Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2023 Earnings Presentation
16 slides from Metro Performance Glass's earnings presentation, Sep 30, 2022
Slide 1: Half year result 30 September 2022
MET RO P ER FORMANCE GLAS S Half year result 30 September 2022
Slide 2: Key messages
Key messages • The Metroglass Group has faced challenging market conditions, but we have focused on our customers, margin recovery, and preparing for regulatory change • In New Zealand, a period of uninterrupted operations and a series of price increases have begun to recover margins from the second
Slide 3: Financial highlights
Financial highlights GROUP Revenue 1 NEW ZEALAND $138.1m +18% (1H22: $116.9m) Revenue EBIT $100.0m, +14% $3.6m, -15% EBIT NPAT (1H22: $87.9m) (1H22: $4.2m) $5.6m +78% $0.6m +51% (1H22: $3.1m) (1H22: $0.4m) AUSTRALIA Revenue EBIT Net debt Leverage ratio $38.2m, +32% $2.6m, +$3.3m $59.1m +11.2m 3.8x n
Slide 4: Uninterrupted operations and a series of price increases in New Zealand
Uninterrupted operations • Uninterrupted operations and a series of price increases have begun to recover margins from the second quarter and a series of price increases in New Zealand • All of segments faced disruptions in supply chain, project delays, and people availability challenges that impact
Slide 5: Update on organisational review
Update on organisational review • In light of year on year declines in volume and an expectation that further declines are likely later in the new calendar year, Metroglass has undertaken an organisational review and implemented a series of initiatives across the group to ensure capacity and resourc
Slide 6: AGG continued its performance momentum with improved profitability
AGG continued its • AGG delivered on its turnaround plan, achieving revenue and EBIT targets for 1H23, performance momentum supported by stable operating performance and market price increases with improved • Gross profit percentage improved to 33.1% (1H22: 26.6%) reflecting strong pricing in the pr
Slide 7: 1H23: Metroglass Group revenue (NZ$)
1H23: Metroglass Group revenue (NZ$) 1H22 1H23 $138.1m $116.9m $65.3m $57.1m $38.2m $29.0m $16.6m $19.0m $14.1m $15.7m Residential (NZ) Commercial Glazing (NZ) Retrofit (NZ) Australian Glass Group (AU) Metro Glass Group 14% 14% 11% 32% 18% 14% 7 Note: The allocation of sales between residential and
Slide 8: 1H23: Financial results summary
1H23: Financial results summary Group results Segment results 1H23 1H22 % change 1H23 1H22 % change NZ$m1 NZ$m1,2 Group New Zealand Revenue 138.1 116.9 18% Revenue 100.0 87.9 14% EBITDA 15.1 12.7 18% Gross profit 41.6 39.0 7% Depreciation & amortisation 9.4 9.6 (2)% Segmental EBIT 3.6 4.2 (15)% EBIT
Slide 9: 1H23: EBIT bridge (NZ$m)
9 1 1H22 EBIT 3.1 2.2 NZ Government wage subsidy Change in revenue 5.4 1H23: EBIT bridge (NZ$m) 2.8 Change in Gross Profit % New Zealand Distribution and glazing 1.9 0.9 Administation and other Growth in revenue 2.1 3.9 Gross Profit % improvements Australia (NZ$) 2.7 Increases in expenses and other
Slide 10: 1H23: Group summary cash flow & balance sheet
1H23: Group summary cash flow & balance sheet Key cash flow items (NZ$m) 1H23 1H22 • Net operating cash flows were significantly below last year primarily driven by a higher value of inventory and trade receivables, a greater stock quantity on hand to cover the EBIT before significant items 5.6 3.1
Slide 11: Positioning Metroglass' for the future
Positioning Metroglass’ for the future • The number of residential consents in New Zealand has been running at elevated levels and well-above the industry capacity, supporting a stable pipeline of work in the near term. • However, we expect that economic headwinds are likely to reduce the number of
Slide 12: We remain focussed on our strategy and near-term goals
We remain focussed on our strategy and near-term goals Building resilience and Grow profitability in Ensure our balance defending Metroglass’ Australia, benefiting from sheet is robust to cope leadership position in increasing demand for with future risks and New Zealand double-glazing opportunities
Slide 13: Questions
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Slide 14: Appendix: Reconciliation of non-GAAP to GAAP profit measures
Appendix: Reconciliation of non-GAAP to GAAP profit measures Non-GAAP financial information 1H23 1H22 Half year to 30 September 2022 • Group results are reported under NZ IFRS. This presentation includes non- ($M) ($M) GAAP financial measures which are not prepared in accordance with NZ IFRS, Profit
Slide 15: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by Metro Performance Glass Limited (Company Number 5267882) (“Metro Performance Glass”). Please do not read this Presentation in isolation This presentation contains some forward-looking statements about Metro Performance Glass and the
Slide 16: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki, Auckland 2013 Ph: + 64 9 927 3000 www.metroglass.co.nz/ Simon Mander – Chief Executive Officer Simon.Mander@metroglass.co.nz (+64) 029 636 2661 Brent Mealings – Chief Financial Officer Brent.Mealings@metroglass.co.
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