Venture Life Group Plc · LSE:VLG
Venture Life — H1 2023 Earnings Presentation
29 slides from Venture Life's earnings presentation, September 2023
Slide 1: The partner of choice for self-care products
The partner [ of choice for self-care products Interim results 6 months to 30th June 2023 The partner of choice or September self-care 2023products enture Life Group plc [ nterim Results 2021 and update on Acquisitions ptember 2021
Slide 2: Financial overview
Financial overview* Group Revenue £’m Gross Profit £’m / % Adj. EBITDA1 £’m / % 5YR 25.0CAGR 23% 23.5 10.0 41% 5.0 20% 8.7 4.4 7.7 40% 18.9 20.0 8.0 39% 4.0 3.3 15% 13.7 13.9 38% 15.0 6.0 5.0 4.9 3.0 37% 9.4 1.9 10% 3.5 36% 1.6 10.0 4.0 2.0 35% 34% 0.8 5% 5.0 2.0 1.0 33% - - 32% 0.0 0% 2019 2020 202
Slide 3: Financial highlights – 6 months ended 30th June 2023
Financial highlights – 6 months ended 30th June 2023 • Group revenues of £23.5m, a growth of 24.5% over H1 2022, on a proforma1 basis revenue performance was 10.4% ahead of H1 2022 • Momentum from key brands (Balance Activ, Lift and growth from recently acquired Earol brand) • Strong growth from Cus
Slide 4: Financial Review
Conclusions Financial Review
Slide 5: H1 2023 Revenue analysis
H1 2023 Revenue analysis By Division £'m By Dept. (VLG Brands) £'m VLG Brands as % Total Pomi-TOther Gelclair 1% 4% Balance 7% Activ 22% 23.5 12.5 12.9 Earol 21.3 18% 18.9 10.1 7.8 8.1 6.7 12.5 12.9 10.6 10.1 4.7 4.8 8.8 8.8 3.4 Lift Footcare 18% European Retail International VLG Brands 6% Customer
Slide 6: Global challenges and mitigation strategies
Global challenges and mitigation strategies Key challenges: H1 2023 factors: • Raw material shortages / inflation – higher competing • Input costs – supplier increases have plateaued and demand and lower production due to energy prices, meaning there is more availability, inventory procured at infla
Slide 7: Cash generation and net debt reduction
Cash generation and net debt reduction 6.0 200% Net Cash / (Debt) £ 31 Dec 31 Dec 30 Jun 2023 5.0 180% million 2022 2023 (Cavendish) 160% 4.0 Gross debt (excl. (22.3) (19.0) (16.6) 140% finance leases) 3.0 4.8 120% 2.0 Cash 5.6 3.7 4.8 100% 2.6 1.0 1.8 Net Cash / (Debt) (16.7) (15.3) (11.7) 1.4 1.1
Slide 8: BBI Healthcare Limited – case study
BBI Healthcare Limited – case study • Acquired June 2021 – consideration • Strong synergistic opportunities – cost paid £35 million savings, manufacturing and cross selling – drivers of realised margin • Immediately earnings enhancing and highly cash generative • Opportunities for expansion (excess
Slide 9: VLG Brands
Conclusions VLG Brands
Slide 10: VLG Brands – key H1 themes
VLG Brands – key H1 themes • Focus on organic growth • Distribution gains UK, international penetration elsewhere • In market growth • Online expansion • New products developed and launched • Overall portfolio in growth – second half weighted, as usual • Women’s Health, Energy and Oncology Support d
Slide 11: UK and EU Retail – H1 Results, H2 plans
UK and EU Retail – H1 Results, H2 plans H1 2023 H2 2023 • Very berry shot • Soothing cream • Lemon shot • Moisture pessary • Raspberry chews • BV pessary • Orange chews • BV gel • Raspberry jar • Thrush Cream • Orange jar • Energy Boost Lemon • BV multipack • Energy Boost Raspberry • Intimate foam w
Slide 12: UK and EU Retail – Distribution opportunity
UK and EU Retail – Distribution opportunity High Street Grocery Discounters Pharmacy Online Amazon DTC Amazon DTC Amazon DTC Amazon DTC 12 % Current distribution % distribution gap Venture Life Group plc | Private & Confidential vs full distribution vs full distribution
Slide 13: New Product Development – in action
New Product Development – in action Lift Activ Energy Boost BABY EAROL Lift Your Game! A new metered dose ear spray for Fast acting glucose giving an immediate babies, made from a gentle blend of burst of energy, with the additional pharmaceutical-grade olive and mineral benefits from vitamins and m
Slide 14: New Product Development – in action
New Product Development – in action Balance Activ Thrush Balance Activ Intimate HerFlora Supplement Balance Activ Intimate Cream Daily Foam Wash Daily Wipes A complete multi-vitamin & With 3 benefits to help the Lightweight foam wash that minerals supplement with 4 Gyno-tested, pH-friendly, body fig
Slide 15: Future Opportunities for Venture Life
Future Opportunities for Venture Life Current Market Post Future Opportunity BV Partum Launching Q4 2023 Menopause Thrush Vaginal Cystisis Dryness Soothing Probiotics Cream Intimate Intimate Baby/Kids Pet Care - Wipes Wash Other Non Diabetes - Daily - Daily Protein Adult Nose Sports Baby/Kids Adult
Slide 16: UK and EU Retail – Key Brand H1 & H2 story
UK and EU Retail – Key Brand H1 & H2 story H1 '23 HIGHLIGHTS J Sainsbury’s launched 6 new Earol launched in Amazon in Dentyl Dual Action "half price" J Sainsbury’s launched 5 new Lift SKUs in their Wellness June 2023 promotions delivering strong SKUs in range range uplift Earol launched in Tesco Aug
Slide 17: International – Key Brand H1 & H2 story
International – Key Brand H1 & H2 story H1 '23 HIGHLIGHTS Product improvements from a Registration in Canada. Distribution Agreements signed regulatory and production (Armenia, Azerbaijan, Partner in Nordics achieves perspective. Anvisa’s approval obtained in Kazakhstan, Ukraine and further market p
Slide 18: H1 2023 Commercial Results Brand Commentary – Balance Activ
H1 2023 Commercial Results Brand Commentary 2023 Strategy: Brand Evolution, Drive brand awareness & Category Expansion 2.3m H1 reflection • Brand look and feel and product copy refreshed in line with consumer BV UK Market trends and brand position – reflected across socials and new optimised Size/gr
Slide 19: H1 2023 Commercial Results Brand Commentary – Lift
H1 H12023 2023Commercial CommercialResults Results Brand Commentary 2023 Strategy: Brand Evolution, Drive brand awareness and £11.2m Category Expansion Estimated FY GLUCOSE Market H1 reflection Size/growth % vs LY +17 % • Launch of Lift Activ Energy Boost with added vits & mins in Tesco. growth v LY
Slide 20: H1 2023 Commercial Results Brand Commentary – Earol
H1 2023 Commercial Results Brand Commentary 2023 Strategy: Brand refresh, retail distribution build UK H1 Reflection • New Earol packaging now available in stores ENT UK £26.7 m • New website and social media accounts launched with Market updated digital imagery available for Earol, EarolSwim and Si
Slide 21: H1 2023 Commercial Results Brand Commentary – Dentyl
H1 2023 Commercial Results Brand Commentary 2023 Strategy: Switch in competitors' user through communicating product efficacy and driving consumer WOM. £77.9 m MOUTHWASH H1 reflection • ‘It Works’ campaign launched in May to communicate the product Market +0.1 % efficacy, achieving > 5M impression.
Slide 22: H1 2023 Commercial Results Brand Commentary – Ultradex
H1 2023 Commercial Results Brand Commentary 2023 Strategy: Drive brand awareness among bad breath sufferers, recruit new user with dentist backed claims HALITOSIS £1.9 m H1 reflection • Sustaining brand awareness among dental professional through Market advertising in FMC network. Size/growth % vs L
Slide 23: Customer Brands
Conclusions Customer Brands 2 3
Slide 24: Customer Brands – NPD fuelling growth
Customer Brands – NPD fuelling growth • Strong growth of +20% over H1 2022 • Revenues of £10.6 million includes £1.2 million of new products developed in 2022 • Shows value of long term relationships in delivering revenue growth • New products developed for 10+ existing customers • Growth is broaden
Slide 25: Commercial strategy development – active channel expansion
Commercial strategy development – active channel expansion VLG Brands Customer Brands Private Label Totally owned by us Owned by customer Owned by customer Service Provider Service Provider Our Own Distribution in retail or Customer distribution in retail, Usually only own retail distributor online,
Slide 26: Sustainable Life – to be a Trusted, Responsible and Sustainable Business
Sustainable Life – to be a Trusted, Responsible and Sustainable Business 2023 targets: • Focus on Italian site: • B Corp • Carbon footprint • Net zero 2050 plan • LCA for 3 key brands • All on target for 2023 completion • 2024 focus on rest of the Group for the same 2023 achievement so far… • Ecovad
Slide 27: Financial Roadmap
Financial Roadmap 2027 (Medium term aspiration) Revenue circa £100m 2024 (Market consensus) Gross margin c.48-50% Revenue £55.0m EBITDA margin c.28- Gross margin 41.0% 30% EBITDA margin 23.9% 3yr revenue CAGR 22% 2yr revenue CAGR 12% VLG Brands revenue 75% 2022 (Actual) Net leverage 0.7x VLG Brands
Slide 28: H1 trajectory and outlook
H1 trajectory and outlook H1 Highlights H2 Outlook • Both VLG and Customer Brands in growth • Higher margin VLG Brands weighted much vs PY LFL with acquired businesses more to H2 growing • Additional customer price increases • Gross margin still weighed on by legacy effective from Q3 onwards higher
Slide 29: Key Contacts
Key Contacts Jerry Randall Daniel Wells Chief Executive Officer Chief Financial Officer T: +44 7990 502000 T: +44 7825 047800 E: jrandall@venture-life.com E: danielwells@venture-life.com