Australian Vintage Ltd · ASX:AVG
Australian Vintage — FY2024 Earnings Presentation
23 slides from Australian Vintage's earnings presentation, Aug 23, 2024
Slide 1: FY 2024 Full Year Results
FY 2024 FULL YEAR RESULTS August 2024 Presenters: James Williamson, Interim Chair and Interim CEO Adam Rigano, CFO Jeff Howlett, GM APAC Tom Dusseldorp, CMO
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated companies) and provides general background information about AVG’s activities as at the date of this presentation. The information does not pur
Slide 3: Australian Vintage Overview
AUSTRALIAN VINTAGE OVERVIEW 3
Slide 4: Experienced and stable senior management team delivering above industry performance
Experienced and stable senior management team delivering above industry performance Adam Rigano Jeff Howlett Julian Dyer Chief Financial Officer General Manager – Asia Pacific Chief Operating Officer • 20+ years in senior roles in finance, strategy, and • 20+ years in the global wine and spirits ind
Slide 5: AVG is a world-class consumer orientated business
AVG is a world- world-class consumer orientated business consumer-led wine innovation with 2/3rd sales export focused Leader in consumer- Global leader leaders eaders in dynamic no- no-and- and-low alcohol wine segment Trusted long- long-term relationships with growers, suppliers and customers Indus
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS 6
Slide 7: 2024 Highlights: Improved earnings despite challenging environment
2024 Highlights: Improved earnings despite challenging environment • Generating $261 million revenue, 12% growth in EBITDA to $29.2 million • Expanding footprint across Asia and the Americas following strong global demand, export accounting for 2/3 of total revenue • Global leaders in dynamic no-and
Slide 8: 2024 Highlights: Innovation, brand growth & cost outs improving underlying performance
2024 Highlights: Innovation, brand growth & cost outs improving underlying performance Revenue EBITDAS (underlying) EBITS (underlying) $261M $29.2M $13.2m +1% on pcp +12% on pcp +25% on pcp Net debt/ underlying NPATS (underlying) Net Debt EBITDAS $5.3m $56.5M 1.9X +26% on pcp Vs $48.1m pcp Post AASB
Slide 9: Investment in brands and innovation driving growth
Investment in brands and innovation driving growth Branded sales growth Premiumisation strategy Innovation delivering >1/3rd Growth in no- no-and- and-low continues working margin alc wine $M Branded Sales Sales $ CAGR • Innovation driving strong • Global from FY20 contribution to margin leaders in
Slide 10: Strategic Plan & Investment Thesis
STRATEGIC PLAN & INVESTMENT THESIS 10
Slide 11: Strategic Plan driving strong growth and cash performance
Strategic Plan driving strong growth and cash performance • Cashflow neutral in FY25 due to 70% of prior vintage grape payment in FY25 (in line with industry norms) • +$10m targeted FCF in FY26 and +$20m in FCF and 8% ROCE by FY27 • Continue to invest in brands & innovation to drive growth • Leverag
Slide 12: Future growth from Pillar Brands, consumer led innovation and international expansion
fast-- Future growth will come from a combination of focusing on Pillar Brands in core markets, fast tracking consumer led innovation and accelerating international expansion Investing in Step change Accelerate Pillar Brands consumer led innovation international expansion • Investment in key brands
Slide 13: Strategic plan positions AVG to deliver step change in Free Cash Flow and ROCE
Strategic plan positions AVG to deliver step change in Free Cash Flow and ROCE FY25 – Year 1 FY 26 – Year 2 FY 27 – Year 3 Drive growth and optimise cost base Drive growth and optimise cost base Accelerate Growth Board renewal underway Accelerate topline growth Accelerate topline growth • China and
Slide 14: In summary
In summary… • Experienced management team with track record / confidence to execute on strategy coupled with refreshed board • A focus on revenue and gross margin growth through innovation, geography and brand mix • Large asset backing that will be leveraged into strong cash flow through more effect
Slide 15: Appendix
APPENDIX 15
Slide 16: Underlying income statement
Underlying income statement Innovation and cost outs offsetting increased cost of doing business $m FY24 FY23 Fav/ (Unfav (Unfav) Unfav) % Underlying FY23 to FY24 EBITDAS $ million Revenue 260.6 258.6 1 9.2 29.2 EBITDAS 29.2 26.1 12 26.1 EBITDAS margin (%) 11.2 10.1 1pp Depreciation and (16.0) (15.5
Slide 17: Improved underlying performance across all key metrics
Improved underlying performance across all key metrics Total Revenue EBITDAS EBITS $260.6m $29.2m (underlying) $13.2m (underlying) Other Pillar Brands 300 50 40 250 40 30 200 30 150 45.9 45.7 20 20 35.4 31.2 30.8 100 71% 78% 78% 78% 65% 26.1 29.2 10 21.0 50 10 13.2 10.6 0 0 0 FY20 FY21 FY22 FY23 FY2
Slide 18: Reported income statement
Reported income statement Reported earnings impacted by lower asset sales and abnormal write offs $m FY24 FY23 Fav/ (Unfav (Unfav) Unfav) % Reported FY23 to FY24 EBITS $ million Revenue 260.6 258.6 1 3.0 32.8 EBITDAS (52.5) 32.8 (260) EBITDAS margin (%) (20.1) 12.7 (33pp) -16.5 -2.0 Depreciation and
Slide 19: Cash flow
Cash flow Operating and Free cash flow improvement over prior year $m FY24 FY23 Var • Cash flow from operations prior to working capital and Net cash from operations prior to 11.3 2.6 +8.7 balance sheet movements has improved significantly over balance sheet movements prior year +$9m Other movements
Slide 20: Net Debt
Net Debt Reducing net debt through a range of management actions Underlying FY24 FY23 • Net debt in line with expectations Net Debt (excl leases) $m 56.5 48.1 • Underlying Net debt/ EBITDAS 1.9 times on post lease Facilities Available $m 99.4 89.4 basis Net debt (excl leases) / EBITDAS 1.9 times 1.8
Slide 21: Strong balance sheet
Strong balance sheet $m FY24 FY23 % change Cash & equivalent 6.0 6.9 (13%) Receivables 48.7 43.4 12% Inventories 201.7 217.1 (7%) Plant & Equipment 96.1 99.2 (3%) Goodwill/ intangible 7.5 44.9 (83%) Other 55.4 68.8 (19%) Total Assets 415.4 480.3 (14%) Payables 56.6 50.5 (12%) Borrowings 62.5 55.0 (1
Slide 22: B Corp Certified
eee Certified I) Corporation Consumers identify B_Corp trust mark as gold standard-for sustainable products & Services. AJ | Australian Vintage is B Corp Certified As a B Corp, Australian Vintage meets high standards of verified impact, transparency and accountability across environment, social resp
Slide 23: Definitions
Definitions • Revenue = Gross sales less rebates (also known as Net Revenue) • Margin = Revenue less cost of goods sold • EBITDAS = Earnings before interest, tax, depreciation, amortisation and SGARA (Self generating and regenerating assets) • EBITS = Earnings before interest, tax and SGARA (Self ge