Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2020 Earnings Presentation
27 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Jul 21, 2020
Slide 1: Half-Year Results 2020
Half-Year Results 2020
Slide 2: Agenda
Agenda • Responding to COVID-19 • Review Half-Year 2020 • Outlook • Q&A Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 2
Slide 3: Responding to COVID-19
Responding to COVID-19 Maître Chocolatier Suisse Depuis 1845
Slide 4: Responding to COVID-19
Responding to COVID-19 Combination of business-as-usual and special measures Protecting and supporting employees, globally and locally Remaining in control of day-to-day business Maximizing demand, minimizing costs, optimizing cash Continuing to invest in future growth and efficiency Frontline emplo
Slide 5: Business Impact of COVID-19
Business Impact of COVID-19 Managing short-term challenges while benefiting from long-term trends Sales Channels Categories Geographies Online, Wholesale Scandinavia, Russia, Germany, Tablets and Lindor France, US Wholesale: (Wholesale) (Lindt/Ghirardelli) Own Stores, Travel Retail, Foodservice, Uni
Slide 6: Looking to the Future
Looking to the Future Unchanged potential, renewed determination Future demand for Lindt & Sprüngli’s premium chocolate remains intact Unchanged focus on leader products, premiumization and growth markets Continued high investment in brands, innovation and expansion in 2020 Increased focus on online
Slide 7: Review Half-Year 2020
Review Half-Year 2020
Slide 8: Overview – Half-Year 2020
Overview – Half-Year 2020 Negative sales impacting all key metrics, masking underlying improvements Organic growth EBIT margin Net income margin Free cash flow Net debt position in % sales 15.1% 567 6.2% 7.2% 5.0% 423 10.2% HY 2019 HY 2020 1.3% 1.1% -8.1% 13.2% 13.2% HY 2019 HY 2020 HY 2019 HY 2020
Slide 9: Organic Sales Growth
Organic Sales Growth Exceptional negative result masking share gains and sales rebound in June Absolute in CHF million (as published) Growth rate in % (organic) 2 000 1 500 1,668 1,758 1,502 1,549 1,535 1 000 500 4.4% 3.6% 5.1% 6.2% -8.1% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentati
Slide 10: Reported Sales Growth
Reported Sales Growth Strong Swiss Franc again limiting reported growth Absolute in CHF million (as published) Growth rate in % (as published) 2 000 1 500 1,668 1,758 1,502 1,549 1,535 1 000 500 6.6% 3.1% 7.7% 5.4% -12.7% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître
Slide 11: Sales Analysis - Markets
Sales Analysis - Markets North America and Germany, #1 and #2 markets, increasing in overall importance Rest of the World CHF 198 million (-18.4%) North America CHF 551 million (-8.2%) 13.0% 4.1% NORTH AMERICA 35.9% GERMANY 4.4% Total Group sales CHF FRANCE 1.535 bn REST OF EUROPE 6.8% UK SWITZERLAN
Slide 12: Sales Analysis: Growth Drivers
Sales Analysis: Growth Drivers Only modest decline in volumes; COVID-related factors driving negative mix effect 0% Volume Price / Mix Organic Forex Sales in CHF -2% -1.4% -4% -6% -6.7% -8.1% -8% -10% -12% -4.6% -12.7% -14% Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2
Slide 13: Sales Analysis - Segment Information
Sales Analysis - Segment Information Modest growth in key markets Germany, France and US Wholesale (Lindt & Ghirardelli) Growth rate in % (organic) Absolute in CHF million (as published) Europe North America Rest of the World 8% 8% 10% 6% 6% 7.2% 5% 8.3% 4% 4% 5.0% 2% 2% 0% 0% 0% HY 2019 HY 2020 -5%
Slide 14: Materials Costs (incl. change in inventories)
Materials Costs (incl. change in inventories) Lower net sales per ton drives higher cost ratio Absolute in CHF million In % to sales 600 500 559 562 542 525 524 400 300 200 100 34.9% 33.8% 33.5% 32.0% 35.3% 00 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Su
Slide 15: Cocoa Price
Cocoa Price Price of cocoa bean futures slightly decreasing in H1 2020 (not including Living Income Differential) 2 150 2 050 Cocoa Beans Prices in GBP t 1 950 1 850 1 750 1 650 1 550 1 450 1 350 Liffe Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 15
Slide 16: Personnel Expenses
Personnel Expenses Absolute savings unable to match sales decline Absolute in CHF million In % to sales 600 400 443 464 416 422 394 200 26.2% 26.9% 26.6% 26.4% 27.5% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 16
Slide 17: Operating Expenses
Operating Expenses Slightly higher advertising investments, reduction in other costs – diseconomies of scale Absolute in CHF million In % to sales 600 471 486 400 422 433 439 200 28.1% 28.0% 28.2% 27.6% 28.6% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier S
Slide 18: Depreciation and Impairment
Depreciation and Impairment COVID prompting capex rephasing Absolute in CHF million In % to sales 160 120 127 125 80 87 79 69 40 4.6% 5.1% 5.2% 7.2% 8.2% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 18
Slide 19: Operating Profit (EBIT)
Operating Profit (EBIT) Remaining positive but impacted by COVID-related factors Absolute in CHF million In % to sales 140 120 126 117 100 105 98 80 60 40 20 17 6.6% 6.8% 7.0% 7.2% 1.1% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 Ju
Slide 20: Net Income
Net Income Positive impacts in net financial expenses and income taxes Absolute in CHF million In % to sales 100 86 88 76 72 50 20 4.8% 4.9% 5.1% 5.0% 1.3% 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 20
Slide 21: Capital Expenditure
Capital Expenditure Postponement of growth capex to maintain strong liquidity position Absolute in CHF million 160 120 125 117 117 100 80 86 40 0 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 Investor Presentation HY2020 Maître Chocolatier Suisse Depuis 1845 21 July 2020 21
Slide 22: Development of Net Financial Position
Development of Net Financial Position Positive free cash flow Net cash in CHF million Free cash flow = 156 0 -200 -117 -423 +305 -32 -567 -400 -418 -600 +121 -4 -800 01.01.2020 Operating cash CAPEX Repayment Dividend Capital Other 30.06.2020 flow lease liabilities increase/Sale of treasury stock Inv
Slide 23: Outlook
Outlook Maître Chocolatier Suisse Depuis 1845
Slide 24: Outlook – Full-Year 2020
Outlook – Full-Year 2020 Stronger second half expected but dependent upon key assumptions For the full year, the Group expects: - Organic sales decline of -5% to -7% - EBIT margin of around 10% - Capex of CHF 230-250 million Key assumptions: - No major second COVID-19 waves necessitating new widespr
Slide 25: Outlook – Medium-Term
Outlook – Medium-Term Unchanged mid- to long-term goals with building momentum The Group confirms its mid- to long-term goal of organic sales growth of 5% to 7% with an average increase in EBIT margin of +20 to +40 BP. In the mid-term, we expect capital expenditure of CHF 250-300 million and a tax r
Slide 26: Q&A
Q&A Maître Chocolatier Suisse Depuis 1845
Slide 27: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect Management‘s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.
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