Greencore Group Plc · LSE:GNC
Greencore — Q2 2016 Earnings Presentation
20 slides from Greencore's earnings presentation, Aug 11, 2016
Slide 1: Q2 Results 2016
Q2 RESULTS 2016 For the 13 weeks ended 25 June 2016 11 August 2016
Slide 2: Business Highlights
Business Highlights Agust Gudmundsson
Slide 3: Headlines
Headlines Strong revenue growth reflecting volume uplifts across the Group Significant Adjusted Ebitda margin improvement through benefits from capital investment Sale of Belgian operation completes strategic exit from European market 3
Slide 4: UK performance
UK performance Fresh prepared food Strong performance National Living sector continues to across core Wage and Brexit grow ahead of wider categories reflects increase pressure market growth with all key on cost base and customers give further uncertainty IGD 4
Slide 5: International
International Double digit growth across both US and Asia operations underpinned by further volume uplift US sales driven by growing demand for short shelf life food and broadening customer base and product range Asia recorded strongest monthly trading performance to date through benefits from innov
Slide 6: Strategic developments
Strategic developments Purchase of remaining minority shares in Bakkavor Group Ltd completed ownership restructure Group now focused on core strategic growth areas of UK, US and Asia following exit from Europe Investments across core categories to support future performance and new business over com
Slide 7: Financial Review
Financial Review Peter Gates
Slide 8: Financial overview
Financial overview Q2 Q2 H1 H1 £m 2016 2015 Change 2016 2015 Change Revenue 438.7 425.1 3.2% 854.5 835.3 2.3% Revenue: Like-for-like 437.9 422.8 3.6% 853.6 831.0 2.7% Adjusted EBITDA 41.4 35.1 18% 71.9 59.8 20% Adjusted EBITDA margin 9.4% 8.3% 110bps 8.4% 7.2% 120bps Free cash flow 31.9 36.0 (4.1) 2
Slide 9: UK performance
UK performance Q2 Q2 H1 H1 £m 2016 2015 Change 2016 2015 Change Revenue 394.8 387.8 1.8% 768.6 760.0 1.1% Revenue: Like-for-like 394.6 384.1 2.8% 768.4 752.1 2.2% Adjusted EBITDA 38.3 34.3 12% 67.0 58.2 15% Adjusted EBITDA margin 9.7% 8.8% 90bps 8.7% 7.7% 100bps Revenue growth across Focused investm
Slide 10: International performance
International performance Q2 Q2 H1 H1 £m 2016 2015 Change 2016 2015 Change Revenue 43.9 37.3 17.7% 85.9 75.3 14.1% Revenue: Like-for-like 43.3 38.7 11.9% 85.2 78.9 8.0% Adjusted EBITDA 3.1 0.8 288% 4.9 1.6 206% Adjusted EBITDA margin 7.1% 2.1% 500bps 5.7% 2.1% 360bps Double digit revenue US focused
Slide 11: Free cash
Free cash £m 80 4.2 18.8 71.9 70 60 4.1 1.1 25.1 50 40 30 27.0 20 10 0 Adjusted Working capital Interest paid Tax Pensions Capex (net) Free cash inflow EBITDA H1 movement from operating 2016 activities Ongoing working capital Increased tax payments Accelerated capital management delivers reflects hi
Slide 12: Net debt
Net debt £m 420 36.3 1.5 0.3 409.1 410 398.6 27.0 400 390 380 370 360 350 340 Net Debt Free cash Dividends paid Refinancing Other Net Debt FY 2015 inflow costs H1 2016 Positive free cash inflow Dividend payment funds Call premium paid on despite higher capex purchase of minority part redemption of 2
Slide 13: Key ratios
Key ratios £m H1 2016 Interest cover covenant >2.40 x Actual 3.7 x Headroom 34% Leverage covenant <4.40 x Actual 2.8 x Headroom 36% Leverage reduced to Increased Interest cover Continued improvement 2.8x from 3.7x in June headroom following partial in leverage headroom 2015 bond redemption 13
Slide 14: Outlook and Q&A
Outlook and Q&A Agust Gudmundsson
Slide 15: Outlook
Outlook Excellent first half Further economic Focusing on performance with uncertainty expected innovation and both strong revenue following outcome of investing for future and EBITDA growth EU referendum growth means we are well placed to drive future performance 15
Slide 16: Appendix
Appendix
Slide 17: Continuing and Discontinued Operations
Continuing and Discontinued Operations £m Q2 2016 Q2 2015 Cont. Disc. Total Cont. Disc. Total Revenue 438.7 - 438.7 425.1 15.8 440.9 Gross profit 126.0 - 126.0 118.1 5.7 123.8 Operating profit 31.6 - 31.6 23.9 2.7 26.6 Profit before tax 22.7 - 22.7 4.0 3.3 7.3 Adjusted EBITDA 41.4 - 41.4 35.1 3.0 38
Slide 18: Composition of net debt
Composition of net debt £m June 2016 Cash and cash equivalents (16.4) Fixed rate bond 8.25% 2018 116.9 Fixed rate bond 8.75% 2020 148.9 Term loan 145.0 Receivables securitisation 10.0 Other loans and overdrafts 0.1 Finance leases 4.6 Operational net debt 409.1 18
Slide 19: Statutory balance sheet
Statutory balance sheet £m June 2016 Dec 2015 Goodwill 647 643 Intangible assets 4 5 Other non-current assets 302 292 Current assets 254 241 Operational net debt (409) (399) Other liabilities (448) (425) Net assets 350 357 19
Slide 20: Slide 20