Prestal Holdings Limited · ASX:PTL
Prestal — Pental — FY2015 Earnings Presentation
24 slides from Prestal's earnings presentation, Aug 24, 2015
Slide 1: Driving Growth - FY15 Investor Presentation
For personal use only DRIVING GROWTH FY15 INVESTOR PRESENTATION YEAR ENDED 28 JUNE 2015 Charlie McLeish – Chief Executive Officer Albert Zago – Chief Financial Officer
Slide 2: Strategic Achievements
STRATEGIC ACHIEVEMENTS For personal use only Gross branded sales in White King advertising Australia GREW 5.7% campaign SUCCESSFULLY & tactically defended its strengthened Pental’s Refresh of manufacturing team has position in New Zealand CORE BRAND delivered significant improvement in its operation
Slide 3: Strategic Achievements Cont.
STRATEGIC ACHIEVEMENTS CONT. For personal use only Share Continuous consolidation 1 Improvement and share for every Underlying Profit Delivery Project initiatives 15 Shares was Profit Before mitigated many of the raw material cost completed on 1 December 2014 Tax up 15.6% increases on LY Total divid
Slide 4: Building Stronger Business
BUILDING STRONGER BUSINESS FY12 FY13 FY14 FY15 2016 AND ONWARDS For personal use only RESTRUCTURE BUILDING EXPANDING Relocation of bleach Key bleach $5.3m of capital • Drive “Power” Brands plant and products previously projects announced • Asia & bulk channels Restructured commenced outsourced broug
Slide 5: Financial Headlines
FINANCIAL HEADLINES For personal use only $’000 FY15 FY14 Change % KEY POINTS • Australian Brands sales up 5.7% • New Zealand sales down 0.65%, Gross Sales 111,150 109,376 1,774 1.6% impacted by aggressive pricing, but tactically defended Underlying 10,287 9,690 597 6.2% • Pressure to increase trade
Slide 6: Underlying Net Profit Before Tax Up 15.6%
UNDERLYING NET PROFIT BEFORE TAX UP 15.6% For personal use only Trade spend at 27.0% of Gross Freight & Dist. Sales up 0.78% Net change on LY: 8.54% of Gross • FX (currency) $0.3m on LY Sales up 0.5%. • Water treatment & 20% increase in Marketing 3.55% occupancy $0.2m pallet volume of Gross Sales •
Slide 7: Brand Highlights
BRAND HIGHLIGHTS For personal use only White King Brand TV commercial ran from October to December 2014. The White King TV campaign produced a noticeable increase in the sale of featured products: 3.1%* increase 8%* increase in White King in White King Toilet Cleaners Household Cleaners *Source: Azt
Slide 8: Investing in Key Brands
INVESTING IN KEY BRANDS For personal use only White King Community partnership with Western Bulldogs White King Brand Pental is the official sponsor TV Commercial of the Prostate Cancer ran from October Foundation Australia Big Aussie Barbie event - to be - December 2014 communicated on our Little L
Slide 9: 2015 New Products
2015 NEW PRODUCTS For personal use only Moving into high volume, high growth segments... DRIVING GROWTH - FY15 INVESTOR PRESENTATION I 09
Slide 10: Marketing Strategy
MARKETING STRATEGY For personal use only COMMUNICATION STRATEGY Building category INNOVATION strategy to deliver 3 Year innovation growth with our pipeline focused on delivering brand and Power Brands category growth Tailoring products for new markets and channels Investing in marketing Investment i
Slide 11: Digital Strategy
DIGITAL STRAGTGEY “IT’S A DIGITAL WORLD” For personal use only OUR OBJECTIVE • Drive brand awareness • Increase Sales • Talk to Customers Directly • Increase Customer Retention • Increase Margin DRIVING GROWTH - FY15 INVESTOR PRESENTATION I 11
Slide 12: How We Will Achieve This
HOW WE WILL ACHIEVE THIS For personal use only BUILD A 18 MONTH DIGITAL STRATEGY ONLINE ONLINE WEBSITE APP STORE ADVERTISING CHARITY FACTS SOCIAL MEDIA FEEDS PRODUCTS WELL HEALTH COMMUNICATIONS - BEING SHOP LIFESTYLE TIPS FORUMS DRIVING GROWTH - FY15 INVESTOR PRESENTATION I 12
Slide 13: Transformation Continues
TRANSFORMATION CONTINUES For personal use only CULTURAL CHANGE IMPROVING PRODUCTIVITY Disciplines around production floor meetings Team approach winning together RESTORE BASIC Site CONDITIONS communication Improve systems & measurement STEP will drive better decision making CHANGE LOW - Safety Conti
Slide 14: Build & Deliver Best in Class
BUILD & DELIVER “ BEST IN CLASS” For personal use only BECOMING A LOW COST PRODUCER Improve speed *Line A new bottle Bleach Plant and capacity of filler and Line B back end automation to – relocation & upgrade Bleach Line B – improved efficiency completed in FY14 completed August & reduce trade 14 w
Slide 15: Delivering on Major Capital Projects
DELIVERING ON MAJOR CAPITAL PROJECTS BEFORE: BLEACH For personal use only LINE B PRODUCTION • Throughput rate of 50 bottles per minute • Labour intensive, manual handling & process bottleneck AFTER: AUTOMATED SOLUTION (Wrap around case packer, robotic palletiser & stretch wrapper) • Reduction of 3.5
Slide 16: Driving Growth Strategy
DRIVING GROWTH STRATEGY For personal use only 1 2 5 CREATE A OPTIMISE DRIVE SOLID PLATFORM VALUE GROWTH YEAR ON FOR GROWTH: FROM THE CURRENT YEAR REAL PORTFOLIO: Nail the basics: Safety, People PRODUCTIVITY Engagement, Environment , Quality & customer Service Focus on and over invest in Growth SAVIN
Slide 17: Drive Growth Through
DRIVE GROWTH THROUGH: For personal use only INDUSTRIAL NEW PRODUCT & COMMERCIAL DEVELOPMENT • Distributors • White King EXPORT • Office supplies • Little Lucifer • Asia Pacific • Commercial • Velvet cleaning • Softly companies • Janola (NZ) • Defence dept. • Sunlight (NZ) DRIVING GROWTH - FY15 INVES
Slide 18: Outlook
OUTLOOK For personal use only Consistent trading conditions anticipated – highly competitive Private label continues to be an important growth channel, but as with brand products, we will compete on value rather than price alone Growth opportunities driven via multiple paths: • Expanding existing ch
Slide 19: Appendix: Financial Performance
For personal use only APPENDIX FINANCIAL PERFORMANCE DRIVING GROWTH - FY15 INVESTOR PRESENTATION I 19
Slide 20: Delivering Growth
DELIVERING GROWTH For personal use only GROSS SALES UNDERLYING EBIT UNDERLYING EBITDA UNDERLYING NET PROFIT BEFORE TAX DRIVING GROWTH - FY15 INVESTOR PRESENTATION I 20
Slide 21: Profit & Loss
PROFIT & LOSS For personal use only $’000 FY 15 FY 14 % Change KEY POINTS Gross Sales 111,150 109,376 1.6% Sales Trade rebates and discounts (29,987) (28,654) -4.7% • Australian brand sales up $5.7% Net Sales 81,163 80,722 0.5% • New Zealand down 0.65% - aggressive pricing campaign aimed Gross margi
Slide 22: Balance Sheet
BALANCE SHEET For personal use only $’000 FY 15 FY 14 $’000 FY 15 FY 14 Trade & other receivables 24,118 24,726 Net Assets 81,734 73,015 Inventories 7,400 8,945 Net Cash/(Debt) 11,040 25 Trade & other payables (15,371) (15,103) Working Capital 16,147 18,568 Working Capital 16,147 18,568 Property, Pl
Slide 23: Cash Flow
CASH FLOW For personal use only $’000 FY 15 FY 14 % Change $’000 FY 15 FY 14 KEY POINTS Gross Sales 111,150 109,376 1.6% Trade rebates and discounts (29,987) (28,654) -4.7% Cash in flow from Net Sales activities 11,810 81,163 80,722 6,991 0.5% operating Strong cash profit Gross margin (incl. trade N
Slide 24: Disclaimer
DISCLAIMER For personal use only The material in this presentation is a summary of the results of Pental Limited (Pental) for the year (52 weeks) ended 28 June 2015 and an update on Pental’s activities and is current at the date of preparation, 24 August 2015. Further details are provided in the Com