FOURLIS HOLDINGS S.A. Fourlis Group
Corporate Presentation
FY '23 Financial Results
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Disclaimer
This presentation has been prepared by Fourlis Group (the "Company") for informational purposes only. The information contained herein does not constitute an offer, solicitation, or recommendation to buy or sell any securities of the Company or any other entity.
The information in this presentation is based on publicly available sources and internal data considered reliable, but no representation or warranty, express or implied, is made by the Company, its directors, officers, employees, or agents as to the accuracy, completeness, or correctness of the information provided. Any reliance on such information is solely at the recipient's own risk.
This presentation may contain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, estimates, projections, and assumptions made by the Company about future events. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in economic conditions, market demand and supply, regulatory and legal developments, competition, technological developments, and other risks and uncertainties that are beyond the Company's control.
This presentation is not intended to be exhaustive or to contain all relevant information concerning the Company. Recipients of this presentation should conduct their own analysis and seek independent financial, legal, and other professional advice before making any investment decisions.
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Our journey of operating leverage, operational efficiency & sustainable profitable growth for our shareholders.
Strategic initiatives completed
Operational Optimization
Trade Estates milestones completed Significant Collaboration with Inter IKEA
A clear strategic roadmap ahead
Improving performance in all retail concepts Leveraging digitalization
Expanding market presence
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Pivotal strategic milestones advancing our
Group's growth trajectory
- Completed the sale of Intersport Turkey (ITR) and The Athlete's Foot (TAF)
- Trade Estates IPO & acquisition of Smart Park
- Remodelling and optimizing of IKEA stores
- Expansion & renovation of Intersport stores
- Holland & Barrett first 6 physical and digital stores
- Collaboration between Fourlis Group and Inter IKEA for the development of InterIkea's new international DC in Greece
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Group is well-invested to capture the upside potential through the execution of its strategic plan.
- Improving performance in all our retail concepts, driving
operating leverage and profitable growth through:
- a customer-centric approach
- focus on quality and top retail experience.
-
developing further our omnichannel approach o advancing further our e-commerce capabilities.
o maintaining a well-structured and optimized store network in all our concepts
-
developing further our omnichannel approach o advancing further our e-commerce capabilities.
- Embarking on a digital transformation journey
• | centralizing data | ▪ | Improvement in customer experience |
• | Simplifying processes | ▪ Improvement in e-commerce capabilities | |
▪ Improvement in demand planning processes | |||
• | digitalizing procedures | ||
▪ | Operational efficiencies | ||
- Expanding our logistics services
- new partnerships
- skills & knowledge leveraging
- services expansion
- Unlocking further value creation for the Group's shareholders through Trade Estates de-consolidation from Foulis Group.
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Fourlis Group today
A growing group of companies specializing in the omnichannel retail sector offering quality consumer goods in Southeast Europe
Retail Home Furnishings | Retail Sporting Goods | Retail Health & Wellness | Logistics Services | Real Estate Investments | ||||
INTERSPORT license in | HOLLAND & BARRETT stores | Trade Logistics offers logistic | ||||||
IKEA stores franchise in | Greece, Cyprus, Romania, | franchise in Greece, Romania | services supporting omnichannel | |||||
Greece, Cyprus and Bulgaria. | Bulgaria | and Bulgaria | operations | |||||
Presence in GR, BG and CY through 21 | Presence in GR, RO, BG and CY | Agreement signed in 2022 | 2 DCs covering the Group's logistics | |||||
stores & shops | through 108 stores | |||||||
needs | ||||||||
Leading position in the HF market | Leaders in the sport performance | Attractive and fast-growing sector | Supporting e-commerce and | |||||
stores | ||||||||
segment | ||||||||
One of the largest wellness retailers | ||||||||
One of the best performing partners | ||||||||
in Europe | Examining further expansion of | |||||||
of InterIkea | 97% brand awareness | |||||||
logistics services with 3rd parties | ||||||||
66% contribution in Total Group | 33% contribution in Total Group | Entrance with 6 stores in GR and | ||||||
ecommerce and solid network | Operational management of the | |||||||
sales. | sales. | |||||||
expansion in the coming years | new international DC of InterIkea | |||||||
Growing organically and through | Growing organically and through | |||||||
network expansion. | network expansion. |
Trade Estates established in 2021 specializing on retail parks and omnichannel logistics.
IPO completed -Shares listed Nov 10th
GAV at €477mil and NAV at €298.4 mil.
- 7.7% rental yield / 80-90% dividend payout
Low dependence from dominant
tenant
Fourlis Group will deconsolidate TE - | 6 |
value unlocker |
Key Investment Highlights
Market Opportunity
Improving economy - expanding market -
leveraging consumer trends
Clear Focus on our strategic priorities
Business model transformation - operational leverage and focus on margin expansion - unlocking value with Trade Estates IPO - Disciplined cash flow management - People development - Sustainable Operation
Our enabling qualities
A strong & expanding product portfolio - high quality in competitive pricing - top customer experience & service -- omnichannel capability, digital capability
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Consolidated P&L
Fourlis Group
(amounts in € mil.) | FY '22 | % | FY '23 |
Revenue | 501.4 | 6.7% | 535.1 |
Gross Profit | 225.8 | 7.6% | 243.0 |
Gross Profit margin | 45.0% | 45.4% | |
EBITDA (OPR)* | 39.6 | 21.8% | 48.2 |
EBITDA (OPR) margin | 7.9% | 9.0% | |
Inv.Assets revaluation | 8.45 | 164.4% | 22.4 |
EBIT | 33.7 | 64.5% | 55.5 |
EBIT margin | 6.7% | 10.4% | |
Net Financial Income/(expenses) | -16.1 | -22.1 | |
Contribution from | |||
associates/Income/(Expense) from | 2.3 | -2.5 | |
subsidiaries & associates | |||
PBT | 20.0 | 54.6% | 30.9 |
PBT margin | 4.0% | 5.8% | |
Profit After Tax | 19.8 | 42.4% | 28.1 |
Net Profit After Tax margin | 3.9% | 5.3% | |
Minority interest | -0.6 | -8.9 | |
Net Profit after Minorities | 19.2 | 0.4% | 19.2 |
Net Profit after Minorities margin | 3.8% | 3.6% | |
*Alternative Performance Measures, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables are given in the Appendix.
Revenue Growth, Operational Efficiency, and Strategic milestones fuel
success and further future growth
- Revenue Growth driven by the Group's strategic initiatives, market leadership and adaptability to market trends.
- Group sales growth of +10% (on a like-for-like level, ie excl. ITR & TAF)
- Retail Home Furnishings segment (RHF) +12.9%
- Retail Sporting Goods segment (RSG), +6.3% on a LfL basis.
- The Group's Gross Profit margin supported by strong RHF gross margin and a positive trend in RSG gross margin toward stabilization.
- Prudent control over operating expenses , optimization of operations in both RHF and RSG, de- escalation of inflationary pressures has further positively influenced operating expenses, magnifying the positive impact of operating leverage on our overall profitability.
- EBITDA (OPR) +21.8% reaching €48.2 mil. in FY' 23 compared to €39.6 mil. yoy.
- EBIT reached € 55.5 mil. in FY '23 up by 64.5% from € 33.7 mil. in FY '22.
- Significant revaluation gains recorded by Fourlis Group within 2023, largely attributed to the recent acquisition of Smart Park, the largest retail park in Greece.
- Profit After Tax reached € 28.1 mil. in FY '23 up by 42.4% from € 19.8 mil. in FY '22.
- Net profit after minorities reached € 19.2 mil. in FY '23 same as last year, due to higher minorities compared to last year.
(sale of the 4.2% of Trade Estates shares to Latsco Hellenic Holdings, the impact from the share capital increase through contribution in kind (property) within 2023 from Autohellas and the share capital increase of Trade Estates following its IPO.)
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Consolidated P&L
Fourlis Group Retail Business
(amounts in € mil.) | FY '22 | % | FY '23 | |
Revenues | 474.2 | 10.0% | 521.3 | |
Gross Profit | 210.2 | 9.7% | 230.7 | |
Gross Profit margin | 44.3% | 44.3% | ||
EBITDA (OPR)* | 28.6 | 25.8% | 35.9 | |
EBITDA (OPR) margin | 6.0% | 6.9% | ||
EBIT | 14.9 | 41.3% | 21.1 | |
EBIT margin | 3.1% | 4.0% | ||
Net Financial Income/(expenses) | -17.1 | 0.2 | -20.6 | |
of which financial expenses | -5.9 | -9.0 | ||
of which Interest on lease liabilities | -6.4-4.8 = -11.2 | -6.4-5.2 = -11.6 | ||
Income from Associated companies | 1.2 | 2.0 | ||
Dividends from Trade Estates | 4.8 | 6.6 | ||
PBT | 3.7 | 147.5% | 9.1 | |
PBT margin | 0.8% | 1.8% |
*Alternative Performance Measures, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables are given in the Appendix.
- The financial figures above present the performance of the Group's retail business, that is excluding Trade Estates impact from the consolidated financial statements, and specifically excluding Trade Estates impact from the Retail Home Furnishings (RHF) segment, where the investments in real estate of Trade Estates are currently consolidated.
- For comparability purposes, the figures above also exclude the impact from Intersport Turkey and The Athlete's Foot whose sale was completed within FY 2023.
The performance of the Group's retail business indicates a solid business model set to drive profitable growth through operating leverage and operational efficiencies.
- Revenue growth on the back of the Group's strategic initiatives and market trends.
- Group's retail business was up by 10% at 521.3 mil. euros in FY '23
- Home Furnishings Retail Business (IKEA stores) +11.6% yoy driven by IKEA stores market leadership, improved stock availability and improving market dynamics.
- Sports Retail (Intersport stores) +6.3% yoy, despite challenging competition, reflecting our commitment to staying at the forefront of the evolving retail landscape.
- Solid Gross Profit margin from the Group's retail business supported by strong RHF-retailgross margin and a positive trend in RSG-retailgross margin toward stabilization.
- Operating leverage, rationalization of operating costs, de-escalation of inflationary pressures leading to :
- EBITDA (OPR) from the Group's retail business increased by 25.8% reaching €35.9 mil., with the EBITDA (OPR) margin at 6.9%.
- EBIT from the Group's retail business increased by 41.3% reaching €21.1 mil. in FY '23 from €14.9 mil. in FY '22, with the EBIT margin at 4.0% in FY '23 from 3.1% in FY '22.
-
Profit Before Tax from the Group's retail business was up by 147.5% to €9.1 mil. in FY
'23 compared to € 3.7 mil. in FY '22. - Net Debt of the Group's retail business stood at its lowest level within the decade reaching €84.8 mil. in FY '23 highlighting the Group's commitment to deleveraging its balance sheet.
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Consolidated Balance Sheet for FY '23
Balance sheet (€ mil.) | FY '22 | FY ' 23 |
Property, plant & equipment | 73.3 | 73.4 |
Right of Use Assets | 133.9 | 134.2 |
Other Non Current Assets | 53.3 | 60.4 |
Non-current assets | 260.5 | 268.0 |
Inventories | 91.8 | 89.7 |
Trade Receivables | 4.3 | 4.7 |
Other receivables | 19.2 | 22.3 |
Cash & Cash Equivalent | 58.4 | 40.7 |
Assets Held for Sale | 317.8 | 477.5 |
Current assets | 491.6 | 634.8 |
Total Assets | 752.1 | 902.7 |
Loans and Borrowings | 104 | 26.0 |
Long Term Lease Liability | 111 | 110.1 |
Other non-current liabilities | 9.2 | 8.1 |
Non-current liabilities | 224.6 | 144.2 |
Loans and Borrowings | 44.7 | 80.4 |
Short Term Lease Liability | 31.6 | 37.6 |
Account Payables & other current liabilities | 104.2 | 113.4 |
Loans and Borrowings of Assets Held for sale | 113.3 | 216.2 |
Liability of Assets Held for Sale | 32.6 | 24.5 |
Current liabilities | 326.4 | 472.1 |
Shareholders Equity | 201.1 | 286.5 |
Shareholders Equity & Liabilities | 752.1 | 902.7 |
Cash flow (€ mil.) | FY '22 | FY '23 |
Net operating cashflow | 34.0 | 49.3 |
Cash flow from investing activities | -55.4 | -127.5 |
Cash flow from financing activities | -23.6 | 60.5 |
Increase/(decrease) in cash and cash equivalents | -45.1 | -17.7 |
Cash and cash equivalents at beginning | 103.5 | 58.4 |
Cash and cash equivalents at end | 58.4 | 40.7 |
Significant operating cashflow generation, resulting from the increased profitability of the business and the improvement of working capital, enables the Group to follow its expansionary plan and also return value to its shareholders.
Within 2023 the Group paid a dividend of 0.11 euros per share for the fiscal year of 2022 , while the Board of Directors will propose a dividend payment for the fiscal year of 2024 of 0.12 euros per share, a 33% dividend payout.
Cashflow from investing activities include the capex related to the Group's retail business in FY '23,
which amounted to € 17.6 mil., and c. €120.8 mil. of capex was allocated to Trade Estates REIC investments, with the majority being attributed to the acquisition of Smart Park, the largest retail park in Greece. Additionally, €8 mil. proceeds are also included from the sale of Fourlis Group participation (4.2% of share capital) in Trade Estates to Latsco .
- Cashflow from financing activities includes proceeds of c. € 56 mil. from the share capital increase in Trade Estates, following its IPO in November 2023.
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Fourlis SA published this content on 09 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2024 15:28:08 UTC.
