FY 2015 RESULTS PRESENTATION February 26, 2016
FY2015 RESULTS PRESENTATION
DOS – FW15 LFL AND CURRENT TRADING LFL LFL PE PERF RFORMANCE 4Q 4Q 20 2015 15, JANUARY, FEBRUARY (WEEK 1 1 - 7, 7, 20 2016 16) SOLID GROWTH TH IN LFL LFL • 4Q: DOS LFL has been solid 18% +4.8% … 17% 17% • 15% … however below expectation (4Q budget: +9.5%) and 12% materially impacted by two 8% 8% 9% non company specific issues: 7% 7% 6% the tragic events in Paris 3% record warm weather in Sligh ghtl tly pos positi tive 0% EU • September October November January Current trading (January and and and December February February, w1-w7) is up 8.1% (w1-w7) (vs 5.9% LY) 3
EBITDA 2015: ACTUAL VS BUSINESS PLAN Euro 68 Eur 68/70m (-) 62 62m ACTU TUAL LFL DOS 4Q: +4.8% vs +9.5% budget (+) (-) Strong Non company overperformance specific issues: of all business - Early termination KPI’s compared of the China to Business Plan Distribution assumptions in agreement (-9m) core products - macroeconomic and markets turmoil in HK, Ucraine, MEA 2015 B. PLAN 2015 ACTUAL € .million, for illustrative purpose 4
FY 2015 KEY FACTS • Sales: Euro 874.3 million +6.1% (+3.9% constant FX) • Directly Operated Stores Same Store Sales: +4.2% (vs +7.9% in FY14); • EBITDA: Euro 61.8 million +45.0% (Euro 42.6 million in FY14) • EBIT: Euro 24.9 million +409.0% (Euro 4.9 million in FY14) • Net Result: Euro 10.0 million (Euro -2.9 million in FY14) • Net Cash: Euro +20.8 million (Euro -13.0 million Net Debt as of FY14) • Geox board proposed an annual dividend of Euro 0.06 per share 5
FY 2015 KEY FACTS NE NET T SALES HE HEALTH THY GROWTH IN NE NET T SA SALES • +6% Sales: Euro 874.3 million +6.1% (+3.9% constant FX) 874 874 +9% 824 824 • Sales 4Q15: +6.1% (+4.1% constant FX) 754 754 • 120 million increase over the 2014-2015 period, +7.7% CAGR 2013 2014 2015 GROSS SS MARGIN GROSS SS MARGIN EXP EXPANSI SION DELIVERED +12% • +15% Gross Margin: 260 bps increase in 2015, driven by a favourable 451 451 404 404 351 351 full price performance, lower promotional sales, cogs reduction 51.6% and channel mix effect (just 30bps) 49.0% 46.6% • 500 bps increase over the 2014 – 2015 period 2013 2014 2015 6
FY 2015 KEY FACTS EB EBITD TDA PO POSI SITI TIVE OPE PERATI TING LE LEVERAGE • 50% of the gross margin increase turned +45% 62 62 into greater operating profitability +299% • 43 43 Strong cash flow generation transformed the net financial position into positive 11 11 net cash 2013 2014 2015 EB EBIT STEADY Y EN ENHANCEMENT OF NET CAS ASH PO POSITION ON (DE DEBT) +409% +34M 25 25 21 21 5 -13 13 2013 2014 2015 -28 28 2013 2014 2015 -16 (*) *) * EBIT Adj. 7
NET SALES BY CHANNEL 874 874 824 Wholesale 41% DOS 43% [40%*] [42%*] 378 378 354 354 346 330 149 142 142 Franchising 16% [18%*] Wholesale Franch chising DOS Tota tale +7.2% +7 -4.4% +9.5% +6.1% € .million +4.1% c.fx -3.6% c.fx +6.9% c.fx +3.9% c.fx [* FY14] • Fr Franchisi sing: -4.4% due to space effect partially offset by LFL LFL of of + 3.9% (vs 5.6% in FY14) • DOS: +9.5% due to space growth and to a LF LFL of of +4.2% (vs +7.9% in FY14); LFL Fa Fall ll/Winter 201 015 seas ason (from week 35 to week 52) +5.4% 8
GEOX SHOPS NETWORK Dec December 31 31, , 20 2015 15 Dec December 31 31, , 20 2014 14 FY201 FY2015 Geox of of whi hich Geox of of whi hich Net Sho Shops DO DOS Sho Shops DO DOS Ope penings gs Ope penings gs Clo losi sings Italy 360 131 421 173 (61)** 11 (72)** Europe 348 179 350 167 (2) 22 (24) North America 47 47 44 44 3 7 (4) Rest of World * 406 119 410 93 (4) 81 (85) Tot otal Geox Sho Shop 1,16 1,161 476 476 1,22 1,225 477 477 (64 (64) 121 121 (18 (185) 5) * includes Under Distribution Agreement Shops (142 as of December 2015) which are shops opened under license by partners in the Middle East and in the Far East. ** includes 41 small total look concession that have been closed due to the dismissal of total look apparel 9
NET SALES BY PRODUCT 874 874 824 785 785 Footwear 90% 722 [88%*] 103 89 89 Apparel 10% [12%*] Footwear Apparel Total +8.8% -12.9% +6.1% +6.3% c.fx -13.0% c.fx +3.9% c.fx € .million [* FY14] • The strong performance of Footwear (+63 million) has offset the decrease of 14 million of Apparel due to the discontinued categories • However the LFL performance of the ne new FW FW15 15 Ap Apparel col ollection in the DOS channel is + + 14 14% (w35-w52) 10
NET SALES BY REGION 874 874 824 NA 7% Europe 43% [7%] [44%*] Row 18% 376 359 [17%] 281 273 155 137 63 63 56 Italy 32% Italy Europe Nord America RoW Total [33%*] +3.1% +4 +4.6% +13.1% +1 +13.1% +6.1% € .million +4.0% c.fx +2.8% c.fx +5.8% c.fx +3.9% c.fx [* FY14] • Healthy growth spread all over the regions • Row: the strong performance of the Row have more than offset the slowdown experienced by China, HK, Ucraine and Greece. Ex Excl cluding these cou ountries the Row was as up up 17 17.7% .7% c. c.fx fx 11
SUMMARY INCOME STATEMENT D % (Euro.m) 2015 2015 % 2014 2014 % % Net Net Sale les 87 874.3 4.3 100% 100% 82 824.2 4.2 100% 100% 6. 6.1% 1% Cost of sales (423.5) (48.4%) (420.4) (51.0%) Gros oss Prof ofit it 45 450.8 0.8 51.6% 51 403.8 40 3.8 49 49.0% 11 11.6% Selling & Distribution (49.4) (5.6%) (48.5) (5.9%) G&A (334.2) (38.2%) (308.3) (37.4%) A&P (42.3) (4.8%) (42.1) (5.1%) EB EBIT 24.9 24 2. 2.8% 8% 4. 4.9 0. 0.6% 6% 409.0 40 9.0% Net Interest (5.8) (0.7%) (6.3) (0.8%) EB EBT 19 19.1 2. 2.2% 2% (1.4 1.4) (0.2 0.2%) Income Taxes adj* (7.1) (0.8%) (1.5) (0.2%) Tax rate adj* 37.4%* (104%) NET NE T INC NCOME adj dj 12 12.0 1. 1.4% 4% (2.9 2.9) (0.4 0.4%) Tax assets adj* (1.9) (0.2%) NE NET INC NCOME 10 10.0 1. 1.1% 1% (2.9 2.9) (0.4 0.4%) EB EBITD TDA 61.8 61 7.1% 7. 1% 42 42.6 5. 5.2% 2% 45 45.0% * Italian Law no. 208 dated 28/12/2015 (the so- called ‘2016 Stability Law’) introduced a reduction in the IRES (Italian Corporate Income Tax) rate from 27.5% to 24%, valid from the 2017 tax year onwards. This positive reduction in future tax rate however implied an adverse non cash non recurring impact in 2015 taxes (Euro 1,947 thousand) due to the consequent adjustment to the 2015 deferred tax assets made in order to decrease the reversal effect from 2017 onwards from 27.5% to 24%. Without this effect, the tax rate for the year would have been 37.4%. 12
SUMMARY BALANCE SHEET D (Euro.m) Dec Dec, 20 2015 15 Dec Dec, 20 2014 14 Intangible Assets 57.8 60.1 (2.4) Tangible Assets 68.4 64.5 3.9 Other Fixed Assets, net 51.7 54.8 (3.1) Tot otal Fix Fixed Ass Assets 177.8 17 7.8 17 179.4 9.4 (1.6) (1.6) Operating Working Capital 193.8 226.7 (32.9) Other current assets (liabilities), net (13.6) (10.6) (3.0) Invested Cap Capital 357.9 .9 395.5 .5 (3 (37.5 .5) Net Financial Position (Cash) (20.8) 13.0 (33.8) Staff Severance and Risk Fund 7.9 8.8 (1.0) Shareholders ’ Equity 370.9 373.7 (2.8) Invested Cap apital 35 357.9 7.9 39 395.5 5.5 (37 (37.5 .5) 13
OPERATING WORKING CAPITAL 227 227 STR TRONG PE PERF RFORMANCE OF NW NWC 218 218 214 214 • The operating working capital as a 194 194 192 192 percentage on sales decreased to 22.2% • The strong improvement in net 2011 2012 2013 2014 2015 working capital is due to the process 24.5% 23.8% 28.3% 27.5% 22.2% undertaken to strengthen long term % on sales partnerships with suppliers, allowing D % D (Euro.m) De Dec, 20 2015 15 De Dec, 20 2014 14 for the optimization of payments • Inventories 304.8 287.7 17.1 5.9% The increase of inventories is mainly Account receivables 113.0 106.5 6.5 6.1% due to 2016 Spring Summer products Account payables (224.0) (167.6) (56.4) 33.7% • The increase in account receivables is Ope peratin ing Wor orki king Cap apit ital 19 193. 3.8 22 226. 6.7 (32 32.9) (14 14.5%) in line with wholesale and franchising Sales 874.3 824.2 50.1 6.1% % % on on sa sale les 22.2% 22 27.5% 27 sales growth 14
FINANCIAL HIGHLIGHTS OPE PERA RATI TING CASH SHFLOW FRE REE CASH SH FLOW 85 85 47 47 +69M 11 11 -22 22 -22 22 -61 61 2013 2014 2015 2013 2014 2015 NET NE T CAPITAL EX EXPENDITU TURES STR TRONG CASH SH FLOW GENERATI TION • 38 million CAPEX fully covered 39 39 38 38 33 33 by operating cash flow • Strong cash flow generation turned net financial position into cash 2013 2014 2015 15
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