Shaver Shop : SSG - Appendix 4D & H1 FY22 Interim Financial Report

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SHAVER SHOP GROUP LIMITED

Appendix 4D

Half Year Report for the six months ended 31 December 2021

1. Details of the reporting period and the prior corresponding period

Current period:	1 July 2021 to 31 December 2021
Prior corresponding period:	1 July 2020 to 31 December 2020

2. Results for announcement to the market

					H1	H1
				%	FY 2022	FY 2021
					$'000	$'000
	Revenue from ordinary activities		Up	2.8%	127,146	123,629
	Profit from ordinary activities after tax attributable		Down	8.6%	13,066	14,288
	to members
	Net profit after tax attributable to the members		Down	8.6%	13,066	14,288

Brief explanation of basis of results

An explanation of the Company's reported and normalised results are contained in the Review of Operations in the Directors' Report accompanying the company's financial statements.

3. Dividends

	Amount per	Franked
	ordinary	amount per
	share	ordinary share
Interim dividend - half year ended 31 Dec 2020	3.2 cents	3.2 cents
Final dividend - year ended 30 June 2021	5.0 cents	5.0 cents
Interim dividend - half year ended 31 Dec 2021	4.5 cents	4.5 cents

On 21 February 2022, the Directors declared a 100% franked interim dividend of 4.5 cents per share in respect of the half year ended 31 December 2021. Accordingly, this dividend is not provided for in the balance sheet at 31 December 2021. The record date and payment date in relation to the FY2022 interim dividend are as follows:

Record date for determining entitlement to the dividend (ordinary shares):	17 March 2022
Payment date of the interim dividend (ordinary shares):	31 March 2022
The company does not have a dividend reinvestment plan.

4. Net tangible assets per security

			31 Dec 21		31 Dec 20
	Net tangible asset backing per ordinary		19.7 cents(1)		21.5 cents(1)
	security

For personal use only

1. Net tangible asset backing per ordinary share of 19.7 cents above is inclusive of right of use assets. The net tangible asset backing per ordinary share at 31 December 2021 would reduce to 1.4 cents (31 December 2020: 3.7 cents) if right of use assets were excluded, and right-of-use lease liabilities were included, in the calculation.

5. Entities over which control has been gained or lost during the period

Not applicable.

6. Details of associates

Not applicable.

7. Details of independent auditor's report

In the Independent's Auditors Report attached to the Financial Report, there is no modified opinion, emphasis of matter or other matter paragraph.

8. Further information

Additional Appendix 4D disclosure requirements can be found in the notes to the half year Financial Report as well as the half year Directors' Report. The information above should be read in conjunction with the accompanying Interim Financial Report of the Group for the half year ended 31 December 2021 and ASX market releases made during the period.

For personal use only

SHAVER SHOP GROUP LIMITED

ABN: 78 150 747 649

INTERIM FINANCIAL REPORT

For the Half-Year Ended 31 December 2021

For personal use only

SHAVER SHOP GROUP LIMITED 31 DECEMBER 2021

CONTENTS

	Page
Condensed consolidated Financial Statements
Directors' Report	1
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001	5
Interim financial report
Condensed consolidated statement of profit or loss and other comprehensive income	6
Condensed consolidated balance sheet	7
Condensed consolidated statement of changes in equity	8
Condensed consolidated statement of cash flows	9
Notes to the condensed consolidated financial statements	10
Directors' declaration	18
Independent auditor's review report to the members	19

For personal use only

SHAVER SHOP GROUP LIMITED 31 DECEMBER 2021

DIRECTORS' REPORT

Your directors present their report on the consolidated entity consisting of Shaver Shop Group Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2021. Throughout the report, the consolidated entity is referred to as the "Group", the "Company" or "Shaver Shop".

Directors

The following persons were directors of Shaver Shop Group Limited during the whole of the half-year and up to the date of this report:

Broderick Arnhold

Cameron Fox

Craig Mathieson

Brian Singer

Trent Peterson

Debra Singh

Company Secretary

Lawrence Hamson held the position of Company Secretary during the whole of the half-year and up to the date of this report.

Principal activities

During the period, the principal activities of the Group consisted of the retailing of specialist personal care and grooming products across Australia and New Zealand, through 121 store locations, its websites and various online marketplaces. There were no significant changes in the nature of the Group's principal activities during the financial half-year.

Rounding of amounts

The Company is of a kind referred to in Class Order 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

Review of operations and financial results summary

Sales for the first half ended 31 December 2021 increased 2.8% to $127.1 million (H1 FY2021: $123.6 million). The increase in sales was primarily due to the acquisition of the last six (6) franchise stores in February 2021 and the full period contribution from these stores in H1 FY2022 as well as the 37.4% growth in online sales to $51.6m (H1 FY2021

• $37.5m). This sales growth more than offset the in-store sales decline of 12.2% associated with government mandated store closures (primarily across Victoria (VIC) and New South Wales (NSW)) in Q1 and part of Q2 FY2022. Shaver Shop's total sales growth of 2.8% was achieved despite its stores being closed to customers (due to the government mandated trading restrictions) for 6,169 store days which represented 28% of available in-store trading days in H1 FY2022.

Shaver Shop's net profit after income tax decreased 8.6% (or $1.2 million) to $13.1 million (H1 FY2021: $14.3 million)

after subtracting income tax expense of $5.6 million (H1 FY2021: $5.8 million).

The reduction in reported net profit after income tax was primarily due to:

1. The closure of Shaver Shop's VIC and NSW store networks from July through October 2021 due to government imposed trading restrictions associated with COVID-19. Over this period, Shaver Shop lost 6,169 in-store trading days across its network which represented 28% of available trading days in H1 FY2022. Whilst online sales increased significantly in NSW and VIC during the course of the lockdowns, the increase in online sales was not sufficient to offset the decline in in-store sales.
2. Gross profit margins decreasing 90 basis points to 43.8% (H1 FY2021: 44.7%) due largely to changes in category mix in the lead up to Christmas with strong sales growth achieved in some of Shaver Shop's lower margin categories, including Power Oral Care, Massage and Long Term Hair Reduction (IPL) solutions; and
3. Operating expenses as a percentage of sales were flat at 22.9% in comparison to the prior corresponding half with lower employment costs (as a result of government mandated store closures) offsetting higher postage and associated costs related to increased online sales.

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