Wynnstay Group plc · LSE:WYN
Wynnstay — H1 2021 Earnings Presentation
27 slides from Wynnstay's earnings presentation, Jun 30, 2021
Slide 1: Wynnstay Group PLC Interim Results
WYNNSTAY GROUP PLC Supporting sustainable agriculture Interim Results For the six months to 30 April 2021 30 June 2021 1
Slide 2: Operational Highlights
Wynnstay Group plc Interim Results 2 Operational Highlights Record H1 profits Two strategic bolt-on Board & management acquisitions appointments - strong farmgate prices and sector - expanded footprint in - Commercial Sales and Marketing sentiment recovery (EU settlement eastern England Director to
Slide 3: H1 2021 Financial Key Points
Wynnstay Group plc Interim Results 3 H1 2021 Financial Key Points • Revenue up 9% to £249.71m (2020: £229.28m) Record underlying PBT − commodity price inflation estimated to account for c.65% of increase £5.53m − two acquisitions (completed in February and March) contributed combined £5.5m +23% • Ad
Slide 4: Financial Track Record
Wynnstay Group plc Interim Results 4 Financial Track Record Continuing Operations Revenue (£m) Gross profit (£m) 260.6 249.7 32.3 33.3 229.3 29.4 31.5 218.5 198.1 26.4 NEED NUMBERS 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Underlying PBT (continuing ops) (£m) EPS (p) 5.5 5.0 21.6 4.4 4.3 4.5
Slide 5: Income Statement
Wynnstay Group plc Interim Results 5 Income Statement Six months Six months Year ended ended ended £’000 30 April 2021 30 April 2020 31 Oct 2020 Revenue 249,709 229,288 431,398 Cost of sales (216,413) (197,781) (370,630) Gross profit 33,296 31,507 60,768 Net expenses (27,621) (26,726) (52,627) Adjus
Slide 6: Balance Sheet
Wynnstay Group plc Interim Results 6 £’000 At 30 April 2021 At 30 April 2020 At 31 October 2020 NON-CURRENT ASSETS Goodwill 14,417 14,968 14,367 Balance Sheet Investment property 2,372 2,372 2,372 Property, plant and 17,654 17,964 17,545 equipment Right of use asset 10,153 11,264 11,240 Investments
Slide 7: Net Cash Reconciliation
Wynnstay Group plc Interim Results 7 Net Cash Reconciliation Six months Six months Year ended ended ended £’000 30 Apr 2021 30 Apr 2020 31 Oct 2020 EBITDA before non-recurring items 8,570 7,584 14,147 Joint venture loans 24 (516) 524 Adjustment for pre-tax joint ventures - - (538) Working capital mo
Slide 8: Net Cash Bridges (£m)
Wynnstay Group plc Interim Results 8 Net Cash Bridges (£m) H1 2020 H1 2021 30.0 30.0 25.0 25.0 20.0 20.0 18.3 15.0 15.0 10.0 7.6 10.0 5.0 5.0 4.0 1.3 0.0 0.0 Oct-19 EBITDA Work cap Capex Divi Tax Net Other Apr-20 leasing
Slide 9: Net cash of £4.01m
Wynnstay Group plc Interim Results 9 Cash/(Net Debt) Cycle Net cash of £m 18.4 £4.01m* (30 Apr 2020: £1.28m) 7.6 6.5 6.2 4.2 4.0 4.0 *Excluding leases 1.7 1.3 (1.6) (4.6) (6.4) (6.4) (9.4) (11.2)
Slide 10: Segmental Contribution
Wynnstay Group plc Interim Results 10 Segmental Contribution 2021 Specialist Agricultural Merchanting Agriculture Division £68.88m Division H1 REVENUE H1 GROUP OPERATING PROFIT BEFORE NON-RECURRING ITEMS: £5.68M £249.71m £3.40m £2.20m £180.72m 2020 £62.83m H1 GROUP OPERATING PROFIT BEFORE NON-RECURR
Slide 11: Agriculture Division
Wynnstay Group plc Interim Results 11 AGRICULTURE DIVISION Feed, Arable and Glasson activities Revenue, £180.72m (2020: £166.41m) Operating profit contribution before non- recurring items, £2.20m (2020: £1.81m)
Slide 12: Feed
Wynnstay Group plc Interim Results 12 Feed 6TH LARGEST UK FEED PRODUCER • Feed sales benefited from improved farmgate prices and late spring • Manufactured feed volumes up 8.5% year-on-year • Continued expansion in free-range egg and dairy feed markets − new customers and increased tonnage • Managed
Slide 13: Arable
Wynnstay Group plc Interim Results 13 Arable • The anticipated consequences of the poor harvest of 2020 and carry-over of autumn seed from 2019 came through No 3 - CEREAL SEED PROCESSOR No 4 - GRASS SEED PROCESSOR - grain trading volumes at GrainLink were down 26% in line national trend but margins
Slide 14: Glasson
Wynnstay Group plc Interim Results 14 Glasson • Strong overall performance – above last year - increased volumes of feed raw materials - increased volumes of fertiliser - specialist animal feed volumes were lower - affected by coronavirus-related restrictions on certain product categories; game, bir
Slide 15: Specialist Agricultural Merchanting Division
Wynnstay Group plc Interim Results SPECIALIST AGRICULTURAL MERCHANTING DIVISION Wynnstay Depots and Youngs Animal Feeds Revenues, £68.88m (2020: £62.83m), Operating profit before non-recurring items contribution, £3.40m (2020: £3.02m)
Slide 16: Specialist Agricultural Merchanting
Wynnstay Group plc Interim Results 16 Specialist Agricultural Merchanting • H1 sales up 10% year-on-year reflecting: MARKET SHARE* • Silage sheets 16% − comparative period was affected by onset of first coronavirus lockdown • Animal health products 12% • Dairy hygiene 11% − strong demand for manufac
Slide 17: The Future and Outlook for FY 2021
Wynnstay Group plc Interim Results 17 THE FUTURE AND OUTLOOK FOR FY 2021
Slide 18: Growth Strategy
Wynnstay Group plc Interim Results 18 Growth Strategy Organic growth | Expert guidance | Multi-channel | Acquisitions | ESG • Reorganisation of senior management structure completed; supports growth plans • Build on position as ‘trusted advisor’ – teams of specialists across all sectors - we are the
Slide 19: Summary and Outlook
Wynnstay Group plc Interim Results 19 Summary and Outlook • Confidence has returned to the sector, helped by clarity over the future direction of UK agriculture with the landmark Agriculture Act and EU settlement GROUP STRENGTHS • Very experienced management • UK overseas trade deals offer farmers o
Slide 20: Supplementary Information
−Business overview Wynnstay Group plc Interim Results 20 −Geographic reach −ESG SUPPLEMENTARY INFORMATION −Acquisitions −Market trends
Slide 21: Business Overview
Wynnstay Group plc Interim Results 21 Business Overview Routes to Market AGRICULTURE SPECIALIST AGRICULTURAL c.70% of total revenues MERCHANTING– c.30% of total revenues Wynnstay Feed • Manufacture and supply of feeds Depots for farm livestock • Supply of raw feed materials for farmers and other man
Slide 22: Geographic Reach
Wynnstay Group plc Interim Results 22 Geographic Reach
Slide 23: Focus on ESG
Wynnstay Group plc Interim Results 23 Focus on ESG • Values − trusted adviser to farmers, supporting transition to sustainable farming methods and enhanced environment care • Incorporating ESG factors − sustainable supply chain − feed raw materials – soya − evolving products and production − methane
Slide 24: Acquisitions: 2011-2021
Wynnstay Group plc Interim Results 24 Acquisitions: 2011-2021 ARABLE FEEDS DEPOTS DATE ACQUISTION BUSINESS TYPE Fertiliser manufacturing business and assets (“HGBF”) Mar 2021 Blended-fertiliser manufacturer of HELM Great Britain Limited, Agricultural division of the Armstrong Richardson Feb 2021 Agr
Slide 25: Market Trends: Production & Consumption
Wynnstay Group plc Interim Results 25 Market Trends World wheat stocks1 Feed wheat – UK (£ per tonne)2 £230 900 350 Production & Consumption 800 £210 300 700 £190 Ending Stocks 250 (M Tons) (M Tons) 600 £170 500 200 £150 400 150 £130 300 100 £110 200 100 50 £90 £70 2000 2002 2004 2006 2008 2010 2012
Slide 26: Market Trends
Wynnstay Group plc Interim Results 26 Market Trends Monthly oil price ($ per barrel)1 90 80 70 60 50 40 30 20 10 0 Feed price (£ per tonne)2 Nitrogen fertiliser (£ per tonne)3 280 450 400 260 350 240 300 250 220 200 200 150 100 180 50 160 0 Sources: 1Agriculture and Horticulture Development Board, 2
Slide 27: Brexit and UK Agricultural Bill
Wynnstay Group plc Interim Results 27 Brexit and UK Agricultural Bill • Clarity provided with the EU Free Trade Agreement (“FTA”) - stimulus to investment, and UK food sector can seek new markets - FTA is a good outcome for sheep farmers and buoys beef, dairy and arable sectors • UK Agriculture Bill