A.g. Barr P.l.c. · LSE:BAG
A.g. Barr P.l.c — H1 2023/24 Earnings Presentation
29 slides from A.g. Barr P.l.c's earnings presentation, September 2023
Slide 1: Interim Results 26 weeks ended 30 July 2023
INTERIM RESULTS 26 weeks ended 30 July 2023
Slide 2: Agenda
Agenda ● Welcome & introductions ● Market update ● Financial review ● Business update ● Summary & outlook ● Questions Roger White Stuart Lorimer Chief Executive Finance Director 2
Slide 3: H1 highlights
H1 highlights Strong first half performance delivering further progress across strategic objectives Revenue Profit Cash position Financial Strong growth to Reported PBT £47.3m cash & £210m (+33%) £27.8m (+12.6%) cash equivalents Building national brands Winning in Energy Innovation Brand Boost growing
Slide 4: Financial overview
Financial overview 26 wks to 30 July 2023 26wks to 31 July 2022 % Change Revenue £210.4m £157.9m 33.3% Like for like revenue * £174.3m £157.9m 10.4% Reported profit before tax £27.8m £24.7m 12.6% Adjusted profit before tax *1 £27.0m £25.3m 6.7% Adjusted operating profit margin * 12.5% 16.2% (37)pp Cash
Slide 5: Market Update
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Slide 6: Soft drinks market
Soft drinks market Price-led growth Total UK soft drinks value Total UK soft drinks volume ▲ 8.8% ▼ 4.2% Carbonates value Carbonates volume ▲ 8.9% ▼ 3.3% Stills value Stills volume ▲ 8.7% ▼ 5.0% Source : Circana Marketplace 26 weeks to 29/07/23 6
Slide 7: Total UK soft drinks market - sub categories
Total UK soft drinks market - sub categories Source : Circana Marketplace 26 weeks to 29/07/23 7
Slide 8: Cocktail market - off trade
Cocktail market - off trade RTD ▲3.3% Category RTD Cocktail Segment ▲14.6% 8 Source: Nielsen Pre Mixed Alcoholic Drinks Total Coverage Data YTD 29/07/2023 ▼1%
Slide 9: Cocktail market - on trade
Cocktail market - on trade £716m 43.9k 8.3m Value of on-trade Number of outlets GB consumers drinking cocktails in GB stocking cocktails cocktails out of home ▲8.0% ▼1.5% ▼1.0% #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 Pornstar Sex on the Flavoured Iced Mojito Spritz Daiquiri Espresso Zombie Aperol Martini Bea
Slide 10: Financial Review
10 FINANCIAL REVIEW Stuart Lorimer
Slide 11: Financial scorecard
Financial scorecard H123/24 H122/23 Movement Volumes - Cases (m) oceececetseeseeseeee 349 27.8 8 25.5% Volumes-Cases(m) {like-for-like | 28.3 27.8 ® 1.8% Revenue - £m — - 210.4 157.9 & 33.2% Revenue-£m_ | i 1743 1579 e 10.4% Profit Before Tax-£m | “! 27.0 25.3 ® 6.7% GrossMargin% { Adjusted | 37.7%
Slide 12: H1 2023/24 Profit overview
H1 2023/24 Profit overview Reported PBT +£3.1m (+12.6%) Adjusted PBT +£1.7m (+6.7%) 12
Slide 13: Gross margin (%)
Gross margin (%) Reported gross profit +£10m versus H1 2022/23 (+£2.7m on a like-for-like basis) (6.6)pp (6.2)pp (2.5)pp (6.3)pp As expected, margin has been impacted by : ● Challenging economic backdrop ● Prioritising consumer affordability ● Lower margin Boost acquisition 13 13
Slide 14: Commodities & cost base
Commodities & cost base Energy Aluminium Gas Extreme & volatile Average price Average price General Other inc. inflation +17% +94% inflation Marketing v 10 year average v 10 year average Materials & 3rd Party Employee Supply Sugar Mango Costs Average price Average price Sustained +77% +25% inflation v
Slide 15: Operating costs and margin
Operating costs and margin Adjusted overheads increase £9.1m (20.7%) Like-for-like increase £2.3m (5.2%) ● Like-for-like overheads up 5% - strong cost control partly mitigating general cost pressure including labour ● Operating margin impacted by decision to prioritise consumer affordability and Boo
Slide 16: Cash and cash flow
Cash and cash flow 125 100 33.2 0.3 14.4 85.8 1.1 0.7 6.2 75 65 71.8 Ey 11.8 so = & 473 25 ° > P $ s > S 7 $ st + > se s & a ss ge & & s f & — $ s 3 RS RS 3 <s SS 8 ee < < x 3 s S © Oo SS & > S s Ps e F & ¥ s re x g a es Si & 2 ~ s xs iS) ” * g SLB VwwwWPP CC _ EGAN AGBarr
Slide 17: Balance Sheet
Balance Sheet Strong funding platform Well invested asset base Carefully managed working capital Robust investment returns 24.0 Inventories 30.8 68.5 Receivables 76.9 63.5 Payables 73.8 17
Slide 18: Long-term growth and value creation
Long-term growth and value creation Continued revenue growth Business re-org & Cumbernauld Business Target operating manufacturing re-engineering Investment margin achieved investment programme phase c.14-15% 2015 2016 2017 2019-20 2022 2023 2024 2025 2015 Milton Keynes Margin manufacturing rebuild
Slide 19: 2023/24 Outlook
2023/24 Outlook Previously upgraded guidance remains unchanged ● Group revenue expected to increase by c.25% on 2022/23 Revenue ● Includes first full year contribution from Boost portfolio ● Operating margin slightly lower than 2022/23 full year Margins ● Strategic plan not to fully pass on cost infla
Slide 20: Looking further out
2024/25 Looking further out Revenue ● Mid single digit organic revenue growth ● Operating margin expected to increase to 12-13% as manufacturing synergies from Margins Boost acquisition begin to be realised and inflation slows ● Significant investment in manufacturing capacity and capability continues
Slide 21: Business Update
21 BUSINESS UPDATE Roger White
Slide 22: Barr Soft Drinks
Barr Soft Drinks Strong revenue growth driven by volume, pricing and mix, alongside effective sales execution and successful consumer marketing activity. IRN-BRU ▲ 8% Rubicon ▲17% Barr Flavours ▲ 9% Source : AG Barr revenue 26 weeks to 30/07/23 22
Slide 23: Boost - H1
Boost - H1 High growth business Boost Sports & ● Strong topline performance in Boost Coffee Rio Energy line with acquisition expectations ▲37% ▲42% ▲19% ● Currently a lower margin, asset light business with outsourced production ● Acquisition related earn-out converted to a personal incentive plan -
Slide 24: Boost - looking forward
Boost - looking forward Delivering further growth Boost sales momentum expected to continue driven by ● Strong position and participation in high growth Sports, Energy & RTD coffee categories ● Growing distribution beyond its core market of independent retail/impulse ● Innovation pipeline Delivering
Slide 25: Funkin
Funkin UK’s Number 1 cocktail brand UK off trade Off-trade - further growth supported by innovation, increased consumer marketing ▲11 % investment and distribution growth UK on trade On-trade - cocktail consumption slowed following last year’s post-Covid high, ▲ 1% however International ● US trial n
Slide 26: Funkin - Innovation and portfolio development
Funkin Innovation and portfolio development Shake & Serve Liqueurs Double Shot 26
Slide 27: MOMA
MOMA ● Establishing itself as a high quality, craft oat portfolio brand, with close ties to British farming ● Developing a strong brand association with specialist coffee outlets MOMA growth 24% Sources : AG Barr revenue 26 weeks to 30/07/23 27
Slide 28: Responsibility
Responsibility H1 highlights Respecting the environment ● net-zero progress - 12 new bio-fuelled trucks delivering a 90% reduction in CO2 compared to diesel Giving back ● Corporate partnership with Marie Curie with strong employee fundraising support Acting with integrity ● FUNKIN B Corp accreditati
Slide 29: Summary
Summary ● Momentum in our brands is strong ● Poor summer weather has impacted soft drinks and cocktail markets ● Regulatory environment - currently less volatile ● Reconfirming updated guidance ● Medium term margin recovery plan well underway 29