Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 2023 Earnings Presentation
18 slides from Australian Vintage's earnings presentation, Feb 23, 2023
Slide 1: 1H23 Interim Results
1H23 INTERIM RESULTS February, 2023 Presenters: Craig Garvin, CEO Adam Rigano, CFO
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated companies) and provides general background information about AVG’s activities as at the date of this presentation. The information does not pur
Slide 3: Highlights: First Half 2023 interim results
Highlights: First Half 2023 interim results AVG grows market share, premiumisation strategy on track, delivering NPATS of $16.7m… Reported NPAT 29% higher than prior year Overall market share gains for AVG Sale and leaseback of commercial vineyards Coldridge & Grande Junction completed $12.9m genera
Slide 4: Our strategic plan continues to position us well for growth
Our strategic plan continues to position us well for growth… Consumers and Markets and People ESG Return on Assets Brands Customers 4
Slide 5: Results demonstrating the resilience of our strategy in difficult trading conditions
…with results demonstrating the resilience of our strategy in difficult trading conditions Consumers and Markets and People ESG Return* Brands Customers Pillar Brand Winning in key Employee engagement Becoming a NET EBITDAS +17% Sales geographies at Top Quartile POSITIVE business $28.3m PY $105.6m A
Slide 6: Investment in pillar brands continues, supporting our strategic imperatives
Investment in pillar brands continues, supporting our strategic imperatives as markets normalize post Covid lockdowns Premiumisation strategy is Pillar brands Summary working $M Sales $ Shipments vs PY Portfolio growth in line with strategic plan 106.8 +2% 106.2 105.6 Price taken in all geographies
Slide 7: ESG underpinning business strategy
Zl Net! | SER ESG underpinning business strat Creating good.times for our future’ SOCIAL Nia communities so they can thrive S SS > O~ Engaging with our S s gS Nurturing and protecting the environment that provides for us Share & Grow
Slide 8: ESG impact update
ESG impact update Carbon reduction strategies Mental health first aid Procurement review of underway towards Net Zero certified organisation suppliers incorporating ESG All premium owned vineyards Employee engagement on Environment and Social certified with Sustainable the rise to employer of report
Slide 9: AVG are the industry leaders in the no-and-low wine category
AVG are the industry leaders in the no-and-low wine category • We are first movers in the category • UK has increased market share +44 points • Australian market under competitive pressure • Innovation is utilizing the looming ABV tax in the UK as an opportunity • New McGuigan Mid range and Not Guil
Slide 10: Leverage great assets, know how and raw alcohol surplus
Leverage great assets, know how and raw alcohol surplus to support high margin growth categories Collaborations Drinks Pillar Brands Drinks business and collaborations have achieved over 7k distribution points in a short time and growing whilst positively contributing to the bottom line 10
Slide 11: Financial performance protected by asset sales
Financial performance protected by asset sales to offset inflationary pressures enabling execution of strategic plan Total Revenue EBITDAS EBITS $137.1m $28.3m $20.7m Other Pillar Brands Asset Sales Operating business Asset Sales Operating business 200 40 25 150 30 20 15 100 20 15.3 15.3 10 20.4 77%
Slide 12: Income statement - Sale and leaseback offsetting inflationary pressure
Income statement - Sale and Leaseback offsetting inflationary pressure, which is starting to ease 1H23 pre Incremental • Revenue within 1% of prior comparative period M&A Activity Fav/ $m sale/ 1H23 1H22 leaseback (Sale & (Unfav) % • Profit significantly impacted by inflationary pressures Leaseback)
Slide 13: Income statement movement reconciliation
Income statement movement reconciliation Dec 21 NPATS to Dec 22 NPAT Movement $ million 14.7 16.7 0.6 2.6 12.9 -3.8 10.9 -5.0 -1.6 -0.8 -1.5 2.3 -2.9 -0.3 Dec-21 Demurrage COVID Seafreight Higher Higher Marketing Off Trade Dec-22 M&A Sale and Dec-22 SGARA Dec-22 NPATS & Out of closures & other distr
Slide 14: Balance sheet - strong underlying performance
Balance sheet - strong underlying performance despite challenging market factors 1H23 FY22 1H22 • Sale and leaseback driving higher $m 1H23 FY22 1H22 NTA, lower Net Debt, gearing and Net Debt (excl leverage Cash & equivalent 6.4 2.5 4.6 53.1 74.5 81.9 leases) $m • Excess capacity in all covenants Re
Slide 15: Cash flow – H1 6 month movement comparison
(1) Cash flow – H1 6 month movement comparison $m 1H23 1H22 • Cash flow from operating activities, pre inflationary Cash from operating activities prior to 16.2 20.3 pressures including changes in assets/ liabilities and incremental marketing inflationary pressures investment of $2.2 million margina
Slide 16: Cash flow from operations – Rolling year to Dec
(2) Cash flow from operations – Rolling 1 year to Dec $m FY Dec 23 FY Dec 22 Cash from operating activities prior to changes in 22.3 24.2 assets/ liabilities and inflationary pressures P&L Inflationary pressures (15.2) (4.5) Increase in inventories (32.1) (19.0) Decrease /(increase) in receivables 1
Slide 17: Outlook
Outlook FY23 EBITS forecast to be in line with prior year, subject to FX, agricultural risk and planned asset sales Our strategic plan is on track with increased marketing spend to drive pillar brand market share and launch new innovations, whilst taking price across all key geographies where most c
Slide 18: Australian Vintage
AUSTRALIAN VINTAGE 1 ~E- ALTITUDE TEMPUS TWO