Delegat Group Limited · NZX:DGL
Delegat — H1 FY2023 Earnings Presentation
15 slides from Delegat's earnings presentation, Feb 24, 2023
Slide 1: Half-Year Results
31 DECEMBER 2022 HALF-YEAR RESULTS
Slide 2: Record Global Case Sales
RECORD GLOBAL CASE SALES “Delegat Group has achieved record global case sales of 1,970,000 cases for the six months to 31 December 2022.” STEVEN CARDEN MANAGING DIRECTOR 2
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Record global case sales of 1,970,000, 4% higher than last year 18% sales growth in North American (USA and Canada) region Operating NPAT of $40.2 million Cash from Operations of $35.3 million 3
Slide 4: Case Sales and FX
CASE SALES AND FX % Change Case Sales (000's) Dec 2022 Dec 2021 vs 2021 UK, Ireland and Europe 559 626 ‐11% North America (USA and Canada) 1,028 874 18% Australia, NZ and Asia Pacific 383 393 ‐3% Total Cases 1,970 1,893 4% % Change Foreign Currency Rates Dec 2022 Dec 2021 vs 2021 GB£ 0.5200 0.5062 ‐
Slide 5: Sales Revenue Growth Analysis
SALES REVENUE GROWTH ANALYSIS December December % Change NZ$ millions 2022 Actual 2021 Actual vs 2021 Sales Revenue 197.1 175.9 12% Sales movements breakdown: Volume 4% Value 8% Foreign Exchange 4% Price 1% Country/Product Mix 3% 5
Slide 6: Operating Performance
OPERATING PERFORMANCE Dec 2022 Dec 2021 % Change NZ$ millions vs 2021 Sales Revenue 197.1 175.9 12% Operating Revenue 198.8 178.7 11% Operating Gross Profit 95.6 86.8 10% Operating Gross Margin 48% 49% Expenses (excl Promotion and Marketing) (26.9) (22.0) ‐22% Promotion and Marketing (6.5) (5.2) ‐25
Slide 7: Operating Profit Movement – Last Year
OPERATING PROFIT MOVEMENT – LAST YEAR NZ $millions 1. One off software-as-a-service implementation costs for new ERP system 2. Includes headcount increase, remuneration increases, and resumption of normal sales activities post Covid-19 disruptions 7
Slide 8: Impact of 'Fair Value' Adjustments
IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS Dec 2022 Dec 2021 % Change NZ$ millions vs 2021 Operating NPAT 40.2 39.5 2% Operating NPAT % of Revenue 20% 22% Biological Produce (Grapes) 1 (9.6) (7.1) 35% Derivative financial Instruments 10.4 3.2 n/m2 Total Fair Value Items 0.8 (3.9) n/m2 Taxation of NZ IFRS fa
Slide 9: Reported Profit Movement – Last Year
REPORTED PROFIT MOVEMENT – LAST YEAR NZ $millions 1. One off software-as-a-service implementation costs for new ERP system 2. Includes headcount increase, remuneration increases, and resumption of normal sales activities post Covid-19 disruptions 9
Slide 10: Balance Sheet Summary
—— EST 1947 —— DELEGAT BALANCE SHEET SUMMARY cane December 2022 December 2021 % Change NZS millions Actual Actual vs 2021 Assets Current Assets 271.2 243.1 12% Fixed Assets 735.9 664.7 11% Other Non-current Assets 2.9 0.7 n/m? Total Assets 1,010.0 908.5 11% Liabilities Current Liabilities 46.8 37.2
Slide 11: Net Debt Movement – June to Dec
NET DEBT MOVEMENT – JUNE 22 TO DEC 22 NZ $millions 11
Slide 12: Net Debt Overview
NET DEBT OVERVIEW December December % Change NZ$ millions 2022 Actual 2021 Actual vs 2021 Funding Operating Cash Flow 35.3 20.2 75% Net Debt 305.8 267.0 15% Key Ratios Operating Interest Cover 8.94 11.62 ‐23% Equity / (Equity + Net Debt) % 62.9% 63.8% ‐1% Senior Debt Ratio 2.68 2.41 ‐11% 12
Slide 13: Investing in Growth
INVESTING IN GROWTH During the year, the Group has invested in vineyard developments and winery expansion to provide for future earnings growth, including: $39.9 million purchase of the previously leased Dashwood vineyard in Marlborough. $30.8 million in new vineyard developments and winery expansio
Slide 14: Full Year Outlook
FULL YEAR OUTLOOK The Group is on target to achieve global case sales for the full year of 3,649,000, up 9% on last year. Based on prevailing exchange rates, the Group forecasts the 2023 Operating Profit guidance in the range of $59 million to $62 million. 14
Slide 15: Thank you
DELEGAT Thank you