Adairs (ADH) AGM 2024 summary

Opening remarks and agenda

• Meeting commenced on time with a quorum present, led by Interim Chair Trent Peterson, who outlined the agenda and introduced board members and executives.

• Board renewal is underway following recent director resignations, with plans to appoint two to three new non-executive directors, including a new chair.

• The agenda included CEO and Managing Director's report, a trading update, formal business, financial report discussion, and voting on resolutions.

Board and executive committee updates

• Board size is smaller than previous years due to resignations; recruitment for new directors is ongoing.

• Board renewal process underway to appoint 2-3 new independent non-executive directors, including a new Chair.

• Mark Ronan's departure as CEO was announced, with Elle Roseby appointed as incoming CEO, effective January 2025.

• Mark Ronan's leadership over 17 years was acknowledged, including key acquisitions and omni-channel strategy development.

• Board and leadership are focused on attracting, retaining, and incentivizing talent, with recent senior female appointments.

Financial performance review

• FY24 total sales reached $594.4 million, down 4.3% from FY23, with gross margin up 170bps to 60.3%.

• Underlying group EBIT was $57.6 million, down 9.8% from the prior year, and net debt reduced by 13.4% to $64.1 million.

• Cost management initiatives removed approximately AUD 11 million in costs, offsetting inflationary pressures.

• Dividends were restored following improved financial management and reduced net debt.

• FY25 year-to-date sales up 4.8%, with Adairs and Mocka showing strong recent growth.