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Edgars FY2013 abridged results presentation

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Edgars FY2013 abridged results presentation

Edgars FY2013 abridged results presentation

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  • 1. Analysts’ Briefing on Final Results for the 52 weeks ended 4 January 2014
  • 2. Presentation outline • Retail environment • Financial highlights • Operational performance • Credit management • Corporate social responsibility • 2014 targets @ a glance • Questions
  • 3. Retail environment
  • 4. Retail environment • Shrinking economy • Heavily borrowed customer base • Increased competition • Increased number of customers with paid up accounts • An un-level playing field
  • 5. Financial highlights 2013 vs 2012 Retail sales $64.8m +8% Profit after tax $4.2m +12% Earnings per share 1.7cents +10% Cash from operations $3.6m +227% Trade and other receivables $23.7m +1% No. of accounts 197 932 +9% Current ratio 2.76 +8%
  • 6. Operational performance
  • 7. Income Statement $ 000’s 2013 % to sales 2012 % to sales Inc/ (Dcr) Retail sales 64 761 100.0 60 165 100.0 7.6% Cost of sales (33 734) (52.1) (31 786) (52.8) 6.1% Gross profit 31 027 47.9 28 379 47.2 18.1% Occupancy costs Employment costs (4 807) (11 683) (7.4) (18.0) (4 284) (9 699) (7.1) (16.1) 12.2% 20.5% Trade receivable costs (2 741) (4.2) (2 582) (2.6) 6.2% Late payment charges 2 731 4.2 2 142 3.6 27.5% Other incl. depreciation (6 883) (10.7) (6 010) (10.0) 18.2% Trading profit 7 644 11.8 7 946 13.8 -3.8% Manufacturing profit/ (loss) 377 0.5 (281) (0.6) 234%
  • 8. Borrowings and finance costs • Borrowing costs as % of revenue: 2011- 5.4% 2012- 4.4% 2013- 2.6% • Net finance costs $1 698 671 vs $2 651 473 (36% decrease) • Total borrowings: 2012- $21 351 993 2013- $16 519 903
  • 9. Edgars and Jet chain stats EDGARS JET 2013 2012 2013 2012 Number of stores 26 24 23 16 Trading area m² 26 572 26 020 11 125 8 337 Sales per m² ($) 1 934 1 909 1 168 1 333 Unit sales 2 631 608 2 656 477 1 465 824 1 344 203
  • 10. New Stores Gross Trading Area m² Chain Location Date opened Edgars Jet Jet Gokwe 18/06/2013 226 Jet Cameron St. Harare 28/06/2013 780 Edgars Chipinge 26/07/2013 423 Jet Chipinge 26/07/2013 250 Jet Kariba 27/09/2013 251 Jet Chiredzi 24/10/2013 448 Jet Rezende St. Harare 15/11/2013 470 Jet Westgate Harare 23/11/2013 363 Edgars Bradfield Bulawayo 25/11/2013 129 TOTAL 552 2,788
  • 11. Turnover by region 2013 % 2012 % Edgars- Southern 47 49 - Northern 53 51 100 100 Jet- Southern 53 59 - Northern 47 41 100 100
  • 12. Turnover contribution- unconsolidated EDGARS 76% JET 17% CAROUS EL 7% 2012 EDGARS 73% JET 19%CAROUS EL 8% 2013
  • 13. Turnover split CREDIT SALES 72% EDGARS CASH SALES 8% JET CASH SALES 20% TURNOVER SPLIT- F2013 CREDIT SALES 73% EDGARS CASH SALES 8%JET CASH SALES 19% TURNOVER SPLIT- F2012
  • 14. Unit sales- retail Total units sold 2012 2013 units % units % Edgars 2 656 477 66 2 631 608 64 Jet 1 344 203 34 1 465 824 36 4 000 680 100 4 097 432 100 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RETAIL UNIT SALES F2010 F2011 F2012 F2013
  • 15. Merchandise procurement 0% 10% 20% 30% 40% 50% 60% 70% LOCAL SUPPLIERS CAROUSEL FOREIGN SUPPLIERS F2011 F2012 F2013
  • 16. Merchandise- Stock cover in weeks 0 5 10 15 20 25 30 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 7.6 12.8 8.7 15.0 11.1 14.5 9.6 12.0 11.2 13.7 16.7 25.1 8.2 16.7 14.7 13.0 15.2 14.1 12.3 14.8 WEEKS STOCK COVERS EDGARS JET Stock turn 2012 2013 Edgars 5.5 5.0 Jet 4.5 4.0
  • 17. Credit Management
  • 18. Account Growth 210.7 223.4 227.1 231.9 234.6 214.7 38.8 111.2 158.9 181.6 197.9 0 50 100 150 200 250 F2002 F2003 F2004 F2005 F2006 F2007 F2009 F2010 F2011 F2012 F2013 No.ofAccounts(000s) TOTAL ACCOUNTS (000s) TOTAL ACCOUNTS (000s)
  • 19. Active accounts 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec %OFACTIVEACCOUNTS MONTH 2013 2012 2011 2010 Active accounts
  • 20. Edgars Chain Debtors Stats 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2003 2009 2010 2011 2012 2013 9.0% 10.0% 12.0% 15.6% 16.8% 17.1% 27.0% 34.0% 14.0% 11.8% 10.3% 10.6% 22.0% 38.0% 29.0% 25.8% 22.9% 22.8% 0.4% 0.1% 0.7% 0.4% 0.4% 0.3% DEBTORS STATS Ave Past Dues Ave Cash Sales Ave Collections pm Ave Handovers
  • 21. Customer spend - 20.00 40.00 60.00 80.00 100.00 120.00 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PURCHASE($)PERACCOUNT AVE DOLLAR PURCHASES PER ACCOUNT F2010 F2011 F2012 F2013
  • 22. Corporate Social Responsibility CSR contributions Health and education Clean up campaigns Welfare organisations Other
  • 23. FY 2014 Targets Gross margin > 47.5 % Turnover $ 70m Trading profit > 8 % of turnover Finance costs < 2.7% of turnover Profit after tax $ 4.7m Focus will be on cost control, more fashion and less price and a wider choice for customers.
  • 24. Questions? b.galloway@edgars.co.zw t.ndlovu@edgars.co.zw