Procook Group Plc · LSE:PROC
Procook — H1 FY23 Earnings Presentation
33 slides from Procook's earnings presentation, Dec 14, 2022
Slide 1: FY23 Interim Results
FY23 Interim Results 1 14 December 2022 ProCook | FY23 Interim Results presentation Daniel O’Neill, CEO & Founder Dan Walden, CFO
Slide 2: Introduction
2 ProCook | FY23 Interim Results presentation Introduction
Slide 3: FY23 H1 summary
Financial review Strategy update Appendices Introduction FY23 H1 summary Challenging trading conditions, good strategic progress 3 ProCook | FY23 Interim Results presentation CONSUMER CONFIDENCE revenue -14.5% year on year MARKET -6.3% year on year COST PRESSURES underlying losses in H1 of £2.8m MAR
Slide 4: Revised full year guidance
Financial review Strategy update Appendices Introduction Revised full year guidance Underlying profit before tax FY23 (£m)1 4 (£4.8m) ProCook | FY23 Interim Results presentation 1 Underlying profit before tax presented before exceptional costs
Slide 5: Key learnings and actions
Financial review Strategy update Appendices Introduction Key learnings and actions There are areas where we can improve both in the near term, and into next year to support trading performance and profitability 5 ProCook | FY23 Interim Results presentation PRICING AND MARGIN increased discipline and
Slide 6: Cost reduction plan
Financial review Strategy update Appendices Introduction Cost reduction plan A clear plan to deliver £3m in annualised savings for FY24 onwards, of which £0.5m will be realised this year 6 ProCook | FY23 Interim Results presentation Ecommerce Retail Central £m 1 New DC: logistics efficiencies 0.8 Sc
Slide 7: Returning to market share growth after a difficult first half
Financial review Strategy update Appendices Introduction Returning to market share growth after a difficult first half Market down -6.3% compared to ProCook UK (ex. Amazon) -8.6% in H1, returned to H1 FY23 Sales YoY% modest market share gains since half year UK Kitchenware market (6.3%) 7 ProCook UK
Slide 8: Financial review
8 ProCook | FY23 Interim Results presentation Financial review
Slide 9: H1 Summary financials
Introduction Strategy update Appendices Financial review H1 Summary financials Challenging trading conditions impacting performance results 9 £m H1 FY23 H1 FY22 YoY % H1 FY201 Yo3Y % ProCook | FY23 Interim Results presentation Revenue 27.4 32.0 (14.5%) 18.8 45.6% LFL % (16.2%) 119.7% Gross profit 16
Slide 10: Revenue
Introduction Strategy update Appendices Financial review Revenue Revenue of £27.4m was -14.5% YoY and +119.7% LFL vs pre-pandemic 10 £m H1 FY23 H1 FY22 YoY % H1 FY20 Yo3Y % ProCook | FY23 Interim Results presentation Revenue 27.4 32.0 (14.5%) 18.8 +45.6% Ecommerce 11.4 15.1 (24.5%) 5.6 +102.6% Retai
Slide 11: Gross margins
Introduction Strategy update Appendices Financial review Gross margins Gross margins of 61.0% reflect higher shipping costs in inventory cost, FX impacts and increased promotional activity 11 £m H1 FY23 H1 FY22 YoY % ProCook | FY23 Interim Results presentation Gross profit 16.7 21.3 (21.8%) Gross ma
Slide 12: Underlying operating profit
Introduction Strategy update Appendices Financial review Underlying operating profit Underlying operating loss of -£2.4m1 reflects the impact of lower sales and GM%, and higher costs YoY 12 Underlying operating profit £m £m H1 FY23 H1 FY22 YoY % ProCook | FY23 Interim Results presentation Ecommerce
Slide 13: Free cash flow
Introduction Strategy update Appendices Financial review Free cash flow Free cash inflow of £0.4m in H1 with operating cash flow benefiting from £4.0m inventory reduction post year end. Capital investment H2-weighted in respect of new DC and HQ fit out 13 ProCook | FY23 Interim Results presentation
Slide 14: Net debt and finance facilities
Introduction Strategy update Appendices Financial review Net debt and finance facilities Net debt at the end of the first half was £1.3m (FY22 year end: £1.8m) with available liquidity of £14.7m 14 £m H1 FY23 H1 FY22 Revolving credit facility ProCook | FY23 Interim Results presentation Free Cash Flo
Slide 15: Current trading update
Introduction Strategy update Appendices Financial review Current trading update Returning to market share growth, however lower than anticipated Black Friday 15 8 weeks to 11 Dec 2022 ProCook | FY23 Interim Results presentation £m FY23 FY22 YoY% FY20 Yo3Y % Revenue 13.5 14.3 (5.7%) 7.3 +83.7% Ecomme
Slide 16: Outlook and guidance
Introduction Strategy update Appendices Financial review Outlook and guidance Revised FY23 full year guidance 16 P&L ProCook | FY23 Interim Results presentation — Revenue of £60 – 65m for full year — GM% to partially recover in second half as shipping impact subsides — Target cost savings of £0.5m i
Slide 17: Strategy update
17 ProCook | FY23 Interim Results presentation Strategy update
Slide 18: Strategic plan
Introduction Financial review Appendices Strategy update Strategic plan Medium to long term strategy remains unchanged, sharpened focus on organic growth in the UK for now 18 Sharing our passion for cooking ProCook | FY23 Interim Results presentation Our purpose and ingredients for success We design
Slide 19: People and ESG
Introduction Financial review Appendices Strategy update People and ESG Doing the right thing for our people and the environment 19 ProCook | FY23 Interim Results presentation People — Certified by Great Place To Work 2nd year in a row — Launched our new colleague advisory panel — ‘Inclusive Employe
Slide 20: Building on our foundations
Introduction Financial review Appendices Strategy update Building on our foundations Developing an agile and scalable platform for future growth 20 ProCook | FY23 Interim Results presentation Logistics and HQ — Build phase of new DC and HQ complete, internal fit out underway — On track to become ope
Slide 21: H2 Focus
Introduction Financial review Appendices Strategy update H2 Focus Short term, we are focused on maximising trading performance and profitability 21 Sharing our passion for cooking ProCook | FY23 Interim Results presentation We create inspirational & memorable We offer friendly, knowledgeable 1 Deliv
Slide 22: Looking ahead
Introduction Financial review Appendices Strategy update Looking ahead Confident in our future, well positioned to grow market share 22 ProCook | FY23 Interim Results presentation MARKET SHARE opportunity is significant STORES expansion will raise awareness and support growth ECOMMERCE user experien
Slide 23: Summary
Introduction Financial review Appendices Strategy update Summary Focused on making ProCook a stronger and more sustainable business for all our stakeholders 23 ProCook | FY23 Interim Results presentation ‒ Macro environment and exceptionally hot summer created significant trading challenges ‒ Good s
Slide 24: Appendices
24 ProCook | FY23 Interim Results presentation Appendices
Slide 25: Investment Case
Introduction Financial review Strategy update Appendices Investment Case 25 ProCook | FY23 Interim Results presentation Market D2C Brand Infrastructure 1 Highly attractive market 2 D2C business model 3 Well invested infrastructure dynamics with a fragmented transcends all aspects of the provides an
Slide 26: Attracting, engaging and retaining more customers
Introduction Financial review Strategy update Appendices Attracting, engaging and retaining more customers Active customer base1 has exceeded 1m, with new acquisition steady year on year and repeat rates improving 26 ProCook | FY23 Interim Results presentation Marketing — Enhance retention with new
Slide 27: Developing our customer offer
Introduction Financial review Strategy update Appendices Developing our customer offer Focusing on service and product proposition 27 Ecommerce ProCook | FY23 Interim Results presentation — Faster UX development post re-platform — Design re-fresh Retail — Using our “Selling Circle” training to impro
Slide 28: Exceptional performance last year in H1
Introduction Financial review Strategy update Appendices Exceptional performance last year in H1 Trading comparatives were particularly strong in H1 with +60.8% growth last year, softening later in the year 28 Revenue growth % and market growth % by quarter ProCook | FY23 Interim Results presentatio
Slide 29: Profit before tax reconciliation
Introduction Financial review Strategy update Appendices Profit before tax reconciliation H1 underlying losses before tax of -£2.8m, reported loss before tax was -£3.5m after exceptional costs 29 ProCook | FY23 Interim Results presentation H1 FY23 H1 FY23 H1 FY23 H1 FY22 Non- £m Underlying Reported
Slide 30: Income Statement
Introduction Financial review Strategy update Appendices Income Statement H1 FY23 H1 FY23 H1 FY23 H1 FY22 H1 FY22 H1 FY22 30 Non- Non- ProCook | FY23 Interim Results presentation £m Underlying Reported Underlying Reported underlying underlying Revenue 27.4 - 27.4 32.0 - 32.0 Gross profit 16.7 - 16.7
Slide 31: Financial position
Introduction Financial review Strategy update Appendices Financial position £m 16 Oct 2022 17 Oct 2021 31 Non current assets 8.0 5.0 ProCook | FY23 Interim Results presentation Right of use assets 31.8 18.2 Inventories 12.8 13.8 Trade and other receivables 3.1 1.7 Corporation tax asset 1.0 0.6 Cash
Slide 32: Cash flow
Introduction Financial review Strategy update Appendices Cash flow £m H1 FY23 H1 FY22 Revolving credit facility 32 Reported profit before tax (3.5) 2.4 Facility £10.0m D&A, impairment and loss on disposal 2.5 1.9 Expiry April 2025 ProCook | FY23 Interim Results presentation Share based payments 0.6
Slide 33: Glossary of terms
Introduction Financial review Strategy update Appendices Glossary of terms 12m 12 month full financial year period EU European Union 33 %pts Percentage points FY Financial Year ProCook | FY23 Interim Results presentation AI Artificial Intelligence GP Gross profit AOV Average Order Value (ex-VAT) H1