Non-IFRS financial measures. $'000 H1 FY2024 H1 FY2025 Change $ Change % Sales 164,857 170,568 5,711 3.5% Gross Profit 114,337 118,264 3,927 3.4% Gross Profit Margin % 69.4% 69.3% Other Income(1) 908 1,336 428 47.1% % of Sales 0.6% 0.8% Operating Expenses(2) (68,849) (72,246) (3,397) 4.9% % of Sales 41.8% 42.4% EBITDA(3) 46,396 47,354 958 2.1% EBITDA Margin % 28.1% 27.8% EBIT(3) 29,839 29,666 (173) (0.6%) EBIT Margin % 18.1% 17.4% Net Profit After Tax 18,051 17,595 (456) (2.5%) NPAT Margin % 10.9% 10.3% For personal use only
Page 7
7 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION • Group sales at $252.2m, an increase of 2.6% and underlying sales at $250.9m, an increase of 8.0% (1) • Company store comparative sales increase of 7 .2% • Online sales at $16.2m, an increase of 50.6% • Group NPAT at $22.2m, an increase of 38.5% and underlying NPAT at $19.1m, an increase of 16.8% (1) • Significant profit made on the sale and leaseback of the Parkinson Distribution Centre (QLD) • Purchased the Beacon Lighting franchise store at Myaree (WA) and the premium lighting design store, Custom Lighting in Malvern (VIC) • Managed the closure of Beacon Energy Solutions • Established a strong net cash position for the Group 1 (1) Underlying result for FY2019 and FY2020 (refer page 7) FINANCIAL HIGHLIGHTS 2 FINANCIALS For personal use only
Page 8
8 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION SALES2 • Company store comparative sales increased by 1.3%. • Store trade sales increased by 25.3%. • Online sales increased by 15.5%. • Beacon International, Light Source Solutions and Masson For Light all had positive sales increases. SALES: Increased by 3.5% to $170.6 million Sales $m 164.9 H1 FY24 170.6 H1 FY25 151.3 H1 FY21 151.3 H1 FY22 164.7 H1 FY23 For personal use only
Page 9
9 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION GROSS PROFIT2 • Gross profit dollars increased by $3.9 million to be 69.3% of sales. • Despite the change in the sales mix towards trade, having vertically integrated supply chain has helped to support gross profit margins. • Innovative new products designed and developed in Australia continue to excite our retail and trade customers. GROSS PROFIT: 69.3% of Sales Gross Profit $m 114.3 H1 FY24 118.3 H1 FY25 103.6 H1 FY21 106.0 H1 FY22 112.0 H1 FY23 Gross Profit % 69.4% H1 FY24 68.5% H1 FY21 70.0% H1 FY22 68.0% H1 FY23 69.3% H1 FY25 For personal use only
Page 10
10 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION OPERATING EXPENSES2 • Marketing expenses were in line with last year. • The growth in general and administration expenses has been well managed. • Selling and distribution expenses have increased with the opening of new stores. • Depreciation and finance costs have increased, reflecting the opening of new stores and other business investments. • Business productivity continues to be a focus. OPEX: Increased by 4.9% of Sales to $72.2 million $'000 H1 FY2024 H1 FY2025 Change $ Change % Marketing Expenses 8,676 8,715 39 0.4% % of Sales 5.3% 5.1% Selling and Distribution 49,981 52,861 2,880 5.8% % of Sales 30.3% 31.0% General and Admin 10,192 10,670 478 4.7% % of Sales 6.2% 6.3% Operating Expenses 68,849 72,246 3,397 4.9% % of Sales 41.8% 42.4% Depreciation 16,557 17,688 1,131 6.8% % of Sales 10.0% 10.4% Finance Costs 3,771 4,356 585 15.5% % of Sales 2.3% 2.6% For personal use only
Page 11
11 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION CASH FLOW2 • Increase in receipts from customers reflecting the increase in sales. • Repayment of borrowings has impacted financing activities. • Capital expenditure of $6.0 million to support future growth. • Dividend payment of $6.3 million inclusive of the dividend reinvestment. $'000 H1 FY2024 H1 FY2025 Cash Flow from Operations Receipts from Customers 181,941 188,753 Payment to Suppliers & Employees (133,215) (144,521) Other (3,679) (3,311) Income Tax Paid (8,939) (8,327) Net Operating Cash Flow 36,108 32,594 Net Cash (Outflow) from Investing (15,327) (6,010) Net Cash (Outflow) from Financing (15,149) (24,756) Net Increase Cash 5,722 1,828 $'000 H1 FY2024 H1 FY2025 Cash Flow Details Capital Expenditure (5,246) (5,989) Payments for Financial Assets (10,000) 0 Dividends Paid (6,617) (6,284) For personal use only
Page 12
12 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION BALANCE SHEET2 • Increased cash (and other financial assets) to $48.0 million. • Receivables have increased to $13.4 million reflecting the growth in trade. • Inventory stable at $98.7 million. • Borrowings have declined to $20.2 million. $'000 DEC 2023 DEC 2024 Cash 26,404 38,009 Other Financial Assets 10,000 10,000 Receivables 12,482 13,425 Inventories 97, 231 98,690 Other 3,348 2,939 Total Current Assets 149,465 163,063 PPE 46,449 48,918 Right of Use Asset 116,947 117,404 Investment in Assoicates 19,900 19,875 Intangible 13,938 13,918 Other 15,160 15,683 Total Non Current Assets 212,394 215,798 Total Assets 361,854 378,861 Payables 21,993 26,246 Borrowings 27,015 20,217 Lease Liability 27,644 29,255 Other 14,010 14,927 Total Current Liabilities 90,662 90,645 Lease Liability 109,455 108,307 Other 1,793 1,790 Total Non Current Liabilities 111,248 110,097 Total Liabilities 201,910 200,742 Net Assets 159,949 178,119 For personal use only
Page 13
13 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION DIVIDENDS2 The Dividend Reinvestment Plan (DRP) remains in place. H1 FY2025 Dividend: Record date: March 7 , 2025. Payment date: March 21, 2025. Declared a fully franked dividend of: 4.1 cents per share for H1 FY2025 (which is consistent with H1 FY2024). Annual payout ratio expected to be 50% to 60% of Net Profit After Tax. For personal use only
Page 14
STRATEGIC PILLARS OF GROWTH3 NEW BUSINESS INCLUDES EMERGING BUSINESSES, INTERNATIONAL SALES EXPANSION, NEW BUSINESS ACQUISITIONS, AND PROPERTY. eCOMMERCE PROVIDE OUR CUSTOMERS WITH ENGAGING WEBSITES, ENABLING ONLINE SALES GROWTH AND PROVIDING A SEAMLESS CUSTOMER EXPERIENCE IN-STORE AND ONLINE. STORES PROVIDE OUR CUSTOMERS WITH A REWARDING SERVICE EXPERIENCE, THE LATEST RANGE OF LIGHTING AND FANS, INSPIRATIONAL STORE DESIGN, VIP MEMBER BENEFITS AND STORE NETWORK EXPANSION AND OPTIMISATION. TRADE PARTNERING WITH ELECTRICIANS, BUILDERS, ARCHITECTS, AND INTERIOR DESIGNERS WITH LIGHTING, FANS, AND ELECTRICAL ACCESSORIES FOR THE AUSTRALIAN HOME. CUSTOMER Underpinning everything we do at Beacon is a deep understanding of our customers’ needs. For personal use only
Page 15
15 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION STORES3 • Beacon Lighting now has 128 stores, with 126 company stores and 2 franchise stores. • Opened new stores in Port Stephens (NSW), and Shepparton (VIC). Relocated and expanded the Bendigo (VIC) store, and closed the Killara (NSW) store with the opening of Chatswood (NSW). • Company stores comparative sales increased by 1.3% in H1 FY2025. The best performing states were Queensland, South Australia and Western Australia. • 41 Beacon Design Studios conducted premium lighting design consultations. • Designed and developed 307 exclusive new products to inspire our customers. • Continued to offer everyday benefits to our more than one million VIP customers. • Store network research (from March 2023) has identified the potential for 195 Beacon Lighting stores in Australia. For personal use only
Page 16
16 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION TRADE3 • Partnering with trade customers for lighting, fans and electrical accessories for the Australian home continues to be our number one priority for the Beacon Lighting team. • Rolled out “Trade Immersion Training” to more than 210 team members. • Trade sales through stores increased by 25.3%. • Total trade sales have increased to be 38.8% of all relevant sales (1). • Trade sales continue to grow through a combination of existing and new customers. • Signed up electricians, builders, architects and interior designers as new Beacon Trade members. • Continued to invest in the trade marketing program, trade product development and the trade website. (1) Relevant sales include Store, Commercial, Masson For Light and Custom Lighting sales. For personal use only
Page 17
17 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION eCOMMERCE3 • Beacon Lighting now has 17 different business websites, with the primary websites being beaconlighting.com.au and beacontrade.com.au. • Continue to enhance the website experience for our retail and trade customers by utilising customer data and smart tools. • Online sales increased by 15.5% to be 12.8% of company store sales. • Online retail sales through the beaconlighting.com.au website increased by 9.2%. • Trade customers continue to embrace the beacontrade.com.au website. Online trade visitation increased by 35.1% and online trade sales increased by 34.2%. • Three hour customer delivery in major metropolitan markets or one hour click and collect in store for our online retail and trade customers. • Continued to offer seamless integration between the online sales channel and Beacon Lighting stores for our retail and trade customers. For personal use only
Page 18
18 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION NEW BUSINESSES3 • The Beacon International Group recorded a positive sales increase. Strong sales in Hong Kong, good sales in Europe and a sales decline in the USA. • Tmall Global sales in the China market continues to be exciting. • Light Source Solutions (New Zealand) and Masson For Light had sales increases. Looking forward to improved sales results for Connected Light Solutions and Custom Lighting in H2 FY2025. • Beacon Lighting has a 50% interest in the Large Format Property Fund, which owns seven retail properties. INTERNATIONAL For personal use only
Page 19
19 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION SUSTAINABILITY3 The Beacon Lighting sustainability goals concentrate on three focus areas: People, Product and Planet. People • Additional 200 team members are now new BLX shareholders through the Beacon Team Share Plan. • Development and training activities for our people have included Trade Sales Immersion training, product training, and lighting design training through Bond University. • Beacon Lighting has internally promoted 75 team members. Product • Continued to develop the LED globe and lighting range which is 80% more energy efficient than other light sources. • Successfully eliminate all polystyrene from all packaging for new products ordered. • Significantly reduced plastic from product packaging and eliminated all plastic packaging for 75% of new products ordered. Planet • Operating 67 solar systems on Beacon Lighting locations, driving down the demand for grid- sourced electricity. • Reduced reliance on grid-sourced power by rolling out LED lighting technology to all locations, timers on window displays, and sensor-based lighting in all stores. For personal use only
Page 20
20 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION • Group sales at $252.2m, an increase of 2.6% and underlying sales at $250.9m, an increase of 8.0% (1) • Company store comparative sales increase of 7 .2% • Online sales at $16.2m, an increase of 50.6% • Group NPAT at $22.2m, an increase of 38.5% and underlying NPAT at $19.1m, an increase of 16.8% (1) • Significant profit made on the sale and leaseback of the Parkinson Distribution Centre (QLD) • Purchased the Beacon Lighting franchise store at Myaree (WA) and the premium lighting design store, Custom Lighting in Malvern (VIC) • Managed the closure of Beacon Energy Solutions • Established a strong net cash position for the Group 1 (1) Underlying result for FY2019 and FY2020 (refer page 7) FINANCIAL HIGHLIGHTS H2 FY2025 OUTLOOK4 For personal use only
Page 21
21 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION H2 FY2025 OUTLOOK • Trading momentum from H1 FY2025 has continued into H2 FY2025. • The positive trade sales momentum has continued into the start of the new half year. • Partnering with Electricians, Builders, Architects, and Interior Designers for Beacon Trade continues to be the number one priority. • Continuing to roll out the “Trade Sales Immersion” training throughout the Group. • Opening new company stores at Ballina (NSW) and Auburn (NSW), expanding the Townsville (QLD) store, and expanding and relocating the Taren Point (NSW) store. • Bringing the latest fashion, innovative and energy efficient lighting, fans and electrical accessory products to market to continue to excite and inspire our retail and trade customers. 4For personal use only
Page 22
22 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION • Group sales at $252.2m, an increase of 2.6% and underlying sales at $250.9m, an increase of 8.0% (1) • Company store comparative sales increase of 7 .2% • Online sales at $16.2m, an increase of 50.6% • Group NPAT at $22.2m, an increase of 38.5% and underlying NPAT at $19.1m, an increase of 16.8% (1) • Significant profit made on the sale and leaseback of the Parkinson Distribution Centre (QLD) • Purchased the Beacon Lighting franchise store at Myaree (WA) and the premium lighting design store, Custom Lighting in Malvern (VIC) • Managed the closure of Beacon Energy Solutions • Established a strong net cash position for the Group 1 (1) Underlying result for FY2019 and FY2020 (refer page 7) FINANCIAL HIGHLIGHTS QUESTIONS5 For personal use only
Page 23
23 BEACON LIGHTING GROUP H1 FY2025 RESULTS PRESENTATION APPENDIX: OTHER INFORMATION6 DISCLAIMER The presentation contains “forward-looking statements”. All statements other than those of historical facts included in the presentation are forward-looking statements. Where the Group expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. The Group will not necessarily release publicly any revisions to any such forward-looking statement. The presentation contains general background information about the Group and its activities current as at the date of this presentation. The information in this presentation is in summary form only and does not contain all the information necessary to fully evaluate whether or not to buy or sell shares in the Group. It should be read in conjunction with the Group’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au. This presentation is not a prospectus, disclosure document or other offering document. It is for information purposes only and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and does not form the basis of any contract or commitment. NON-IFRS FINANCIAL MEASURES The Group’s results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Group discloses certain Non-IFRS measures in this presentation, that are not audited or reviewed by the Group’s auditor. The Directors believe the presentation of Non-IFRS financial measures are useful for the users of this presentation as they provide additional and relevant information that reflect the underlying financial performance of the Group. For personal use only
Page 24
www.beaconlighting.com.au For personal use only