Gale Pacific Limited · ASX:GAP
Gale Pacific — FY2019 Earnings Presentation
19 slides from Gale Pacific's earnings presentation, Aug 19, 2019
Slide 1: Results for the Year to 30 June 2019
RESULTS FOR THE YEAR TO 30 JUNE 2019 For personal use only Nick Pritchard Group Managing Director Chris Hanchette Acting Chief Financial Officer 19 August 2019
Slide 2: For personal use only
For personal use only 1. FY19 Highlights 2. Financial Results 3. Strategy & Outlook
Slide 3: FY19 Highlights
For personal use only FY19 HIGHLIGHTS KEY HIGHLIGHTS METRICS & PERFORMANCE DRIVERS
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Strong cash generation with operating cash flow representing 167% of NPAT For personal use only • Group net revenue of $149.2 million (up 0.3% on FY18) with NPAT at $9.2m (down 6% on FY18) • Americas net revenue of A$71.0 million (up 17% on FY18) with expanded distribution (addi
Slide 5: Key Metrics & Performance Drivers
KEY METRICS & PERFORMANCE DRIVERS Strong performance in Americas and Eurasia, offset by weaker ANZ and MENA For personal use only • 1H margins impacted by prior year resin price peak • ~A$30m of non-core product revenue exited during transformation period largely replaced by growth in core products
Slide 6: Financial Result
For personal use only FINANCIAL RESULT RESULTS SUMMARY OPERATING ENVIRONMENT CASH FLOW BALANCE SHEET REGIONS
Slide 7: Results Summary
RESULTS SUMMARY For personal use only • Net Revenue up $0.4 million (up FY2019 FY 2018 Change 0.3%) A$ million A$ million % Revenue 149.2 148.8 0 • Margins impacted in 1H due to high raw material (resin) costs from prior EBITDA 19.3 19.9 (3) year flowing through EBIT 13.1 14.0 (6) • Net debt impacte
Slide 8: Operating Environment
OPERATING ENVIRONMENT Key economic and market factors impacting performance For personal use only • Currency – stabilised from prior year with CNY volatility due to USA/China trade war • Input Costs – resin costs stabilised after 10-year high last year • Australian Agriculture – continued drought co
Slide 9: Cash Flow
CASH FLOW Strong operating cash flow of $15.3 million representing 167% of NPAT For personal use only • Investments made in supporting new USA ranging • Investments made in new coating line • Share buyback (7.8 million shares acquired at a VWAP of $0.32) • Net debt of $10.9 million • Major capital p
Slide 10: Americas
AMERICAS Strong growth in sales driven by expanded distribution For personal use only FY2019 FY2018 Change A$ million A$ million % Revenue 71.0 60.5 17 EBITDA 13.8 12.5 11 PBT 8.5 8.3 2 • Revenue growth of 17% • EBITDA growth of 11% • Investments in marketing, selling and product engineering • Effec
Slide 11: Australia & New Zealand
AUSTRALIA & NEW ZEALAND Challenging macro-economic conditions impact performance For personal use only FY2019 FY2018 Change • Ongoing drought conditions severely A$ million A$ million % affect eastern seaboard grain yields Revenue 58.0 68.8 (16) impacting grain cover fabrics EBITDA 2.8 5.4 (49) • Gr
Slide 12: Middle East/North Africa
MIDDLE EAST/NORTH AFRICA Ongoing challenging market conditions impact ability to sell For personal use only FY2019 FY2018 Change • Saudi Arabia and UAE impacted by A$ million A$ million % recession Revenue 12.9 13.0 0 • Strong growth in neighbouring EBITDA 4.0 4.4 (10) countries – Oman, Qatar, Kuwai
Slide 13: Eurasia
EURASIA A small but profitable and important region For personal use only FY2019 FY2018 Change A$ million A$ million % Revenue 7.4 6.6 12 EBITDA 2.3 1.6 45 PBT 1.8 1.5 18 • Distribution expansion driving growth • Improving product mix with ongoing trend towards branded, higher margin products 13
Slide 14: China Manufacturing
CHINA MANUFACTURING Continuing strong operational performance with effective delivery of key projects For personal use only • Quality, efficiency and service improvements • Idle or underutilised equipment brought back into production • Consolidation of two manufacturing sites into one • Establishmen
Slide 15: Strategy & Outlook
For personal use only 3.STRATEGY & OUTLOOK STRATEGY RESEARCH & DEVELOPMENT OUTLOOK
Slide 16: Strategy
STRATEGY Key elements of strategy remain largely unchanged For personal use only Continue to develop Expand our Grow core products Lead product Drive continual DIY shade category commercial business through retail and innovation with new improvement in in the Americas into new geographic e-Commerce
Slide 17: Research & Development
RESEARCH & DEVELOPMENT A pipeline of truly innovative products For personal use only • Patented DualShade 350 launched in all markets • Key new product innovation entered trial and test phases • Exciting technical partnerships in place 17
Slide 18: Outlook
OUTLOOK For personal use only • Remain confident in strategy of focusing on growing core, delivering product innovation, targeted geographic expansion, and driving efficiencies in global operations • Expecting to make further progress on each strategy, especially in new product innovation • Macroeco
Slide 19: Disclaimer
For personal use only DISCLAIMER Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such stat