Shaver Shop Group (SSG) H2 2024 earnings summary

Executive summary

• FY24 sales declined 2.3% to $219.4 million, with net profit after tax down 10.1% to $15.1 million and basic EPS down 10.7% to 11.7cps, reflecting a challenging retail environment and lower foot traffic.

• Online sales accounted for 23% of total sales, performing better than in-store, with online sales only marginally down 0.1% year-over-year.

• Gross profit margin remained strong at 44.4%, near all-time highs, despite category mix changes and competitive pressures.

• Store network stable at 123 stores across Australia and New Zealand, with ongoing investment in store refits and brand standards.

• High brand awareness (87%) and exclusive supplier partnerships drive differentiation.

Financial highlights

• EBITDA declined 7.0% to $38.1 million, with EBITDA margin at 17.4% (down from 18.3%).

• EBIT fell 14.9% to $21.9 million, with EBIT margin at 10.0% (down from 11.5%).

• Operating cash flow strong at $34.1 million, supported by higher trade payables at year-end.

• Net cash position improved to $13.3 million at FY24 end, with no debt.

• Total FY24 dividends at 10.2 cents per share, approximately $12.8 million, payout ratio 88% of NPAT.

Outlook and guidance

• No formal FY25 sales or profit guidance due to reliance on key trading periods (Black Friday, Christmas, Boxing Day).

• FY25 priorities include maximizing new exclusive brands, launching the Transform U private label, and evolving store design.

• Early FY25 sales flat year-to-date (-0.8%), with August showing a return to growth in core categories and gross margins in line with prior year.