Ig Design Group Plc · LSE:IGR
Ig Design — HY2025 Earnings Presentation
18 slides from Ig Design's earnings presentation, Nov 26, 2024
Slide 1: Half Year Results
2025 Half Year Results Paul Bal (CEO) & Rohan Cummings (CFO) 26 November 2024
Slide 2: HY2025 Highlights
HY2025 Highlights HY2025 Results Strategy FY2025 Outlook ● Revenue declined 11%, driven ● New business gains more ● The economic backdrop by previously communicated than offset by market remains fragile in certain trends challenges markets, especially the US ● A competitive US retail ● Transformatio
Slide 3: HY2025 Financial Summary
HY2025 Financial Summary Revenue ($m) Adjusted Operating Profit ($m) Adjusted EBITDA ($m) 521.2 53.3 38.2 483.9 47.2 46.8 434.6 444.1 8.6% 30.0 30.5 40.2 393.1 12.0% 6.9% 10.9% 22.6 28.4 5.9% 9.0% 8.3% 14.7 7.2% 4.7% 3.7% HY2021 HY2022 HY2023 HY2024 HY2025 HY2021 HY2022 HY2023 HY2024 HY2025 HY2021 H
Slide 4: Category Performance
Category Performance Revenue by product HY2025 HY2024 category Revenue by season HY2025 HY2024 Gift packaging 45% $178.3m 44% $197.5m Christmas 50% $196.4m 50% $223.3m Party 11% $45.4m 13% $57.7m Minor seasons 4% $17.2m 4% $19.2m Goods not for resale 7% $27.4m 7% $30.1m Everyday 46% $179.5m 46% $201
Slide 5: DG Americas Update
DG Americas Update Commercial • 14% revenue decline • Continuation of trends previously communicated • Customers forecasting lower consumer demand and reducing order quantities • Possible impact of recent presidential elections • Impacts all categories, but especially the more discretionary e.g. par
Slide 6: DG International Update
DG International Update Commercial • 6% revenue decline, but some timing hit with some sales delayed into H2 • Continued growth in continental Europe more than offset by decline in the UK and Australia – consumer sentiment driven • Decline in more discretionary categories e.g. Party • Growth in Home
Slide 7: Group Revenue
Group Revenue Revenue DG Americas HY2025 $m 241.8 HY2024 $m 282.4 Growth % (14%) DG International 151.3 161.7 (6%) Elims / Central costs - - - Total 393.1 444.1 (11%) DG Americas DG International • Reported revenue was down 11%, driven by both DG Americas and DG International • DG Americas revenue d
Slide 8: Adjusted Operating Profit
Adjusted Operating Profit Adjusted operating Profit/(Loss) HY2025 $m HY2024 $m Growth % DG Americas 1.7 16.6 (90%) DG International 16.9 25.3 (33%) Elims / Central costs (3.9) (3.7) - Total 14.7 38.2 (62%) 8.6% Adjusted Operating Margin 3.7% • Group adjusted operating profit was down $23.5m (62%) wi
Slide 9: Profit & Loss
Profit & Loss Adjusted Reported HY2025 HY2024 Change HY2025 HY2024 $m $m $m $m Revenue HY2025 HY2024 Growth Revenue 393.1 444.1 (11%) 393.1 444.1 $m $m % Gross profit 67.3 93.4 (28%) 65.1 93.0 DG Americas 241.8 282.4 (14%) DG International 151.3 161.7 (6%) Gross margin 17.1% 21.0% (390bps) 16.6% 20.
Slide 10: Cash Flow
Cash Flow HY2025 HY2024 Working capital analysis $m $m HY2025 HY2024 Adjusted EBITDA 28.4 53.3 $m $m Receivables (125.4) (163.3) Add back for share based payment charge 0.7 0.6 Inventory (48.3) (14.6) Movements in working capital (96.2) (99.5) Creditors 77.5 78.4 Adjusted cash used by operations (67
Slide 11: Enabling us to win together
The Strategy: Enabling us to win together By being the partner of choice that is: 11. 11 IG DESIGN GROUP PLC 2025 HALF YEAR RESULTS PRESENTATION
Slide 12: Strategic activities in HY2025
Strategic activities in HY2025 Strategic Adaptive Dependable Strong Collaborative Informed Purposeful Design-led Resilient supply Talent-rich Open-minded Data-driven chain • Clearer, consistent • Secured further • Strengthening the • Roll-out of a • DG UK ERP upgrade • Investigating further Commerci
Slide 13: Summary and Outlook
Summary and Outlook Summary ● Revenue decline driven by previously communicated trends ● A competitive US retail environment with subdued consumer sentiment and some retailers in distress ● Profits impacted by lower revenue coupled with material ongoing cost headwinds, especially freight ● Initiativ
Slide 14: APPENDIX
APPENDIX IG DESIGN GROUP PLC [PRESENTATION TITLE HERE] 14 14. IG DESIGN GROUP PLC 2025 HALF YEAR RESULTS PRESENTATION
Slide 15: Our Strengths
Our Strengths Revenue by Top 20 Customers Top 20 Customers Other Customers Relationships - with the biggest global retailers 70% 30% HY2024: 67% HY2024: 33% • Consistently serving household names through recent global challenges: Covid-19, supply-chain disruption and the current “cost of living cris
Slide 16: Financing
Financing Facilities: Facility size ABL: Up to $125m depending on US receivables availability UK Overdraft: £8.5m (c. $10.6m) Tenure: June 2026 Accordion $35m available Pricing: SOFR plus bank margin ranging from 1.85% to 2.35% (including credit spread adjustment), depending on excess liquidity Curr
Slide 17: Largest Shareholders
Largest Shareholders* Hedlund Family Canaccord WM Octopus Fidelity 23.31% 14.19% 10.87% 10.00% Rowan Interactive Employee Close Dartington Investor (EO) Benefit Trust Brothers 3.14% 3.13% 3.08% 2.56% *Information taken from Equiniti Share Register Analysis 31 October 2024 17. IG DESIGN GROUP PLC 202
Slide 18: Working Better Together
Working Better Together The Group’s Values: The Group’s Purpose: • A passion for creativity, Making Moments Special excellence and innovation The Group’s Vision: • People with integrity and ethics There when you create and celebrate working together your special moments • Delivery at pace with a The