Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 2018 Earnings Presentation
17 slides from Gale Pacific's earnings presentation, Feb 19, 2018
Slide 1: Results for the six months to 31 December 2017
ASX: GAP For personal use only Results for the six months to 31 December 2017 Nick Pritchard Group Managing Director, Matt Parker Chief Financial Officer 19 February 2018
Slide 2: Summary of the half year: financial
Summary of the half year: financial For personal use only ½½ Profit before tax $1.7m, in line with market update 15/1, above guidance at AGM. ½½ Revenue $70.2m, affected by sale of unprofitable glass business in June 2017, lower commercial fabric sales due to weaker grain harvest, and impact of hurr
Slide 3: Summary of the half year: operational
Summary of the half year: operational For personal use only ½½ Progress with transforming GALE Pacific into more focused, innovative and service‑driven technical fabrics business. ½½ Successfully completed move to new larger California warehouse. ½½ Further investment in Americas sales and marketing
Slide 4: Results summary
Results summary For personal use only Results for the six months to 31 December 2017 31 December 2016 A$ million A$ million Change % Revenue 70.2 82.6 (15) Revenue excluding glass business 70.2 74.9 (6) EBITDA 5.4 7.9 (32) EBIT 2.4 4.7 (49) Profit before tax 1.7 3.9 (56) Profit after tax 2.1 3.4 (38
Slide 5: Second half consistently stronger
Second half consistently stronger For personal use only Revenue $A million NPAT $A million 200 20% 12 173.2 175.3 10.2 10.1* 10 150 148.0 15% 137.3 8.2 8 6.9* 100 10% 6 90.8 92.7 76.4 80.6 4 4.7 6.8 7.0 50 5% 2 5.8 0 60.9 67.4 82.4 82.6 70.2 0% 0 3.5 1.1 3.2 3.4 2.1 2014 2015 2016 2017 2018 2014 201
Slide 6: Balance sheet to support investment in future growth
Balance sheet to support investment in future growth For personal use only ½½ The company has acquired Operating Cash Flow $A million 20.5 9.3 million shares at an average 20 16.3 200 13.4 price of $0.36 per share since 10 8.2 100 May 2017. 1.5 0 0 (0.7) (4.0) (3.4) -10 -100 (9.0) -20 -200 2014 2015
Slide 7: Developing a more global business
Developing a more global business For personal use only ½½ Securing an increasing percentage of revenue from outside Australia. ½½ Focused on building a bigger business in North America. ½½ In MENA and Eurasia, focusing on a smaller number of countries and pivoting business towards core retail and c
Slide 8: Where we are
Where we are For personal use only Los Angeles Orlando Dubai Ningbo Manufacturing Distribution Perth Melbourne Brisbane Auckland Custom window shades assembly Gale Pacific H1 2018 Results Presentation 8
Slide 9: Australia/New Zealand
Australia/New Zealand For personal use only Results for the six months to 31 December 2017 31 December 2016 A$ million A$ million Change % Revenue 43.4 56.8 (24) Revenue excluding glass business 43.4 49.1 (12) EBITDA 3.0 4.0 (26) PBT 2.5 3.5 (28) Retail sector Commercial sector ½½ Revenue lower due
Slide 10: Americas
Americas For personal use only Results for the six months to 31 December 2017 31 December 2016 A$ million A$ million Change % Revenue 17.0 17.2 (1) EBITDA (1.4) (1.0) (33) PBT (2.5) (2.0) (27) ½½ Revenue up 3% on constant currency basis, despite impact of hurricanes on late‑summer sales. ½½ Moved in
Slide 11: Middle East/North Africa
Middle East/North Africa For personal use only Results for the six months to 31 December 2017 31 December 2016 A$ million A$ million Change % Revenue 7.3 6.1 21 EBITDA 1.4 0.8 75 PBT 1.3 0.8 73 ½½ Overall market conditions subdued. ½½ Sales of all core commercial products increased, with higher marg
Slide 12: Eurasia
Eurasia For personal use only Results for the six months to 31 December 2017 31 December 2016 A$ million A$ million Change % Revenue 2.4 2.5 (7) ½ Revenue lower due to exiting low‑volume and low‑margin retail products in Asia. ½ Margins up considerably as business pivoted towards commercial fabrics.
Slide 13: China manufacturing operations
China manufacturing operations For personal use only ½½ Manufacturing costs down and service improved due to operational upgrades. ½½ Implementation of the group IT system well underway, with ‘go live’ planned for mid‑2018. China manufacturing Gale Pacific H1 2018 Results Presentation 13
Slide 14: Building a platform for growth
Building a platform for growth For personal use only In the past three and a half years we have: ½½ Exited most non-core products so we can focus on technical textiles where we have globally competitive technology. ½½ Rationalised our brand portfolio so we can concentrate our investment in core bran
Slide 15: Our growth strategy
Our growth strategy For personal use only Key elements of the strategy: ½½ Accelerate growth of the Americas business, focusing on shade and screening products, while expanding the commercial products business. ½½ In Australia and New Zealand, extend market- leading shading and screening business in
Slide 16: Outlook for H2 2018
Outlook for H2 2018 For personal use only ½½ Earnings to be substantially above H1, in line with normal seasonality, and benefiting from new business in Americas. ½½ Pre-tax profit for full year to be slightly above FY2017 pre-tax profit of $13.5m. ½½ Operating cash generation to be strong. Gale Pac
Slide 17: Disclaimer and contact details
For personal use only GALE Pacific Limited Disclaimer Statements contained in this presentation, particularly those ABN 80 082 263 778 regarding possible or assumed future performance, estimated 145 Woodlands Drive company earnings, potential growth of the company, industry Braeside Victoria 3195 gr