Pro-pac Packaging Ltd · ASX:PPG
Pro-pac Packaging — Investor Presentation (February 2023)
27 slides from Pro-pac Packaging's investor presentation, Feb 24, 2023
Slide 1: 2023 Half Year Results
2023 Half Year Results John Cerini – CEO & Managing Director Domenic Romanelli - CFO 24 February 2023 Pinakin Lamination Operator
Slide 2: Important Information
Important Information This Presentation contains the summary information about the current activities of Pro-Pac Any forecasts or other forward-looking statements contained in this Presentation are subject to Packaging Limited and its controlled entities (Pro-Pac Packaging or the Group). It should b
Slide 3: • High valued added laminated and printed films for the FMCG market • Stretch
• High valued added laminated and printed films for the FMCG market • Stretch & shrink wrap, agriculture silage packaging, fresh produce bags, barrier and lidding films, industrial protective films • Bespoke flexible packaging solutions specifically tailored for the industrial, food s and beverage,
Slide 4: Safety Performance
Safety Performance Safety Update • TRIFR at 13.70 (FY22: 10.81) • LTIFR at 9.67 (FY22: 7.63) • LTI’s reduced by 30% to 7 for 1H23 (2H22: 10) • Decline in performance for the trailing 12 months impacted by site consolidation in prior year with many new employees • Focus on an improved safety culture
Slide 5: Strategy
Strategy • Pro-Pac’s strategy is to drive profitable revenue growth and improve operational efficiencies across its Australian and New Zealand facilities. • Utilise recently invested capacity to drive business development and sales for new and existing customers through improved service delivery • T
Slide 6: Group Financial Results
Group Financial Results PPG Grapevine covers
Slide 7: Group Financial Performance
Group Financial Performance Continuing Operations Financial Performance A$ million 1H23 1H22 Change Results Headlines Statutory results: Revenue 183.3 187.1 (3.8) • Revenue from continuing operations of $183.3 million a 2.0% decrease Profit/(loss) after tax (4.9) (3.4) (1.5) from 1H22 reflecting the
Slide 8: Balance Sheet
Balance Sheet Balance Sheet Results • Working capital increased by $12.3 million during the half-year: Balance Sheet o Receivables – decrease of $5.0 million; o Inventories – decrease of $5.0 million with inventory optimisation; A$ million DEC-22 JUN-22 Change o Trade payables – decrease of $23.0 mi
Slide 9: Cashflow
Cashflow Cash Management Cashflow Results A$ millions 1H23 1H22 Change Net cash flows from operating activities (15.5) (15.0) (0.5) • Cash flows from operating activities were an outflow of $15.5 million which was predominantly due to the significant reduction in trade Net cash flows from investing
Slide 10: Operating segment performance
Operating segment performance Steve Conversion Team Leader Pro-Pac Packaging Limited Half Year Results 1H23 10
Slide 11: Flexibles Packaging
Flexibles Packaging A$ million 1H23 1H22 Change Results Headlines Revenue 143.4 144.9 (1.0%) • Revenue decreased by 1.0% to $143.4 million (2021: $144.9 million) EBITDA pre-AASB 16 0.0 6.0 (100%) reflecting the impact of site consolidation and a focused transition towards EBITT (2.9) 4.2 >(100)% mor
Slide 12: Industrial Distribution
Industrial Distribution A$ millions 1H23 1H22 Change Results Headlines Revenue 39.9 42.2 (5.5%) EBITDA pre-AASB 16 0.6 (0.6) >100% • Revenue decreased by 5.5% to $39.9 million (2021: $42.2 million) as a EBIT 0.6 (0.9) >100% result of product rationalisation to better align with targeted market segme
Slide 13: Outlook
Outlook Duracomp Donald Yards
Slide 14: FY23 Outlook
FY23 Outlook • The trading environment remains volatile, however we continue with the process of restoring customer confidence through better service delivery and improving the sell cost imbalance in the Flexibles segment. • As indicated at the AGM we had begun a process to reduce costs and can repo
Slide 15: Appendices
Juan Engineer Appendices Pro-Pac Packaging Limited Half Year Results 1H23 15
Slide 16: Reconciliations – Continuing operations
Reconciliations – Continuing operations The impact on the profit or loss for Continuing Operations for 1H23 is shown in the table below: 1H23 1H22 Antonio Pre- Adopt Post- Pre- Adopt Post- Printer Assistant A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Revenue from contracts with custo
Slide 17: Reconciliations – Group
Reconciliations – Group The impact on the profit or loss for the Group (continuing and discontinued) for 1H23 is shown in the table below: 1H23 1H22 Pre- Adopt Post- Pre- Adopt Post- Mona A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Machine Operator Extrusion Revenue from contracts wi
Slide 18: Reconciliations – Continuing operations
Reconciliations – Continuing operations Reconciliation to EBIT* & EBITDA* for Continuing Operations 1H23 1H22 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Profit/(loss) before tax (6.4) (0.2) (6.5) (4.5) (0.4) (4.9) Add: significant items 0.3 - 0.3 4.
Slide 19: Reconciliations – Group
Reconciliations – Group Reconciliation to EBIT* & EBITDA* for the Group Abdul 1H23 1H22 Senior Printer Pre- Adopt Post- Pre- Adopt Post- Abdul A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Senior Printer Profit/(loss) before tax (7.4) (0.2) (7.6) 0.8 (0.6) 0.2 Add: significant items 1.
Slide 20: Reconciliations – Continuing operations
Reconciliations – Continuing operations Reconciliation to Operating Cash Flow* for Continuing Operations 1H23 2H22 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Net cash flows from operating activities (19.8) 3.8 (16.0) (18.3) 3.9 (14.4) Add: income ta
Slide 21: Reconciliations – Group
Reconciliations – Group Reconciliation to Operating Cash Flow* for the Group 1H23 1H22 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Net cash flows from operating activities (19.3) 3.8 (15.5) (19.8) 4.8 (15.0) Add: income tax paid 0.1 - 0.1 0.9 - 0.9 A
Slide 22: Reconciliations
Reconciliations Reconciliation to net debt leverage ratio* for Continuing Operations DEC-22 JUN-22 A$ millions LTM EBITDA* (Post AASB 16) 4.5 15.9 Less: Adjustment for AASB 16 Leases (10.3) (10.4) LTM Adjusted EBITDA* (pre-AASB 16) (5.8) 5.5 Borrowings 19.5 25.0 Less: cash and cash equivalents (3.1)
Slide 23: Reconciliations – Continuing operations
Reconciliations – Continuing operations Reconciliation of Significant Items* for Continuing Operations 1H23 1H22 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Site consolidation and exit costs 0.3 - 0.3 1.2 - 1.2 Acquisition and integration costs - - -
Slide 24: Reconciliations – Group
Reconciliations – Group Reconciliation of Significant Items* for the Group 1H23 2H22 Pre- Adopt Post- Pre- Adopt Post- A$ millions AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 AASB 16 Site consolidation and exit costs 1.3 - 1.3 1.2 - 1.2 Acquisition and integration costs - - - 2.7 - 2.7 Business interrup
Slide 25: 1H23 vs 2H22 - Continuing operations
1H23 vs 2H22 - Continuing operations Continuing Operations Financial Performance A$ million 1H23 2H22 Change Statutory results: Revenue 183.3 173.4 9.9 Profit/(loss) after tax (4.9) (36.4) 31.5 Operating results: EBITDA pre-AASB 16 (0.8) (5.0) 4.2 EBIT (3.7) (7.8) 4.1 PBT* (6.2) (11.3) 4.1 PBT Margi
Slide 26: Definitions of Non-IFRS Financial Measures
Definitions of Non-IFRS Financial Measures Unless otherwise stated in this presentation, all metrics are disclosed post-AASB 16 1H22 means the half year (6 months) ended 31 December 2021 1H23 means the half year (6 months) ended 31 December 2022 Adjusted EBITDA means EBITDA before AASB 16 Leases for
Slide 27: For further information please contact
For further information please contact: Investors: John Cerini Chief Executive Officer & Managing Director Email: investors@ppgaust.com.au Tel: +61 3 9474 4222 Domenic Romanelli Chief Financial Officer Email: investors@ppgaust.com.au Tel: +61 3 9474 4222
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