A.g. Barr P.l.c. · LSE:BAG

A.g. Barr P.l.c — H1 2021/22 Earnings Presentation

32 slides from A.g. Barr P.l.c's earnings presentation, September 2021

  1. Slide 1: Interim Results

    INTERIM RESULTS 27 weeks ended 1 August 2021 1

  2. Slide 2: Welcome and introduction

    Roger White Welcome and introduction 2

  3. Slide 3: Contents

    Contents ○ Introduction ○ Market update ○ Business update ○ Financial review ○ Summary & outlook ○ Questions Roger White Stuart Lorimer Chief Executive Finance Director 3

  4. Slide 4: Overview

    Overview Financial summary Aug 2021 July 2020 Change Revenue £135.3m £113.2m 19.5% Profit before tax (before exceptional items)* £23.7m £16.6m 42.8% Statutory profit before tax £24.4m £5.1m 378.4% Operating margin before exceptional items* 17.7% 15.1% 260 bps Earnings per share before exceptional item

  5. Slide 5: Market update

    Market update AGBarr Barr BUILDING GREAT BRANDS

  6. Slide 6: Total UK soft drinks market

    Total UK soft drinks market Total UK soft drinks value Total UK soft drinks volume ▲ 8.0% ▲ 4.0% Carbonates value Carbonates volume ▲ 6.9% ▲ 1.4% Stills value Stills volume ▲ 9.7% ▲ 6.7% 6 Source: IRI Marketplace 27 weeks to 31/07/21

  7. Slide 7: Total UK soft drinks market

    Total UK soft drinks market Source: IRI Marketplace 27 weeks to 31/07/21 7

  8. Slide 8: Total UK soft drinks market - category disruption

    Total UK soft drinks market - category disruption mixers dilutables water lemonade lemonade dilutables mixers water Source: IRI Marketplace 8

  9. Slide 9: Total UK soft drinks market - formats

    Total UK soft drinks market - formats Source: IRI Marketplace 27 weeks to 31/07/21 9

  10. Slide 10: Barr Soft Drinks market performance

    Barr Soft Drinks market performance Normalising share performance following COVID-19 market disruption Barr Soft Drinks value share of total soft drinks Total UK Scotland England & Wales 2.5% 11.5% 1.5% Source: IRI Marketplace 27 weeks to 31/7/2021 10

  11. Slide 11: Cocktail market dynamics - on trade

    Cocktail market dynamics - on trade Fast restart - Cocktails have outperformed other categories since the reopening of the hospitality sector and experienced significant like for like growth in Q2 2021 Top 10 focus - Funkin’s strategic focus on Top 10 cocktails aligned with market dynamics - outlets

  12. Slide 12: Cocktail market dynamics - Ready to drink (RTD)

    Cocktail market dynamics - Ready to drink (RTD) Funkin is now the UK’s No.1 ready to drink cocktail brand ▲21.5% ▲54% Source: Nielsen Pre Mixed Alcoholic Drinks Grocery Multiples Data YTD 31/07/2021 12

  13. Slide 13: Group brand performance

    Group brand performance Revenue Funkin on trade Funkin at home IRN-BRU Rubicon Barr Flavours sales sales ▲ 18.9% ▲39.4% ▼ 2.6% ▲229.5% ▲114.3% 13 Sources : AG Barr revenue 27 weeks to 01/08/21

  14. Slide 14: Business update - H1 Highlights

    Roger White Business update - H1 Highlights 14

  15. Slide 15: H1 highlights: IRN-BRU

    H1 highlights : IRN-BRU NEW Masterbrand Campaign Heavyweight TV, Social Media & Sampling IRN-BRU Energy New 500ml BIG can IRN-BRU 1901 Back for Good BRU-ROs Consumer engagement and special packs 15

  16. Slide 16: H1 highlights: Rubicon

    H1 highlights : Rubicon #NOADDEDBORING Summer Campaign ○ Heavyweight TV Flavour development ○ Digital/Social ○ Stop & Stare Outdoor 16

  17. Slide 17: H1 highlights: Funkin

    H1 highlights : Funkin £1m national advertising campaign reaching 9.5m consumers Ready to drink innovation 67% increase in RTD distribution points 17

  18. Slide 18: H1 highlights: Innovation - Rubicon RAW Energy

    H1 highlights : Innovation - Rubicon RAW Energy ○ Energy is now the UK’s #1 ‘drink now’ category worth £1.4bn and still growing ○ Rubicon RAW Energy launched Feb 2021 ○ 20% real fruit juice ○ Natural caffeine from green coffee beans ○ Absolutely no artificial colours or flavours ○ Soft drinks levy fre

  19. Slide 19: H1 highlights: Responsibility

    H1 highlights : Responsibility ✓ Net Zero Roadmap and Science Based Targets on track for communication later this year Launch of new Environmental Sustainability Programme ✓ 100% rPET programme progressing to plan - IRN-BRU and Rubicon plastic bottles will be made from 100% recycled Net Zero by 2040

  20. Slide 20: Financial review

    Stuart Lorimer Financial review 20

  21. Slide 21: H1 2021/22 Profit overview

    H1 2021/22 Profit overview Reported PBT + £19.3m Underlying PBT + £6.2m 21

  22. Slide 22: Financial scorecard

    Financial scorecard H1 2021/22 vs H1 2020/21 % vs H1 2020/21 Case volumes (million cases) 26.3 2.3 9.4% ⬤ Net revenue (£m) 135.3 22.1 19.5% ⬤ Profit before tax and exceptionals (£m) 23.7 7.1 42.8% ⬤ Statutory profit before tax (£m) 24.4 19.3 378.4% ⬤ Gross margin before exceptional items 45.5% 2.8 pp

  23. Slide 23: Gross margin (%)

    Gross margin (%) Carbonates (74% of total revenue) ○ Improved volume, price and mix ▲ ▲ ▲ ▲ ○ Increase in ‘out of home’ 3.9pp 1.6pp 3.0pp 2.8pp consumption ○ Successful innovation Stills & water (12% of total revenue) ○ Operational leverage benefits from volume growth ○ Improved product mix from Rubi

  24. Slide 24: Commodities and currencies

    Commodities and currencies Commodities ○ Physical supply has been successfully maintained despite stretched global supply chains ○ Cans, CO2 and certain raw materials and packaging under pressure ○ Our hedging position protected H1 ○ Current outlook : mid/high single digit inflation across key materi

  25. Slide 25: Operating costs and margin

    Operating costs and margin ○ Overhead costs increased from 20/21 ‘lockdown low’, in line with pre-Covid levels. ○ 2019/20 business re-engineering programme benefits maintained ○ Margin benefit from lower fixed cost-base and operational leverage 25

  26. Slide 26: Dividend

    Dividend Dividend framework Recommencing dividend payments ○ Dividend cover: targeting 2 times ○ Interim dividend for the 27 weeks earnings cover ended 1 August 2021 of 2.0 pence per share ○ Payout ratio: targeting 50% of free cash flow ○ Special dividend of 10.0 pence per share - relating to certain

  27. Slide 27: Balance Sheet

    Balance Sheet Strong funding platform Well invested asset base Robust investment returns Well managed pension obligations 27

  28. Slide 28: Cash and Cash flow

    Cash and Cash flow Net Cash +£15.6m Zero Debt 28

  29. Slide 29: 2021/22 Financial outlook

    2021/22 Financial outlook Revenue Full year slightly ahead of that delivered in the period prior to Covid-19 (2019/20) Margins H2 decline vs H1 driven by commodity price pressures and investment phasing Full year broadly flat vs LY as operational leverage and improved product mix are offset by inflati

  30. Slide 30: Summary and outlook

    Roger White Summary and outlook 30

  31. Slide 31: Looking forward...

    Looking forward... Strong momentum... ○ Underlying brand momentum and supply chain resilience ○ Strong F21 full year performance expected Investing for further growth... ○ Despite inflationary headwinds our intention is to maintain operating margin into FY22/23 ○ Continued investment behind our growt

  32. Slide 32: Questions

    AGBarr BUILDING GREAT BRANDS 32

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