ASX consumer stock The Shaver Shop Group Ltd (ASX: SSG) is in the green on Monday after the company posted its FY24 results.
Shares in the personal grooming company are up 1.67% and swapping hands at $1.22 apiece at the time of writing.
Meanwhile, the S&P/ASX 200 index (ASX: XJO) is currently up 0.46% as well.
Let's see what the company posted in its annual results.
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ASX consumer stock climbs on solid full-year results
Key takeouts from Shaver Shop's FY24 numbers include:
- Total sales: $219.4 million, a slight decrease of 2.3% compared to FY23.
- Net profit after tax (NPAT) of $15.1 million, down 10.1% from the previous year.
- Dividends of 10.2 cents per share declared for FY24, flat on last year.
- Earnings per share (EPS) of 11.7 cents.
- Ended FY24 with a net cash position of $13.3 million.
What else happened in FY24?
The ASX consumer stock reported a slight year-over-year decline in sales, but it can proudly boast of 5-year growth ahead of pre-pandemic times.
Like-for-like store sales declined by 2.8% year over year. But total sales are up more than 31% since FY19, whereas net profits have increased by more than 105%. Meanwhile, its dividend is up more than 126% since then, following the 10.2 cents per share payment in FY24.
The company secured exclusive distribution rights for popular brands such as Skull Shaver, Epilady, and Silk'n.
These new product lines are set to launch in the December 2024 quarter.
Additionally, Shaver Shop has been working on launching its first private brand, Transform U. The new range is expected to "fill gaps" in the current product lineup and offer customers more value.
The initial launch will be in Q2 FY25, which could be a tailwind for the ASX consumer stock.
What did management say?
Shaver Shop CEO Cameron Fox was constructive on the company's performance:
Despite the more challenging retail environment, I am very pleased with our business performance over the last 12 months. We largely mitigated the impact of significantly lower shopping centre foot traffic by focussing our attention on several categories that remained highly resilient.
We curated compelling promotional programs that stimulated consumer demand, maintained focus on delivering exceptional customer service and carefully implemented promotional pricing across our core products and categories to support healthy gross profit margins.
Shaver Shop's business remains rock solid. We have no debt with net cash of approximately $13.3 million at the end of the financial year. Our inventory remains very clean with carefully managed stock investment during this period of uncertain demand.
Fox also mentioned the company is providing value for its customers:
Finally, our passionate store teams continue to deliver exceptional customer service with our NPS scores remaining world class around 89 out of 100 and we have further enhanced our staff training programs to ensure we remain the undisputed product experts in our core categories across ANZ.
What's next?
Shaver Shop has a busy year ahead. As part of its Transform U initiative, it plans to launch 20-30 products in the second quarter of FY25.
Products within the initiative have all been designed and engineered in-house. CEO Fox said this could be a catalyst moving forward:
Launching the Transform U brand and associated product range is aligned with our category leadership and differentiation strategy and our intent to be the destination of choice for men's and women's grooming solutions across ANZ.
Given our specialist knowledge of what works in this sector, we have carefully curated a range of clippers, trimmers and wet shave products that fill gaps in our current range and consumer offer. We are confident that the Transform U brand and products will satisfy or exceed customers' expectations.
ASX consumer stock snapshot
Investors are buying up shares in the Shaver Shop on Monday after the company's FY24 results.
In the last 12 months, the stock is up 4.2%, having climbed around 11% this year to date.
