Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 FY2022 Earnings Presentation
19 slides from Australian Vintage's earnings presentation, Feb 23, 2022
Slide 1: Company Announcements: Investor Presentation – 2022 Interim Result
Company Announcements Australian Securities Exchange 23 February 2022 Australian Vintage Limited Investor Presentation – 2022 Interim Result Australian Vintage Limited has today released its financial statements for the half year ended 31 December 2021. Attached to this announcement is the investor
Slide 2: 31 December 2021 Half Year Results
31 December 2021 Half Year Results 23 February 2022
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 interest rates, the regulatory environment, competitive pressures, selling 179 932) (“AVG”) (including its subsidiaries, affiliates and associated price, market demand and conditions in the financial markets which m
Slide 4: Solid H1 result with underlying contribution growing +11% YOY
Solid H1 result with underlying contribution growing +11% YOY, while NPAT negatively impacted by one-time events compared to prior period. Overview • Underlying business is performing strongly with contribution before marketing +11% (+$3M) YOY and +6% after $1.8M increase in marketing investment • N
Slide 5: Our values remain unchanged and guide our mission
Our values remain unchanged – and guide our business approach focused on our mission to put the consumer at the heart of everything we do Our Vision To be the first choice for every occasion Our Purpose Make the world a smaller place through sharing good times Our Mission We put the consumer at the
Slide 6: Our strategic plan continues to position us well for growth
Our strategic plan continues to position us well for growth… Consumers and Brands Markets and Customers People Sustainability Return on Assets Investing in pillar Significantly improved Despite the pandemic Carbon footprint audit Leveraging our world brands our business in staff engagement has revie
Slide 7: All FY22 key balance scorecard metrics improving
… With all FY22 key balance scorecard metrics improving Consumers and Brands Markets and Customers People Sustainability Return on Assets Pillar Brand Sales Outgrowing the market Staff Engagement Wine Processing Contribution after Mktg in key geographies* Renewables $106.2m AVL vs WINE $25.3m 77% of
Slide 8: Historical financial performance supports step change in AVL business
Historical financial performance supports step change in AVL business Total Revenue Other Net Profit After Tax ¹ Excl One-Time Pillar Brands $138.0m 148.4 $10.0m 150 143.1 137.8 138.0 15 14.2 132.3 13.3 4.2 100 10 6.5 5.9 50 72% 77% 5 4.4 10.0 61% 65% 57% 0 0 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-1
Slide 9: Complementary portfolio of premium brands
As a reminder, we have a complementary portfolio of premium brands targeting differentiated consumer needs and occasions AVL Wines Pillar Brand Portfolio Easy going, quality wine Celebrate any occasion your way Premium wine crafted for sharing Aspirational Barossa for me ‘Beyond Tradition’ ‘Let it F
Slide 10: Australia and New Zealand outperforming the market
Australia and New Zealand outperforming the market in Australia as marketing investment for the portfolio increases Australia / New Zealand • All four Pillar Brands in growth +9% driven by increased consumer marketing investment • Australia scan performance 3X total wine category • New Zealand scan
Slide 11: UK also outperforming as focus expands to Tempus Two
UK also outperforming as focus expands to include Tempus Two UK / EU / North America • AVL significantly outperforming the market in the UK; McGuigan +6% and Tempus +87% • Canada returning to growth with +19% value (vs Australian wine shipments to Canada -20% value) % Value Growth (UK) 27% 18% 8% -3
Slide 12: Asia re-stage progressing after China tariff barrier
Asia re-stage progressing with strong H1 performances in key markets after recent China tariff barrier Asia • Despite no shipments to China, sales in rest of Asia have increased by +10% • No shipments to China in H1 due to tariff escalation • McGuigan “Just Because” and Tempus Two “Go Beyond Traditi
Slide 13: Our sustainability journey is well underway
Our sustainability journey is well underway Multi dimensional approach to sustainability Sustainability is at the forefront of our business ENVIRONMENT SOCIAL The natural environment of The people internal and vineyards, water sources, external to AVL; from energy and waste. employees to community m
Slide 14: Underlying business performance strong, NPAT hit by one-time events
Underlying business performance is strong with NPAT negatively impacted by one-time events • Net Profit after tax (NPAT) up 7% to $14.2 million (excluding one time events UK logistic costs, COVID Cellar Door closures and SGARA); Actual NPAT down 25% to $10.0 million • EBITS (earnings before tax, int
Slide 15: New reporting segments implemented from H1
New reporting segments implemented from H1 Segment Information Effective from 1 July 2021, AVG has re-assessed its cash generating units (CGU’s) for impairment testing purposes. Based on this review, it was determined a change in the CGU was justified for the primary reason that the new CGU structur
Slide 16: One-time SGARA costs negatively impacted H1
One-time SGARA costs have negatively impacted H1 but will benefit future year margins SGARA SGARA (Self Generating and Regenerating Assets) SGARA, which is now reported against the 3 segments, was down $1.5 million on prior period due to: • Frost on one of our vineyards which is estimated to impact
Slide 17: Cash flow from operating activities expected to improve in second half
Despite challenging H1, cash flow from operating activities expected to improve in the second half Interest and Financial Position Cash flow from operating activities decreased by $31.7 million to negative $0.8 million due to a significant increase in working capital movement when compared to prior
Slide 18: Outlook
Outlook • Without the additional logistical costs, temporary closure of our Cellar Doors and the reduced SGARA, December 21 NPAT would have been above prior period. • Company has made a step change to a credible quality wine branded business. Compared to the average NPAT achieved during the 6 month
Slide 19: Appendix: Results Summary – Sales and Contribution
Appendix: Results Summary – Sales and Contribution Sales ($’000) Change Contribution ($’000) Change 31 Dec ‘21 31 Dec ‘20 $’000 % 31 Dec ‘21 31 Dec ‘20 $’000 % Sales Contribution (before marketing) Australia / New Zealand 64,811 66,209 (1,398) (2%) Australia / New Zealand 17,073 13,657 3,416 25% UK,