Treatt Plc · LSE:TET
Treatt — H1 2015 Earnings Presentation
16 slides from Treatt's earnings presentation, May 2015
Slide 1: Interim Results for 6 months ended 31 March 2015
Interim Results for 6 months ended 31 March 2015 Daemmon Reeve Chief Executive Officer / Richard Hope Finance Director www.treatt.com
Slide 2: Agenda
Agenda Results at a glance Executive Summary Financial Review Commercial Review Future Developments Current Trading & Outlook www.treatt.com Interim Results - May 2015 2
Slide 3: Results at a Glance
Results at a Glance 6 mths ended 31 March 2015 2014 Revenue £'m 80 Revenue £41.4m £37.1m 60 EBITDA* £4.0m £3.8m 40 2H Profit before tax * £2.9m £2.8m 1H 20 Earnings per share * 4.21p 3.87p 0 Dividends per share 1.28p 1.24p 2010 2011 2012 2013 2014 2015 Net Assets per share 55.0p 53.8p Profit before
Slide 4: Executive Summary
Executive Summary Good revenue growth across all product sectors Particularly strong performance in US Improved free cash flow – up by £3.1m Margins affected by long term, fixed price contracts 6 new breweries sold to in last 6 months Negative FX impact of £0.4m unwinding in H2 www.treatt.com Interi
Slide 5: 2015 Half Year Review: Income Statement
2015 Half Year Review Income Statement 2015 Change 2014 Key Points 6 months ended 31 March £'000 % £'000 1. Underlying sales growth of 6% Revenue 41,408 11.6% 37,106 Gross Profit 9,142 8.6% 8,415 2. Margins slightly down due to long-term Gross Profit % 22.1% 22.7% contracts Administrative expens
Slide 6: 2015 Half Year Review: Cash Flow
2015 Half Year Review Cash Flow 2015 2014 Key Points 6 months ended 31st March £'000 £'000 Net cash from operating activities 1,277 (1,798) • Free cash flow: +£0.9m (2014: -£2.2m) Cash flow from investing activities • £1.1m paid in relation to agency termination Purchase of property, plant and equip
Slide 7: 2015 Half Year Review: Balance Sheet
2015 Half Year Review Balance Sheet All figures £m 31 March 30 Sept 31 March Key Points 2015 2014 2014 Goodwill £1.1m £1.1m £1.1m 1. Inventory levels reduced due to Fixed Assets £11.9m £11.7m £11.9m improved stock turn efficiencies Inventories £26.4m £28.0m £27.1m 2. Debtors higher due to strong D
Slide 8: Interim/Final Earnings per Share
Interim/Final Earnings per Share 2010-2015 12p 10p 8p 6p 4p 2p p Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 MONTHS 1H 2H www.treatt.com Interim Results - May 2015 8
Slide 9: Interim / Final Dividends
Interim / Final Dividends 2007-2015 5p 4p 3p 2p 1p p Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 MONTHS * Based upon sub-divided share capital 1H 2H www.treatt.com Interim Results - May 2015 9
Slide 10: Commercial Review
Commercial Review New Applications & Sensory lab Significant innovation in beverage market = opportunities Efficiency improvements in core products Driving cultural change New Top 10 US brewery customer win www.treatt.com Interim Results - May 2015 10
Slide 11: Growth Map
Growth Map Ingredient Solutions Solving Customer Challenges R&D Sales Applications Customer Success Teams Fast Reactions Delighting Customers Unlocking Further Opportunities www.treatt.com Interim Results - May 2015 11
Slide 12: Our Products
Our Products Essential Oils Citrus Treattarome® Beverage Specialties Derived from a variety of origins. Using our We have always been known for the quality Our Treattarome® products 100% natural Developed specifically for use in beverage advanced technical expertise, we can of our citrus products su
Slide 13: Our Markets
Our Markets Beverage Flavour & Fragrance Cosmetics Soft Drinks Alcoholic Craft Beer www.treatt.com Interim Results - May 2015 13
Slide 14: Future Developments
Future Developments UK site relocation Enhanced technical applications environment Increased R&D driving future growth Commissioning of new capacity in Kenya for Earthoil www.treatt.com Interim Results - May 2015 14
Slide 15: UK Site Relocation
UK Site Relocation New potential site identified estimated £15-£20m net of disposal proceeds existing freehold site to be sold/redeveloped once move complete working with property & planning consultants and local authorities to build precise plans, specifications and costings Existing site – s
Slide 16: Current Trading & Outlook
Current Trading & Outlook On course to meet expectations for y/e 30 September 2015 Greater H2 weighting due to timing of major contracts Strong order book – 11% higher than last year Margin outlook robust www.treatt.com Interim Results - May 2015 16