Slides
Page 1
Nice One 2024 Results Call March 2025
Page 2
2 Disclaimer This document may contain statements that are, or may be deemed to be, forward-looking statements, including statements about the beliefs and expectations of Nice One Beauty for E-Commerce (the "Company"). These statements are based on the Company's current plans, estimates, and projections, as well as its expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Due to these risks, uncertainties, and assumptions, prospective investors should not place undue reliance on these statements. Several key factors could cause actual results to differ materially from those expressed in any forward-looking statements. The Company is not obliged to update or revise any forward-looking statements in this document, whether due to new information, future events, or otherwise. This communication has been prepared solely by the Company and remains its sole responsibility. It has not been reviewed, approved, or endorsed by any financial advisor, lead manager, selling agent, receiving bank, or underwriter retained by the Company. It is providedfor informational purposes only. Additionally, because this communication is a summary only, it may not contain all material terms and should not form the basis of any investment decision. The information and opinions provided are believed to be reliable, sourced from what are considered reputable sources. However, no representation or warranty, whether express or implied, is made regarding the fairness, accuracy, reasonableness, or completeness of the information and opinions. There is no obligation to update, modify, or amend this communication or notify recipients if any information, opinion, projection, forecast, or estimate changes or subsequently becomes inaccurate. Recipients are strongly advised to seek their own independent advice regarding any investment, financial, legal, tax, accounting, or regulatory matters discussed herein. Analyses and opinions contained in this document may be based on assumptions that, if altered, could change the analyses or opinions expressed. Nothing contained herein constitutes any representation or warranty as to future performance of any financial instrument, credit, currency, rate, or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. The Company disclaims any liability for loss arising out of or in connection with the use of, or reliance on, this document. These materials do not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.
Page 3
3 FY2024 Trading Update Agenda ELYES JERIBI Chief Strategy Officer OMAR AL OLAYAN Chief Executive Officer & Co- Founder MUHAMMAD IMRAN Chief Financial Officer ABDULRAHMAN AL OLAYAN Chief Marketing Officer & Co- Founder Speakers Table of content 1 Zoom-In on Quarterly Performance 2 FY2024 Performance Analysis 3
Page 4
FY2024 Trading Update
Page 5
5 FY- 2024 at-a-Glance; Strong and Profitable Growth with Revenue and Net Income Increasing by 28% and 120% YoY, respectively Source: Company Information. 8.5% (vs. 5.4% in FY 2023) EBITDA Margin SAR 1,003 mn (vs. SAR 782 mn in FY 2023) Revenue 7.1% (vs. 4.2% in FY 2023) Net Margin 26.8% (vs. 27.7% in FY 2023) Gross Margin 370k +32% YoY Avg. Daily Visitors +80% Revenue from Existing Customers Customers 2.0x +7% YOY Order Frequency 288 -2% YOY AOV
Page 6
6 Revenue and Gross Profit Overview Source: Company Information. 156.9 161.7 216.6 269.2 2021 2022 2023 2024 30.7% ’21 – ’24 CAGR Revenue (SARmn) 28.3 % FY 24 – YoYGrowth 19.7% ’21 – ’24 CAGR Gross Profit (SARmn) 24.3 % FY 24 – YoYGrowth 449.2 613.6 782.4 1,003.5 2021 2022 2023 2024 % Margin 34.9% 26.4% 27.7% 26.8%
Page 7
7 13.51 16.7 32.6 71.7 2021 2022 2023 2024 20.2 25.9 42.3 85.6 2021 2022 2023 2024 EBITDA and Net Income Overview Source: Company Information. 61.8% ’21 – ’24 CAGR EBITDA and Margin (SARmn) 102 % FY 24 – YoYGrowth 4.2% 5.4% 8.5%4.5% 74.5% ’21 – ’24 CAGR Net Income and Net Margin (SARmn) 119.9 % FY 24 – YoYGrowth 2.7% 4.2% 7.1%3.0% % Margin % Margin
Page 8
8 110.8 110.8 144.1 141.4 2021 2022 2023 2024 Selling and Marketing Expense Source: Company Information. % of Revenue Selling and Marketing Expense (SARMn) 24.7% 18.1% 18.4% 14.1%
Page 9
9 Source: Company Information. Notes (1) Net Working Capital = Inventories + Trade receivables + Prepayments, advances, and other receivables - Trade payables, accruals and other payables; (2) Capex = Purchase of property and equipment + Purchase of intangibles;(3) Cash Conversion Cycle = Days sales outstanding + Days inventory outstanding – Days payable outstanding Net Working Capital and Capital Expenditure Net Working Capital(1) (SARmn) (90.3) (135.4) (168.2) (245.1) CAPEX(2) (SARmn) (90.3) (135.4) (168.2) (245.1) 93.0 147.7 150.8 254.5 18.1 14.0 18.9 34.3 23.9 16.8 33.9 71.9 2021 2022 2023 2024 Trade Payables, accruals and other payables Inventories Trade Receivables Prepayments, advances and other receivables (8.7) (46.2) (22.0) (33.7) 2021 2022 2023 2024 44.6 43.2 35.4 115.6 0 39 30 35CCC (3) NWC (1)
Page 10
Zoom-In on Quarterly Performance
Page 11
11 Nice One profit surges to SAR 71.7M in 2024; Q4 at SAR 5.9M Source: Company Information. Quarterly Performance Results (SARmn) 2024 Revenue Gross Profit EBITDA Net Profit 512.8 247.7 307.7208.8 512.8 63.2 69.0 512.8 25.5 29.1 9.4 18.2 % of Revenue 10.2% 10.4% 12.3% 3.1% 8.8% 8.7% 10.9% 1.9%28.4% 31.6% 26.6% 22.5% Quarterly Performance Results (SARmn) 2023 Revenue Gross Profit EBITDA Net Profit 512.8 155.1 269.6 512.8 47.0 512.8 512.8 % of Revenue 6.9% 7.0% 6.8% 2.6% 5.7% 6.5% 4.8% 1.8%30.3% 31.1% 30.3% 22.1% 250.1 208.8 247.7 307.7 71.1 65.9 63.2 69 25.5 21.6 29.1 9.4 21.9 18.2 25.8 5.9 Q1-24 Q2-24 Q3-24 Q4-24 Q1-24 Q2-24 Q3-24 Q4-24 Q1-24 Q2-24 Q3-24 Q4-24 Q1-24 Q2-24 Q3-24 Q4-24 155.1 190.1 167.5 269.6 47 59.1 50.7 59.0 10.6 13.3 11.4 7.0 8.9 12.3 8.1 3.4 Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 % Growth % Growth 14 % 61 %
Page 12
FY2024 Performance Analysis
Page 13
13 FY 2024 Considerations for Missed Target Source: Company Information. Event Details Influencer Marketing Challenges I. ▪ In November, an unexpected change occurred in a certain social media algorithm, which significantly reduced the ROI on influencer marketing. ▪ This resulted in a decrease in new customer acquisition, which impacted revenue for November ▪ Unlike internal variances, where quick corrective actions are possible, the impact of external shifts took longer to analyze and adjust for, leading to a delayed response More Reliance on Coupons & Discounts II. ▪ During December 2024, the Company issued additional coupons and discounts aiming to drive sales recovery and meet FY 2024 revenue targets ▪ The strategy was successful in generating sales in December 2024; however, the Company’s profitability was impacted Lag in Service Revenues ▪ Given that service revenue is primarily linked to number of orders, the decrease in top-line revenue in Q4 2024 led to a decrease in service revenue as well III. Warehouse Migration Impact IV. ▪ In November 2024, the Company transitioned into its bigger warehouse in Riyadh ▪ The transition caused a few days’ of operational and technical disruption, impacting stock availability on the system for some SKUs
Page 14
14 Strategy Going Forward Source: Company Information Overview ✓ CRM-Driven Initiatives ✓ Developing Personalized Customer Journeys ✓ Deeper Analysis of Customer Behavior ✓ Launch of App Recommendations ✓ Continue Expanding Product Offerings ✓ Target High Growth Categories ✓ Focus on Newly Launched Vitamin Category ✓ Leverage Customer Insights to Identify Emerging Trends ✓ Adjusting Media Content to Avoid Technical Issues ✓ Changing Contracts From Quarterly to Monthly to Ensure More Flexibility ✓ Focus on Affiliate Marketing as a More Efficient Channel ✓ Optimize Discounting Strategy ✓ Drive Revenue While Safeguarding Profitability ✓ Refine and Optimize Pricing Strategy to Streamline Product Margins and Profitability across all Quarters ✓ Ongoing Optimizations in Pricing, Discounting, and Marketing Allocation ✓ More Frequent Cross-Departmental Touchpoints ✓ Faster Data-Driven Decision Making Across All Business Functions ✓ Enhanced Operational Efficiency in the New Riyadh Warehouse ✓ Scheduled Opening of the Jeddah Warehouse in 2025 to Strengthen Distribution and Drive Sales in the Western Region New Marketing Strategies Refining Influencer Marketing Approach Enhance Real-Time Performance Tracking Assortment Expansion Optimized Pricing & Discount Strategy Launch of New Warehouses
Page 15
Q&A