opportunity day 11 march 2020 - listed...
TRANSCRIPT
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Opportunity Day 11 March 2020
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2019 KEY HIGHLIGHTS
61% Net Profit Growth YoY
Continuous expansion of outlets and pop-up
• After You Dessert and Café Branch expansion: • 6 branches in 2019
• Pop-up stores expansion: • 59 pop-up stores in 2019
Consistent Innovation of New Products
• 20 new products including OEM products in 2019
• New product line – Delivery (grab and go) and other confectionery
• Revenue increased by THB 323 million or 37% YoY
• Gross profit increased by THB 191 million or 33% YoY, and GPM decreased by 2.1% YoY from YE2018
• Net profit increased by THB 90 million or 61% YoY, and NPM
increased by 3.0% YoY from YE2018
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Dessert Café Dominates as the Largest Portion of After You Revenues
3
After You Revenue (Unit: Million Baht)
2018 2019
+37%
Non-Café
Pop-up Store
Online Sales
Dine-In (72%)
Take-Away (22%) /Delivery (6%)
OEM
Catering
Dessert Café +34% growth
+112% growth
871
1,194 36 47 1,111
14 25
832
2% 3%
96%
3% 4%
93%
-5.0%
8.9%
2018 2019
Same-Store-Sales-Growth
Number of Stores 32 38
Revenue from Dessert Café in 2019 increased by THB 279 million or 34% from 2018 as more branches are opened, together with the significant improvement in SSSG.
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582
773
147 237
2018 2019 2018 2019
Gross Profit and Net Profit Increased in Line with the Increase in Revenue
4
Gross Profit Margin (%)
Gross Profit (Million Baht)
Gross Profit and Gross Profit Margin
66.8% 64.7%
16.7% 19.7%
+61%
+33%
Net Profit and Net Profit Margin
Net Profit Margin (%)
Net Profit (Million Baht)
In 2019, gross profit was THB 773 million which increased by THB 191 million or 33% from 2018. The increase was mainly attributed to 6 additional branches in 2019 together with the continuous launch of take-home products, new menus and seasonal menus.
Gross profit margin (GPM) in 2019 was 64.7% which decreased by 2.1% from 2018. The decrease was mainly attributed to the higher portion of take-home sales which yields lower GPM.
Net profit margin in 2019 was 19.7% which increased by 3.0% from 2018 as the operating revenue increased, while the SG&A expenses did not increase significantly as the Company had better expense control.
In 2019, net profit was THB 237 million which increased by THB 90 million or 61% from 2018, due to operational efficiency and economies of scale of operating 38 branches.
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Selling Expenses to Revenue Improved from Higher SSSG while Admin Expenses to Revenue Improved from Higher Revenue Growth
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Selling Expenses
271
329
140 162
2018 2019 2018 2019
Administrative Expenses
30.8% 27.3%
15.9% 13.4%
+21%
+16%
% Selling Expense to Total Revenue
% Admin Expense to Total Revenue
Selling Expenses (Million Baht)
Admin Expenses (Million Baht)
In 2019, selling expenses was THB 329 million, increased by THB 58 million or 21% from 2018, due to the increase in selling expenses regarding new additional 6 branches opened in 2019.
Selling expense to total revenue in 2019 was 27.3% which improved by 3.5% from 2018. The decrease was mainly from significant increase in sales from dessert café in every quarters, while store-related expenses did not increase significantly.
In 2019, administrative expenses was THB 162 million which increased by THB 22 million or 16% from 2018. The increase was mainly due to the higher back office salary expenses as a result of business expansion.
Admin expenses to total revenue in 2019 was 13.4% which improved by 2.5% from 2018 due to better control on the back office expenses.
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Balance Sheet as at 31 Dec 2019
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Total Assets Total Liabilities and Equities (Million Baht) (Million Baht)
62 84
403 406
57 59
505 598
70 53 1,097
1,200
31 Dec 18 31 Dec 19
6%
37%
5%
6%
46% Land, Property and Equipment
Other current assets
Short-term Investment
Other non-current assets
7%
34%
5%
4%
50%
+9%
Cash and Cash equivalent 116 125
24 37
957 1,038
1,097 1,200
31 Dec 18 31 Dec 19
11% 2%
87% Equity
Non-current Liabilities
Current Liabilities 10% 3%
87%
Total Assets Land, property and equipment increased by THB 93 million or 18% because of the plant expansion and the opening of new branches.
Other non-current assets decreased by THB 27 million or 24% was mainly due to decrease in advances for acquisition of assets.
Total Liabilities THB 13 million increase in other non-current liability was due to unearned revenue from initial franchise fee received in advance, and the increase in the provision for long-term employee benefits and the provision for decommissioning.
Total Equity Increase in total equity of THB 81 million was due to increase in retained earning.
+9%
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After You Strategic Direction
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Leading Product Innovation and R&D
Sales Channel Enhancement
Dynamic Branch Expansion
Domestic Expansion: Selectively expand through
pop-up store Remodeling existing stores
Branch as a distribution hub International Expansion:
Through Partnership
Strong and consistently innovative R&D team
More take-home products Expansion into new product line New business development concept
Actively seeking collaboration opportunities
Digital transformation by mobile application
Efficiency and Capability Improvement Increasing staff capabilities Expanding production facilities and benefit through economies of scale
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Dynamic Branch Expansion
Domestic Expansion: Selectively expand
through pop-up store Remodeling existing
stores
Branch as a distribution hub
International Expansion:
Through Partnership
1. Branch Expansion: Opened 6 Branches Domestically in 2020
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2020 Outlet Concepts Smaller-sized branch Same kitchen size, smaller seating area Increasing area for take-away
Zen @ Central World
Samyan Mitrtown
The Mall Ngamwongwan
MRT - Chatuchak
BITEC
Icon Siam (16 Jan)
Sukhumvit 11 (30 Apr)
The Third Place (5 Feb)
Central Patong (15 Feb)
The Market (20 Feb)
Central Hatyai (15 Jun)
6 Branches Opened in 2019
Major Outlet Expansion
2019 2020
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1. Branch Expansion: Selectively expand through pop-up store
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Dynamic Branch Expansion
Domestic Expansion:
Selectively expand through pop-up store
Branch as a distribution hub
International Expansion:
Through Partnership
Continue to expand by using 2 models of pop-up stores to increase awareness and accessibility of the brand 5 6
12 13
5 10
19
25
Q1/19 Q2/19 Q3/19 Q4/19
Number of Pop-Up Stores
Revenue from Pop-up (Million Baht)
Strategic Advantages Test new market & explore demand in
untapped areas Obtaining potential branches at low
investment costs
Central Plaza Surat Thani
Dining areas are available Limited menu selection Length of Stay: 3 months – 1 year
2019 2020
Dining areas are not available To-Go products are mainly sold Setting up areas are in a high
traffic location Length of Stay: 1-4 weeks
MRT - Phetchaburi
Shopping Mall in Tier 2 and Tier 3 cities
Office Building
BTS – MRT stations
Targeted Locations
Pop-up Store Expansion
Model 1: Semi-permanent store
Model 2: Kiosk
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1. Branch Expansion: Hong Kong branch is expected to start operation in Q3/2020 waiting for the situation to relieve
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Dynamic Branch Expansion
Domestic Expansion: Selectively expand
through pop-up store
Branch as a distribution hub
International Expansion:
Through Partnership
Hong Kong Branch Progress Update
Q3/2020 Q4/2019
Store Construction Completed
Expected Date to Start Operation
Waiting for the situation to relieve
International Expansion Through Partnership
2020 onwards 2019
Hong Kong
Coordinating with partner to explore opportunity to set up other franchise outlet in Hong Kong
Opening of the first franchisee branch in Hong Kong
Asia Pacific Actively seeking the right franchisee to
help After You expand to other countries Implication to After You
• After You has minimal impact from the delay in opening date as the store in Hong Kong is a franchisee branch.
• The revenue loss is estimated to be minimal as initial franchise fee was already recognized in late Q3/2019 and the portion of commission revenue is estimated to be small compared to total revenue.
1. Initial Franchise Fee 2. Royalty Fee from Sale 3. Revenue from sales of key ingredient
Revenue Stream • Franchisee Store (DODO model) Store Model
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2. Strong Product Innovation: Launched 20 Products in 2019 and planned to introduce more than 10 products in 2020
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Leading Product Innovation and
R&D Strong and consistent
innovative R&D team
More take-home
products
Expansion into new product line (Pancake Mix)
Strong Innovation of Product Launch
2020 2019 Consistent Launch of In-store Product New menu by adapting Thai-style original ingredients
More take-home products Increase Sales from faster turnover Use existing branch as a distribution hub
Expansion into New Product Line Longer shelf life Supported by more distribution channel (Modern Trade)
Targeted to launch 10+ products
(New and Revised Version of
Seasonal Products)
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3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities
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Sales Channel Enhancement
Actively seeking collaboration opportunities OEM partnership with
airlines and corporates
Distribution Channel partnership with delivery players (Grab, Lineman)
Co-Marketing Partners
Higher area coverage of potential customers
Continuous revenue stream Increase brand visibility
Ensured revenue stream Increase brand visibility
Airlines and Corporates OEM Partners Delivery Services Partners
Co-Marketing Partners
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3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities
13
Sales Channel Enhancement
Actively seeking collaboration opportunities OEM partnership with
airlines and corporates
Distribution Channel partnership with delivery players (Grab, Lineman)
Co-Marketing Partners
Introduction of After You Application - 2020
Allow customers to know intensity of traffic at each After You branch and therefore could select the most convenient location
Traffic Visibility 1
Allow customers to clearly see all the items available on application and place the order before completing the payment at cashier
Advanced Ordering System 2
Expected benefit
Redistribute customer traffic across branches
Increased turnover from faster ordering and payment system
Larger ticket size per head
Keep track of customer purchasing behavior and offer personalized customer promotion
Point collection & more attractive rewards system
Enhanced Loyalty Program 3
Integrated online sales channel with partnered delivery platform
Online Sale Channel 4
Mobile Payment Convenience Automatic Loyalty Rewards
E-Wallet 5
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Efficiency and Capability
Improvement
Expanding production facilities and benefit through economies of scale
Increasing Staff Capabilities
14
4. Efficiency and Capability: Continuous Investments to Improve Capacity, Capability and Productivity
Efficiency and Capability Improvement
2020 2019
Investment in Facilities for Growth
Investment for Staff Capability Improvement
Cold Storage New Plant Machineries and Equipment
Improve efficiency Increase production
capacity Increase economies of
scale
1 2 3
Accomodate increasing demands
Facilitate export and international operation
Reduce cold storage rental better supply management
Preparation for exports for international operation
Increase productivity
Investment in Capital Expenditure
Plant Expansion
Back Office and Logistic Improvement
New Branches and Project Development
~ 104 millions baht
~ 70.5 millions baht
~ 6.3 millions baht
In total, 180.8 millions baht investing in Capital Expenditure
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Appendix
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Appendix - Key Financial Ratios
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0.21
0.11 0.15 0.16
2016 2017 2018 2019
D/E (Times) ROA (%)
ROE (%) EPS (Baht per share)
0.16 0.16 0.18
0.29
2016 2017 2018 2019
14.7% 12.8% 13.8%
20.6%
2016 2017 2018 2019
21.3%
14.8% 15.6%
23.8%
2016 2017 2018 2019