Slide 1: Interim results presentation
Interim results presentation Six months to 31 December 2016 Rik De Vos & Chris Smith 22 February 2017
Slide 2: Agenda
Agenda 1. Headlines 2. Repair, Prepare, Grow timeline 3. Market update 4. Commercial results 5. Achievements 6. Financial update 7. Prepare – strategy update 8. Outlook Appendices Financial schedules McBride plc 1 McBride Interim Results Presentation February 2017
Slide 3: Prepare phase – on track
Prepare phase – on track Quality of earnings continuing to improve Strategic Financial • Growth strategy and associated capital • Adjusted operating profit £22.9 million, expenditure plans mostly complete up 30.1% (9.6% at constant currency), margin at 6.4% (2015: 5.1%) • Board considering expressio
Slide 4: Reminder – Repair, Prepare, Grow
Reminder – Repair, Prepare, Grow Time horizon by calendar year 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Key projects delivered or in final stage: Repair • customer and SKU simplification • overhead alignment programmes • underperforming businesses identified, progress al
Slide 5: Market update
Market update • European FMCG market broadly flat • Brands winning share over Private Label (“PL”) • PL in Personal Care (“PC”) losing share • Limited assortment discounters (“LADs”), varying growth • EDLP reducing promotional activity, fading deflation • Contract manufacturing requirements with bra
Slide 6: H1 commercial results
H1 commercial results Revenue Volume (23.9) Price (3.2) (13.8) (9.8) (0.3) (3.2) 43.6 387.7 £m 344.1 360.6 H1 FY16 Foreign exchange H1 FY16 Net wins/losses “Customer choices” Demand Price HY FY17 (reported) (constant currency) (reported) Net wins/losses Market demand • Discontinued low margin busine
Slide 7: Achievements
Achievements Product quality upgrade has resulted into several quality awards Allowing us to renew and/or gain several new contracts Driving substantial • #1 retailer in Germany improvement in supply service • Re-negotiating exited contracts Position Supplier Service Level YTD 1 Robert Mcbride 100.0
Slide 8: Financial headlines
Financial headlines • Adjusted operating profit £22.9 million, • Adjusted diluted EPS up 42.3% to 7.4 pence up by 9.6% at constant currency (2015: 5.2p) • Positive progress on margin, adjusted • Strong cash generation continues with operating margin now 6.4% (2015: 5.1%) underlying net cash inflow o
Slide 9: Income statement
Income statement Revenue Adjusted EBITA Adjusted EBITA by segment Labour cost % of revenue and £m £m £m overhead % of gross profit 383.6 376.8 387.7 361.1 360.6 22.9 20.9 20.5 0.9 88.3% 1.6 1.5 18.0 13.7 85.2% 23.8 23.7 26.5 19.7% 82.7% 19.0% -4.5 -4.7 -4.5 18.5% 2015/16 H1 2015/16 H2 2016/17 H2 201
Slide 10: Balance sheet and cash flow
Balance sheet and cash flow ROCE Cash flow from Net debt £m/ % operations £m debt cover x 92.4 90.9 86.3 82.9 1.9 32.9 1.7 28.0% 23.4% 1.7 24.9 22.7 18.8% 1.4 Jun 15 Dec 15 Jun 16 Dec 16 FY 2014/15 FY 2015/16 H1 2016/17 H1 2014/15 H1 2015/16 H1 2016/17 Net debt Debt cover • Low level exceptional ite
Slide 11: Other financials
Other financials Customer service levels Capex Group pension liability % £m £m 99.2% 43.6 98.8% 32.9 7.2 7.4 0.78 0.78 0.78 97.7% 32.3 5.6 97.1% 0.77 96.6% 31.5 31.4 0.74 2014/15 2015/16 2016/17 2015/16 2015/16 2016/17 2014/15 2015/16 2016/17 H1 H2 H1 H2 H1 H2 Funding ratio • Capital expenditure bui
Slide 12: Prepare phase – update
Prepare phase – update Prepare McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward for identified su
Slide 13: Prepare phase – update
Prepare phase – update Prepare McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward for identified su
Slide 14: Prepare phase – update
Prepare phase – update Prepare McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward for identified su
Slide 15: Prepare phase – update
Prepare phase – update Prepare McBride will invest into its manufacturing assets and optimise its warehousing and distribution network. We will align the new organisational set-up aiming to institutionalise our new way of working with our people. We will provide a clear way forward for identified su
Slide 16: Prepare phase – what does it look like?
Prepare phase – what does it look like? Product category focus Channel strategies Geographic priorities Manufacturing choices McBride plc 15 McBride Interim Results Presentation February 2017
Slide 17: Prepare phase – laundry capsules case study
Prepare phase – laundry capsules case study Driving cost leadership Driving efficiency Driving technology leadership Driving capacity/growth McBride plc 16 McBride Interim Results Presentation February 2017
Slide 18: Outlook
Outlook • H1 trend evident in H2 revenue outlook • Actions in hand to mitigate imminent raw material rises, lag anticipated • Full year expectations remain unchanged • Extended timeframe likely for major co-man contracts • Run rate of recent business wins indicating growth next financial year • Inve
Slide 19: Questions
Questions McBride plc 18 McBride Interim Results Presentation February 2017
Slide 20: Appendices
Appendices 1. Income statement 2. Segmental reporting 3. Balance sheet 4. Cash flow 5. Use of cash 6. Funding headroom McBride plc 19 McBride Interim Results Presentation February 2017
Slide 21: Appendix 1: income statement
Appendix 1: income statement Constant currency(1) H1 2016/17 H1 2015/16 H1 2015/16 £m £m Y/Y £m Y/Y Revenue 360.6 344.1 4.8% 387.7 (7.0%) Gross profit 132.7 122.2 8.6% 137.3 (3.4%) Gross margin 36.8% 35.5% +1.3ppts 35.4% +1.4ppts Distribution costs (23.8) (24.1) (1.2%) (27.5) (13.5%) Administration
Slide 22: Appendix 2: segmental reporting
Appendix 2: segmental reporting Constant currency H1 2016/17 H1 2015/16 H1 2015/16 £m £m Y/Y £m Y/Y Revenue UK 79.7 85.8 (7.1%) 85.8 (7.1%) North 96.0 90.2 6.4% 107.5 (10.7%) South 39.2 34.2 14.6% 40.9 (4.2%) East 69.5 60.9 14.1% 72.3 (3.9%) Household 284.4 271.1 4.9% 306.5 (7.2%) PCA 76.2 73.0 4.4%
Slide 23: Appendix 3: balance sheet
Appendix 3: balance sheet Dec 2016 Dec 2015 June 2016 £m £m £m Goodwill and other intangible assets 20.3 19.7 20.0 Property, plant and equipment 136.4 126.9 136.2 Other non-current assets 26.2 21.6 22.5 Working capital 26.2 27.7 29.7 Net other debtors/(creditors) (4.8) (3.9) (0.3) Provisions (5.6) (
Slide 24: Appendix 4: cash flow
Appendix 4: cash flow H1 H1 FY 2016/17 2015/16 2015/16 £m £m £m Adjusted operating profit 22.9 17.6 36.2 Depreciation 9.7 9.3 18.2 Share-based payments 1.2 0.7 1.8 Additional cash funding of pension scheme (1.5) (1.3) (3.1) Operating cash flow before movements in working capital 32.3 26.3 53.1 Movem
Slide 25: Appendix 5: use of cash
Appendix 5: use of cash 40 Cash generation Movement in net debt 30 8.0 Foreign exchange 6.8 Cash utilisation total £19.6m £m 20 1.5 Exceptionals 2.8 Financing cost 34.4 2.6 Taxation 10 7.4 Capital expenditure 4.2 Payments to shareholders 0 1.1 Other McBride plc 24 McBride Interim Results Presentatio
Slide 26: Appendix 6: funding headroom
Appendix 6: funding headroom 31 December Committed Facility 2016 headroom £m £m £m Committed facilities: – US Private Placements (November 2020 and April 2022) 73.1 (73.1) — – revolving facilities (April 2019) 119.9 — 119.9 – invoice discounting facilities 46.4 (32.3) 14.1 – other loans 2.2 (2.2) —