Shaver Shop Group's H1 FY2024 financial performance

Shaver Shop Group Limited (ASX: $SSG) has reported a 3.7% decrease in sales for the first half ended 31 December 2023, with total sales amounting to $127.0 million. The decrease in sales was attributed to lower in-store sales due to declining foot traffic in shopping centers across Australia and New Zealand, along with a decrease in consumer sentiment following significant interest rate increases and cost of living impacts over the prior 24 months. Online sales remained flat year over year at $31.1 million, representing 24.4% of total sales in H1 FY2024.

Executive commentary on financial results

The Directors believe the presentation of non-IFRS financial measures are useful for the users of this financial report as they provide additional and relevant information that reflect the underlying financial performance of the business. Shaver Shop's net profit after income tax (NPAT) decreased 8.6% to $12.5 million, and the Company's Statutory Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) for H1 FY2024 was $26.0 million, down from $28.1 million in H1 FY2023.

Summary of financial report and outlook

Shaver Shop Group's H1 FY2024 financial report reflects a challenging period with a 3.7% decrease in total sales, primarily driven by lower in-store sales due to declining foot traffic and reduced consumer sentiment. However, the company's focus on maximizing gross profit dollars and reducing promotional discounting across core categories led to an increase in gross profit margins to 44.4%. The Company's net cash position at 31 December 2023 was $31.9 million, with an undrawn debt facility providing up to $29.5 million in available funding capacity. Shaver Shop's directors approved an interim dividend of 4.7 cents per ordinary share fully franked, consistent with the prior corresponding period. The Company's store network is fully corporate owned following the completion of its franchise buyback strategy in FY2021. Looking ahead, Shaver Shop aims to navigate the challenging retail landscape and optimize its marketing expenditure to maximize return on investment.