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nickscali LIMITED FY26 Results Presentation 7 August 2026 CELINE
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FY26 Summary 22 Group • Group net profit after tax $75.7m, up 22% on FY25 underlying NPAT, and up 31% on statutory NPAT. • Revenue $516.7m up 4.3%. • Gross profit margin was 65.6%, up 210 basis points. • Cash on hand $106.6m. • Final dividend 39 cents per share fully franked. ANZ Group • Written orders up 2.7% reflecting a challenging second half. • Net profit after tax $80.5m, up 10% on FY25 underlying NPAT and 13% on statutory NPAT. • Revenue $476.7m, up 5.1% on prior year. UK • Written orders for FY26 of $45.0m with 2H orders of $23.2m, up 55.5%. • Nick Scali branded stores LFL up 19% in 2H. • Revenue $40.0m, $1.8m less than last year with interrupted trading in 1H for store closures due to rebranding program. • Gross profit margin FY26 was 60.3%, compared to 47.1% in FY25. • 16 stores refurbished and rebranded as Nick Scali by December 2025. • Net loss after tax $4.8m, with a 2H statutory profit of $0.8m.
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Written Sales Orders and Group Revenue 1 LFL represents written sales orders from online and from showrooms which were open for the whole of both reporting periods. 3 ANZ Group Revenue FY26 $476.7m Change versus FY25 +5.1% ANZ FY26 revenue growth 5.1%. UK Revenue FY26 $40.0m Change versus FY25 -4.3% UK revenue for FY26 reflects lower written sales over 1H FY26, caused by closures of numerous stores for lengthy periods. Written sales orders of $45.0m exceeded sales revenue by $5m. Group Revenue FY26 $516.7m Change versus FY25 +4.3% ANZ Group Written Sales Orders FY26 $472.5m Change versus FY25 +2.7% Written Sales for FY26 were up 2.7% vs prior year with softer trading in 2H -3.6% compared to prior year 2H LFL1 growth of 7.3%. Group Written Sales Orders FY26 $517.5m Change versus FY25 +4.7% UK Written Sales Orders FY26 $45.0m Change versus FY25 +31.4% Written Sales for FY26 were up 31.4% vs prior year, as sales recovered following store closures and store refurbishments. Nick Scali branded stores trading LFL1 were up 19% in 2H.
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Group Financial Performance $m 4 FY26 FY252 ANZ UK Group Group Sales Revenue 476.7 40.0 516.7 495.3 Cost of sales (161.9) (15.9) (177.8) (180.7) Gross Profit 314.8 24.1 338.9 314.6 Gross Margin % 66.0% 60.3% 65.6% 63.5% Other income 5.4 1.6 7.0 5.1 Operating expenses (141.4) (20.4) (161.8) (156.8) Depreciation and amortisation (47.9) (8.1) (56.0) (53.4) Bank finance costs (3.7) – (3.7) (4.3) AASB16 interest costs (12.2) (2.0) (14.2) (12.7) Profit (Loss) before tax 1 15.0 (4.8) 1 10.2 92.5 Income tax (34.5) – (34.5) (30.5) Profit (Loss) after tax 80.5 (4.8) 75.7 62.0 Impact of AASB16 on profit (Loss) after tax 3 (1.7) 0.3 (1.4) (1.2) Profit (loss) after tax before AASB16 82.2 (5.1) 77.1 63.2 EBITDA 1 175.6 5.1 180.7 159.1 EBIT 1 127.7 (3.0) 124.7 105.7 1 EBITDA and EBIT are based on finance costs net of $3.4m (FY25 $3.8m) interest income included in Other income. Refer Appendix B. 2 FY25 underlying financial performance excludes $2.4m restructuring and integration costs for the UK and $2.8m ($1.9 post tax) costs in ANZ resulting from business failure of a freight forwarder. Refer Appendix A for reconciliation to Group statutory profit after tax. 3 Refer Appendix C for Impact of AASB16 on profit (loss after tax) reconciliation. ANZ Group ANZ Group gross margin at 66.0%, vs FY25 at 65.0%. ANZ FY26 operating expenses increased by $5m compared to the prior year attributable to employment bonuses and additional advertising in 1H. 2H was flat including start- up costs of $600k for 4 new stores. Impact of AASB16 was ($1.7m) after tax compared to nil the previous year. UK Gross margin continued to improve to 60.3% for FY26. Other income included: • Interest earned. • Lower than estimated final acquisition payment. • The early surrender of onerous leases, on stores which incurred trading losses during landlord negotiations.
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Group Cashflow $m 5 Operating cashflows Cash of $117.9m generated from operating activities in FY26 (including operating lease and interest payments) compared to $89.6m FY25. UK operational funding requirements have decreased as sales have grown and refurbishments are completed. Operating cash flows at -$2.1m compared to -$10.2m in the prior year, with 2H generating operating cashflows of -$0.2m. Property and other capital investments Land acquired for $3.8m in July 25 to facilitate the building of a new South Australian distribution centre. Construction has commenced and has an expected completion in 1H27. Purchase of Campbelltown retail store settled in Nov 25, $7.9m. Refurbishment of ANZ $4.2m and UK $4.0m showrooms. The purchase of a new showroom property in Richmond, Victoria will complete in August 2026. Capital management & dividends Payment of the FY25 final and FY26 interim dividend has returned $61.6m to shareholders in the period being an uplift of $7.8m on FY25. Closing cash and bank deposits at June 26 of $106.6m and net cash after borrowings of $34.9m, up $5.6m. Group FY26 FY25 Operating cash flows net of lease liabilities repayments and lease interest payments 117.9 89.6 Tax paid (26.2) (34.9) Net bank interest paid (0.3) (0.4) Property and other capital investments (23.0) (14.6) Proceeds of issue of share capital – 3.8 Repayment of borrowings – – Dividends paid (61.6) (53.8) Net movement in cash and bank deposits 6.8 (10.3) Closing cash and bank deposits 106.6 101.0 Total Borrowings (71.7) (71.7) Net cash 34.9 29.3 Property debt secures at less than 22% LVR (43.7) (43.7) Corporate Plush acquisition debt (28.0) (28.0) Total Borrowings (71.7) (71.7) Net cash 34.9 29.3
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Group Balance Sheet $m 6 Jun 2026 Jun 2025 Cash and deposits 106.6 101.0 Inventory – in transit 10.9 13.5 Inventory – on hand 41.6 44.6 Property at net book value 131.0 120.1 Plant and equipment 30.1 27.6 Leased assets 250.5 216.0 Intangibles 163.6 166.4 Other assets 9.5 7.5 Borrowings 71.7 71.7 Payables 30.3 34.8 Lease liabilities 278.4 244.5 Deferred revenue 65.5 67.2 Provisions 9.1 9.1 Tax and other liabilities 9.0 2.8 Net assets 279.8 266.6 Inventory – On hand ANZ DCs ANZ showrooms UK DC UK showrooms T otal Jun 2026 13.9 22.6 1.6 3.5 41.6 Jun 2025 15.7 23.5 1.9 3.5 44.6 Property Increased largely due to the acquisition of Campbelltown store and land for the SA distribution centre. Leased Assets & Liabilities Increased by $34.5m due to the extension of the UK showroom leases and addition of the UK warehouse lease together with new ANZ stores and normal renewals of the existing network. Intangibles Includes $126m of goodwill and brand value acquired in 2021 as part of the Plush acquisition and $33m of goodwill recognised as part of the Fabb Furniture UK acquisition in 2024. Borrowings $43.7m of borrowings unchanged over the period relate to property debt secured against the property portfolio at a loan-to-value ration of less than 22%. Corporate debt $28m at 30 June 2026, also unchanged over the reporting period.
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7 Image: Nick Scali Thurrock store. 7 Nick Scali in the UK
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8 UK Summary Written Sales Orders • Sales orders of $45m for FY26 with rebranding process completed by Dec 25. • Nick Scali branded stores trading LFL in 2H showed growth of 19% in difficult market. Margin • FY26 gross margin 60.3% (net of interest free subsidy). • Margin in 2H 61.2%. Distribution • Lease of new warehouse commenced June 2026 with capacity for growth. Leadership • Focus remains on retail teams in stores. • Evaluating and seeking new store opportunities. Product • Best sellers in the UK in line with best sellers in Australia. • New product introductions based on Australian performance. New Stores • New store expected to open in October. • Other stores currently under negotiation.
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Store Network 9 1 Opportunity is based on demographic data and proximity to existing showrooms. Timing of store rollout is dependent on site availability and commercial terms. 2 T otal excludes clearance stores and on-line. 3 New locations represents net movement of new store locations offset by closed store locations (June 25 to July 26) New Long term June 25 locations3 July 26 Opportunity1 Nick Scali Australia 60 +1 61 73 New Zealand 5 – 5 13 65 +1 66 86 Plush Australia 45 +3 48 85-90 New Zealand – – – 05-10 45 +3 48 90-100 ANZ Total 110 +4 114 180-200 UK 20 -2 18 60-70 Total 2 130 +2 132 240-270 • New Plush showrooms opened – Bendigo, Vic Nov 25 – Tuggerah, NSW March 26 – Cannington, WA May 26 • A new Nick Scali store was opened in Ballarat, V ic in April 26. • Two new Nick Scali stores have opened in July 26 at Bendigo, Vic and Bunbury, WA. • UK Lincoln store closed Oct 25 and Nottingham April 26 as they were shared concessionary stores and therefore not suitable in respect of our long term network strategy. • New store in the UK expected to open in October 26. • A number of potential new store locations in the UK are under review.
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10 Property Location Date Net Lettable Acquired Area (m2) Auburn, NSW Dec 2017 5,469 Auburn, NSW Feb 2020 788 Alexandria, NSW Jul 2010 1,680 Campbelltown, NSW Nov 2025 2,277 Caringbah, NSW Jul 2014 2,633 Edinburgh, SA Jul 2025 6,377 Fyshwick, ACT Nov 2012 4,120 Nunawading, VIC Sep 2014 2,667 Macgregor, QLD Oct 2015 4,839 Townsville, QLD Nov 2021 5,396 Crestmead, QLD Dec 2022 11,661 Keswick, SA Jul 2020 2,573 Joondalup, WA Mar 2015 2,198 Total 52,678 Property Carrying Value $m – Historical Acquisition Cost 145.2 – Current Book Value (Acquisition cost, 131.0 less depreciation) – Based on Independent Valuation 208.2 FY26 Key Expenditure $m • Campbelltown purchase 7.9 • South Australia DC, Land purchase 3.8
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Outlook 11 Outlook ANZ For the first 5 weeks of trading for FY27, written sales orders were flat when compared to the same period the previous year cycling off high single digit growth. The group opened four new stores during FY26 and a further two in July, which are expected to contribute positively to FY27 earnings. A further 4 stores are expected to be opened during FY27, supporting the Group’s continued growth strategy. UK The positive momentum in the UK continued into FY27, with written sales orders for the first 5 weeks increasing 35% on the prior corresponding period. The Group expects to open a new store in October and is in negotiations on a number of other locations as we continue to expand our presence in this important growth market.
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Q&A 12
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13 Disclaimer & Important Information 13 Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information available to the Company that has not been independently verified. The information in the presentation contains forward looking statements which may be subject to uncertainties outside the Company’s control and therefore no representation or warranty, express or implied, is made or given as to the accuracy, reliability or completeness of the information, opinions and conclusions expressed. The Company disclaims any obligation or undertaking to disseminate updates or revisions to any forward looking statements in this document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based. This presentation should not be relied upon as a recommendation or forecast by the Company. This document should be read in conjunction with the FY26 Results Announcement and FY26 Appendix 4E. Authorised for release by the Board of Nick Scali Limited.
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Supporting Information 14
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15 Appendix A – Underlying Group NPAT Reconciliation $m ANZ Costs resulting FY26 FY25 UK Restructuring from freight forwarder FY25 Statutory Statutory & integration costs business failure Underlying Sales Revenue 516.7 495.3 – – 495.3 Cost of sales (177.8) (180.7) – – (180.7) Gross Profit 338.9 314.6 – – 314.6 Gross Margin % 65.6% 63.5% – – 63.5% Other income 7.0 5.1 – – 5.1 Operating expenses (161.8) (162.0) 2.4 2.8 (156.8) Depreciation and amortisation (56.0) (53.4) – – (53.4) Finance costs (17.9) (17.0) – – (17.0) Profit before tax 110.2 87.3 2.4 2.8 92.5 Income tax (34.5) (29.6) – (0.9) (30.5) Profit after tax 75.7 57.7 2.4 1.9 62.0 FY26 FY25
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1 EBITDA and EBIT are based on finance costs net of $3.4m (FY25 $3.8m) interest income included in Other income. 16 Appendix B – EBITDA and EBIT Rec onciliations $m FY25 Group FY26 ANZ FY26 UK FY26 Group Underlying1 Profit (loss) before tax 115.0 (4.8) 110.2 92.5 Finance costs 15.9 2.0 17.9 17.0 Interest income in Other income (3.2) (0.2) (3.4) (3.8) Depreciation and amortisation 47.9 8.1 56.0 53.4 EBITDA 175.6 5.1 180.7 159.1 Depreciation and amortisation (47.9) (8.1) (56.0) (53.4) EBIT 127.7 (3.0) 124.7 105.7
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17 Appendix C – Lease Expense $m FY26 FY25 Group ANZ UK Group Property Expense 18.4 14.2 4.2 17.7 AASB16 Depreciation expense 47.5 40.2 7.2 45.7 AASB16 Interest Expense 14.1 12.2 1.9 12.7 Total property expenses statutory 80.0 66.6 13.4 76.1 AASB16 Depreciation expense (47.5) (40.2) (7.3) (45.7) AASB16 Interest Expense (14.1) (12.2) (1.9) (12.7) Lease period obligations not included in statutory property expense 60.2 50.7 9.5 57.2 Lease expense pre AASB16 78.6 64.9 13.7 74.9 Statutory expense compared to pre AASB16 (1.4 ) (1.7) 0.3 (1.2)