Slides
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H1 FY2026 RESULTS PRESENTATION
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CONTENTS Contents 02 Strategic overview 03 H1 FY26 highlights 07 Detailed financial results 14 Trading update 19 Appendices 21 Investor Presentation H1 FY26 2
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STRATEGIC OVERVIEW 01
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SHAVER SHOP IS A LEADING SPECIALTY RETAILER WITH A UNIQUE PERSONAL CARE BUSINESS MODEL IN ANZ 4 Founded in 1986 Trusted and respected specialty retail brand with high AU brand awareness of c.87% - highly differentiated model with lack of direct competition 126 stores 116 AU stores and 10 NZ stores 100% corporate-owned Differentiated model Exceptional customer service and product knowledge - many key brands and products exclusive to SSG Conservative balance sheet & strong cash flow conversion No debt and $30m undrawn debt facilities Strong dividend yield Fully franked dividends of 4.8 cents/share in H1 FY26 Experienced management team Average tenure of executive leadership team – 12.1 years Omni-channel excellence Online sales c.24.6% of total sales in H1 FY26 Market leader in growth sector DIY grooming, personal care, hair and beauty appliances for men and women – focussed on premium products Investor Presentation H1 FY26
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5 STRONG BUSINESS FUNDAMENTALS WITH GROWTH INITIATIVES DELIVERING TO PLAN Store Network Optimisation Range Expansion (category creep into adjacencies, product innovation, private brand expansion) Strategic Category Management (Exclusives, leadership in range breadth and depth, private brand expansion) Conservative balance sheet and proven profitability to support investment “Customer obsession” x “scale, experience, data and insights” drive profitability Well-established and consistently profitable store network Market leader and #1 specialist in our core categories Excellence in team training, product knowledge and customer service drive brand loyalty Attractive and growing market – particularly men’s grooming Business Fundamentals 3 Key Growth Strategies Proven omni-channel capability Investor Presentation H1 FY26
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1 Accelerate Transform-UTM momentum with range expansion and brand building 2 Secure additional exclusive distribution brands 3 Continue category creep with new brands and categories 4 Further improve social media presence and engagement 5 Continue store network optimisation program H1 FY26 KEY PRIORITIES SCORECARD 6Investor Presentation H1 FY26
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H1 FY26 HIGHLIGHTS 02
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H1 FY26 KEY HIGHLIGHTS Sales Shaver Shop delivered record gross profit margins of 46.5% in H1 FY26 driven by Transform-U TM’s continued performance 8 Online Sales $129m 24.6% $ 12.2m46.5 % $ 25.1m 4.8 ¢ 88.9 of total sales Gross Profit Margins Net profit after tax (up 100bs vs H1 FY25) Operating cash flow $ 36.9 m (up $8.9 million) Net cash (at 31 Dec 25) per share (100% franked) (out of 100) Interim Dividend Net promoter score Investor Presentation H1 FY26 (up 2.2% vs H1 FY25) (up 1.5% vs H1 FY25)
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• Solid first half sales performance – Total sales up 2.2% to $128.6m – In-store sales up 0.5% – Online sales up 7.4% – Like for like sales up 0.9% • Delivered 2 quarters of sales growth - up 3.0% in Q1 FY26 followed by 1.7% in Q2 FY26 • Transaction volumes up 3.8%, partially offset by 1.6% decline in ATV • While the increasing penetration (mix%) of Transform-U TM weighs on ATV due to value for money offered, we are growing volume share and enhancing our differentiation in the market • In-store sales conversion up c.150bps to 47.9% • Consumer remains focussed on key promotional events (e.g. Black Friday, Boxing Day) and value for money offers 9 DELIVERED CONSISTENT GROWTH: BOTH QUARTERS, BOTH CHANNELS AND CONTINUED TO GROW TRANSFORM- U SHARE 127.1 131.9 127.1 125.8 128.6 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY26 5 Year Sales Trend ($m) Investor Presentation H1 FY26 3.6% 4.4% -4.2% -1.4% 0.9% H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY26 H1 LFL sales growth trend
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• Exclusive and private brand products remain a key driver of sales – 21 of top 30 products (by sales) were exclusive to Shaver Shop in H1 FY26 • Relatively steady sales contribution by category compared to H1 FY25 • Growth in lower margin female categories and power oral care • Continued range expansion activities through addition of: – Mangroomer – body groomers – Piksters – oral flossing tools – Oral-B toothpaste – Additional fragrance brands – Additional shampoo and conditioner brands – Disposable razors • Focussed on retaining/increasing share in core Men’s Grooming categories by offering: – Compelling value for money – Exclusive range 10 H1 FY26 SALES CONTRIBUTION BY CATEGORY FOCUS ON EXCLUSIVE PRODUCTS AND RANGE EXPANSION Hair Cutting 34% Mens Shavers 21% Power Oral Care 16% Hair Styling 9% Long Term Hair Reduction (IPL) 8% Mens Manual Shaving 6% Temporary Electric FHR 4% Massage 0% Other 2% Investor Presentation H1 FY26
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• Gross profit up +4.6% (or $2.6m) to $59.8m • Gross margin up +100bps to 46.5% despite stronger relative sales growth in lower margin Long-Term Hair Removal, Hair Styling and Power Oral Care categories – Primarily driven by the incremental contribution from Transform-UTM private brand • Ongoing focus on maximising gross profit dollar contribution across all categories (including through strategic category management initiatives) has led to gross profit margin (%) increasing in each of the last four years • Now cycling launch of Transform-UTM private brand - will lead to lower incremental impact on GP% in upcoming financial periods but still expected to lead to margin expansion over the medium to long term 11 RECORD GROSS PROFIT CONTRIBUTION AND GROSS MARGIN % IN H1 FY26 Investor Presentation H1 FY26 43.8% 44.3% 44.4% 45.5% 46.5% FY22 FY23 FY24 FY25 FY26 Gross margin % Consistent gross margin (%) growth 55.7 58.5 56.4 57.2 59.8 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY26 Gross profit $m Record H1 Gross Profit Contribution
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Investor Presentation H1 FY26 12 OPERATIONAL METRICS 1.43 Units per transaction +3.4% Transaction volumes up 47.8% Sales conversion* -2.6% Avg Transaction Value down 5.9m Total site visits +6.1% Transaction volumes 3.3% Sales conversion +1.7% Average Transaction Value up IN-STORE ONLINE * In-store sales conversion is the percentage of customers that purchase an item after entering a Shaver Shop store
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TRANSFORM-UTM PRIVATE BRAND MOMENTUM CONTINUING • Transform-UTM launched in late October 2024 – Driven by desire to close gaps in product range where SSG’s global supplier partners were unable to consistently provide desired product to meet Shaver Shop’s customer needs and price points – Global supplier brands remain SSG’s core focus • Transform-UTM range now comprises more than 100 individual product lines (noting more than 50% of the range represents replacement clipper/trimmer guides and blades) • Transform-UTM share of total Shaver Shop sales was mid-to-high single digits in H1 FY26 (H1 FY25 – low single digits) and the key driver of the increase in gross profit margin (%) • More than 300,000 units sold since launch (includes higher volume replacement guides, blades, oils etc…) • Independent customer product ratings for Transform-UTM remain best in class (averaging approx. 4.8 out of 5) supported by lower than company average return rates • Key focus for Transform-UTM in H2 FY26 is: – Building the brand: increasing social media activity/frequency – Launching stand-alone Transform-UTM website to further build brand and capture e-commerce opportunity – Further expanding the range in selected areas (categories) – Maintaining focus on product quality and value for money 13Investor Presentation H1 FY26
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DETAILED FINANCIAL RESULTS03
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• Solid first half performance • Sales up 2.2% to $128.6 million (second highest level in SSG history) • Online and in-store channels grew in H1 FY26 – In-store sales up 0.5% vs pcp – Online sales up 7.4% (representing 24.6% of total sales) • Record gross profit $ contribution of $59.8 million (up 4.6% vs pcp) • Record gross profit % of 46.5% (up c100bps vs pcp) • Costs of doing business up 5.5% primarily driven by: – Employment costs up 5.7% due to: a) 3.5% minimum wage increase together with the superannuation guarantee increase; and, b) reversal of prior year LTI expenses in H1 FY25 due to change in vesting expectations • Depreciation and amortisation up 5.7% due to: – Increase in store numbers, full store refits, and tech stack related amortisation – Increase in lease depreciation (up 3.4%) • EBIT up 2.5% to $18.1 million with EBIT margin flat at 14.1% • NPAT up 1.5% to $12.2 million with NPAT margin of 9.5% • Basic/Diluted EPS of 9.3 cents 15 PROFIT & LOSS STATEMENT Investor Presentation H1 FY26 $A millions Reported H1 FY26 Reported H1 FY25 Variance ($) Variance (%) Sales 128.6 125.8 2.8 2.2% Gross profit 59.8 57.2 2.6 4.6% Gross margin % 46.5% 45.5% 1.0% 2.3% Cost of doing business (CODB) (32.8) (31.1) (1.7) 5.5% Depreciation and amortisation (8.9) (8.4) (0.5) 5.7% EBIT 18.1 17.7 0.4 2.5% EBIT margin % 14.1% 14.1% 0.0% 0.2% Net finance costs - borrowings (0.0) 0.1 (0.1) (135.2%) Net finance costs - leases (0.8) (0.8) 0.0 (2.9%) Income tax expense (5.1) (4.9) (0.1) 2.8% NPAT 12.2 12.0 0.2 1.5% NPAT margin % 9.5% 9.6% -0.1% (0.7%) Basic EPS (cents) - weighted avg shares 9.3 9.3 - - Diluted EPS (cents) - weighted avg shares 9.3 9.2 0.1 1.1%
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• Balance sheet movements vs 30 June 25 reflect seasonality of Shaver Shop’s business model. Comparisons better made to 31 Dec 24 (pcp). • Net cash of $25.1m with no debt at 31 Dec 25 ($30m available debt facilities) – Deferred supplier payment to January 26 (c. $4.9m) – normalised net cash position still strong at c.$20.2m • Inventory increased $3.4m vs 31 Dec 25 to $36.1m reflecting: – Improved stock availability across the network – less stock outages over Christmas peak trading – Increased Transform-UTM stock (up $1.4m vs pcp) reflecting: brand success; purchasing in bulk (vs just in time for local suppliers); and, current need to prepay for imported stock – New exclusive brands (e.g. Mangroomer) – Additional store • Trade payables increase of $2.9m (vs pcp) in part reflects deferred supplier payment of $4.9m to Jan (referred to above) • Increase other liabilities (vs pcp) reflects increase in income tax provision (no franchise buyback tax deductions remaining) • Net assets up $1.6m to $94.3 million 16 BALANCE SHEET Investor Presentation H1 FY26 (as at) $A millions 31-Dec-25 30-Jun-25 31-Dec-24 Cash 25.1 3.9 24.5 Trade & other receivables 5.9 4.0 4.9 Inventory 36.1 29.2 32.7 Plant & Equipment 15.0 14.7 12.7 Right of use assets 24.4 26.1 27.3 Goodwill & Intangibles 57.1 57.6 58.0 Other assets 2.4 2.4 2.7 Total assets 166.0 138.0 162.8 Trade payables 37.2 15.5 34.3 Interest bearing liabilities - - - Lease liabilities 28.3 29.8 30.7 Other liabilities 6.2 3.7 5.1 Total liabilities 71.7 49.0 70.1 Net assets 94.3 89.0 92.7
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• Strong operating cash flow of $36.9m in H1 FY26 – up $8.9m – Normalised operating cash flow $32.0m (up $4.0m) after adjusting for $4.9m deferred supplier payment to Jan ’26 • CAPEX of $1.2m reflects: – New stores – Albany, NZ and Bathurst, NSW – Full store fitouts at Tea Tree Plaza, SA – Relocation at Canberra Outlet Centre • Lease principal repayments up $0.1m to $7.8m due to: new (small) warehouse operation, 1 more store and lease renewals • Strong net cash flow generation of $21.2m in H1 FY26 – up $10.0m on pcp (up $5.1m after supplier payment normalisation referenced above) 17 CASH FLOW STATEMENT Investor Presentation H1 FY26 $A millions H1 FY26 H1 FY25 Variance NPAT 12.2 12.0 0.2 Non-cash items: Depreciation and amortisation expense 8.9 8.4 0.5 Change in working capital and other 15.8 7.7 8.1 Net cash flow from operating activities 36.9 28.1 8.8 Payments for exclusive licence - - - CAPEX (net of premises contributions) (1.2) (2.3) 1.1 Net cash flow before financing activities 35.7 25.8 9.9 Net dividends paid (7.0) (6.9) (0.1) Proceeds from repayment of LTI share loan 0.3 - 0.3 Lease payments - principal (7.8) (7.7) (0.1) Net cash flow 21.2 11.2 10.0 Opening Cash Position - 1 July 3.9 13.3 (9.4) Closing Cash Position - 31 Dec 25.1 24.5 0.6
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18 DIVIDENDS AND CAPITAL MANAGEMENT 4.5 4.7 4.7 4.8 4.8 FY22 FY23 FY24 FY25 FY26 Interim dividend (cps)• Fully franked interim dividend held steady at 4.8 cents per share (cps) – Record date – 5 March 26 – Payment date – 19 March 26 • Solid financial performance, sound financial position with strong cash flow generation enables Shaver Shop to balance: – Paying a healthy, consistent dividend – Investing in new value creation opportunities (e.g. Transform-UTM, exclusive distribution brands) • FY25 dividend payout of 10.3 cps (interim and final dividends combined) represented payout of c.90% of reported NPAT • Dividend policy is to payout approximately 65% to 90% of underlying NPAT Investor Presentation H1 FY26
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TRADING UPDATE 04
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• Total sales up 3.8% between 1 Jan 26 and 22 Feb 26 vs pcp (cycling 0.7% vs pcp) – LFL sales up 1.9% (cycling 1.1% vs pcp) • Gross margins are flat with pcp given SSG is now cycling period after Transform-UTM launch, and higher proportionate sales growth is coming from some of Shaver Shop’s lower margin categories • Further Transform-UTM range expansion planned for H2 FY26 together with launch of dedicated website and social media presence should support further sales and gross margin growth over time • Eastern Creek Quarter, NSW store to open in March 2026 bringing total stores to 127 • 3 full store refits and 2 relocations planned for H2 FY26 Investor Presentation H1 FY26 20 TRADING UPDATE Sales growth (%) from 1 Jan 26 to 22 Feb 26 FY26 vs pcp Total sales 3.8% In-store sales 1.3% Online sales 12.7% Like for like sales (including online sales) 1.9%
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APPENDICES 05
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22 INVESTMENT SUMMARY Segment leader both online and offline Large and growing market driven by changing consumer preferences and new product innovation Products range is applicable to almost all demographics Differentiated & resilient specialty retail business model – Service excellence and unparalleled product knowledge – Product exclusivity – including private brand opportunity (Transform-UTM) and exclusive distribution of global brands – Competitive, value-based pricing Potential to further increase market share High brand awareness in Australia (NZ growing) Proven and highly profitable omni-retail model Clean balance sheet – no debt – with high cash conversion Experienced management team Focus on investing for growth and improving total shareholder returns Attractive dividend payout and franked dividend yield Investor Presentation H1 FY26
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Investor Presentation H1 FY26 23 KEY METRICS H1 FY26 H1 FY25 Number of corporate stores (30 June) 126 125 Total sales ($A millions) 128.6 125.8 Total sales growth % 2.2% -0.2% Like for like (LFL) sales growth % 0.9% -1.4% Gross profit margin % 46.5% 45.5% Employee benefits expense as a % of sales 16.0% 15.5% Occupancy expenses as % of sales (AASB 16) 1.6% 1.3% Marketing and advertising expenses as % of sales 2.6% 2.9% Operational expenses as % of sales 4.2% 4.0% Other expenses as % of sales 1.2% 1.2% Costs of doing business % of sales 25.5% 24.7% EBITDA margin 21.0% 20.7% EBIT margin 14.1% 14.1% NPAT margin 9.5% 9.6% Basic EPS (cents) 9.3 9.3 Diluted EPS (cents) 9.3 9.2 Dividends declared per share (cents) - 100% franked 4.8 4.8 Net cash (debt) - 30 June ($A millions) 25.1 24.5
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Investor Presentation H1 FY26 24 FIRST HALF PROFIT AND LOSS HISTORY H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY26 (A$ millions) Actual Actual Actual Actual Actual Sales 127.1 131.9 127.0 125.8 128.6 Cost of goods sold (71.4) (73.5) (70.6) (68.6) (68.8) Gross profit 55.7 58.5 56.4 57.2 59.8 Gross margin % 43.8% 44.3% 44.4% 45.5% 46.5% Franchise and other revenue - - - - - Employee benefits expense (14.6) (17.9) (18.9) (19.5) (20.6) Occupancy expenses (1.2) (1.6) (1.8) (1.6) (2.0) Marketing and advertising expenses (4.7) (4.4) (3.6) (3.6) (3.3) Operational expenses (6.8) (4.9) (4.8) (5.0) (5.4) Other expenses (1.7) (1.5) (1.3) (1.5) (1.5) Overhead expenses (29.1) (30.3) (30.4) (31.1) (32.8) EBITDA 26.7 28.1 26.0 26.1 27.0 EBITDA margin 21.0% 21.3% 20.5% 20.7% 21.0% Depreciation and amortisation (0.9) (1.0) (1.0) (1.1) (1.3) Depreciation - right of use assets (leases) (6.2) (6.5) (6.9) (7.3) (7.6) EBIT 19.5 20.7 18.1 17.7 18.1 Net finance costs (0.1) (0.1) 0.2 0.1 (0.0) Net finance costs - lease liabilities (0.8) (0.7) (0.5) (0.8) (0.8) Profit before income tax 18.6 20.0 17.8 17.0 17.3 Income tax expense (5.6) (6.3) (5.3) (4.9) (5.1) NPAT 13.1 13.7 12.5 12.0 12.2 Basic shares outstanding (# millions) 126.2 127.0 128.2 129.2 131.0 Basic EPS (cents) 10.6 10.8 9.7 9.3 9.3 Franchise buy-back tax benefit 0.6 0.5 0.5 0.4 - Cash NPAT 13.7 14.1 13.0 12.4 12.2 Cash EPS (cents) 11.1 11.1 10.1 9.6 9.3
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STORE NETWORK (AT FEBRUARY 2026) Investor Presentation H1 FY26 25 Queensland 26 stores New South Wales 34 stores Victoria 25 stores Tasmania 2 stores ACT 4 stores South Australia 7 stores New Zealand 10 stores TOTAL Feb 2026: 126 stores Target: 130-135 stores Western Australia 17 stores Northern Territory 1 store
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IMPORTANT NOTICE AND DISCLAIMER 26 This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at the date of this Presentation. Summary Information The information contained in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Shaver Shop or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). This Presentation should be read in conjunction with Shaver Shop’s other periodic and continuous disclosure announcements lodged with ASX, which are available at www.asx.com.au (Shaver Shop ASX Code: SSG). This Presentation is not intended to be relied upon as advice to investors or potential investors in Shaver Shop and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. Disclaimer Neither Shaver Shop, its related bodies corporate nor any of their respective officers, directors, employees, advisers and agents (Shaver Shop Parties) warrant the accuracy or reliability of the information contained in this Presentation. To the maximum extent permitted by law, each of the Shaver Shop Parties disclaims any responsibility and liability flowing from the use of the information contained in this Presentation by any party. To the maximum extent permitted by law, the Shaver Shop Parties do not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this Presentation. Past performance Past performance, including past share price performance and historical information in this Presentation, is given for illustrative purposes only and cannot be relied upon as an indicator of, and provides no guidance as to, future performance of Shaver Shop, including future share price performance. The historical information contained in this Presentation is not represented as being indicative of Shaver Shop’s views on its future financial condition and/or performance. Forward looking statements This Presentation contains certain forward looking statements and comments about future events, including Shaver Shop’s expectations about the performance of its business. Forward looking statements can generally be identified by the use of forward looking words such as ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions. Indications of and any guidance on future earnings or financial position or performance of Shaver Shop are also forward looking statements. Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. Shaver Shop’s Consolidated Financial Report contains details of a number of key risks associated with an investment in Shaver Shop. Many of these risks are beyond the control of Shaver Shop. Should one or more of these or other risks or uncertainties materialise, or should any assumption underlying any forward looking statement contained in this Presentation prove incorrect, Shaver Shop’s actual results may differ materially from the plans, objectives, expectations, estimates, and intentions expressed in the forward looking statements contained in this Presentation. As such, undue reliance should not be placed on any forward looking statement. Shaver Shop is providing the information contained in this Presentation as at the date of this Presentation and, except as required by law or regulation (including the ASX Listing Rules), does not assume any obligation to update any forward-looking statements contained in this Presentation as a result of new information, future events or developments or otherwise. Pro forma and normalised financial information This Presentation may contain pro forma and normalised financial information. The pro forma and normalised financial information and past information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of Shaver Shop’s views on its future financial condition and/or performance. This financial information has been prepared by Shaver Shop in accordance with the measurement and recognition requirements, but not the disclosure requirements, of applicable accounting standards and other mandatory reporting requirements in Australia. Shaver Shop uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are referred to as non-IFRS financial information. Shaver Shop considers that this non-IFRS financial information is important to assist in evaluating Shaver Shop’s performance. The information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. In particular, this information is important for comparative purposes with normalised results across financial periods.. For a reconciliation of the non-IFRS financial information contained in this Presentation to IFRS-compliant comparative information, refer to the Directors Report that forms part of the Shaver Shop Group Limited Consolidated Financial Report that has been lodged with the ASX. All dollar values in this Presentation are in Australian dollars (A$), unless otherwise specified. Investor Presentation H1 FY26