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ANNUAL RESULTS
PRESENTATION2019
Long4Life Limited
2Long 4 Life Annual Results Presentation 2019 2Long 4 Life Annual Results Presentation 2019
AGENDA
• Brian Joffe – Group CEO
• Overview and year in review
• Mireille Levenstein – CFO
• Financial analysis
• Brian Joffe – Group CEO
• Operational analysis
- Sport and Recreation
- Personal Care and Wellness
• Grant Hobbs – CEO Beverages
• Operational analysis
- Beverages
• Brian Joffe – Group CEO
• Strategy and Outlook
• Q&A
• Supplementary information
3Long 4 Life Annual Results Presentation 2019
Overview and year in reviewBrian Joffe – Group CEO
4Long 4 Life Annual Results Presentation 2019 4Long 4 Life Annual Results Presentation 2019
OVERVIEW
Two years as a listed company on the JSE
• There are areas where we could have done better but in general we are proud of the result
• A full year of contribution from acquired businesses
• HEPS growth of 28% to 38.7 cents
• A strong balance sheet that is currently underinvested but
which can accommodate considerably more scale
• Corporate office costs are arguably too high but this is deliberate as
we create a well-resourced support foundation for growth in future
• No dividends for this period as we bought back shares as a
mechanism to enhance shareholder return
5Long 4 Life Annual Results Presentation 2019 5Long 4 Life Annual Results Presentation 2019
YEAR IN REVIEW
F2019 was a year of achievement with much to look forward to
• Establishing ourselves as a lifestyle-themed group
• Decentralised business model
• Acquisitions have integrated well and the management team is confident
in our future
• Exploiting opportunities in both mature and emerging consumer
categories
• Returns on trading assets in each of the businesses trending
to meet expectation
• Substantial balance sheet capacity gives us the capability to be
opportunistic
• We are actively assessing acquisitive possibilities but we are
disciplined in our strategy and seek value
6Long 4 Life Annual Results Presentation 2019
Financial analysisMireille Levenstein – CFO
7Long 4 Life Annual Results Presentation 2019
Gross
margin
39.7%
Trading profit before
depreciation and amortisation
R534.9 million
HEPS
38.7 centsEffective tax rate
28.6%
Cash generated
from operations
R465.1 million
Trading
margin
12.5%
Trading
profit
R454.2 million
Positive first half trajectory
continued to second half,
with strong finish for the year
Revenue
R3.6 billion
GROUP FINANCIAL HIGHLIGHTS
A sound financial performance
8Long 4 Life Annual Results Presentation 2019 8Long 4 Life Annual Results Presentation 2019
ACQUISITION TIMELINE
First full 12 months of trading
• F2018:
• Raised R2 billion on listing in April 2017
• Holdsport, Sorbet and Inhle acquired effective 1 November 2017
• F2019:
• Chill Beverages acquired for R493 million effective 1 March 2018
(cash R368 million and shares R125 million)
• Other smaller acquisitions:
- Limelight acquired for R25.1 million effective 1 March 2018
- ClaytonCare acquired effective 1 September 2018
for R 39.9 million (36% economic effective interest)
• Comparatives not meaningful
9Long 4 Life Annual Results Presentation 2019
PROFIT & LOSS
All three operating segments performed well
Unpacking margins and expenses
• Gross profit R1.4 billion, gross margin 39.7%
(H1: 40.9% and H2: 38.8%)
• GP margins maintained overall despite consumer price
sensitivity, manufacturing cost pressure,
VAT increase
• Corporate costs reflect investment in corporate office
capability for expansion in the future
• Major expense categories
• Staff R445 million (48% of total expenses)
• Occupancy R271 million (29% of total expenses)
• Depreciation R81 million (2.2% of turnover)
Revenue
Rm
Trading profit
Rm
Trading
margin
Sport and Recreation 2 113.0 321.1 15.2%
Beverages 1 355.5 153.8 11.3%
Personal Care and Wellness 173.8 38.9 22.4%
Central / corporate (59.6) -
Total 3 642.3 454.2 12.5%
58%
37%
5%
Contribution to revenue
62%
30%
8%
Contribution to trading profit(excluding Central)
Sport and Recreation Beverages Personal Care and Wellness
10Long 4 Life Annual Results Presentation 2019
40,9%38,8% 39,7%
27,4%24,1% 25,5%
11,6% 13,1% 12,5%
H1 F2019 H2 F2019 F2019
PROFIT & LOSS
Trading margin assisted by H2 operating leverage
• Results weighted to second half due to seasonality
• All three operational segments experience increase
trading in summer months
• Approx 40/60 H1 H2 split in trading profit
• Operating leverage in second half clearly evident
• Trading margin 12.5%
(H1: 11.6% and H2: 13.1%)
• Gross margin 39.7% (H1: 40.9% and H2: 38.8%) (H2
typically lower due to markdown sales)Revenue Trading profit
2019 H2 H1 H2 H1
Sport and Recreation 56% 44% 60% 40%
Beverages 59% 41% 63% 37%
Personal Care and Wellness 68% 32% 61% 39%
Group (before central costs) 58% 42% 61% 39%
Gross profit % Expenses % Trading margin %
11Long 4 Life Annual Results Presentation 2019 11Long 4 Life Annual Results Presentation 2019
Cents
per share
Group HEPS on R348.8 million 38.7
Net interest income after tax (5.7)
Corporate costs after tax (central, acquisition and
share based payments 7.4
Operating headline earnings 40.4
PROFIT & LOSS
Operating earnings of 40.4 cents per share, 16.1 cents in H1 and 24.3 cents in H2
• HEPS of 38.7 cents
• Unpacking operating headline earnings*
* Detailed computation provided in supplementary information
• Weighted average no. of shares: 902.1 million
• No of shares in issue: 913.9 million (net of treasury shares 877.4
million)
• Treasury shares acquired: 36.4 million shares (at R4.38 per share),
with 13.2 million shares for the 2018 FSP share scheme
12Long 4 Life Annual Results Presentation 2019 12Long 4 Life Annual Results Presentation 2019
FINANCIAL POSITION
Measuring our performance and returns
• Return on funds employed (ROFE)
• Internal measure of trading performance - measures operational efficiencies of trading
assets, separates investment and financing decisions
• Group ROFE at 42%
• Cash conversion ratio
• Cash generated by operations was 102% of trading profit
• Enhanced by large depreciation charge
• Return on Equity (ROE)
• 7.6% after tax return on average for the year
• Reflective of infancy of group, not fully invested, no gearing,
two-year period of acquisition and capital raising
• Creating a total asset base of R5.8 billion and equity of R4.8 billion
• Significant balance sheet capacity to grow and achieve future optimal
return objectives
13Long 4 Life Annual Results Presentation 2019
FINANCIAL POSITION
Asset, equity and liability position
• Group is not fully invested
• Working capital:
• Stock turnover - 2.7 x cost of sales
• Trade debtors - no retail credit offering
• Detailed working capital breakdown provided in
supplementary information
• Borrowings - Bond on Chill property
R’000 2019 2018
ASSETS 5 796 663 5 144 377
Property, plant and equipment 526 502 198 955
Goodwill & Intangibles 3 038 741 2 571 733
Tax receivables & deferred tax 29 509 12 040
Associate 3 428 -
Other investments & loans 6 045 22 982
Inventory 812 525 580 363
Receivables 291 768 66 642
Cash 1 088 145 1 691 662
EQUITY & LIABILITIES 5 796 663 5 144 377
Capital & reserves 4 871 375 4 523 863
Tax payables & deferred tax liabilities 238 823 162 320
Borrowings 92 944 160 338
Provisions - 2 126
Put option liability 48 000 48 000
Lease smoothing liability 48 026 47 353
Payables 497 495 200 377
14Long 4 Life Annual Results Presentation 2019 14Long 4 Life Annual Results Presentation 2019
• Strong operating cash flows
• Cash generated by operations before working capital R537.0 million
• Working capital
• Absorption of R71.9 million
• Typical w/c cycle is absorption in H1 and generation in H2
• Operations manage their w/c to suit their particular requirements
• Cash generated by operations after working capital R465.1 million
(102% of trading profit)
• Cash outflows from investing activities of R566 million
• Capex expenditure R155.3 million (R76 million expansion capex)
• Acquisition of subsidiaries consumed R426 million
• Cash outflows from financing activities of R427 million
• Repayment of borrowings R216 million (Holdsport R160 million and
Chill R56 million)
• Treasure shares acquired R159.6 million
CASH FLOWS
The group is inherently cash generative
15Long 4 Life Annual Results Presentation 2019 15Long 4 Life Annual Results Presentation 2019
FINANCIAL GUIDANCE
Firepower to expand and increase scale
• Strong financial position
• R1.1 billion in cash on hand
• Cash acquisition capacity is approximately R2 billion, by introducing
gearing
• Operational cash generation
• Current portfolio of businesses is generating approximately R590
million in trading profit before depreciation
• Seasonality and operating leverage - H2 revenue and trading
profit significantly higher than H1
• Investment in capex planned in year ahead at similar levels
to support growth
• The group is targeting real growth in earnings in F2020
16Long 4 Life Annual Results Presentation 2019
Operational analysisBrian Joffe – Group CEO
17Long 4 Life Annual Results Presentation 2019
A clear strategic focus, a proven model and excellent execution delivers a real increase in sales
• New Sports stores in shopping malls generated pleasing footfall and provide valuable learnings
• Disciplined store expansion and trading
• Strong portfolio of international brands and own brands
• Retail price deflation of 0.9% (2018: retail inflation 1.4%), yet 3.6% growth in trading density
• A small and temporary negative impact on GP and sales due to the 1% rise in VAT
• Outdoor Warehouse performed credibly, off a high base
• Performance Brands design and manufacturing capability provides good potential and differentiation
Outlook
• Selective expansion is continuing and trading space will grow by at least 2.5% in F2020
2019 2018
Year-on-year Stores Growth in sales Same store Stores Growth in sales Same store
Sports retail* 43 10.1% 4.0% 40 5.1% 2.6%
Outdoor Warehouse 26 3.3% 4.1% 26 8.8% 6.1%
Total retail 69 8.4% 4.0% 66 6.0% 3.4%
Performance Brands N/A (2.5%) N/A 33.7%
SPORT AND RECREATION
Revenue R2 113m, trading profit R321m, trading margin 15.2%
* Sports Retail division consist of the sales of Sportsmans Warehouse
stores, OTG Active and Shelflife
18Long 4 Life Annual Results Presentation 2019
PERSONAL CARE & WELLNESS
Revenue R174m, trading profit R39m, trading margin 22.4%
A record result driven by growing brand recognition
as an affordable, well-run grooming offering
• Seamless CEO transition with Rudi Rudolph taking up the role
• Revenue growth of 19% year-on-year with trading profit
growth of 74%
• Sorbet Man is showing potential with 20 stores operating
and with more in the pipeline
• Limelight, a distributor of hair and beauty products,
contributed 12% of segment profits, generating a trading
margin of 16.5%
• ClaytonCare - 36% effective interest, made a modest contribution for six months
Outlook
• Sorbet is budgeting for good growth in trading profit in F2020
with total stores growing to 219 from 207
Store formats
Stores
28/2/2019 New stores
Salons/nail bars 164 5
Dry bars 15 1
Sorbet Man 20 8
Candi & Co 8 1
Total 207
19Long 4 Life Annual Results Presentation 2019
Operational analysisGrant Hobbs – CEO Beverages
20Long 4 Life Annual Results Presentation 2019
Strong growth in case volumes with market share gains being realised
• Case volume mix - 62% (68%) contract packing, 34% (27%) own-brand, and 4% (5%) private label
• Premium mixer brands Fitch & Leedes and Score energy drinks driving own-brand, vigorous innovation
• Own-brand 50% volume growth, co-packing volumes increased by 9% (predominantly in energy segment)
• Geographic production and distribution synergies and costs savings being realised between Chill and Inhle
• Investing for growth and improved facilities
• Continuing capex through F2020 to provide capacity for growth
• Investment authorised subject to strict criteria, including
anticipated returns
• Outlook
• Categories are competitive but growing overall
• A modern fixed asset base delivering a high-quality product
• Well placed to deliver an improved result in F2020
BEVERAGES
Revenue R1 355m, trading profit R154m, trading margin 11.3%
Year-on-year
% increase
Case volumes sold 19
Revenue 28
21Long 4 Life Annual Results Presentation 2019
Update on strategy
and outlookBrian Joffe – Group CEO
22Long 4 Life Annual Results Presentation 2019 22Long 4 Life Annual Results Presentation 2019
UPDATE ON STRATEGY
Previously articulated strategic objectives are unchanged
• Own the cash flows in the main
• Quality trading profits from good cash generating businesses with low to medium
risk characteristics
• Strict decentralised philosophy but sharing what we learn
• Commercially minded corporate office accessing potential deals
and sourcing competitively priced funding
• Patient for the right opportunities at the right value
• Will gear the balance sheet prudently as necessary to build scale
through acquisitions
• Potential use of scrip will be balanced so as not to dilute shareholders
• Real value seen in buybacks in the prevailing small to mid-cap valuation
environment and HEPS accretive
23Long 4 Life Annual Results Presentation 2019
OUTLOOK
Another positive result is anticipated in F2020
• Substantial scope to build off a platform of good quality lifestyle-themed assets
• An uncertain macro climate presents us with opportunity and we have the flexibility to take advantage
• Our brands
ANNUAL RESULTS
Supplementary2019
Long4Life Limited
25Long 4 Life Annual Results Presentation 2019
R’000
EPS
Cents
Headline earnings - Group 348 814 38.7
Net corporate costs after tax 67 021 7.4
Net interest after tax 51 537 5.7
Headline earnings excluding net interest 297 277 33.0
Headline earnings excluding net corporate costs 415 835 46.1
Headline earnings excluding net interest and corporate costs 364 298 40.4
Operating headline earnings per share 40.4
Corporate costs after tax per share (7.4)
Interest income after tax per share 5.7
Group headline earnings per share 38.7
Weighted number of shares in issue '000 902 054
FINANCIALS – OPERATING EARNINGS COMPUTATION
R’000
before tax
R’000
after tax
Total corporate costs (R’000) 89 863 67 021
Share based payments 21 939 15 796
Acquisition costs 8 285 8 285
Central costs 59 639 42 940
26Long 4 Life Annual Results Presentation 2019
FINANCIALS
Result weighted to the second half due to seasonality - an approximate 40/60 H1/H2 split in trading profit
Revenue
Annual/
H1 ratio
2019
R’000
H2
R’000
H1
R’000
H2
%
H1
%
Group 3 642 341 2 109 421 1 532 920 58 42
Sport and Recreation 2.28 2 113 025 1 185 711 927 314 56 44
Beverages 2.47 1 355 450 806 073 549 377 59 41
Personal Care and Wellness 3.09 173 866 117 637 56 229 68 32
Trading profit
excluding Corporate
Annual/
H1 ratio
2019
R’000
H2
R’000
H1
R’000
H2
%
H1
%
Group 513 796 311 447 202 349 61 39
Sport and Recreation 2.48 321 133 191 473 129 660 60 40
Beverages 2.67 153 753 96 106 57 647 63 37
Personal Care and Wellness 2.59 38 910 23 868 15 042 61 39
58%
37%
5%
Contribution to revenue
62%
30%
8%
Contribution to trading profit(excluding Corporate)
Sport and Recreation Beverages Personal Care and Wellness
27Long 4 Life Annual Results Presentation 2019
FINANCIALS
F2019 Acquisitions detail
• Chill acquisition effective 1 March 2018
• Consideration of R493m
• 25% in shares and 75% in cash (R368m)
• Net tangible value R251m
• Goodwill R242m
• Assumed debt of R143m
• In addition, R14m for Score Energy trademark
• ClaytonCare effective 1 September 2018
• Net consideration of R26m after cash acquired
• In addition, R16m for 100% of property
• LimeLight effective 1 March 2018
• Consideration of R25m
• Sorbet Morningside (corporate ownership)
• R3m
28Long 4 Life Annual Results Presentation 2019
FINANCIALS
Contribution to results by acquired subsidiaries:
Subsidiary (R’000) Revenue Trading profit*
Chill 1 205 632 96 884
ClaytonCare* 42 513 4 455
Limelight 27 310 4 540
Property 927 466
Group 1 276 382 106 345
* Net contribution to L4L (36%) 1 604
29Long 4 Life Annual Results Presentation 2019
FINANCIALS
Balance sheet as at 28 February 2019
• Shares in issue 913.9m
• Treasury shares 36.5m
• Net shares in issue 877.4m
• Ordinary shareholders equity R4 811.1m (548 cents per share net of treasury shares)
• Minorities R60.3m
• Total assets R5 796.7m
• Goodwill and intangibles arising on acquisitions R3 038.7m
• Cash of R1 088.1m
• Total borrowings R92.9m
30Long 4 Life Annual Results Presentation 2019
FINANCIALS
Long4Life share based expenses
• Share Appreciation Rights (SAR)
• Forfeitable Share Plan (FSP)
• Conditional Share Plan (CSP)
• CSP put in place at pre-listing that had conditions and growth targets
with only market conditions applying
• This means macro, external market conditions not company specific
• An IFRS2 anomaly arises such that when incentive targets are
based on market conditions only the expense cannot be reversed,
even if the shares don’t vest
• CSP expensed even if without value and is non-cash
• No new CSP’s will be issued. The FSP scheme replacing the CSP was put in
place during F2019 and targets predominantly company related
In F2019, the following
was expensed
• CSP CEO R10.6m
• CSP other (0% forfeiture) R4.8m
• SAR R2.1m
• FSP R4.4m (from Nov 2018)
• Total R21.9m
31Long 4 Life Annual Results Presentation 2019
FINANCIALS
Working capital by segment
* Trade payables R304 584
R’000 Inventory Receivables Payables* Net
Sport and Recreation 638 646 37 110 (158 580) 517 176
Beverages 149 874 223 864 (290 329) 83 409
Personal Care and Wellness 24 005 30 670 (35 155) 19 520
Corporate - 124 (13 431) (13 307)
Group 812 525 291 768 (497 495) 606 798
32Long 4 Life Annual Results Presentation 2019
FINANCIALS
Capital expenditure
R’000
Refurbishment
& maintenance Expansion Total
Sport and Recreation 68 858 22 100 90 958
Beverages 868 60 532 61 400
Personal Care and Wellness 1 000 1 875 2 875
Corporate - 83 83
Group 70 726 84 590 155 316
33Long 4 Life Annual Results Presentation 2019
FINANCIALS F2018
Key take aways from the eleven month period ended 28 February 2018
• Change to a February year end to align with the largest acquired businesses (Sport and Recreation)
• L4L acquired 100% of Holdsport, Sorbet, and Inhle (effective date on each 1 November 2017)
• Acquisitions total consideration of R2.9bn funded through cash (R574.5m) and shares (R2.3bn)
- see note 7.4 in the 2018 IAR for detail hereon
• Refer to public announcements relating to acquisitions
• Corporate expenses for eleven months
• Holdsport, Sorbet, and Inhle Beverages contributed for four months
• Net interest income of R122.3m remained significant in relation to trading profit of R147.5 million
• Net interest income 51% of pre-tax profit
• Balance sheet reflected cash of R1.7bn, 85% of the equity capital (R2.0bn) subscribed for on listing
• 564.1m weighted average shares
• Total shares in issue 889.8m
• Net asset value 506 cents per share
34Long 4 Life Annual Results Presentation 2019
SPORT AND RECREATION
Segment overview
• Sportsmans Warehouse, Outdoor Warehouse, E-Commerce, Performance Brands
(owns and distributes the First Ascent, Capestorm, Second Skins, and African Nature brands), Shelflife, and OTG Active
• Total sales increased 7.9% to R2.1bn with R1.2bn in sales achieved in H2.
• GP margin of 48.0% was in line with the previous two years. Whilst sales are weighted to H2, the H2 GP margin
is typically lower than H1 due to December/January discount sales
• Same store retail sales grew 4.0% (0.4% in H1)
• Sports retail grew 4.0% (0.1% in H1) and Outdoor Warehouse grew 4.1% (1.6% in H1)
• Retail price deflation of 0.9% for the year (inflation of 0.6% in H1)
• Forward FX contracts cover imported merchandise
• R12.2m FX profit for the year (R10.4m FX profit in H1)
• Stock levels are under scrutiny to assess where improvements can be made
• Trading expenses growth of 8.2% (8.5% in H1), driven by 3.5% space growth (3.4% in H1) and CPI
• Trading density increased by 3.6% to R21 204 per m² (R20 473 in F2018)
• Member Rewards, developed with online expertise, is popular and using e-commerce assists with customer engagement
• Basket size flat across the footprint compared to prior year
35Long 4 Life Annual Results Presentation 2019
SPORT AND RECREATION
Sportsmans Warehouse
• Somerset West and Nelspruit store sizes increased, scope to make big stores bigger for range and category expansion
• Sportsmans Warehouse smaller mall-based store typically 1 000m²
• Modified fixtures and design
• Retains an almost complete experience relative to the traditional stores with certain items not stocked available to
customers within a short delivery window
• Rosebank, Sandton City and Stellenbosch opened during F2019, all traded well and customer feedback is positive
• New Eastgate mall-store May 2019
• Design and fixtures will be implemented in larger existing stores as part of company-wide refurbishment programme
• Ladies only OTG Active
• Two 100m² stores opened with two more contracted in F2020 in prime locations
• Also features as an “elevated” boutique execution in Sportsmans Warehouse
• Online sneaker footwear range Shelflife complements Sportsmans Warehouse offer and a separate sales channel
• Breadth and depth of a truly authentic sporting goods and athleisure offering + specialist advice a differentiator
• Refining the customer experience through in-store kiosks, rapid click & collect order processing, and fulfilment
36Long 4 Life Annual Results Presentation 2019
SPORT AND RECREATION
Outdoor Warehouse
• Retains a key competitive advantage as a destination store with a comprehensive range of outdoor equipment
and apparel, with in-store services and specialist advice
• Traded satisfactorily off a relatively high base as prior year sales were up 8.8%
• Weighted trading space increased by 1.3% (7.1% in F2018)
• Selling price deflation during year
• A shorter December holiday period resulted in softer seasonal demand
• Two stores were reduced in size to improve trading density and merchandising efficiencies
• Refurbishment of store estate completed, incorporating latest design
• Currently 26 stores with a new store planned for Randburg in F2020
Online
• Seamless web and store capability targeted to be at world-class standard
• Webrooming window for online browsing by customers, complementing physical footprint
• Data leads to improved customer understanding and business inventory management
37Long 4 Life Annual Results Presentation 2019
SPORT AND RECREATION
Wholesale (Performance Brands)
• Represents the First Ascent, Capestorm, Second Skins and African Nature brands
• Also develops own label technical apparel and equipment
• Production from South Africa and international
• Internal sales to the retail operations increased and are expected to grow ahead of independent sales in future
• External sales to a variety of customers, including corporates, schools and the tourism sector ie game lodges
• A significant business which is highly complementary and strategic
38Long 4 Life Annual Results Presentation 2019
BEVERAGES
Chill Beverages
• Factory located in Stellenbosch, Western Cape
• Manufactures own-brand soft drinks and bespoke upmarket premium mixers, house-brand drinks for retailers,
and contract packing drinks for companies of varying size and requirements
• Sources own raw materials – ingredients and packaging
• Turnover up 29% to R1.2bn, trading profit improves to R96.9m, trading margin 8.0%
• Plant and equipment increased by 22% due to investment in capacity
• Upgraded glass capacity by 50% and canning capacity by 27%
• Brand evolution continued, including launch of two water brands
• Marketing teams now split into focused Fitch & Leedes and Score teams
• Own-brands 56% of cases sold, up from 47%, due to continued strong demand and volume growth
• The Health Promotion Levy on sugary beverages has had minimal impact as the industry reformulated
39Long 4 Life Annual Results Presentation 2019
BEVERAGES
Inhle
• Factory located in Heidelberg, Gauteng
• Co-packing drinks business, predominantly aluminium beverage cans
• Energy drinks the largest category at 90% of production
• Low cost producer that allows private label customers to compete with drinks majors
• Beverage canning filling expertise with up-to-date machinery and plant
• Plant and equipment increased by 38% due to investment in capacity
• Upgraded canning capacity by 20% and completed a new warehouse and customer centre
• Ample land and water on Heidelberg property to expand
• Currently at full capacity and examining expansion options
40Long 4 Life Annual Results Presentation 2019
PERSONAL CARE & WELLNESS
Segment overview
• Positioned within professional beauty services and selling independent leading brands and own-brands
• Beauty salons and dry bars – facials, nails, waxing, massage, specialist products (Sorbet brand)
• Men’s grooming (Sorbet Man brand)
• Hair salon that specialises in ethnic hair (Candi & Co. brand)
• Corporate owned Sorbet SK-N, offering skin and aesthetic treatments, launched May 2019 in Hyde Park
as a stand alone
• Wholesale (Limelight)
• ClaytonCare sub-acute rehabilitation centres
41Long 4 Life Annual Results Presentation 2019
PERSONAL CARE & WELLNESS
Sorbet
• A total of 15 new stores opened
• 5 new salons, 8 new Sorbet Man stores, 1 new dry bar, and 1 Candi & Co.
• 25 store refurbishments
• Revenue increase by 19% to R102.8m with trading profit growing strongly to R31.4m, with the margin at 30%
• Store sales mix approximately 75% services and 25% merchandise
• Treatment mix has shifted in line with the economic environment and customers are seeking keener priced product
• Differentiation is knowledgeable and committed franchisees, high standards of hygiene, and thorough staff training
• Rate of renewals from long-standing franchisees at a satisfactory level
• In F2020, 6 salons, 3 Sorbet Man, 1 nail bar, and 2 dry bars confirmed with 60 stores scheduled for refurbishment
Limelight
• A positive contribution in the first year with revenue of R27.3m and trading profit of R4.5m, margin at 16.5%
• Sole distribution rights to American Crew and OWAY acquired
42Long 4 Life Annual Results Presentation 2019
PERSONAL CARE & WELLNESS
Acquisition of ClaytonCare Healthcare Group
• Mechanism of acquisition
• L4L acquired 59% of Long4Life Health, which in turn owns 61% of ClaytonCare
• Resulting in an effective 36% economic interest in ClaytonCare operating entity wef 1 Sept 2018
• L4L has 100% ownership of a property
• R42.5m in revenue and R4.5m in trading profit, a margin of 10.6% - at the 100% level
• A sub-acute (stepdown) rehabilitation medical group with capacity of 83 beds
• An affordable service that is a complement to the wellness theme
• Currently has 2 facilities – Clayton House in Randview and Care@Midstream
ANNUAL RESULTS
PRESENTATION2019
Long4Life Limited