Gale Pacific Limited · ASX:GAP
Gale Pacific — Shareholder Meeting (October 2024)
22 slides from Gale Pacific's shareholder meeting presentation, Oct 24, 2024
Slide 1: Chief Executive Officer's Address
CHIEF EXECUTIVE OFFICER’S ADDRESS TROY MORTLEMAN CEO & GENERAL MANAGER, AUSTRALIA AND NEW ZEALAND
Slide 2: About Gale Pacific
ABOUT GALE PACIFIC Designed for, and tested in, the harshest environments on earth, only GALE Pacific’s innovative, sustainable fabrics are the longest lasting in the industry, protecting people, food, water, and property for over 70 years. GALE Pacific Commercial® brand products include The Company
Slide 3: Business Overview
BUSINESS OVERVIEW Map legend: Head office Sales Office Warehouse Manufacturing Charlotte, USA Ningbo, China Los Angeles, USA Dubai, UAE Brisbane, Australia 14.7 Perth, 3.4 Australia Americas 2024 Australia & 2024 85.4 Revenue New Zealand 9.7 EBITDA by region $M 73.9 by region $M Developing 6.0 Marke
Slide 4: Contents
CONTENTS ■ Results Overview ■ Regional Overview ■ Company Strategy ■ Trading Update & Outlook
Slide 5: Results Overview
RESULTS OVERVIEW
Slide 6: Macro Backdrop | Result Drivers
MACRO BACKDROP | RESULT DRIVERS Adverse weather Supply chain Cost of living Retail partner Increased reduced demand disruptions and ERP pressures continue sell-through cost of in key markets investment strained to impact consumer issues reduced goods and profitability spending revenue inflation
Slide 7: Results for FY24
RESULTS FOR FY24 Revenue of $174 million was down Change % $ million FY24 FY23 $13.6 million or 7% compared to FY23. vs FY23 Revenue 174.0 187.6 (7) EBITDA was $14.2 million, down $6.5 EBITDA 14.2 20.7 (31) million or 31% compared to FY23. EBIT 2.4 8.9 (73) Profit before tax (1.4) 5.3 (126) Net prof
Slide 8: Results for FY24
RESULTS FOR FY24 Net cash from operating activities during Net Cash from Operating Activities FY24 was up from $8.4 million in FY23. This increase was driven primarily by $ 26.7 million improved working capital management. FY23: 8.4m Net debt reduced from $15.5 million in FY23, reflecting strong cas
Slide 9: Regional Overview
REGIONAL OVERVIEW
Slide 10: Americas
AMERICAS ■ Revenue FY24: $85.4 million, a 7% decline vs FY23 ■ 20% EBITDA decline due to lower revenues and one-off costs from ERP implementation ■ Lowe’s national launch of Roller Shades with HeatShield ■ Introduced Coolaroo® Pet Bed with HeatShield to 1,400 Walmart locations ■ Latin America +81% r
Slide 11: Australia/New Zealand
AUSTRALIA/NEW ZEALAND ■ Revenue FY24: $73.9 million, a 10% decline vs FY23 ■ 42% EBITDA decline due to lower revenue and one-off costs from ERP implementation ■ Adverse weather conditions reduced consumer demand ■ Margin improvements through range management in umbrellas ■ 11% inventory reduction fr
Slide 12: Developing Markets
DEVELOPING MARKETS ■ Revenue FY24: 14.7 million, a 10% increase vs FY23 ■ 12% EBITDA decline due to one-off costs from ERP implementation ■ 38% revenue growth in the Middle East ■ Revenue in Spain up 20% and 29% in Italy ■ 50% revenue decline in Japan due to macroeconomic challenges ■ Successful Hea
Slide 13: Company Strategy
COMPANY STRATEGY
Slide 14: Company Strategy: Innovation and Sustainability
COMPANY STRATEGY GALE Pacific is focused on developing meaningful innovation that improves the lives of our customers and consumers, alongside our ongoing commitment to providing a sustainable product solution. Our strategy is anchored on two core principles: Innovation Sustainability Product Proces
Slide 15: FY25 Strategy Focus Areas
Sustain Market Leadership Position in Australia/ New Zealand FY25 Drive STRATEGY Optimise Global Profitable FOCUS Operating Growth in the Americas AREAS Footprint Invest to Grow in Developing Markets
Slide 16: Drive Profitable Growth in the Americas
DRIVE PROFITABLE GROWTH IN THE AMERICAS Extend Omni-Channel Retail Expand Commercial Innovate to Presence & Consumer Reach Segment Diversify & Expand HeatShield expansion through new Leverage HeatShield in Consumer-led innovation resulting in applications across retailers; DIY leading commercial fab
Slide 17: Sustain Our Market Leadership Position in Australia and New Zealand
SUSTAIN OUR MARKET LEADERSHIP POSITION IN AUSTRALIA AND NEW ZEALAND Optimise Margin Expand Share in Protect Our Leading Performance Commercial Segment Share at Bunnings Rigorous category Drive new business with Expand share of new HeatShield management to improve/ existing products products across c
Slide 18: Invest to Grow in Developing Markets
INVEST TO GROW IN DEVELOPING MARKETS Enter New Build Coolaroo Consumer Drive Growth in Markets Share in Existing Markets The Middle East Identify markets where our Leverage capability, Win share through Saudi value proposition can win credibility, and differentiated Arabia project conversion innovat
Slide 19: Optimise Global Operating Footprint
OPTIMISE GLOBAL OPERATING FOOTPRINT Global Customer Manufacturing & Future Contact Centre Operational Excellence Operating Model Implement global “follow- Enhance production planning to Define appropriate US distribution the-sun” operating model to maximise capacity efficiency model to service growt
Slide 20: Foundational Elements
FOUNDATIONAL ELEMENTS Our strategy is driven by: Safety First Financial Discipline Secure & Efficient Systems Developing Our People
Slide 21: Gale Pacific Differentiators
GALE PACIFIC DIFFERENTIATORS Category & market High quality, Customer Consumer & commercial Sustainable leading brands innovative products partnerships diversification product portfolio Technical fabrics Vertically integrated Global distribution On-trend, outdoor Sun safety expertise manufacturing &
Slide 22: FY25 Trading Update and H1 Outlook
FY25 TRADING UPDATE AND H1 OUTLOOK ■ Successful go-live of new ERP platform, Microsoft D365, in October ■ Improved revenue and market share growth across grain storage coated fabrics in Australia ■ Encouraging early peak season sell through volumes at Bunnings ■ Continuation of positive run rates in