Slide 1: 1H23 Results Presentation
1H23 Results Presentation March 2023
Slide 2: Disclaimer
Disclaimer The following provisions apply to this presentation. Please consider its contents carefully. Currency of information Historical information The information contained in this presentation is current as at the date of this Past performance information in this presentation is given for illus
Slide 3: Agenda
Agenda 01 1H23 Overview Our Speakers 02 Business Unit Performance GRANT PECK CEO & Managing SUPRIYA SINGH Commercial Director Director - ANZ 03 Financial Results PAUL JADE PEAK WITHERIDGE Commercial Director 04 Summary and Outlook CFO – International 3
Slide 4: 1H23 Overview
1H23 Overview
Slide 5: 1H23 Summary
1H23 Overview 1H23 Summary $112m 7% • Sales growth of 3%, impacted by reduced private label ($4.7m) TOTAL SALES OWNED BRAND REVENUE SALES • Multix impacting on overall sales and profit growth: sales down $1.7m or 3% 6% for 1H23 on 1H22: $108.8m • Strong growth in sales of HWB core owned brands, up 1
Slide 6: Health, Wellness & Beauty
Health, Wellness & Beauty Demand dynamics Challenges Increasing demand for sustainable solutions Global and local costs leaning toward inflationary setting Proactive beauty and beauty at home Seafreight, commodity and currency normalising in H2 Clean and efficacious solutions International markets c
Slide 7: Chemist Warehouse
Chemist Warehouse " On track to deliver first year of the business case" Unique, two-way relationship created by the strategic alliance with Chemist Warehouse to deliver benefits to both parties: 1. McPherson’s appointed exclusive distributor for select CWH brands, which are complementary to existin
Slide 8: Corporate Items
Corporate Items Material Items – Net $4.1m charge • Multix non-cash impairment of $3.9m • Other brands non-cash impairment of $1.0m • Favourable writeback of Dr. LeWinn's inventory provision of ($1.0m) • Other corporate costs $0.2m mainly relating to integration of Health & ANZ CBUs Group Refinance
Slide 9: 1H23 Business Unit Performance
1H23 Business Unit Performance
Slide 10: Channel / Category Performance
Channel / Category Performance Core brands outperforming pharmacy channel growth, grocery channel more challenging Total MCP Core Brands vs Pharmacy Channel Total MCP vs Grocery Channel Dollars Growth % Qtr vs YA Dollars Growth % vs YA 18.0 13.9 1.7 0.4 Qtr To 02/01/22 Qtr To 03/04/22 Qtr To 03/07/2
Slide 11: Integration of Health
Integration of Health Successfully integrated the Health business unit into the larger Beauty business unit in ANZ during 1H23 Improved service for customers with a single point of contact for field sales and consolidated orders, invoicing and delivery Achieved cost efficiencies by combining the
Slide 12: ANZ – 1H23 Highlights
ANZ – 1H23 Highlights Segment 1H23 1H22 Change Change Performance ($m) ($m) ($m) (%) 1H23 core brand sales vs 1H22 Sales Revenue 107.1 105.1 2.0 2% Manicare +11% Lady Jayne +39% Underlying EBIT 11.6 13.6 (2.0) (15%) Dr. LeWinn's +1% • Sales growth on all core brands excl. A'kin and Multix Swisspers
Slide 13: Growth Tactics
Growth Tactics Innovation Integrated Continued Distribution & new product marketing Beauty & Health expansion development campaigns service alignment 13
Slide 14: ANZ - Core Brand Performance
ANZ - Core Brand Performance Manicare and Lady Jayne continue to leverage Leader in sustainability and innovation with the Beauty at Home trend, providing high Swisspers eco cleansing pads and baby cotton quality beauty tools at affordable prices 14
Slide 15: ANZ - Core Brand Performance
ANZ - Core Brand Performance Dr. LeWinn's Serum Series launch drove strong Fusion wins Self Care Excellence Award for growth and distribution expansion in addition to second year in a row and invests behind continued success of Marine Collagen a brand awareness marketing campaign Awarded by Consumer
Slide 16: International – 1H23 Highlights
International – 1H23 Highlights 1H23 1H22 Change Change Segment performance ($m) ($m) ($m) (%) Sales revenue 4.9 3.7 1.2 32% Underlying EBIT (0.3) (0.9) 0.6 67% Sales revenue and EBIT increase vs 1H22 alongside reset of channel strategy for Dr. Capabilities are being reset LeWinn's in China Consumer
Slide 17: International Strategic Imperatives
International Strategic Imperatives Value enhancing Growth in partnerships Selective skincare globally aligned to expansion in key supports focus McPherson's regions on key brands in target operating this category models Continued Diversified Omni channel relevance of portfolio of distribution with
Slide 18: 1H23 Financial Results
1H23 Financial Results
Slide 19: 3% Growth in 1H23 Sales Revenue
3% Growth in 1H23 Sales Revenue 7% Growth in Owned Brand Sales All figures $m 1H23 1H22 % change Total Group Sales 112.0 108.8 3.0 ANZ Essential Beauty 44.9 38.3 17.2 Manicare, Lady Jayne and Swisspers all recorded double-digit growth Skin, Hair & Body 12.1 13.0 (7.4) Slight growth in Dr. LeWinn’s.
Slide 20: 1H23 Underlying EBIT
1H23 Underlying EBIT EBIT impacted by cost increases, lower contribution from Multix and investment in advertising and promotion 1H22 TO 1H23 EBIT BRIDGE $AM $13 0.4 3.6 Contribution $12 Contribution increases in increases in Health Brands Beauty Brands $11 $10 (0.8) Adverse commodity (0.9) cost inc
Slide 21: Low Gearing and Net Bank Debt
Low Gearing and Net Bank Debt Gearing* % (31 December) Net bank debt* ($m – 31 December) Highlights: 20.0% 25 • Net bank debt remains low at 18.0% $13.9 million. 16.0% 20 14.0% 19.5 19.6 • Gearing remains low at 10% at 31 December 2022 12.0% 15 10.0% 13.9 • The Company had an operating cash outflow
Slide 22: Interim Dividend
Interim Dividend • Interim ordinary dividend of 2.0 cents per share (cps) fully franked (1H22 3.0 cps). • Underlying payout ratio of 89%. • Consistent with policy to pay a minimum of 60% of underlying profit after tax. • Interim dividend payable 6 April 2023. 22
Slide 23: Summary & Outlook
Summary & Outlook
Slide 24: We are Creating a Unique Platform to Enable Growth
We are Creating a Unique Platform to Enable Growth 1. Leadership, 3. Ranging 5. Strategic 2. Continued 4. Growing revised increments Alliance 7. Health and innovation with 6. Supply values, driving brand with Beauty and focus winning stability enhanced performance Chemist alignment on NPD customers
Slide 25: Outlook
Outlook Focus is unchanged, despite the challenging broader economic environment Strong demand in Health, Wellness & Beauty category with esilient, well recognized and respected brands Creating a platform of capability in Health, Wellness and Beauty o support growth Restructured team, simplified and
Slide 26: Q+A
Q+A
Slide 27: Thank You
Thank You
Slide 28: Appendix 1: Further Commentary on Underlying Earnings
ppendix 1: Further Commentary on nderlying Earnings nue HY23 ($m) HY22 ($m) Var % Further Commentary revenue 112.0 108.8 3.0% Refer detailed presentation income 0.0 0.1 -51.2% revenue and other income 112.0 108.9 2.9% lying Expenses als and consumables (58.8) (57.3) 2.7% Increase consistent with Rev
Slide 29: Appendix 2: Reconciliation of Underlying to Statutory Profit/(Loss) Before Tax
ppendix 2: Reconciliation of Underlying o Statutory Profit/(Loss) Before Tax 1H23 ($m) 1H22 ($m) Underlying profit before tax 5.1 6.7 Significant items before tax included in statutory profit / (loss) before tax Dr. LeWinn’s inventory provision release 1.0 0.0 Impairment of Multix brand (3.9) 0.0 Im