Procook Group Plc · LSE:PROC
Procook — FY2024 Earnings Presentation
35 slides from Procook's earnings presentation, Jun 26, 2024
Slide 1: Bringing joy to everyday cooking
Bringing joy to everyday cooking FY24 Annual Results | 26 June 2024
Slide 2: Introduction
2 ProCook | FY24 Annual Results Introduction Lee Tappenden CEO
Slide 3: First impressions reinforced
First impressions reinforced Significant opportunity to accelerate profitable growth 3 ProCook | FY24 Annual Results Strength in own-brand, direct-sourced model Specialist retail with high quality product range Low awareness, strong loyalty once discovered Outstanding service, passionate colleagues
Slide 4: FY24 strategy highlights
FY24 strategy highlights Good progress to support our new strategic growth agenda 4 ProCook | FY24 Annual Results NEW WEBSITE PLATFORM improving UX and conversion RETAIL EXPANSION 2 new stores, 1 upsize relocation PRODUCT EXPANSION Electricals phases 1&2 launched VALUE PROPOSITION Price cuts on ~40%
Slide 5: FY24 performance highlights
FY24 performance highlights Improving performance, continuing into Q1 FY25 5 ProCook | FY24 Annual Results GROWING MARKET SHARE with retail outperforming IMPROVING SALES MOMENTUM UK revenue +1.7% YoY1 MARGIN RECOVERY GM% +420bps YoY COST DISCIPLINE £3m improvement plan delivered PROFIT IMPROVEMENT U
Slide 6: Financial review
6 ProCook | FY24 Annual Results Financial review Dan Walden CFO
Slide 7: Revenue momentum building
Revenue momentum building FY24 revenue +0.4% YoY, and +1.7% YoY excl. discontinued Amazon EU channels. Retail driving growth whilst website sales were impacted by platform migration disruption 7 ProCook | FY24 Annual Results Quarterly revenue growth % 90% 84.9% 70% 50% 35.7% 30% 9.8% 11.4% 10% 5.0%
Slide 8: Income statement
Income statement Return to profit in FY24, gross profit recovered as expected, strong cost discipline in face of inflationary pressures 8 ProCook | FY24 Annual Results £m FY24 FY23 Revenue 62.6 62.3 — Revenue growth of 1.7% excluding discontinued channels Gross profit 41.1 38.3 — Gross margins +420b
Slide 9: Free cash flow
Free cash flow Disciplined cash management resulting in generation of £2.0m free cash flow, and net debt reducing to £0.7m (FY23: £2.8m). Improved product intake and clearance management reducing inventory by £1.8m year on year 9 ProCook | FY24 Annual Results Includes £2.3m non- cash gain on lease d
Slide 10: FY25 Q1 trading update
FY25 Q1 trading update Continued trading momentum with positive LFL’s in both Retail and Ecommerce 10 ProCook | FY24 Annual Results £m Q1 FY25 Q1 FY24 YoY% Revenue 11.3 10.7 5.6% Ecommerce 4.1 3.9 5.5% Retail 7.2 6.8 5.6% LFL Revenue1 10.9 10.5 3.5% LFL Ecommerce 4.1 3.9 5.5% LFL Retail 6.8 6.6 2.4%
Slide 11: Strategy update
11 ProCook | FY24 Annual Results Strategy update Lee Tappenden CEO
Slide 12: Our refreshed customer promise
Our refreshed customer promise Bringing joy to everyday cooking 12 ProCook | FY24 Annual Results Quality products Unbeatable value At every price point, we offer high quality, Our own-brand products and direct sourced thoughtfully designed products, that are model enables us to offer lower prices bu
Slide 13: Growth opportunity
Growth opportunity Leverage existing business model and previous investments to accelerate profitable growth 13 ProCook | FY24 Annual Results Expand our RETAIL STORE network in the UK Improve our PRODUCT OFFER including seasonal Enhance CUSTOMER EXPERIENCE especially online Accelerate BRAND AWARENES
Slide 14: Our plan for profitable growth and value creation
Our plan for profitable growth and value creation Becoming the customers’ first choice for kitchenware 14 Medium term objectives ProCook | FY24 Annual Results 100 £100m 10% UK retail stores Revenue Operating profit margin Our strategic priorities Accelerate profitable sales growth Improve operating
Slide 15: Expand our UK store network
Accelerate profitable Expand our UK store network sales growth Enable more customers to shop with us as we accelerate towards 100 profitable stores 15 ProCook | FY24 Annual Results • Enable more customers to shop with us • Current estate only covers ~35% of UK population • Open approx. 5 to 10 stor
Slide 16: Strengthen our specialist product offer
Accelerate profitable Strengthen our specialist product offer sales growth Create more reasons to shop with us, adding more inspiration and broadening our appeal to more customers 16 ProCook | FY24 Annual Results • Create more reasons to shop with us • Extend ranges in categories where we under-inde
Slide 17: Deliver best in class omnichannel service
Accelerate profitable Deliver best in class omnichannel service sales growth Putting the customer first to drive improved service and a seamless experience across in-store and online 17 ProCook | FY24 Annual Results • Become the first choice for kitchenware • Focus on NPS at every touchpoint removin
Slide 18: Grow brand awareness and customer engagement
Accelerate profitable Grow brand awareness and customer engagement sales growth Help more new customers discover ProCook, encourage more existing customers to shop with us again 18 ProCook | FY24 Annual Results • Help more customers discover us • Increase retail presence and explore new sales channe
Slide 19: Supply chain transformation
Improve operating Supply chain transformation efficiency Make our operations more efficient to deliver better service and availability for customers at lower cost 19 ProCook | FY24 Annual Results • Improving availability whilst reducing cost • Tailored store delivery schedules • New delivery equipme
Slide 20: More resilient and scalable tech solutions
Improve operating More resilient and scalable tech solutions efficiency Trusted technology which is easier for customers and colleagues to use 20 ProCook | FY24 Annual Results • Technology to support profitable growth • Continually improve UX on our website • Enhanced WMS and store stock management
Slide 21: Create an even better place to work
Create an even better Create an even better place to work place to work Developing our people capabilities and culture for our future 21 ProCook | FY24 Annual Results • Developing our people and culture • Create new regional training coaches • Leadership development programme • Building a high-perfo
Slide 22: Being a force for good
Being a force for Being a force for good good Doing business the right way as a responsible retailer 22 ProCook | FY24 Annual Results • Reducing our environmental footprint • Clear 8-point plan to reduce our carbon emissions • 2040 Net Zero commitment; engaging with suppliers critical • Caring for o
Slide 23: Medium term targets
Medium term targets Accelerating profitable growth 23 ProCook | FY24 Annual Results 100 £100m 10% UK retail stores Revenue Operating profit margin Revenue ambition £m 2-5 1-2 100 5 - 10 5 - 10 15 - 25 63
Slide 24: Outlook and guidance
Outlook and guidance Accelerating profitable growth 24 P&L ProCook | FY24 Annual Results — 10 new stores planned — Low single-digit LFL revenue growth — GM% similar year on year — Channel costs grow with volume — Non-underlying SBP costs of £0.5m — H1 typically ~40% of FY sales Cash flow — Working c
Slide 25: Summary
Summary Good strategic progress and improving performance; clear on our route forward to accelerate profitable growth over the medium term 25 ProCook | FY24 Annual Results Improving sales momentum throughout LY and Q1 Investment and strategic progress will support growth Transitioning to a customer
Slide 26: Appendices
26 ProCook | FY24 Annual Results Appendices
Slide 27: Market context
Market context Growing market share during a year of challenging trading conditions, and despite adverse impact of website transition disruption 27 UK Market vs ProCook UK growth % ProCook | FY24 Annual Results 50% Strong June Strong Summer Sale New website launch Strong Black Friday New lower price
Slide 28: Revenue
Revenue Revenue +1.7% YoY excluding the discontinued Amazon channels. Retail channel back to positive LFL growth, momentum building 28 £m FY24 FY23 YoY% Year on Year revenue £m ProCook | FY24 Annual Results Revenue 62.6 62.4 0.4% Core UK Business AMZ EU +1.7% -1.3% Ecommerce 22.7 25.6 (11.5%) Retail
Slide 29: Gross margin
Gross margin Strong recovery in GM% following unwinding of shipping cost impacts 29 £m FY24 FY23 YoY % Gross margin % quarterly trend ProCook | FY24 Annual Results 70% Gross profit 41.1 38.3 5.1% 67.8% 67.2% 68% 66.7% 66.3% 65.7% 61.5% 420 bps 65.5% 65.5% Gross margin % 66% 64.1% Ecommerce gross mar
Slide 30: Operating expenses
Operating expenses Operating expenses reflect known investments and inflationary impacts combined with website disruption costs, less the impacts of lower Ecommerce volumes, cost improvement savings year on year 30 Underlying operating expenses £m Underlying operating profit £m1 ProCook | FY24 Annua
Slide 31: Profit before tax reconciliation
Profit before tax reconciliation Underlying operating profit improved YoY by £1.4m to £2.1m in FY24 with Underlying PBT increasing to £1.0m at the top of our expected range 31 Underlying operating profit to reported profit before tax £m ProCook | FY24 Annual Results Non-underlying items £0.3m — Assi
Slide 32: Income Statement
Income Statement FY23 32 FY24 (Restated) ProCook | FY24 Annual Results Non- Non- £m Underlying Reported Underlying Reported underlying underlying Revenue 62.6 - 62.6 62.3 - 62.3 Gross profit 41.1 - 41.1 38.3 - 38.3 GP% 65.7% 65.7% 61.5% 61.5% Net operating costs (39.0) (0.1) (39.1) (37.6) (6.2) (43.
Slide 33: Financial Position
Financial Position 2 April 2023 £m 31 March 2024 33 (Restated) Non current assets 9.0 8.9 ProCook | FY24 Annual Results Right of use assets 20.5 25.5 Inventories 9.7 11.5 Trade and other receivables 3.7 2.2 Corporation tax 0.1 0.6 Cash and cash equivalents 2.0 2.0 Total current assets 15.6 16.3 Trad
Slide 34: Cash flow
Cash flow £m FY24 FY23 Revolving credit facility 34 Reported loss before tax 0.7 (6.5) Facility £10.0m D&A, impairment and loss on disposal 3.1 9.5 Expiry April 2026 ProCook | FY24 Annual Results Share based payments 0.2 1.1 Committed Yes Net working capital inflow 3.6 3.8 Covenants1 Finance expense
Slide 35: Glossary of terms
Glossary of terms 12m 12 month full financial year period KPI Key Performance Indicator 35 bps Basis points LBT Loss before tax ProCook | FY24 Annual Results D&A Depreciation and Amortisation LFL Like for Like EBITDA Earnings before interest, tax, depreciation and amortisation IPO Initial Public Off