Mcbride Plc · LSE:MCB
Mcbride — H1 2016 Earnings Presentation
21 slides from Mcbride's earnings presentation, Feb 24, 2016
Slide 1: Interim Results Presentation
Interim Results Presentation Six months to 31 December 2015 Rik De Vos & Chris Smith 24 February 2016 McBride Interims Results Presentation Feb 2016
Slide 2: Agenda
Agenda 1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 2
Slide 3: Headlines
1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 3
Slide 4: Financial Headlines
1 Headlines Financial Headlines ► 0.4% revenue growth on a constant currency basis, despite challenging market conditions. ► On a reported basis 5.6% lower due to impact of weaker Euro. ► Group adjusted operating profit £17.6m, 57.1% higher at constant currency. ► On reported basis, an increase of 4
Slide 5: Headlines (cont’d)
1 Headlines (cont’d) Strategy Headlines ► UK restructuring project on track to deliver annualised savings of £12.0m by 30 June 2016. ► Actions from the “Repair” phase of the Group’s new strategy are well underway. ► Lower complexity on track, focus on 25% of customer portfolio, 75% of customers exit
Slide 6: Financials
1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 6
Slide 7: Financial headlines
2 Financial headlines Constant Currency H1 H1 Change H1 Change 2015/16 2014/15 (2) Y/Y 2014/15 Y/Y Revenue (£m) 344.1 364.7 (5.6%) 342.7 +0.4% EBITA (£m) (1) 17.6 12.5 +40.8% 11.2 +57.1% EBITA margin (1) 5.1% 3.4% +1.7ppts 3.3% +1.8ppts Operating profit (£m) 17.1 11.1 +54.1% 9.9 +72.7% Adjusted prof
Slide 8: Income Statement
2 Income Statement Constant Currency H1 H1 Change H1 Change 2015/16 2014/15 2014/15 £m £m Y/Y £m Y/Y Revenue 344.1 364.7 (5.6%) 342.7 +0.4% Gross profit 122.2 121.9 +0.2% 114.5 +6.7% Gross margin 35.5% 33.4% +2.1ppts 33.4% +2.1ppts Distribution costs (24.1) (24.8) (2.8)% (23.1) +4.3% Administration
Slide 9: Revenue – segmental performance
2 Revenue – segmental performance Constant Currency H1 H1 Change H1 Change 2015/16 2014/15 2014/15 £m £m Y/Y £m Y/Y Household: UK 86.5 94.2 (8.2%) 94.2 (8.2%) North (1) 91.5 95.7 (4.4%) 87.0 +5.2% South (2) 33.6 36.3 (7.4%) 33.0 +1.8% East (3) 61.5 62.2 (1.1%) 56.4 +9.0% Total Household 273.1 288.4
Slide 10: Cash flow and net debt
2 Cash flow and net debt H1 H1 FY 2015/16 2014/15 2014/15 £m £m £m Opening net debt (92.4) (84.7) (84.7) Cash generated from operations before exceptional items 26.2 30.7 44.2 Exceptional items (3.5) (5.8) (10.7) Cash generated from operations 22.7 24.9 33.5 Net capital expenditure (5.6) (9.8) (21.7
Slide 11: Committed headroom and Net debt
2 Committed headroom and Net debt December Committed Facility 2015 headroom £m £m £m Committed facilities: - US Private Placements (November 2020 and April 2022) 60.7 (60.7) — - Revolving facilities (April 2019) 102.8 (22.0) 80.8 - Invoice discounting facilities 47.0 (25.5) 21.5 - Other loans 2.2 (2
Slide 12: Balance sheet
2 Balance sheet H1 FY 2015/16 2014/15 £m £m Y/Y Goodwill and other intangible assets 19.7 19.7 - Property, plant and equipment 126.9 129.8 (2.2%) Other non-current assets 21.6 21.5 +0.5% Working capital 27.7 26.7 +3.7% Net other creditors (1) (3.9) (2.7) +44.4% Provisions (4.7) (8.0) (41.3%) Pension
Slide 13: Market update
1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 13
Slide 14: Market update
3 Market update Market & Categories ► Overall market flat to slightly positive, driven mainly by grocery categories. ► PL Household and Personal Care categories flat to slightly negative growth across Europe with branders’ promotional activities extending beyond their familiar markets of UK and Ital
Slide 15: Strategy update
1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 15
Slide 16: Our Strategy – transformation plan
4 Our Strategy – transformation plan McBride Interims Results Presentation Feb 2016 16
Slide 17: “Repair” phase - update
4 “Repair” phase - update McBride will substantially simplify its activities, covering customers, products, processes and organisation. We will launch a broad range of purchasing driven saving initiatives, in further support of the simplification and right size the overhead base to reflect better th
Slide 18: “Prepare/Grow” phase - update
4 “Prepare/Grow” phase - update McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward for identified s
Slide 19: Outlook
1 Headlines 2 Financials 3 Market update 4 Strategy update 5 Outlook 6 Questions McBride Interims Results Presentation Feb 2016 19
Slide 20: Outlook
5 Outlook ► For the second half year, current expectations are for constant currency underlying revenues to be slightly lower year-on-year, in line with market conditions. ► The start of the impact from the customer choices project, planned during our first half year, is expected to reduce second ha
Slide 21: Thanks for listening – Questions?
6 Questions Thanks for listening Questions ? McBride Interims Results Presentation Feb 2016 21