Gusbourne PLC · OTC:SLLFF
Gusbourne — FY2022 Earnings Presentation
38 slides from Gusbourne's earnings presentation, June 2023
Slide 1: A year of strong revenue growth underpinned by further strategic progress
A year of strong revenue growth underpinned by further strategic progress FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022 GUSBOURNE 2023
Slide 2: Our vision: England's finest and most celebrated wines
“Our vision is simple. Through craftsmanship, respect for nature and uncompromising attention to detail we strive to create England’s finest and most celebrated wines.” Charlie Holland Chief Executive Officer GUSBOURNE 2023 22
Slide 3: Agenda
Agenda • CEO: Highlights and Strategy Update • CFO: Financial Review • CEO: Conclusions and Outlook GUSBOURNE 2023 3
Slide 4: Highlights and Strategy Update
01 HIGHLIGHTS AND STRATEGY UPDATE GUSBOURNE 2023
Slide 5: 2022 Summary: Continued Strong Progress
2022 Summary: Continued Strong Progress FINANCIAL HIGHLIGHTS • Net revenue up by 49% (2021: 95%) to c. £6.2m reflecting continued robust sales growth across all channels • Gross margin improved to 59.2% (2021: 55.9%) OPERATIONAL HIGHLIGHTS • Purchase of 55 hectares of new land bringing total freehol
Slide 6: The English wine market
The English wine market PRODUCT SPLIT BOTTLES SOLD PLANTING 65% Sparkling 9m+ in 2022* +70% in the 35% Still last 5 years *Company estimate, source Wine GB GUSBOURNE 2023
Slide 7: Strategic Priorities
Strategic Priorities • Growth and development of Gusbourne luxury brand status • Develop strong direct relationships with customers • Careful expansion of international distribution GUSBOURNE 2023
Slide 8: Significant Increase In Land, Underpinning Future Growth
Significant Increase In Land, Underpinning Future Growth 160 • 93 hectares of mature vineyards planted at Gusbourne in their sites 140 in Kent and West Sussex 120 • In 2022 the company purchased a PLANTED HECTARES further 55 hectares of new land in Kent 100 • Gusbourne plans to plant an additional 8
Slide 9: Ongoing Enhancement Of Product Range
Ongoing Enhancement Of Product Range FIFTY ONE DEGREES NORTH £195 RRP SINGLE VINEYARD RANGE £89 RRP ENGLISH ROSÉ £25 RRP Launched in September 2022 Launched in June 2023 Launched in April 2023 Created to represent the pinnacle of English winemaking A series of exceptional and expressive single A sin
Slide 10: Pricing Over Time
Pricing Over Time • We use price as a differentiator and aim for our RRPs to be the highest in the category, to establish our premium marketing leading positioning • Introducing new products enhances our brand proposition and suitable line extensions fill gaps in Brand A our range. We very rarely in
Slide 11: Most Successful Awards
Most Successful Awards • • Nearly 350 awards at International wine competitions Served at Buckingham Palace , Sandringham, Highgrove and Windsor Castle for Royal events and state banquets 40 medals won in • Exclusive partner for The Royal Collection Platinum 2022 international Jubilee and Coronation
Slide 12: Strong Growth Across All Sales Channels
Strong Growth Across All Sales Channels UK INTERNATIONAL DIRECT TO CONSUMER (DTC) DTC net revenue grew by over 20% International sales grew by over 75% to £1.7m driven by online sales and cellar door UK Trade sales grew by over 55% to £3.0m, as to £1.4m and accounted for 22% of total net operations
Slide 13: Sustained DTC Growth - Online
Sustained DTC Growth ONLINE Ongoing investment in digital marketing through the creation of rich and engaging content, compelling wine offers and new and exciting product releases Digital activities focussed on building our presence to increase volume of sessions and purchases Digital developments w
Slide 14: Sustained DTC Growth - The Nest
Sustained DTC Growth THE NEST Gusbourne welcomed just under 14,000 visitors to The Nest in 2022, Gusbourne’s cellar door operation in Kent Our average visitor buys 1 bottle of wine each at an average price per bottle which grew 27% compared to 2021 We have a broader range of experiences available, w
Slide 15: Sales Growth and Client Concentration
Sales Growth Client Concentration Recently appointed Sales Director joined to develop UK trade account type UK trade account type and execute dynamic sales growth strategy (as % of client base) by revenue % New Corporate Sales team recruited to focus on corporate events, entertaining and gifting (no
Slide 16: International Expansion
International Expansion NORTH AMERICA Strong growth driven by expansion of key state/city strategy Introduction of market manager planned to drive further growth Move to direct import model when critical volumes reached SCANDINAVIA Norway now Gusbourne’s most significant market, consolidated by secu
Slide 17: Financial Review
02 FINANCIAL REVIEW GUSBOURNE 2023
Slide 18: Revenue Growth
Revenue Growth • Strong revenue growth across all segments • Volume growth reflecting expanded supply from land expansion 2013-2015 • Regular RRP price increases passed through GUSBOURNE 2023 18
Slide 19: P&L Summary
P&L Summary • Adjusted EBITDA - loss from operations before fair value movement in biological produce, exceptional costs, interest, tax, depreciation and amortization. Exceptional costs comprise abortive capital expenditure • EBITDA - loss from operations before interest, tax, depreciation and amort
Slide 20: Key Cash Flow Movements
Key Cash Flow Movements • Working capital investment mainly inventory to support long-term growth • Capex – additional land and planting • Increased net debt supported by PNC facility GUSBOURNE 2023 20
Slide 21: Key Balance Sheet Items
Key Balance Sheet Items • Fixed Assets – £2.5m investment in 55 hectares of new land bringing total freehold land to 296 hectares, most of new land will be planted in 2023/2024 • Inventories – Excellent harvest converted to stock • Financing – additional financing secured – new PNC facility increase
Slide 22: Guidance/targets for 2023
Guidance/targets for 2023 REVENUE +25% EBITDA CLOSE TO BREAKEVEN CAPEX £1M GUSBOURNE 2023 22
Slide 23: Conclusions and Outlook
03 CONCLUSIONS AND OUTLOOK GUSBOURNE 2023
Slide 24: 2022: Great Progress
2022: Great Progress FINANCIAL HIGHLIGHTS • Sustained YOY revenue growth across all channels • Gross margin up 330 basis points due to improvement in price/mix OPERATIONAL HIGHLIGHTS • Exceptional harvest resulting in wines of excellent quality • Further land acquisition to support long-term growth
Slide 25: 2023: Another Exciting Year Ahead
2023: Another Exciting Year Ahead KEY FINANCIAL PRIORITIES • Continue revenue growth through increased volume and improvements in price and mix • Approach EBITDA breakeven point KEY OPERATIONAL PRIORITIES • Introduction of a suite of new and exciting wines to further develop the portfolio, enhance t
Slide 26: Appendix
04 APPENDIX GUSBOURNE 2023
Slide 27: Consolidated P&L – 5 year summary
Consolidated P&L – Years ended 31 December – 5 year summary ** Excluding depreciation *** Adjusted EBITDA means loss from operations before fair value movement in biological produce, interest, tax, depreciation and amortization **** Exceptional costs comprise abortive capital expenditure ***** EBITD
Slide 28: Consolidated Balance Sheet – 5 year summary
Consolidated Balance Sheet – Years ended 31 December – 5 year summary * Net of trade and other payables ** per IFRS 16 GUSBOURNE 2023 28
Slide 29: Consolidated Cash Flow – 5 year summary
Consolidated Cash Flow – Years ended 31 December – 5 year summary GUSBOURNE 2023 29
Slide 30: Our Classic Sparkling Wines
OUR CLASSIC SPARKLING WINES VINTAGE ENGLISH SPA R KL ING WINE BRUT RESERVE - £45 BRUT ROSÉ - £55 BLANC DE BLANCS - £65 BLANC DE NOIRS - £65 This classic blend of Chardonnay, Comprised of a blend of Chardonnay, Pinot Noir Receiving extensive ageing in bottle, this 100% Characteristically deep and com
Slide 31: Our Limited-Edition Sparkling Wines
OUR LIMITED-EDITION SPARKLING WINES VINTAGE VINTAGE ENGLISH ENGLISH SPA R KL IN SPA R KL IN G WINE G WINE BLANC DE BLANCS SINGLE BLANC DE NOIRS BLANC DE BLANCS SINGLE BLANC DE MEUNIERS SINGLE VINEYARD - £89 SINGLE VINEYARD - £89 VINEYARD - £89 VINEYARD - £89 Our single-vineyard Blanc de Blancs Our s
Slide 32: Our Limited-Edition Sparkling Wines
OUR LIMITED-EDITION SPARKLING WINES BLANC DE BLANCS OAK BARREL BRUT RESERVE BLANC DE BLANCS LATE FIFTY ONE DEGREES NORTH - £195 AGED - £79 LATE DISGORGED - £99 DISGORGED AND CORK AGED - £99 32 Our Oak Barrel Aged Blanc de Blancs is a one- In exceptional years we hold In exceptional years we hold Our
Slide 33: Our Retail and Partnership Sparkling Wines
OUR RETAIL AND PARTNERSHIP SPARKLING WINES EXCLUSIVE RELEASE - £39.99 EXCLUSIVE RELEASE ROSÉ - £44.99 LIMITED RELEASE THE ROYAL COLLECTION 33 A classic blend of Chardonnay, A classic blend of Chardonnay, A classic blend of Chardonnay, Our current partnerships include providing wine Pinot Noir and Pi
Slide 34: Our Still Wines
OUR STILL WINES ENGLISH ROSÉ - £25 PINOT MEUNIER - £25 CHARDONNAY RS180 - £35 CHARDONNAY WILD FERMENT - £35 A singe-vineyard Rosé made from Pinot Noir A single-vineyard Pinot A half-bottle pudding wine made using A single-vineyard Chardonnay from Commanders 34 and Pinot Meunier from Cherry Garden Me
Slide 35: Our Still Wines
OUR STILL WINES CHARDONNAY GUINEVERE - £35 PINOT NOIR - £35 CHARDONNAY BARREL SELECTION - £55 PINOT NOIR BARREL SELECTION - £55 Our single-vineyard, barrel Our single-vineyard, barrel Carefully identified barrels of our Carefully identified barrels of 35 fermented Chardonnay from fermented Pinot Noi
Slide 36: Planting & Production Hectarage & Plantings
Planting & Production Hectarage & Plantings GUSBOURNE 2023 36
Slide 37: Gusbourne 2023
GUSBOURNE 2023 37
Slide 38: Gusbourne
GUSBOURNE