Majestic Wine 2013/14 Interim Results

Transcription

1 Majestic Wine 2013/14 Interim Results

2 Key Competitive Advantages > > Excellent customer service delivered by highly trained store teams > > Taste before you buy, free to attend wine events and wine courses > > Data 95% of transactions are recorded on our database > > Full party service with substantial depth of stock held at store level > > Extensive product range supplemented with interesting parcels of wine > > Free delivery of six bottles throughout the UK > > Experienced multichannel retailer 1

3 Overview > > Profit before tax up 4.2% to 9.5m (2012: 9.2m) > > Total Group sales up 3.3% to 130.2m (2012: 126.0m) > > 5.0% increase in interim dividend to 4.2p per share (2012: 4.0p) > > Like for like sales in UK retail stores down 0.4%, impacted by timing of Easter and last year s Jubilee celebrations > > Like for like sales in UK retail stores up 3.0% for the following seventeen weeks from 4 June to the end of the half > > Overall, good progress made in the four pillars of our growth strategy New store roll-out Ecommerce Fine wine Commercial 3

4 Christmas 2013 > > Well stocked and fully staffed for key Christmas trading period > > Increased direct mail frequency over Christmas 3 mailings in November and December > > November Pick n Mix 33% off any 2 bottles from a range of 47 wines > > Christmas flyer will be mailed to 525,000 active customers > > Series of great value, short term online offers 4

5 Christmas

6 UK Wine Market Year to end September 2013 Wine Market Still wine value growth +2.2% +2.1% Volume decline -2.0% -2.5% Average bottle price Source: Nielsen Majestic Still wine value growth +5.8% +7.5% Volume growth +1.6% +2.6% Still wine average bottle price Average transaction value Still wine market share 4.0% 3.8% Total wine market share 4.1% 4.0% 6

7 Sales Trends Year to end September 2013 > > Impressive sales growth of Prosecco (39%), Malbec from Argentina (40%) and Provence Rosé (50%) Product Mix 2013 Still Wine Champagne Sparkling Beer and Cider Spirits Other 71.2% 12.4% 6.4% 5.5% 1.8% 2.7% Still Wine % Split 2013 Majestic Market France 34.8% 14.2% New Zealand 18.2% 5.7% Spain 11.8% 10.2% Italy 9.7% 15.1% Chile 8.9% 8.0% Australia 5.1% 19.9% Argentina 4.8% 1.5% South Africa 4.4% 8.6% USA 1.1% 12.8% 7

8 Sales 26 weeks ending Change 000 s 000 s % UK retail store sales 112, , King s Cross 4,586 3, Wholesaling 1,525 3,218 (52.6) Total Majestic UK sales 118, , Lay & Wheeler 7,859 6, Majestic Wine Calais 4,193 4, * Total Sales 130, , UK retail sales growth Net new store space 3, Like for like sales decrease (503) (0.5) 3, * Like for like sales (0.6)%. 8

9 Gross Margin 26 weeks ending Change 000 s 000 s % Total sales 130, , Cost of sales (100,609) (96,977) 3.7 Gross margin 29,572 28, Gross margin % Gross margin % Adverse labour cost absorption (0.3) Increase in product margin 0.1 Reduction in Calais margin (0.1) Gross margin %

10 Operating Costs 26 weeks ending Change 000 s 000 s % Store occupancy costs 7,421 6, Fleet costs 1,568 1,575 (0.4) Store depreciation 1,701 1, Depot wages Other distribution costs 1,583 1, Total distribution costs 12,885 11, Marketing costs 1,349 1, Media costs 887 Staff costs 3,774 4,155 (9.2) Other administrative costs 2,350 2, Total administrative costs 7,473 8,165 (8.5) 10

11 Profit, EPS & Dividend 26 weeks ending Change 000 s 000 s % EBITDA 12,188 11, Depreciation and Amortisation (2,596) (2,394) 8.4 Interest (48) (62) (22.6) Profit before tax 9,544 9, Tax charge (2,291) (2,449) Profit for the period 7,253 6, Tax rate % Diluted EPS 11.0p 10.4p 5.8 Dividend per share 4.2p 4.0p

12 Cash Flow 26 weeks ending Change 000 s 000 s 000 s Operating profit 9,592 9, Depreciation / amortisation 2,596 2, Working capital movement (6,092) (2,067) (4,025) Tax paid (2,412) (2,878) 466 Net capital expenditure (2,970) (5,261) 2,291 Net returned to shareholders (7,457) (5,287) (2,170) Other (149) (165) 16 Total cash flow (6,892) (4,042) (2,850) Net debt (4,004) (2,911) (1,093) 13

13 Lay & Wheeler 26 weeks ending s 000 s Sales 7,849 5,098 Net en primeur adjustment 10 1,584 Sales statutory basis 7,859 6,682 Profit before interest Net en primeur adjustment Profit statutory basis Add back amortisation Profit pre-amortisation Deferred en primeur profit Opening en primeur balance (1,020) (2,018) Movement in en primeur Closing en primeur balance (912) (1,639) 14

14 Segment Results 26 weeks ending Change 000 s 000 s % Revenue Majestic 118, , Lay & Wheeler 7,849 5, Majestic Wine Calais 4,193 4, Segment revenue 130, , Net en primeur adjustment 10 1,584 Total revenue 130, , Profit before interest and tax Majestic 8,357 7, Lay & Wheeler Majestic Wine Calais (19.2) Segment results 9,484 8, Net en primeur adjustment Total profit before interest and tax 9,592 9,

15 New Store Roll-Out 3 new locations Havant Lytham St Annes Durham To give 195 stores at the half year 3 openings since the half year end Grantham Maidenhead Lichfield Lewes, Petersfield, Tenterden, Cheadle Hulme and Nottingham North to open before Christmas To give 203 stores in the UK Expect 5 further openings in Q4 > > Head Office moves and Distribution Centre relocates in May 2014 > > This gives us the capacity to grow to 330 UK stores 16

16 New Store Lytham St Annes 17

17 Ecommerce > > Online sales up 8.3% to 13.8m representing 10.3% of UK retail sales (2012: 9.8%) > > Transactions increase of 8.4%; average spend of 147 (2012: 147) > > Third generation of the website launched seamlessly in July 2013 featuring: Store specific stock display Intelligent product recommendation Improved search and navigation Click and Collect > > Future proofed for at least 5 years of growth > > Visibility of store specific stock allows customers to choose from a much greater range and fully realises Click and Collect > > Click and Collect orders up 24.0% > > Unique parcels of wine marketed as web exclusives 18

18 Ecommerce 19

19 Majestic Commercial > > Team of 44 Business Development Managers and Key Account Managers (2012: 37) selling business to business > > Regional team target restaurants and gastropubs > > King s Cross team focus on large businesses, contract caterers and entertainment venues > > Sales to these managed accounts up 26.1% to 18.6m (2012: 14.8m) > > Store network is a key competitive advantage both for lead generation and order fulfilment > > Recognised as Great Value Merchant of the Year at The Sommelier Wine Awards

20 Majestic Commercial Imbibe Live

21 Fine Wine > > Sales of wine priced at 20 and above up 15.6% and now represent 6.6% of UK retail sales (2012: 5.9%) > > Over 120 fine wine brands on enhanced buy any two save 10 promotional mechanic > > Programme of supplier tastings for store staff > > Fine wine open for customer tasting every Saturday in September and October tasted by staff so that they can sell with confidence > > Spotlight tasting featuring fine wines for Christmas on 7 December 22

22 Fine Wine 23

23 Customer Engagement Come and Explore > > Good progress in acquiring new customers. 631,000 active customers on the database (2012: 594,000) > > Delivery of Come & Explore proposition through increased customer engagement targeting new and active customers Increasing personalisation of communications based on previous purchase history Differentiation through a guided tasting program Taste and Explore, all free to attend Saturday spotlight tastings The Wine Course Seasonal evening events Over 30,000 customers attended one of these tastings in the period > > Recognised as High Street Chain of the Year at the International Wine Challenge and Best National Wine Merchant at Decanter World Wine Awards 24

24 Customer Engagement Come and Explore 25

25 Majestic Wine Calais > > Two stores in Calais catering for consumers wishing to take advantage of the much lower rate of alcohol duty in France > > Like for like sales down 0.6% on a constant currency basis > > Profit before interest and tax of 660k (2012: 817k) > > Pre orders represent 42% of sales (2012: 42%) > > 10 fuel save discount for every 150 pre-ordered > > Customers guaranteed to save a minimum of 2 per bottle on the prices we retail in our UK stores > > Over 60 wines, starting at 2.99, available with a saving of 3 per bottle on our UK prices 26

26 Majestic Wine Calais 27

27 Lay & Wheeler > > Our fine wine merchant with particular expertise in en primeur sales, cellarage and broking > > Profit before interest and tax of 575k (2012: 506k) > > Bordeaux 2012 campaign sales of 1.6m (2011: 1.6m) > > 2011 Vintage Port sales of 315k (2007: 110k) > > Lay & Wheeler Fine Wine Plan marketed to Majestic customers > > Members gain access to a range of special benefits, including a Privilege Card rewarding them with a 10% discount at Majestic > > Programme of Fine Wine Plan customer tastings 28

28 Lay & Wheeler Taylor s Quinta de Vargellas Estate, Douro, Portugal 29