enlarged retail footprint fuels 32% growth in turnoverinvestor presentation – 2q fy2014 6 february...
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Enlarged retail footprint
fuels 32% growth in turnover
NASH BENJAMIN
Chief Executive Officer
F J Benjamin Holdings Ltd
INVESTOR PRESENTATION – 2Q FY2014
6 FEBRUARY 2014
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S$'000 2Q 14 2Q 13 Variance %
Turnover 104,606 96,909 7,697 8
Gross margin 38% 43% (5) -
Operating expenses 39,977 42,030 (2,053) -5
Operating profit 2,555 1,874 681 36
Exceptional items - 920 (920) -100
Foreign exchange loss (1,024) (813) (211) 26
Net Profit After Tax 531 1,140 (609) -53
Financial Highlights
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3
ASD
Highlights
1. Turnover up 8% to $104.6 million
2. Operating profit up 36% to $2.6 million
3. Gross margin declines to 38%
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Turnover & Gross Margin
1. Turnover climbs 8% to $104.6 million
• $104.6m vs $96.9m in 2Q 13
• Turnover for Fashion rises 13% to $76.6m
• Timepiece falls 4% to $27.7m
• Revenue from Southeast Asia increases 13% to
$90.2m. Fashion gains 10% while timepieces
post a strong 22% increase
• Revenue from North Asia declines 26% to
$11.7m. Timepiece business falls 34% in Hong
Kong and 20% in China due to ongoing slowdown
in demand for luxury timepieces in China and
reduced tourist spending by mainland Chinese
visitors in Hong Kong
• Domestic sales in Indonesia rises by 15%
2. Gross Margin
• Gross Margin slips to 38%
Turnover
41% 43%
42% 43%
38%
2Q 10 2Q 11 2Q 12 2Q 13 2Q 14
78,959
93,059
109,929
96,909
104,606
Turnover
S$ '000
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Turnover
By Business Segment
($’000)
2Q 2013 2Q 2014
76,596 73%
27,679 27%
331 0%
Fashion Timepiece Others
68,002 70%
28,785 30%
122 0%
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Turnover
By Geography
2Q 2013
($’000)
2Q 2014
80,083 83%
15,763 16%
1,063 1%
90,240 86%
11,719 11%
2,647 3%
Southeast Asia North Asia Italy/UK/USA
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S$ ‘000
Net Profit After Tax
3. Net Profit drops 53% to $0.5 million
vs $1.1million in 2Q 13
• Operating profit up 36% to $2.6m from
$1.9m
• Foreign exchange loss of $1.0m vs $0.8m in
2Q 13
• Operating expenses drops 5% to $40m
• Increased rental costs for premises
• Staff costs inches up 1%
• Advertising & promotion down 32%
• Cost-to-Revenue ratio down to 38.2%
from 43.4% in 2Q 13
Net Profit
2Q 10 2Q 11 2Q 12 2Q 13 2Q 14
1,724
4,015
4,639
1,140
531
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Brands
Fashion • Goyard, France’s top luggage and bag maker, makes
its Singapore debut in Ngee Ann City shopping mall in
December 2013
• Italian luxury leather goods brand Valextra opens in
Singapore’s Paragon Shopping Centre in November
2013
• Two Superdry stores open in KL in November and
December 2013
• RAOUL inks 3rd franchise in the Middle East with
Dubai-based Chalhoub Group
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TOTAL SQUARE FOOTAGE
NUMBER OF STORES
Total 166 193 212 227
Retail Footprint
* Projected figures
9
FY 12FY13
FY14*
373
416 447
0
50
100
150
200
250
FY11FY 12
FY13FY14*
FY11 FY 12 FY13 FY14*
Australia 1 0 0 0
Hong Kong 3 5 4 1
Indonesia 75 95 106 110
Malaysia 55 65 67 75
Singapore 32 28 35 41
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ASD
Outlook
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Outlook
SE Asia and North Asia
• Fashion business in SE Asia to build on positive sales
momentum, aided by strong brands, store openings and
continued robust demand in Indonesia
• New brands and organic growth to drive topline
• China’s economy to remain subdued as policy changes
moderate growth and curb luxury spending
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Outlook
Brands • TOM FORD to open flagship boutique in Singapore’s
Marina Bay Sands by April and in Jakarta, Indonesia in
2015
• Superdry looking to open a store in Singapore this year
Cost Containment
• Manage inventory levels, focus on lowering gearing
• Maintain vigilance on costs, improve productivity
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Contact
Cheryl Li
F J Benjamin Holdings Ltd
Tel: (65) 6508 7708
Catherine Ong
Catherine Ong Associates Pte Ltd
Tel: (65) 6327 6088