Big River Industries Ltd. · ASX:BRI
Big River Industries — Investor Presentation (August 2024)
22 slides from Big River Industries's investor presentation, Aug 22, 2024
Slide 1: FY24 Results
FY24 RESULTS 22nd August 2024 BIG RIVER INDUSTRIES LTD (ASX:BRI)
Slide 2: Contents
CONTENTS FY24 RESULTS 03 Business Overview 04 Core Divisions 05 Investment Highlights BIG RIVER INDUSTRIES LTD (ASX:BRI) 06 Performance Headlines FY24 07 FY24 Progress on Strategic Priorities 08 Branding Overview 09 Historical Performance 10 Big River Journey 11 Divisional Performance 12 Profit & Lo
Slide 3: Business Overview
03 Business Overview Supply chain 18% of revenue Asset mix 26 8 4 4 diversity Manufactured by BRI 18% of revenue Direct Import by BRI Frame & Truss Plywood / panel 64% of revenue Sites across major population Manufacturing Sites prefabrication manufacturing Sourced from local supply partners centres
Slide 4: Core Divisions
04 Core Divisions Panels Construction (Building Trades + Formwork & Commercial) Industry leaders in decorative timber panels to the Leading diversified Formwork & Building Products manufacturing & trade for architectural and Fit Out applications distribution to trade businesses Frame & Truss Wall an
Slide 5: Investment Highlights
05 Investment Highlights Large Addressable Market Strong Financial Profile Established Footprint • Vertically integrated manufacturer & distributor • $415m revenue in FY24 driven by organic and • 26 sites in all major Australian states across all construction sectors strategic M&A and NZ • Construct
Slide 6: Performance Headlines FY24
06 Performance Headlines FY24 Commercial market strength offset by material softening in residential market in late H1 and into H2 Cost synergies from acquisitions and improved operations, position business well when volumes and market return Group FY24 Revenue Operating Expenses EBITDA (Before sign
Slide 7: FY24 Progress on Strategic Priorities
07 FY24 Progress on Strategic Priorities Safety & People • Further investment in safety initiatives, external audits and site improvements. • Two sites achieved milestones during year – 1,000 & 1,500 LTI free days. • Three new senior executives: Scott Barclay EGM Panels, Gareth Watson (EGM Supply Ch
Slide 8: New Branding Progress
08 New Branding Progress Strategic Rebrand February April 2024 May 2024 Initiative 2024 Grafton Grand Albion Park Fortifying market position by unifying Market Opening Branch Launch Good Business. diverse portfolio of brands. Launch Foster synergies and coherence across Good People. business operati
Slide 9: Historical Performance
09 Historical Performance Revenue ($m) EBITDA3 ($m) U-NPAT ($m)¹ 60 25 500 50 20 400 40 15 300 30 10 200 20 5 100 10 0 0 0 Cash Conversion Gearing² ROFE² 120% 25% 30% 100% 20% 25% 80% 20% 15% 60% 15% 40% 10% 10% 20% 5% 5% 0% 0% 0% 1. U-NPAT is NPAT before significant items. 2. Definitions of Gearing
Slide 10: Big River Journey
10 Big River Journey Continuing growth momentum 5 Year • Successful acquisitions strategy performance • Big Hammer (Qld) Delivering • Pine Design (SA) • National network • TWP (VIC & ACT) • Depth in capability • United Building Products (NSW) • Increased product offering • Revolution Panels (Qld) •
Slide 11: Divisional Performance
11 Divisional Performance Revenue EBITDA EBITDA margin AUD in millions FY24 FY23 % Change FY24 FY23 % Change FY24 FY23 Construction 291.1 321.0 (9.3%) 24.2 39.3 (38.4%) 8.3% 12.2% Panels 123.6 128.5 (3.8%) 15.5 19.2 (19.3%) 12.5% 14.9% Corporate costs - - - (7.1) (7.6) (6.6%) - - Total 414.7 449.5 (
Slide 12: Profit & Loss
12 Profit & Loss AUD in millions FY24 FY23 % Change Revenue 414.7 449.5 (7.7%) Raw materials and consumables (306.7) (326.2) (6.0%) HIGHLIGHTS Gross profit 108.0 123.3 (12.4%) • Revenue down 7.7% driven by lower residential activity, impact Gross Margin % 26.0% 27.4% (142 bps) of continued labour sh
Slide 13: Profitability Waterfall
13 Profitability Waterfall FY24 RESULTS Revenue Gross Margin BIG RIVER INDUSTRIES LTD (ASX:BRI) Revenue decline contributed to Gross margin reduction of 24.8% decline in EBITDA 142 bps contributed 11.2% decline in EBITDA Operating EBITDA1 Expenses Acquisitions delivered 2.0% Cost increases of 1.3% L
Slide 14: Balance Sheet
14 Balance Sheet AUD in millions 30 Jun 2024 30 Jun 2023 HIGHLIGHTS Cash 20.5 34.3 • Strong balance sheet to support the Trade and other receivables 56.0 59.9 growth and acquisition strategy. Inventories 72.5 69.5 • Strong financial disciplines resulted in 2.3% reduction in like-for-like net Income
Slide 15: Cash Flow
15 Cash Flow AUD in millions FY24 FY23 Receipt from customers 460.6 497.8 HIGHLIGHTS Payment to suppliers and employees (428.6) (441.2) • Focus on cash conversion continues with consistent conversion from Government grants - 1.0 1HFY24 - 98.0% and FY24 - 98.2%. Operating cash flow before interest an
Slide 16: Capital Management
16 Capital Management AUD in millions 30-Jun-2024 30-Jun-2023 Total borrowing facility¹ 80.9 86.1 Facility drawn 48.1 45.5 • Net debt increased by $16.4m resulting primarily from Utilisation ratio % 59.5% 52.8% additional borrowing for Cash 20.5 34.3 acquisition of Specialised Net debt (Facility dra
Slide 17: Group Outlook
17 Group Outlook FY24 RESULTS Consumer confidence around The Group’s market and regional The business will continue to residential building remains subdued. diversity is a key pillar to the business. consolidate purchasing to deliver Expect market to be soft for next 12 We will take advantage of gro
Slide 18: Appendices
Appendices FY24 RESULTS BIG RIVER INDUSTRIES LTD (ASX:BRI)
Slide 19: Appendix - Profitability
19 Appendix - Profitability AUD in millions FY20 FY21 FY22 FY23 FY24 Revenue 248.9 281.4 409.3 449.5 414.7 EBITDA - Construction 19.1 16.1 31.9 39.3 24.2 - Panels 1.8 10.6 21.4 19.2 15.5 - Corporate costs (3.6) (4.8) (6.2) (7.6) (7.1) Total EBITDA 17.3 21.9 47.1 50.9 32.6 Depreciation (7.6) (8.8) (1
Slide 20: Appendix - Cash Flow
20 Appendix – Cash Flow AUD in millions FY20 FY21 FY22 FY23 FY24 EBITDA 17.3 21.9 47.1 50.9 32.6 Working capital changes & other items 1.1 (3.3) (4.6) (6.7) (0.6) Operating cash flow before interest and tax (OCFBIT) 18.4 18.6 42.5 57.6 32.0 Interest paid (net) (2.2) (1.7) (2.4) (3.1) (3.3) Income ta
Slide 21: Appendix - Capital Management
21 Appendix – Capital Management AUD in millions FY20 FY21 FY22 FY23 FY24 Overdraft and trade finance 2.8 1.4 2.5 2.6 - Bank bills 25.9 26.0 36.0 41.0 46.0 Equipment finance liability 2.0 2.2 2.5 1.9 2.1 Less: Cash (8.7) (7.8) (19.8) (34.3) (20.5) Net debt 22.0 21.8 21.2 11.2 27.6 Equity 71.7 94.7 1
Slide 22: Important Notice and Disclaimer
22 Important Notice and Disclaimer FY24 RESULTS This presentation is dated 22nd August 2024. the Company's expectations or that the effect of future Big River Industries Limited (the "Company") advises that the developments on the Company will be those anticipated. Actual information contained i
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