Pz Cussons Plc · LSE:PZC
Pz Cussons — H1 FY25 Earnings Presentation
29 slides from Pz Cussons's earnings presentation, Feb 11, 2025
Slide 1: 2025 Half Year Results
2025 HALF YEAR RESULTS 11 FEBRUARY 2025
Slide 2: Agenda
AGENDA Introduction Financial review Strategic update Summary Q&A 2
Slide 3: Overview
OVERVIEW TRANSFORMING INTO A BUSINESS WITH A MORE FOCUSED PORTFOLIO AND STRONGER BRANDS DELIVERING SUSTAINABLE PROFITABLE GROWTH 1 2 3 Solid overall trading in UK, On track to meet FY25 Maximising shareholder Indonesia and ANZ expectations value through portfolio transformation Throughout the presen
Slide 4: Financial Review
FINANCIAL REVIEW SARAH POLLARD - CHIEF FINANCIAL OFFICER
Slide 5: Summary Financials
SUMMARY FINANCIALS SOLID OVERALL PERFORMANCE ACROSS UK, INDONESIA AND ANZ DECLINE IN REPORTED REVENUE AND PROFITABILITY DRIVEN BY THE 55% DEVALUATION IN THE NAIRA £m unless otherwise stated H1 FY25 H1 FY24 10.0% (£27.8m) reported revenue decline of which £42.7m attributable to Naira devaluation Reve
Slide 6: Summary Financials - Continued
SUMMARY FINANCIALS - CONTINUED £m unless otherwise stated H1 FY25 H1 FY24 Profit before tax 19.8 26.1 Increased net interest expense due to lower Naira cash balance Earnings per share 3.89p 4.32p 10.0% decline in EPS due to lower operating profit and higher interest charge Dividend per share (p) 1.5
Slide 7: Group Revenue
GROUP REVENUE CONSTANT CURRENCY REVENUE GROWTH DRIVEN BY GROWTH IN AFRICA, UK AND INDONESIA 277.1 3.9 (1.0) 13.2 2.31 249.3 LFL +7.1% 4.0% (1.1)% 28.0% FX (46.2) Europe & H1 24 revenue APAC Africa Central H1 25 revenue Americas Amounts in £m unless otherwise stated. Introduction Financial review Str
Slide 8: Operating Profit Margin
OPERATING PROFIT MARGIN MARGIN GROWTH OF 70BPS EXCLUDING PZ WILMAR JOINT VENTURE 8.2% (40)bps 80bps 30bps (10)bps 8.9% 11.0% +70bps 10.8% Adverse Phasing of geographic Group-wide cost spend into H2 mix focus H1 24 H1 25 H1 24 Marketing H1 25 Operating Wilmar JV Gross margin Overheads FX / other Wilm
Slide 9: Segmental Performance: Europe and Americas
SEGMENTAL PERFORMANCE: EUROPE AND AMERICAS STRONG GROWTH IN REVENUE AND OPERATING PROFIT £m unless otherwise stated H1 FY25 H1 FY24 Revenue 101.0 97.2 Balanced contribution from price / mix and volume LFL revenue growth 4.0% (1.9)% Successful Christmas gifting Operating profit 20.7 12.4 Operating pr
Slide 10: Segmental Performance: APAC
SEGMENTAL PERFORMANCE: APAC THIRD CONSECUTIVE QUARTER OF REVENUE GROWTH IN INDONESIA OFFSETTING SOFTER CATEGORY PERFORMANCE IN ANZ £m unless otherwise stated H1 FY25 H1 FY24 Revenue 87.7 88.8 ANZ: Market share gains in key brands, against a softer macro backdrop with our categories down low / mid-si
Slide 11: Segmental Performance: Africa
SEGMENTAL PERFORMANCE: AFRICA CONTINUED STRONG, INFLATION-DRIVEN PRICING IN NIGERIA £m unless otherwise stated H1 FY25 H1 FY24 Revenue 60.6 90.8 33.3% reported decline, primarily due to Naira devaluation LFL revenue growth 28.0% 17.4% Inflation-driven price / mix growth. Low double-digit volume decl
Slide 12: Cash Flow and Net Debt
CASH FLOW AND NET DEBT IMPROVEMENT IN FREE CASH FLOW AND REDUCTION IN GROSS DEBT 22.7 (12.5) £m FY24 Change H1 25 Gross debt (166.6) 14.1 (152.5) 2.5 (1.5) Naira cash 17.2 (1.6) 15.6 11.2 Non-Naira cash 34.1 (3.3) 30.8 Net (Debt) / Cash1 (115.3) 9.22 (106.1) Free cash Net interest JV loan Decrease O
Slide 13: Outlook
OUTLOOK UNDERLYING EXPECTATIONS FOR FY25 ARE UNCHANGED CURRENT TRADING AND OUTLOOK FY25 OPERATING PROFIT GUIDANCE “ £47-53m PREVIOUS GUIDANCE Performance to the end of January has been in line with £5m FX losses no longer our expectations and we expect treated as underlying Group LFL revenue growth
Slide 14: Strategic Update
STRATEGIC UPDATE JONATHAN MYERS - CHIEF EXECUTIVE OFFICER
Slide 15: Our Strategy in Summary
OUR STRATEGY IN SUMMARY BUILD SERVE REDUCE DEVELOP GROW BRANDS CONSUMERS COMPLEXITY PEOPLE SUSTAINABLY Introduction Financial review Strategic update Summary 15
Slide 16: A Reminder of Our Priorities for FY25
A REMINDER OF OUR PRIORITES FOR FY25 WE ARE CLEAR ON OUR PRIORITIES FOR FY25 1 Drive our businesses in the UK, Indonesia and ANZ 2 Strengthen our brand-building capabilities and embed our new operating model 3 Deliver the portfolio transformation to maximise shareholder value Introduction Financial
Slide 17: 1. Drive Our Businesses in the UK, Indonesia and ANZ: UK
1. DRIVE OUR BUSINESSES IN THE UK, INDONESIA AND ANZ UK: BENEFITING FROM BETTER EXECUTION AND SHARING OF COMMERCIAL BEST-PRACTICE UK operating margin Distribution gains Strong seasonal activity improvement >2x c.30% UK operating profit margin (rolling 12 increase in EPOS vs. months) increase distrib
Slide 18: 1. Drive Our Businesses: Indonesia
1. DRIVE OUR BUSINESSES IN THE UK, INDONESIA AND ANZ INDONESIA: WELL PLACED TO TAKE SHARE IN A MARKET WITH ATTRACTIVE STRUCTURAL OPPORTUNITIES Driving growth through eCommerce… …and through new segment expansion with Telon Oil innovation Live-streaming eCommerce revenue Consumer insights Performance
Slide 19: 1. Drive Our Businesses: Australia
1. DRIVE OUR BUSINESSES IN THE UK, INDONESIA AND ANZ AUSTRALIA: LEVERAGING BRAND STRENGTH TO DELIVER MARKET SHARE GAINS Extending leadership #3 in laundry Launch of 7 new with c.50% share category snacking SKUs +50bps +130bps +110bps Market share movement: Introduction Financial review Strategic upd
Slide 20: 2. Strengthen Our Brand-Building Capabilities
2. STRENGTHEN OUR BRAND-BUILDING CAPABILITIES: BRAND-BUILDING IN ACTION Segmenting by need and designing by regimen To elevate our portfolio via a pack re-design and ‘Good, better, best’ formula upgrade portfolio where required. Maintain the magic Facilitates in-housing and the fun of Childs to Agec
Slide 21: 3. Portfolio Transformation to Maximise Shareholder Value
3. PORTFOLIO TRANSFORMATION TO MAXIMISE SHAREHOLDER VALUE DRIVING TRANSFORMATION OF OUR PORTFOLIO TO UNLOCK VALUE AND REDUCE COMPLEXITY Africa portfolio Introduction Financial review Strategic update Summary 21
Slide 22: Summary
SUMMARY FOR EVERYONE, FOR LIFE, FOR GOOD. 22
Slide 23: Summary
SUMMARY 1 2 3 Solid trading in UK, On track to meet FY25 Maximising shareholder Indonesia and ANZ expectations value through portfolio transformation TRANSFORMING INTO A BUSINESS WITH A MORE FOCUSED PORTFOLIO AND STRONGER BRANDS DELIVERING SUSTAINABLE PROFITABLE GROWTH Introduction Financial review
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
APPENDIX 25
Slide 26: Foreign Exchange Analysis
FOREIGN EXCHANGE ANALYSIS £m % FY24 revenue H1 FY25 H1 FY24 % change Revenue impact (£m) GBP 33% 1.00 1.00 - - NGN 28% 2,038 915 (55)% (42.7) AUD 17% 1.94 1.92 (1)% (0.5) IDR 12% 20,480 19,161 (6)% (2.1) USD 2% 1.29 1.25 (3)% (0.2) Other 8% - - (0.7) Total 100% (46.2) 26 Table shows the impact of tr
Slide 27: Revenue Split by Market
REVENUE SPLIT BY MARKET Other 6% Nigeria Africa 19% Europe & Americas UK £60.6m H1 25 39% £101.0m revenue: Other 4% £249.3m Indo 12% US 2% ANZ 18% APAC £87.7m 27 St. Tropez contributed £9.2m revenue in H1 25. Excludes central revenue of £0.1m
Slide 28: Summary Cash Flow
SUMMARY CASH FLOW £m H1 FY25 H1 FY24 Adjusted EBITDA 33.3 39.7 Cash flow impact of adjusting items1 (13.6) (7.7) Working capital movement1 4.6 (4.6) Capital expenditure (1.4) (2.4) Share of results of joint venture (2.3) (5.6) Other 2.1 0.6 Free cash flow 22.7 20.0 28 1 - In H1 FY24, the foreign exc
Slide 29: Historic NGN/GBP Rates
HISTORIC NGN/GBP RATES - FY23: 5361 FY24: 1,2561 H1 FY25: 2,0381 500 1,000 1,500 31 Jan : 1,839 2,000 2,500 01 June 2022 01 December 2022 01 June 2023 01 December 2023 01 June 2024 01 December 2024 29 1 - Rates shown are NGN/GBP rates used to translate the P&L in the respective periods