Procook Group Plc · LSE:PROC
Procook — H1 FY2022 Earnings Presentation
30 slides from Procook's earnings presentation, Dec 16, 2021
Slide 1: Interim Results FY22
Interim Results FY22 1 ProCook | FY22 Interim Results presentation 16 December 2021
Slide 2: Interim Results FY22 agenda
Interim Results FY22 2 • Introduction ProCook | FY22 Interim Results presentation • Financial review • Strategy update
Slide 3: Introduction
Introduction 3 Daniel O’Neill – Founder & CEO ProCook | FY22 Interim Results presentation
Slide 4: D2C business model – well positioned for continued gains
Financial review Strategy update Appendices Introduction D2C business model – well positioned for continued gains As a D2C brand, ProCook has complete control of the route-to-market and end-to-end customer proposition creating greater value- for-money and generating healthy margins 4 ProCook | FY22
Slide 5: H1 Performance highlights
Financial review Strategy update Appendices Introduction H1 Performance highlights Continuing our track record of sustainable growth 5 ProCook | FY22 Interim Results presentation Total YoY sales growth +34% Total Yo2Y LFL growth +143% Ecommerce Yo2Y LFL growth +250% New customers acquired +319k Incr
Slide 6: Outperforming the UK Kitchenware Market
Financial review Strategy update Appendices Introduction Outperforming the UK Kitchenware Market 41.9%pts ahead of the market in first half; consistently taking market share 6 All retail stores All retail stores ProCook | FY22 Interim Results presentation opened in FY22 opened in FY21 250% 200% UK K
Slide 7: Developing our customer offer – progress in H1
Financial review Strategy update Appendices Introduction Developing our customer offer – progress in H1 Becoming the customers' first choice for kitchenware 7 ProCook | FY22 Interim Results presentation Delivering organic growth Developing channel Extending and improving in the UK market capabilitie
Slide 8: Financial review
8 ProCook | FY22 Interim Results presentation Financial review Dan Walden – CFO
Slide 9: Summary financials
Introduction Strategy update Appendices Financial review Summary financials Strong revenue growth of 34.4% YTD. Performance in line with expectations 9 £m H1 FY221 H1 FY21 YoY % ProCook | FY22 Interim Results presentation Revenue 32.1 23.9 +34.4% Gross margin % 67.8% 67.8% - Underlying operating pro
Slide 10: Revenue growth
Introduction Strategy update Appendices Financial review Revenue growth Momentum continues with strong revenue growth of 34.4% (+142.5% Yo2Y LFL) in line with expectations for the first half 10 £m H1 FY22 H1 FY21 YoY% H1 FY20 Yo2Y % ProCook | FY22 Interim Results presentation Revenue 32.1 23.9 +34.4
Slide 11: Strong gross profit margins
Introduction Strategy update Appendices Financial review Strong gross profit margins Gross margins of 67.8% in H1 reflect strong underlying product margins, partially impacted by additional freight costs 11 £m H1 FY22 H1 FY21 YoY % ProCook | FY22 Interim Results presentation Gross profit 21.7 16.2 +
Slide 12: Healthy channel operating profits
Introduction Strategy update Appendices Financial review Healthy channel operating profits Healthy operating profit contributions delivered through ecommerce and retail channel during seasonally lower part of year 12 £m H1 FY22 H1 FY21 YoY % — Total channel operating profit of £7.8m in ProCook | FY2
Slide 13: Underlying operating profit bridge
Introduction Strategy update Appendices Financial review Underlying operating profit bridge Underlying operating profits were £1.2m lower year on year, in line with expectations for the interim period 13 Underlying operating profit analysis (£m) Ecommerce costs: +£1.3m ProCook | FY22 Interim Results
Slide 14: Inventory Position
Introduction Strategy update Appendices Financial review Inventory Position ProCook has invested in higher inventory levels to support peak trading, and protect against current supply chain challenges Inventory on hand (£m) 14 — Meticulous management of our supply ProCook | FY22 Interim Results pres
Slide 15: Free cash flow
Introduction Strategy update Appendices Financial review Free cash flow Free cash flow generation in H1 FY22 reflects the adjusting IPO exceptional costs and increased capital investment. The net cash position remains 15 positive despite being at a seasonal low point at the end of the first half Pro
Slide 16: Current trading & outlook
Introduction Strategy update Appendices Financial review Current trading & outlook Peak trading performance is in line with our expectations, benefitting from Retail being open for more of H1 this year 16 — Total sales performance in line with our expectations ProCook | FY22 Interim Results presenta
Slide 17: Strategy update
Strategy update 17 Daniel O’Neill – Founder & CEO ProCook | FY22 Interim Results presentation
Slide 18: Strategic plan
Introduction Financial review Appendices Strategy update Strategic plan A clear plan for sustainable growth through customer acquisition & retention, supported by channel and product development 18 Our purpose Sharing our passion for cooking ProCook | FY22 Interim Results presentation and ingredient
Slide 19: Priority 1: Attracting more customers to our brand
Introduction Financial review Appendices Strategy update Priority 1: Attracting more customers to our brand Accelerated growth in new customer acquisition, with profitable-on-first-purchase acquisition costs 19 New customer acquisitions in H1 (‘000) by channel — 319k new customers acquired in H1 FY2
Slide 20: Priority 2: Increasing the life time value of our customers
Introduction Financial review Appendices Strategy update Priority 2: Increasing the life time value of our customers Increasing repeat rates and average order values both in Ecommerce and Retail channels, combine to enhance life time value 20 Ecommerce - Repeat purchase within 12 months Ecommerce –
Slide 21: Developing our customer offer – our plans for H2 and beyond
Introduction Financial review Appendices Strategy update Developing our customer offer – our plans for H2 and beyond Becoming the customers' first choice for kitchenware 21 ProCook | FY22 Interim Results presentation Delivering organic growth Developing channel Extending and improving in the UK mark
Slide 22: Building on our foundations – our plans for H2
Introduction Financial review Appendices Strategy update Building on our foundations – our plans for H2 Investing in our infrastructure to maintain an agile and scalable platform for growth 22 Continually develop agile and Develop our supply chain Make ProCook an even better Reduce our environmental
Slide 23: Summary
Introduction Financial review Appendices Strategy update Summary The UK’s leading D2C specialist kitchenware brand – continuing our track record of sustainable growth 23 ProCook | FY22 Interim Results presentation ‒ D2C model provides strong platform for growth ‒ Continued growth ahead of the UK mar
Slide 24: Appendices
24 ProCook | FY22 Interim Results presentation Appendices
Slide 25: Glossary of terms
Introduction Financial review Strategy update Appendices Glossary of terms 12m 12 month full financial year period H2 Second half of the financial year (24 weeks) 25 3PL Third Party Logistics provider LFL Like for Like1 ProCook | FY22 Interim Results presentation %pts Percentage points IPO Initial P
Slide 26: Income Statement
Introduction Financial review Strategy update Appendices Income Statement H1 - 28 weeks H1 FY22 H1 FY22 H1 FY22 H1 FY21 YoY% (FY22 26 Adjusting Underlying) £m Underlying Reported Reported items ProCook | FY22 Interim Results presentation Revenue 32.1 - 32.1 23.9 34.4% Gross profit 21.7 - 21.7 16.2 3
Slide 27: Financial position
Introduction Financial review Strategy update Appendices Financial position £m 17 October 2021 4 April 2021 27 Non current assets 5.3 3.9 ProCook | FY22 Interim Results presentation Right of use assets 16.6 15.1 Inventories 13.5 9.9 Trade and other receivables 2.1 1.9 Corporation tax 0.6 - Cash and
Slide 28: Free cash flow
Introduction Financial review Strategy update Appendices Free cash flow £m H1 FY22 H1 FY21 28 Operating profit (after adjusting items) 2.0 4.5 ProCook | FY22 Interim Results presentation Depreciation and amortisation 2.0 1.7 Net working capital movement (0.3) 1.6 Other non-cash movements 0.1 0.1 Tax
Slide 29: Net cash & treasury
Introduction Financial review Strategy update Appendices Net cash & treasury The Group repaid historical debt facilities during FY21, leaving a trade finance facility which it utilises for inventory purchases 29 £m 28 weeks FY22 28 weeks FY21 Trade finance facility ProCook | FY22 Interim Results pre
Slide 30: Investment Case
Introduction Financial review Strategy update Appendices Investment Case 30 ProCook | FY22 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