Edgars FY2013 abridged results presentation

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Edgars FY2013 abridged results presentation

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Edgars FY2013 abridged results presentation

  1. 1. Analysts’ Briefing on Final Results for the 52 weeks ended 4 January 2014
  2. 2. Presentation outline • Retail environment • Financial highlights • Operational performance • Credit management • Corporate social responsibility • 2014 targets @ a glance • Questions
  3. 3. Retail environment
  4. 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. 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. 6. Operational performance
  7. 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. 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- $16 519 903
  9. 9. Edgars and Jet chain stats EDGARS JET 2013 2012 2013 2012 Number of stores 26 24 23 16 Trading area m² 26 572 26 020 11 125 8 337 Sales per m² ($) 1 934 1 909 1 168 1 333 Unit sales 2 631 608 2 656 477 1 465 824 1 344 203
  10. 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. 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. 12. Turnover contribution- unconsolidated EDGARS 76% JET 17% CAROUS EL 7% 2012 EDGARS 73% JET 19%CAROUS EL 8% 2013
  13. 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. 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. 15. Merchandise procurement 0% 10% 20% 30% 40% 50% 60% 70% LOCAL SUPPLIERS CAROUSEL FOREIGN SUPPLIERS F2011 F2012 F2013
  16. 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. 17. Credit Management
  18. 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. 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. 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. 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. 22. Corporate Social Responsibility CSR contributions Health and education Clean up campaigns Welfare organisations Other
  23. 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. 24. Questions? b.galloway@edgars.co.zw t.ndlovu@edgars.co.zw

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