Procook Group Plc · LSE:PROC
Procook — H1 FY2025 Earnings Presentation
29 slides from Procook's earnings presentation, Dec 11, 2024
Slide 1: FY25 Interim Results
FY25 Interim Results Strong first half trading momentum as we deliver on our plan to accelerate profitable growth 11 December 2024
Slide 2: Strategy update
Strategy update Lee Tappenden CEO
Slide 3: My reflections: One year in role
My reflections: One year in role Strong foundations well-established; significant opportunity to accelerate profitable growth and value-creation for all stakeholders Direct-sourced Specialist retail, Attractive market Brand awareness 1 business model 2 quality product 3 dynamics 4 opportunity • 100%
Slide 4: Our plan for profitable growth and value creation
Our plan for profitable growth and value creation Becoming the customers’ first choice for kitchenware Medium term objectives 100 £100m 10% UK retail stores Revenue Operating profit margin Our strategic priorities Accelerate profitable sales growth Improve operating efficiency Create an even better
Slide 5: FY25 H1 highlights
FY25 H1 highlights Strong first half trading momentum as we deliver on our plan to accelerate profitable growth GROWING MARKET SHARE +5% outperformance CONTINUED TRADING MOMENTUM revenue +7.5% YoY RECORD ACTIVE CUSTOMERS +11.7% YoY GROWTH THROUGH VOLUME H1 GM% as expected COST DISCIPLINE and investm
Slide 6: Expand our UK store network
Expand our UK store network Enabling more customers to shop with us as we progress towards 100 stores • 12 new stores to open in FY25 o 4 opened in H1, 5 more opened before Black Friday o 3 more planned to open in Q4 • Strong site selection o A-grade locations give access to >150m footfall p.a. acro
Slide 7: Strengthen our specialist product offer
Strengthen our specialist product offer Creating more reasons to shop with us and broadening our appeal to more customers • Improving and expanding award-winning product ranges o Electricals phase 3 launched, phase 4 ready for launch in Q4 o Range refresh of 9.5% in H1 • Black Friday promotional spe
Slide 8: Deliver best in class omnichannel service
Deliver best in class omnichannel service Putting the customer first to improve service and experience across all touchpoints • Trustpilot excellent-rated with >120,000 5* reviews • NPS now embedded across our business operations o Proactively removing points of friction o Improving NPS trend in bot
Slide 9: Grow brand awareness and customer engagement
Grow brand awareness and customer engagement Helping new customers discover ProCook and encouraging existing customers to shop with us again • Improved creative pivoting to lifestyle and inspirational content across all channels o Autumn and Christmas campaign inspiration o Improved email and recipe
Slide 10: Supply chain transformation
Supply chain transformation Making our operations more efficient to deliver better service and availability for customers at lower cost • End to end mindset shift • Retail delivery trials underway with new 3PL partner o Cage deliveries to protect stock, reduce waste, and improve put-away process o I
Slide 11: Financial update
Financial update Dan Walden CFO
Slide 12: Continued trading momentum
Continued trading momentum FY25 H1 revenue +7.5% YoY, and +4.2% LFL, outperforming the UK Kitchenware market by +6% Quarterly revenue growth % 8.8% 5.0% 5.6% 3.0% (2.5%) (1.8%) (6.7%) (7.6%) (9.7%) (22.6%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY24 FY25
Slide 13: Continued trading momentum
Continued trading momentum FY25 H1 revenue of £28.3m, with positive LFL growth in both channels Revenue growth by channel (£m) Retail +6.5% YoY Ecomm +9.4% YoY +8.5% LFL +1.9% LFL LFL (Like For Like) revenue reflects: - Ecommerce : ProCook direct website channel only. - Retail : Continuing Retail st
Slide 14: Gross margin
Gross margin Gross profit increased by +5.1% YoY with GM% reducing by -160bps driven by price investment, shipping costs and product mix, partly offset by FX benefits and lower promotional discounting YoY Gross margin % YoY
Slide 15: Underlying operating loss
Underlying operating loss Operating loss of £1.8m in H1 is £0.3m higher than last year. Continued cost discipline with operating costs reducing as percentage of revenue despite inflationary headwinds and investment choices H1 Underlying operating loss YoY (£m) Underlying operating costs 120bps lower
Slide 16: Income statement
Income statement £0.9m adverse swing year on year from temporary unrealised FX losses in H1 impacting Underlying PBT. Underlying EBITDA flat year on year at £1.2m £m FY25 H1 FY24 H1 • Revenue growth of +7.5% and +4.2% LFL Revenue 28.3 26.3 • Gross margins -160bps driven by price investment Gross pro
Slide 17: Free cash flow
Free cash flow H1 net debt of £4.2m with £11.8m available liquidity, covenant compliant and reflecting prudent earlier inventory intake as a result of supply chain disruption Increased rental payments YoY over quarter end dates Prudent inventory planning to protect peak trading. Inventory +£4.4m YoY
Slide 18: Current trading update
Current trading update Continued trading momentum in H2 to date despite challenging consumer backdrop 8 weeks to 8 Dec 2024 £m FY25 FY24 YoY% Revenue 14.7 13.7 7.5% Ecommerce 6.0 5.5 9.3% Retail 8.7 8.2 6.3% LFL Revenue1 13.2 13.1 0.9% LFL Ecommerce 5.9 5.5 7.7% LFL Retail 7.3 7.6 (4.0)% • Weak foot
Slide 19: FY25 full year outlook unchanged
FY25 full year outlook unchanged H2 seasonality, new store benefits, GM% improvement, and established efficiencies provide confidence around ability to deliver the full year outturn Operating profit margin bridge H1 to FY Marketing efficiency, operational process FX benefit and price improvements Mo
Slide 20: Summary
Summary Strong first half trading momentum as we deliver on our plan to accelerate profitable growth Continued sales momentum in a subdued market Investment and strategic progress will support growth Improving customer proposition and brand awareness Confident in business model and foundations Deliv
Slide 21: Appendices
Appendices
Slide 22: Strategic plan
Strategic plan Bringing Our purpose joy to everyday cooking Our mission To be the customers first choice for kitchenware Our customer Quality products Unbeatable value Distinctive service Responsible retailer promise Best-in-class omnichannel Our growth Expand our UK store Strengthen our specialist
Slide 23: Medium term targets
Medium term targets Accelerating profitable growth 100 £100m 10% UK retail stores Revenue Operating profit margin Revenue ambition £m 2-5 1-2 100 5 - 10 5 - 10 15 - 25 63
Slide 24: Revenue
Revenue H1 revenue +7.5% YoY, with positive LFL growth in both channels £m FY25 H1 FY24 H1 YoY% Year on Year revenue £m Revenue 28.3 26.3 7.5% Ecommerce 10.0 9.1 9.4% Retail 18.3 17.2 6.5% LFL Revenue1 26.7 25.7 4.2% LFL Ecommerce 9.9 9.1 8.5% LFL Retail 16.8 16.5 1.9% Ecommerce Quarterly revenue gr
Slide 25: Gross margin
Gross margin Gross profit increased by +5.1% YoY with GM% reducing by -160bps primarily driven by price investment and shipping costs, partly offset by FX benefits YoY £m FY25 H1 FY24 H1 YoY % Gross margin % quarterly trend 69% 67.8% Gross profit 18.4 17.6 5.1% 68% 67.2% 66.7% 67% 66.3% 65.5% 65.5%
Slide 26: Underlying net operating expenses
Underlying net operating expenses Operating expenses reflect continued cost discipline with costs reducing as a percentage of revenue despite inflationary headwinds and investment choices including retail expansion digital marketing experimentation Underlying net operating expenses £m Underlying ope
Slide 27: Income statement
Income statement H1 FY25 H1 FY25 H1 FY25 H1 FY24 H1 FY24 H1 FY24 Non- Non- £m Underlying Reported Underlying Reported underlying underlying Revenue 28.3 - 28.3 26.3 - 26.3 Gross profit 18.4 - 18.4 17.6 - 17.6 GP% 65.1% 65.1% 66.7% 66.7% Net operating costs (20.2) (0.3) (20.5) (19.1) (1.4) (20.5) Ope
Slide 28: Financial position
Financial position £m 13 October 2024 15 October 2023 31 March 2024 Non-current assets 9.6 9.2 8.9 Right of use assets 20.5 25.5 20.5 Inventories 16.9 11.9 9.7 Trade and other receivables 2.2 3.4 3.7 Corporation tax 0.9 0.8 0.2 Cash and cash equivalents 3.1 1.4 2.0 Total current assets 23.1 17.5 15.
Slide 29: Cash flow statement
Cash flow statement £m H1 FY25 H1 FY24 Revolving credit facility Reported loss before tax (3.2) (3.2) Facility £10.0m D&A, impairment and loss on disposal 2.8 2.6 Expiry April 2025 Share based payments 0.4 0.7 Committed Yes Net working capital (outflow) / inflow (0.2) 2.6 Covenants1 Finance expense