Slide 1: Everyday cleaning products, expertly made
Everyday cleaning products, expertly made McBride plc 2024 Results 17 September 2024
Slide 2: Agenda
Agenda 1 Headlines Our speakers today 2 Overview 3 Financial Review 4 Outlook Chris Smith Mark Strickland 5 Chief Executive Officer Chief Financial Officer Q&A McBride plc | 2024 Results | 17 September 2024 2
Slide 3: 1. Headlines
1. Headlines McBride plc | 2024 Results | 17 September 2024 3
Slide 4: 2024 Headlines
2024 Headlines Strong operational and strategic progress, delivering volume and profit growth • Revenue growth £45.8m, up 6.2% at constant FX • All divisions delivered growth in profits • Private label market share still growing • Significant reduction in net debt, closing in on target level • Stron
Slide 5: 2. Overview
2. Overview McBride plc | 2024 Results | 17 September 2024 5
Slide 6: Household Market Overview
Household Market Overview Overall market returns to growth; private label share still rising • Total market has returned to volume growth • Strategic growth priorities delivering well: • P rivate label continues to drive growth, with branded - Laundry progress ahead of market volumes down 2% - Germa
Slide 7: Divisions – Liquids
Divisions – Liquids 57.0% of Group revenue (£532.8m) Geographic focus; excellent operational delivery; private label market still growing Cost leadership Adjusted operating profit/(loss) £m 22.8 22.8 • Private label volume growth outperformed brands 10.3 • New private label contract wins supporting
Slide 8: Divisions – Unit Dosing
Divisions – Unit Dosing 25.0% of Group revenue (£233.6m) Strong step up in profit; operational improvement a key focus Product leadership Adjusted operating profit/(loss) £m 11.5 • Doses volumes up 6.2%, driven by private label, 7.8 7.9 particularly dishwash • Strong second half performance from con
Slide 9: Divisions – Powders
Divisions – Powders 9.9% of Group revenue (£92.8m) Strong turnaround performance; great progress with contract manufacturing Cost leadership Adjusted operating profit/(loss) £m 3.2 2.8 • Growth driven by operational focus, new business wins and cost-saving actions from 2023 0.5 • Increased demand an
Slide 10: Divisions – Aerosols & Asia Pacific
Divisions – Aerosols & Asia Pacific 5.5% | 2.6% of Group revenue (£50.9m | £24.7m) New contract wins and innovation Private label and personal care underpin strong growth continuing to drive growth Product leadership Cost and value leadership • Good progress in new territory expansion, driven by • S
Slide 11: Transformation Programme
Transformation Programme Significant milestones approaching on gold programmes Operating Systems Excellence • SAP S/4HANA Enterprise Resource Planning • Design phase nearing completion; moving to ‘build and test’ phase • UK implementation planned for calendar year 2025 • Thorough change programme Co
Slide 12: Sustainability
Sustainability Our commitment to sustainability underpinned by value‑for‑money innovation; three focus areas Operating Fit for the Responsible sourcing sustainably future products and supplier engagement FY24 progress: FY24 progress: FY24 progress: • 1,989 tonnes CO2e saved in operations • Meeting g
Slide 13: 3. Financial Review
3. Financial Review McBride plc | 2024 Results | 17 September 2024 13
Slide 14: Group Revenue Bridge
Group Revenue Bridge • Revenue increased by 5.2% • Pricing: • Volume/mix growth contributed £50.8 million - £4.1 million impact from pricing actions - Overall volumes up 5.7% - Private label volumes up 7.2% - C ontract manufacturing volumes down 2.0%, but with significant new long-term Liquids contr
Slide 15: Group Adjusted Operating Profit Bridge
Group Adjusted Operating Profit Bridge • K ey drivers of the £53.6 million improvement in adjusted • Partially offset by: operating profit: - Inflationary impact – c.4% underlying - V olume increase driven by strong demand for private label - Volume impact – distribution, factory overheads - R eturn
Slide 16: Divisional Performance Overview
Divisional Performance Overview • Group revenue up 5.2%: Revenue £m 4.7 - L iquids +7.0%: private label volume growth and 6.9 (0.1) 934.8 34.9 pricing (margin recovery) (0.6) - U nit Dosing (0.3)%: volume growth and mix improvements offset by selling price reductions 889.0 - P owders +8.0%: favourab
Slide 17: Costs
Costs Group input costs Distribution costs Administrative costs (% revenue) (% revenue) 0.7% 0.8% 0.9% 9.5% 8.8% 8.7% 21.6% 20.4% 18.3% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY23 FY24 FY22 FY23 FY24 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 Divisional Q2
Slide 18: Other Financials
Other Financials Exceptional items £m Finance costs (underlying)(1) £m Capex and depreciation £m Pensions £m 0.8 4.0 3.8 29.4 5.3 3.7 26.6 1.7 1.7 13.7 16.1 12.2 12.9 0.8 12.1 16.9 16.8 16.3 15.6 87% 5.9 6.5 12.4 11.5 76% 74% 3.5 3.8 4.2 (0.4) FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 F
Slide 19: Net Debt Bridge
Net Debt Bridge • Net debt £35.0 million lower than 30 June 2023 • P ension contributions steady at £4.0 million; additional profit-related deficit reduction contributions of £1.3 million • E xcluding exceptional items, net debt would have will be paid in FY25 decreased by £41.5 million • E xception
Slide 20: Liquidity
Liquidity • 30 June 2024 liquidity £98.3 million (30 June 2023: • Underlying cash flow and liquidity improving £59.3m) • Implementation of Italian invoice discounting facilities • L iquidity increased by £39.0 million, driven by improved in FY25 will increase liquidity further financial performance
Slide 21: 4. Outlook
4. Outlook McBride plc | 2024 Results | 17 September 2024 21
Slide 22: Outlook
Outlook Solid start to new financial year, supporting confident outlook • Volume levels higher, in line with expectations • Continued focus on managing margins • New product launches and business wins • Transformation programme implementations supporting growth over next twelve months • Robust priva
Slide 23: 5. Q&A
5. Q&A McBride plc | 2024 Results | 17 September 2024 23
Slide 24: Appendices
Appendices 1. Income Statement 2. Segmental Reporting 3. Balance Sheet 4. Cash Flow 5. Funding & Liquidity 6. Income Statement Visualisation McBride plc | 2024 Results | 17 September 2024 24
Slide 25: Appendix 1: Income Statement
Appendix 1: Income Statement Constant currency 2024 2023 y/y 2023 y/y £m £m £m £m £m Revenue 934.8 889.0 45.8 879.9 54.9 Gross profit 347.9 263.6 84.3 261.9 86.0 Gross margin 37.2% 29.7% 7.5ppts 29.8% 7.4ppts Distribution costs (81.3) (77.9) (3.4) (77.7) (3.6) Administrative expenses (199.5) (172.2)
Slide 26: Appendix 2: Segmental Reporting
Appendix 2: Segmental Reporting Constant currency 2024 2023 2023 Revenue £m £m y/y £m y/y Liquids 532.8 497.9 7.0% 494.5 7.7% Unit Dosing 233.6 234.2 (0.3)% 232.0 0.7% Powders 92.8 85.9 8.0% 85.0 9.2% Aerosols 50.9 46.2 10.2% 45.6 11.6% Asia Pacific 24.7 24.8 (0.4)% 22.8 8.3% Group 934.8 889.0 5.2%
Slide 27: Appendix 3: Balance Sheet
Appendix 3: Balance Sheet 30 Jun 30 Jun 2024 2023 y/y £m £m £m Goodwill and other intangible assets 29.5 26.2 3.3 Property, plant and equipment 114.4 117.8 (3.4) Right-of-use assets 8.1 8.5 (0.4) Other non-current assets 44.5 46.1 (1.6) Working capital 48.3 47.6 0.7 Net other debtors/(creditors) (10
Slide 28: Appendix 4: Cash Flow
Appendix 4: Cash Flow 2024 2023 y/y £m £m £m Adjusted operating profit 67.1 13.5 53.6 Depreciation of property, plant and equipment 16.3 16.8 (0.5) Depreciation of right-of-use assets 3.7 3.8 (0.1) Share-based payments charge 1.6 0.5 1.1 Additional cash funding of pension scheme (4.0) (4.0) — Impair
Slide 29: Appendix 5: Funding & Liquidity
Appendix 5: Funding & Liquidity Facility Drawn Liquidity At 30 June 2024 £m £m £m Committed facilities: – Revolving credit facility (May 2026) 148.1 (65.2) 82.9 – Invoice discounting facilities 55.6 (55.6) — – Overdraft facilities (May 2025) 17.9 (11.8) 6.1 – Leases 8.4 (8.4) — Total committed facil
Slide 30: Appendix 6: Income Statement Visualisation
Appendix 6: Income Statement Visualisation Cost of sales £586.9m (£625.4m) Liquids £532.8m (£497.9m) Adjusted operating expenses Distribution costs £280.8m (£250.1m) £81.3m (£77.9m) Administrative costs £196.3m (£168.4m) Unit Dosing £233.6m (£234.2m) Impairment of trade receivables £1.6m (£3.5m) Los