Slide 1: Everyday cleaning products, expertly made
Everyday cleaning products, expertly made McBride plc FY23 Results Presentation: 19 September 2023
Slide 2: Agenda
2 McBride plc FY23 Results Presentation: 19 September 2023 Agenda Our speakers today 1. Headlines 2. Overview 3. Financial Review 4. Outlook & Summary 5. Q&A Chris Smith Mark Strickland Chief Executive Officer Chief Financial Officer
Slide 3: 1. Headlines
3 McBride plc FY23 Results Presentation: 19 September 2023 1. Headlines
Slide 4: FY23 headlines
4 McBride plc FY23 Results Presentation: 19 September 2023 FY23 headlines Improved business performance; private label surge driving strong momentum Delivery of significant business performance Revenue growth 31.1% (28.4% at CC) improvement Strategic progress in focus categories and geographies Volu
Slide 5: Business response to inflationary pressures
5 McBride plc FY23 Results Presentation: 19 September 2023 Business response to inflationary pressures Multiple waves of margin recovery actions; Group input costs eased slightly in second half Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q2 FY21 cost base
Slide 6: Transformation programme
6 McBride plc FY23 Results Presentation: 19 September 2023 Transformation programme Execution is underway; targeting £50m of cost benefits over five years Our transformation plan consists of programmes intentionally balanced between sales and margin growth, cost reduction and cash generation Program
Slide 7: ESG
7 McBride plc FY23 Results Presentation: 19 September 2023 ESG Environmental • Since 2021, corporate carbon footprint reduced by 2022 2023 2025 1.6%; Scope 2 emissions down 44% Area of focus actual actual target • Scope 1 & 2 SBT ambition defined – 55% reduction by FSC® sourced 91.4% 88.4% 100% 2033
Slide 8: 2. Overview
8 McBride plc FY23 Results Presentation: 19 September 2023 2. Overview
Slide 9: Household market overview
9 McBride plc FY23 Results Presentation: 19 September 2023 Household market overview Private label share gain but overall market volumes lower as consumer behaviour adapts to cost-of-living challenges Total market: vs 2022: Private label volumes: Market McBride Household – total (5)% Household 2% 6%
Slide 10: Divisions – Liquids
10 McBride plc FY23 Results Presentation: 19 September 2023 Divisions – Liquids 56.0% of Group sales Liquids generates c.£500m revenue p.a. Cost Cash in a total European market, including leadership generation branded, of £9.1bn RSV Adjusted operating profit/(loss) £m Return to profit through inflati
Slide 11: Divisions – Unit Dosing
11 McBride plc FY23 Results Presentation: 19 September 2023 Divisions – Unit Dosing 26.3% of Group sales Unit Dosing generates c.£230m Product Strategic revenue p.a. in a total European market, leadership growth including branded, of £2.7bn RSV Adjusted operating profit/(loss) £m Strength in private
Slide 12: Divisions – Powders
12 McBride plc FY23 Results Presentation: 19 September 2023 Divisions – Powders Powders 9.7% of Group sales Powders generates c.£90m revenue p.a. Cost Cash in a total European market, including leadership generation branded, of £1.4bn RSV Adjusted operating profit/(loss) £m Cost leadership and techn
Slide 13: Divisions – Aerosols & Asia Pacific
13 McBride plc FY23 Results Presentation: 19 September 2023 Divisions – Aerosols & Asia Pacific 5.2% | 2.8% of Group sales Aerosols generates c.£45m revenue p.a. Asia Pacific generates c.£25m revenue p.a. with its current focus on the French market and is a high opportunity region for personal and n
Slide 14: 3. Financial Review
14 McBride plc FY23 Results Presentation: 19 September 2023 3. Financial Review
Slide 15: Group revenue bridge
15 McBride plc FY23 Results Presentation: 19 September 2023 Group revenue bridge £m 5.1 13.9 889.0 159.6 32.1 678.3 FY22 Volume Pricing Mix FX FY23 revenue revenue • Revenue increased by 31.1% vs 2022 • Pricing actions: • Volume growth contributed £32.1m – £159.6m in-year benefit – private label vol
Slide 16: Group adjusted operating profit bridge
16 McBride plc FY23 Results Presentation: 19 September 2023 Group adjusted operating profit bridge £m Impacting gross profit Impacting distribution costs and administrative expenses 161.1 6.4 (97.5) 13.5 9.2 (36.4) (4.8) (24.5) FY22 adjusted Volume Pricing/Mix Raw material Compass Inflationary Incen
Slide 17: Compass cost savings
17 McBride plc FY23 Results Presentation: 19 September 2023 Compass cost savings • Annualised savings of £20m achieved • FY23 realised cost savings £17.9m (FY22: £11.6m): £12.8m operations £4.3m divisional overheads £0.8m distribution
Slide 18: Divisional performance bridges
18 McBride plc FY23 Results Presentation: 19 September 2023 Divisional performance bridges Revenue £m Adjusted operating profit/(loss) £m 1.8 0.4 14.3 2.4 889.0 10.8 1.8 13.5 62.7 17.3 114.0 (3.2) 678.3 26.4 (24.5) FY22 Liquids Unit Powders Aerosols Asia FY23 Dosing Pacific FY22 Liquids Unit Powders
Slide 19: Divisional performance
19 McBride plc FY23 Results Presentation: 19 September 2023 Divisional performance Revenue £m Adjusted operating profit/(loss) £m 260.3 10.3 237.6 7.7 122.8 111.4 2.3 0.5 0.8 0.2 0.0 0.3 0.3 42.7 43.2 21.3 24.9 13.2 11.6 (1.2) H1 2023 H2 2023 H1 2023 H2 2023 H1 2023 H2 2023 H1 2023 H2 2023 H1 2023 H
Slide 20: Costs
20 McBride plc FY23 Results Presentation: 19 September 2023 Costs Group input costs eased slightly in second half Distribution costs as Administrative (overhead) costs as % of sales % of sales 0.7% 0.7% 3.4% 3.4% 0.9% 3.3% 8.2% 9.5% 8.8% 18.9% 18.2% 15.0% FY21 FY22 FY23 FY21 FY22 FY23 Q2 FY21 Q3 FY2
Slide 21: Other financials
21 McBride plc FY23 Results Presentation: 19 September 2023 Other financials Exceptional items £m Finance costs (non-exceptional) £m Capex and depreciation £m Pensions £m 2.2 3.8 4.0 3.8 31.9 26.6 1.7 1.7 13.7 16.1 12.2 13.2 22.4 17.6 16.9 16.8 0.81 8.0 0.87 6.9 12.4 11.6 0.76 3.5 4.2 5.1 0.8 (0.2)
Slide 22: Cash flow and net debt bridge
22 McBride plc FY23 Results Presentation: 19 September 2023 Cash flow and net debt bridge £m 7.1 34.1 (4.0) (1.8) (11.8) (11.4) (0.6) (152.8) (164.4) (13.7) (166.5) Net debt at Adjusted Working Pensions Tax paid Capital expenditure Interest on Non-cash Net debt pre Exceptional Net debt at 30 Jun 202
Slide 23: Liquidity
23 McBride plc FY23 Results Presentation: 19 September 2023 Liquidity £m 80 70 60 50 40 30 20 10 0 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 2022 2022 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2023 Actual liquidity Covenant headroom • Minimum liquidity covenant reduced from £40m t
Slide 24: 4. Outlook & Summary
24 McBride plc FY23 Results Presentation: 19 September 2023 4. Outlook & Summary
Slide 25: Outlook
25 McBride plc FY23 Results Presentation: 19 September 2023 Outlook Momentum building driven by increasing demand for high quality private label products Early trading in Customer proposition Margin management FY24 encouraging continues to strengthen vigilance Strong private Transformation journey L
Slide 26: Summary
26 McBride plc FY23 Results Presentation: 19 September 2023 Summary Business turnaround complete Return to volume growth; strategy delivery Encouraging momentum into FY24 Well positioned to deliver growth in earnings
Slide 27: 5. Q&A
27 McBride plc FY23 Results Presentation: 19 September 2023 5. Q&A
Slide 28: Appendices
28 McBride plc FY23 Results Presentation: 19 September 2023 Appendices 1. Income statement 2. Segmental reporting 3. Exceptional items 4. Balance sheet 5. Cash flow 6. Funding headroom
Slide 29: Appendix 1: Income statement
29 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 1: Income statement Constant currency 2023 2022 2022 Continuing operations £m £m y/y £m y/y Revenue 889.0 678.3 210.7 692.2 196.8 Gross profit 263.6 190.8 72.8 195.3 68.3 Gross margin 29.7% 28.1% 1.6ppt 28.2% 1.5ppt Distribution co
Slide 30: Appendix 2: Segmental reporting
30 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 2: Segmental reporting Constant currency 2023 2022 2022 Revenue £m £m y/y £m y/y Liquids 497.9 383.9 114.0 391.2 106.7 Unit Dosing 234.2 171.5 62.7 175.0 59.2 Powders 85.9 68.6 17.3 70.0 15.9 Aerosols 46.2 31.9 14.3 32.8 13.4 Asia
Slide 31: Appendix 3: Exceptional items
31 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 3: Exceptional items 2023 2022 £m £m Environmental remediation 0.8 0.6 Reorganisation and restructuring costs/(gains) – UK Aerosols closure — 0.1 – Factory footprint review — (1.4) – Review of strategy, organisation and operations
Slide 32: Appendix 4: Balance sheet
32 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 4: Balance sheet 30 Jun 30 Jun 2023 2022 £m £m y/y Goodwill and other intangible assets 26.2 27.0 (0.8) Property, plant and equipment 117.8 122.9 (5.1) Right-of-use assets 8.5 11.3 (2.8) Other non-current assets 46.1 31.6 14.5 Work
Slide 33: Appendix 5: Cash flow
33 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 5: Cash flow 2023 2022 £m £m y/y Adjusted operating profit/(loss) 13.5 (24.5) 38.0 Depreciation property, plant and equipment 16.8 16.9 (0.1) Depreciation right-of-use assets 3.8 4.0 (0.2) Share-based payments 0.5 — 0.5 Additional
Slide 34: Appendix 6: Funding headroom and liquidity
34 McBride plc FY23 Results Presentation: 19 September 2023 Appendix 6: Funding headroom and liquidity Facility Drawn Liquidity £m £m £m Committed facilities: – Revolving credit facility (Sep 2026) 150.2 (110.2) 40.0 – Invoice discounting facilities 49.0 (48.7) 0.3 – Overdraft facilities (May 2025)