Q1 2024 Results - Investor Presentation
Financial Review
We expect inflation to predominantly affect the Gross Margin, with an estimated impact of
approximately -1pp in FY24. Conversely, the impact of inflation on other costs is anticipated to be
limited. Price increases, implemented progressively in waves throughout FY24, are projected to fully
materialize in FY25.
Based on Gold (€63/gram), USD (1.09 USD/EUR), the impact of inflation is expected to be c. -1.0pp GM rate.
COGS (expected overall impact of c. -1.0pp GM rate)
Gold: Due to an efficient coverage and Group ability to purchase gold in stores the impact of inflation on Gold is expected to be limited.
USD: The Group is fully hedged for the 18 next months at a rate close to the FY23 rate.
Goods The full year effect of Inflation on other metals (silver, rhodium, platinum) is expected to impact our costs, as well as inflation on
manufacturing costs.
Staff costs (expected decrease as a percentage of sales): The group has had a proactive salary / bonuses increase policy to retain and motivate its
employees. The know how and the quality of our employees are key to continue the strong development of our brands. The development of sales
and the optimization of the staff presence in stores is expected to allow the Group to decrease the weight of staff costs as a percentage of sales.
Energy costs (+0.4pps as a percentage of sales): Energy costs are very limited as most of our stores are equipped with led lamps in the frame of our
CSR policy. The energy inflation in mainly temporary as based on 2024 and 2025 hedging the adverse impact in FY23 will revert by c. €4m.
Transportation costs (no significant impact): The products we sell are space saving and lightweight, we source most of our products from Europe and
when they are sourced from outside Europe, they are flown in.
(*) Actual results could differ from guidance and any deviation may be significant. Please refer to the Risk Factors section in the company's annual report for the financial year ended September 30, 2023
issued in January 2023.
THOM
Q1 2024 Results - Investor presentation March 15, 2024
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