FOURLIS HOLDINGS S.A. Fourlis Group
9M '23 Conference call presentation
November 22 2023
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Disclaimer
This presentation has been prepared by Fourlis Group (the "Company") for informational purposes only. The information contained herein does not constitute an offer, solicitation, or recommendation to buy or sell any securities of the Company or any other entity.
The information in this presentation is based on publicly available sources and internal data considered reliable, but no representation or warranty, express or implied, is made by the Company, its directors, officers, employees, or agents as to the accuracy, completeness, or correctness of the information provided. Any reliance on such information is solely at the recipient's own risk.
This presentation may contain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, estimates, projections, and assumptions made by the Company about future events. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in economic conditions, market demand and supply, regulatory and legal developments, competition, technological developments, and other risks and uncertainties that are beyond the Company's control.
This presentation is not intended to be exhaustive or to contain all relevant information concerning the Company. Recipients of this presentation should conduct their own analysis and seek independent financial, legal, and other professional advice before making any investment decisions.
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Fourlis Group today
A growing group of companies specializing in the omnichannel retail sector offering quality consumer goods in Southeast Europe
Retail Home Furnishings | Retail Sporting Goods | Retail Health & Wellness | Logistics Services | Real Estate Investments | ||||
INTERSPORT license in | HOLLAND & BARRETT stores | Trade Logistics offers logistic | Trade Estates established in 2021 | |||||
IKEA stores franchise in | Greece, Cyprus, Romania, | franchise in Greece, Romania | services supporting omnichannel | specializing on retail parks and | ||||
Greece, Cyprus and Bulgaria. | Bulgaria | and Bulgaria | operations | omnichannel logistics. | ||||
Presence in GR, BG and CY through 20
stores & shops
Leading position in the HF market
One of the best performing partners of
InterIkea
63% contribution in Total Group sales.
Growing organically and through
network expansion.
Presence in GR, RO, BG and CY through | Agreement signed in 2022 |
108 stores | |
Attractive and fast-growing sector | |
Leaders in the sport performance | |
segment | One of the largest wellness retailers in |
Europe | |
97% brand awareness | |
Entrance with 3 stores in GR and solid | |
37% contribution in Total Group sales. | network expansion in the coming years |
Growing organically and through | |
network expansion. |
2 DCs covering the Group's
logistics needs
Supporting e-commerce and
stores
Examining further expansion of logistics services with 3rd parties
IPO completed -Shares listed Nov 10th
Current GAV 461mil (incl. Smart Park) 7% rental yield. 80-90% dividend payout
Diminishing dependence from dominant
tenant (at 33% post Smart Park)
Fourlis Group will deconsolidate TE - value
unlocker
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Retail Home Furnishings
Fourlis Group partnership with IKEA for the last 25 years. Exclusive franchise of IKEA stores in Greece, Cyprus and Bulgaria.
Operating 20 IKEA stores of different sizes (13 in Greece, 5 in Bulgaria, 2 Cyprus).
Ecommerce presence in all 3 countries.
3 new IKEA stores in Greece (Patra, Heraklion, Ellinikon) under construction or design process, operational in the next 1-3 years.
2,200 employees.
8 Full-size stores
12 PuOPs & shops
Create a better everyday life for the many people
IKEA is the world leader in home furnishings and accessories. It was founded in Sweden in 1943 and today IKEA operates over 460 stores in 62 markets.
Turnover split
International markets; 42%
Greece; 58%
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Retail Sporting Goods
Fourlis Group partnership with INTERSPORT since 2000.
FOURLIS Group is the exclusive licensee of INTERSPORT trademark in Greece,
Cyprus, Bulgaria and Romania.
Operating a network of 108 Intersport stores (59 in Greece, 33 in Romania, 10 in
Bulgaria and 6 in Cyprus)
Ecommerce presence in all 4 countries.
1,300 employees.
Intersport Stores by Geography
120 | 94 | 96 | 102 | 103 | 105 | 108 | |||||
84 | 90 | 90 | |||||||||
100 | 81 | ||||||||||
72 | |||||||||||
80 | 68 | ||||||||||
60 |
60
44 51
40
20
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Greece | Romania | Bulgaria | Cyprus | ||||
Enabling people reach their
goals, through sports.
INTERSPORT, is the number one retail sporting goods chain worldwide, with a turnover of €13.7bn in '22 and more than 5,300 stores in 42 countries.
Intersport turnover split
International markets; 40%
Greece;
60%
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Retail Health & Wellness
Fourlis Group has entered in January 2022 into the fast-growing sector of health and wellness through strategic partnership, with the company Holland & Barrett.
Exclusive franchisee of Holland & Barrett trademark in Greece, Bulgaria &
Romania.
Wide product range covering vitamins, health foods, natural beauty and sports nutrition.
Innovative and sustainable and value for money product offerings.
Fourlis Group's investment in the health and wellness products sector began with the operation of
the first 3 "HOLLAND & BARRETT" retail stores, while the e-commerce and its marketing campaign is up and running.
Fourlis Group aims to play a leading role in the health & wellness industry in the next years through a network of physical stores and digital presence in Greece, Romania and Bulgaria.
Our Development Plan for the countries Greece, Bulgaria and Romania include the opening of
c. 100 stores in the next five years.
Holland & Barrett is one of the largest
wellness retailers in UK and Europe. With a history of more than 150 years it has a retail presence of more than 1,600 stores across 19 countries worldwide.
Holland & Barrett's mission is to make health
and wellness a way of life for everyone, adding quality years to life through market leading range of innovative vitamins, supplements, specialist food, sports nutrition and beauty brands
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Real Estate Investments
Trade Estates REIC was established in July 2021, began operating in the field of real estate investment with a portfolio of real estate assets worth €185 mil. It is one of the largest real
estate investment companies in Greece (in NAV terms).
Its portfolio comprises 12 Income Producing Assets (10 of which are located in Greece, 1 in Cyprus and 1 in Bulgaria) and 1 Asset under Development (Greece).
The Company is focused on quality Retail Parks and Omni-ChannelLogistics serving physical and online sales and plans to further grow its high-qualityand high-yieldingportfolio by acquiring or developing new retail assets.
As of 30/09/2023, GAV stands at €334 mil. (NAV of Ε226.7 mil.), LTV at 40.5% and its annualized* rental Income reaches €22.5 mil.
Existing long term & inflation protected contracts with 3A tenants, offer sizeable and predictable cash flows.
Significant upside due to €180mil. signed pipeline to be realized in the near term, SPA signing for the 100% acquisition of "Smart Park" from R.E.D.S., additional identified opportunities (c. €90 mil.), rental growth and yield compression.
Backed by strategic investors validating the quality of the properties and the strategic orientation of the business.
IPO, completed on November 3rd 2023, offered 29,107,983 shares at €1.92 per share, totaling €56 mil.
Tenant mix | Trade Estates Shareholding structure | ||
Autohellas | |||
Fourlis | 9.7% | ||
Latsco | |||
Other | Group; | 3.1% | |
47% | |||
Tenants; | Fourlis | ||
(33% at 31/12/23) | |||
53% | Group | Free float | |
63.0% | |||
23.4% | |||
(67% at 31/12/23) | |||
Management | |||
0.8% |
Total Annualized* rental income
* Annualized rent as monthly rent per lease multiplied by 12
The Company's strategy is to further enrich its portfolio through
specialization and focus on investments related to the
development of Retail Parks and Omni-Channel Logistics Centers
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Fourlis Group
9M '23 Financial Results
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Consolidated P&L for 9M '23
(amounts in € mil.) | 9M '22 | % | 9M '23 |
Revenue | 352.5 | 10.5% | 389.6 |
Gross Profit | 160.0 | 10.6% | 176.9 |
Gross Profit margin | 45.4% | 45.4% | |
EBITDA (OPR)* | 24.4 | 29.1% | 31.5 |
EBITDA (OPR) margin | 6.9% | 8.1% | |
Inv.Assets (TE) revaluation | 5.0 | 1.3 | |
EBIT | 18.9 | 13.8% | 21.5 |
EBIT margin | 5.4% | 5.5% | |
Net Financial Income/(expenses) | -10.7 | -16.1 | |
PBT | 9.3 | -20.6% | 7.4 |
PBT margin | 2.6% | 1.9% | |
Profit After Tax | 9.2 | -36.5% | 5.9 |
Net Profit margin | 2.6% | 1.5% | |
Minority interest | -0.2 | -0.6 | |
Net Profit | 9.1 | -42.4% | 5.2 |
Net Profit margin | 2.6% | 1.3% | |
Excl. reval. Gains | |||
EBIT | 13.9 | 45.6% | 20.2 |
EBIT margin | 3.9% | 5.2% | |
PBT | 4.3 | 42.1% | 6.1 |
PBT margin | 1.2% | 1.6% | |
Profit After Tax | 4.2 | 8.1% | 4.6 |
Net Profit margin | 1.2% | 1.2% | |
Net Profit | 4.1 | -3.2% | 3.9 |
Net Profit margin | 1.2% | 1.0% |
Solid double digit revenue growth
Significant EBITDA (OPR) growth of 29% and EBIT growth of 14% on the back of operating
efficiencies and operating leverage
The Group is well invested and positioned for further future growth and value creation
Trade Estates IPO completed paving the way for additional value creation
- On a like-for-like basis, i.e. excluding sales from the disposed businesses "The Athlete's Foot" and "Intersport Turkey" Group's revenue presented a strong double-digitsales growth of +15%.
- The sales growth is supported by both the Retail Home Furnishings activity (RHF) and the Retail Sporting Goods activity (RSG) and attributed to strategic initiatives and market trends. The Retail Home Furnishings (RHF) segment posted a significant 17.5% yoy increase, driven by IKEA's market leadership and improved stock availability. The Retail Sporting Goods (RSG) segment, presented a sales growth of +9% yoy on a LfL basis, reflecting our commitment to staying at the forefront of the evolving retail landscape.
- The Group's new retail activity in Health & Wellness that was activated within 2023, through 3 Holland & Barrett stores in Athens and an e-commerce channel is gaining momentum.
- On a like-for-like basis, the Group's revenue from Greece during 9M '23, that represented 58.5%, increased by 15% yoy, while revenue from the Group's international activities presented a growth of 14.3% yoy.
- The Group's Gross Profit margin reached 176.9 mil in 9M '23 from 160 mil. in 9M '22, with the Group's Gross Profit margin at 45.4% in 9M '23, stable compared to last year's respective period. The stable Gross Margin was supported by strong RHF gross margin and a positive trend in RSG gross margin toward stabilization.
- The Group's continued placing emphasis on prudent control over operating expenses and optimization of operations in both RHF and RSG. The de-escalation of inflationary pressures has further positively influenced operating expenses, magnifying the positive impact of operating leverage on our overall profitability.
- Group EBITDA (OPR) was increased by 29.1% reaching € 31.5 mil. during 9M '23 from €24.4 mil. in 9M '22., while EBITDA (OPR) margin increased to 8.1% in 9M '23 from 6.9% in 9M '22.
- Excluding the impact of asset revaluation gains, the Group's EBIT reached € 20.2 mil. in 9M '23 up by 45.6% from € 13.9 mil. in 9M of '22.
- Similarly, excluding the impact of asset revaluation gains, the Group's Profit before Tax reached € 6.1 mil. in 9M '23 up by 42% from € 4.3 mil. in 9M of '22.
- Group Profit After Tax, excl. the impact of asset revaluation gains reached € 4.6 mil. in 9M '23 compared to € 4.2 mil. in 9M '22 up by 8.1%. The majority of the Group's tax is attributed to Trade Estates, which is higher this year compared to last year due to the higher ECB base rate.
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Consolidated Balance Sheet for 9M '23
Balance sheet (€ mil.) | 9M '22 | FY '22 | 9M ' 23 | ||
Property, plant & equipment | 71.7 | 73.3 | 69.1 | ||
Right of Use Assets | 138.8 | 133.9 | 135.4 | ||
Other Non Current Assets | 52.1 | 53.3 | 59.1 | ||
Non-current assets | 262.6 | 260.5 | 263.7 | ||
Inventories | 104.8 | 91.8 | 104.7 | ||
Trade Receivables | 4.2 | 4.3 | 4.6 | ||
Other receivables | 30.0 | 19.2 | 35.8 | ||
Cash & Cash Equivalent | 81.3 | 58.4 | 42.1 | ||
Assets Held for Sale | 287.6 | 317.8 | 328.1 | ||
Current assets | 507.9 | 491.6 | 515.2 | ||
Total Assets | 770.6 | 752.1 | 778.9 | ||
Loans and Borrowings | 95.9 | 104 | 30.1 | ||
Long Term Lease Liability | 116.6 | 111 | 110.2 | ||
Other non-current liabilities | 9.9 | 9.2 | 9.9 | ||
Non-current liabilities | 222.4 | 224.6 | 150.3 | ||
Loans and Borrowings | 43.4 | 44.7 | 94.2 | ||
Short Term Lease Liability | 31.7 | 31.6 | 38.0 | ||
Account Payables & other current liabilities | 123.5 | 104.2 | 128.1 | ||
Loans and Borrowings of Assets Held for sale | 142.7 | 113.3 | 138.2 | ||
Liability of Assets Held for Sale | 19.9 | 32.6 | 19.6 | ||
Current liabilities | 361.1 | 326.4 | 418.1 | ||
Shareholders Equity | 187.1 | 201.1 | 210.5 | ||
Shareholders Equity & Liabilities | 770.6 | 752.1 | 778.9 | ||
Cash flow (€ mil.) | 9M '22 | FY '22 | 9M '23 | ||
Net operating cashflow | 16.6 | 34.0 | 20.7 | ||
Cash flow from investing activities | -40.4 | -55.4 | -18.1 | ||
Cash flow from financing activities | 1.7 | -23.6 | -18.9 | ||
Increase/(decrease) in cash and cash equivalents | -22.2 | -45.1 | -16.3 | ||
Cash and cash equivalents at beginning | 103.5 | 103.5 | 58.4 | ||
Cash and cash equivalents at end | 81.3 | 58.4 | 42.1 |
- The Group is committed towards creating sustainable cashflow generation and returning value to its shareholders.
- In 2023 the Group paid a dividend of 0.11 euros per share for the fiscal year of 2022, amounting to € 6 mil.
- Cashflow from investing activities of 18.1 mil. in 9M '23 includes €20.7 mil. capex attributed to the investments of Trade Estates REIC, €9.4 mil. capex from Retail business and 8 €mil proceeds from the sale of the of Fourlis Group participation (4.2% of share capital) in Trade Estates to Latsco.
- Cashflow from financing activities of € 18.9 mil. in 9M '23 includes €13.8 mil. payment of lease liabilities and the dividend payment of €6mil. to Fourlis shareholders.
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Fourlis SA published this content on 21 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 16:22:04 UTC.
