Slide 1: Results for the year to 30 June 2010
For personal use only Paul Maguire Managing Director McPherson’s Limited Results for the year to 30 June 2010 1
Slide 2: Financial summary for FY 2010
Financial summary for FY 2010 For personal use only June 2009* June 2010 ($A million) ($A million) Sales 356.8 354.0 EBITDA 42.5 50.0 Depreciation & amortisation (5.7) (5.5) EBIT 36.8 44.5 21% EBIT growth Interest (9.9) (7.9) Interest cover 5.6 times NPBT 26.9 36.6 Tax (7.6) (11.0) NPAT 19.3 25.6 33
Slide 3: Balance sheet
Balance sheet For personal use only June 2009 June 2010 ($A million) ($A million) Fixed assets (including intangibles) 212.2 210.4 Net working capital 92.8 96.0 Other (46.0) (37.6) 259.0 268.8 Shareholders’ funds 154.8 196.9 Net debt 104.2 71.9 31% reduction in net debt Total funds employed 259.0 26
Slide 4: Printing: Financial summary
McPherson’s Printing: Financial summary For personal use only June 2009 June 2010 ($A million) ($A million) Sales 68.4 64.3 EBITDA (before equipment leases) 9.2 8.5 Strong cash flow Equipment lease expense (1.9) (1.8) Depreciation / amortisation (3.0) (2.9) The focus is on cost EBIT 4.3 3.8 containm
Slide 5: Financial summary
McPherson’s Consumer Products: Financial summary For personal use only June 2009 June 2010 ($A million) ($A million) Sales 288.5 289.7 0.4% sales growth, affected by the cycling EBITDA 40.9 47.7 of government stimulus payments Depreciation / amortisation (2.7) (2.5) EBIT 38.2 45.2 18% growth in EBIT
Slide 6: Trading commentary
McPherson’s Consumer Products: Trading commentary For personal use only • Retail sales in the second half were subdued due to the cycling of government stimulus payments, interest rate rises and retailer inventory reduction • Sales reflected organic growth balanced by range rationalisation • Gross m
Slide 7: Operations
McPherson’s Consumer Products: Operations For personal use only • Personnel – 600+ • Operations in Australia, New Zealand, and Singapore • Large, highly professional sourcing operation in China • Distributors in Canada and South Africa • Sophisticated logistics capability • Established relationships
Slide 8: Strength through a multiplicity of products, brands, categories, and channels
McPherson’s Consumer Products: Strength through a multiplicity of products, brands, categories, and channels For personal use only Housewares Personal Care Household Impulse Consumables Merchandising • 35% of Sales • 25% of Sales • 30% of Sales • 10% of Sales • 3,000+ SKUs • 1,500+ SKUs • 200+ SKUs
Slide 9: Housewares
McPherson’s Consumer Products: Housewares (Bakeware, cookware, knives, kitchen gadgets, cutlery, dinnerware and glassware) For personal use only • All the products needed for food preparation and dining in the home or commercial business • The housewares market can be affected by the level of consum
Slide 10: Personal Care
McPherson’s Consumer Products: Personal Care (Beauty care, hair care and skin care products) For personal use only • McPherson’s has leading personal care brands – Manicare, Lady Jayne and Swisspers − in the channels in which it competes • Recently launched are the Glam, Cosmetica and Artiste brands
Slide 11: Household Consumables
McPherson’s Consumer Products: Household Consumables (Products for food preparation, food storage and kitchen refuse disposal) For personal use only • Multix has significant heritage in the retail market • One of the largest brands in the portfolio • A market leading brand in the segments in which i
Slide 12: Impulse Merchandising
McPherson’s Consumer Products: Impulse Merchandising (Everyday items that consumers want for kids, baby, cleaning, kitchen, beauty & pet) For personal use only • Impulse merchandising - ‘clip strip’ programs for Australia’s and New Zealand’s major supermarkets and discount department stores • Progra
Slide 13: A period of transformation
McPherson’s Consumer Products: A period of transformation For personal use only Business improvement initiatives - update 13
Slide 14: Supply chain review
McPherson’s Consumer Products: Supply chain review For personal use only Supply chain management – a key competitive advantage Demand Supply Inbound Warehousing Distribution planning planning shipments An end-to-end review has been conducted to identify any constraints to providing the best possible
Slide 15: Warehouse changes
McPherson’s Consumer Products: Warehouse changes For personal use only More effective distribution - i.e. the right products in the right places 15
Slide 16: Sourcing review
Sourcing review For personal use only Continued product profitability focus New product QA Packaging Sourcing Manufacturers development assessment design Quality control Purchasing Shipping Distribution Customer assessment Australia/New Zealand Hong Kong Asia 16
Slide 17: Strategic brand review
McPherson’s Consumer Products: Strategic brand review For personal use only The right brands in the right categories, the right channels and the right markets 17
Slide 18: Innovation program
McPherson’s Consumer Products: Innovation program For personal use only Product innovation – a key competitive advantage 18
Slide 19: Conclusion
Conclusion For personal use only • The company transformation is on track • The retail environment remains challenging but the business is being managed as effectively as possible – the things that can be controlled are doing well • Of course we remain subject to the vagaries of the market • Efficie
Slide 20: Questions
For personal use only 20 Questions