Venture Life Group Plc · LSE:VLG
Venture Life — H1 2022 Earnings Presentation
28 slides from Venture Life's earnings presentation, 2022
Slide 1: The partner of choice for self-care products
The partner [ of choice for self-care products Half Year Results to 30th June 2022 The partner of choice or self-care products enture Life Group plc [ nterim Results 2021 and update on Acquisitions ptember 2021
Slide 2: Presentation disclaimer
This document (the "Presentation") is being provided to a limited number of parties who have previously expressed an interest in acquiring an interest (the "Investor Interest") in Venture Life Group plc (the "Company"). If you are in any doubt about the investment to which the Presentation relates,
Slide 3: Half Year Progress – Revenue, Gross Margin and Adjusted EBITDA
Half Year Progress – Revenue, Gross Margin and Adjusted EBITDA Group Revenue £’m Gross Margin £’m / % Adj EBITDA1 £’m / % (excl. HSG impact) (excl. HSG impact) (excl. HSG impact) 9.0 41.0% 4.0 20.0% 7.7 8.0 40.0% 3.5 18.9 7.0 39.0% 15.0% 3.0 3.3 6.0 5.0 4.9 38.0% 2.5 13.9 5.0 37.0% 10.0% 13.7 3.5 2.
Slide 4: Flavour of H1 2022
Flavour of H1 2022 • Positive impact of 2021 acquisitions being felt and very visible, gross margin improvement driven by accretive M&A; • Delivering increased levels of EBITDA margin and cash generation • Strong order book, comfortably ahead of the same time previous year (like for like) • Multiple
Slide 5: Mergers & Acquisitions Update
Conclusions Mergers & Acquisitions Update
Slide 6: Recent Acquisitions Performance
Recent Acquisitions Performance1 +10% H1 Revenue - BBIH BBIH Acquired June 2021 6.0 5.4 4.9 • Overall organic growth H1 2022 of £0.5 million / 10% 5.0 4.1 4.1 4.3 4.0 £'million • Significant growth of Lift +42%, driven from UK / Ireland 3.0 • Balance Activ underlying growth +5% (excl. impact from Ru
Slide 7: Financial Overview
Conclusions Financial Overview Financial Highlights
Slide 8: Financial Highlights – H1 2022
Financial Highlights – H1 2022 Group Revenue £’m Gross Margin £’m / % 18.9 10.0 7.7 42.0% • Revenue growth of 36% to £18.9 16.9 13.9 8.0 6.9 40.0% million (2021: £13.9 million) 6.0 4.9 38.0% 3.5 8.3 9.4 4.0 2.3 2.9 3.0 36.0% • Gross Margin improvement of 7.8 6.1 2.0 - 34.0% 32.0% 5.0ppts to 40.6% (2
Slide 9: Revenues H1 2022
Revenues H1 2022 Revenues increased 36% vs H1 2021 (on a reported basis) 18.9 - 0.3 16.9 £000s Revenue split between Venture Life Brands 3.2 and Customer Brands 13.9 - 0.3 9.7 CAGR 26% 2014-2022 2.3 5.1 9.4 - 3.7 8.3 7.8 - 2.8 - 6.1 1.7 2.3 - 1.2 8.5 8.9 7.7 6.1 6.6 6.0 4.9 2016 2017 2018 2019 2020
Slide 10: Product portfolio - VLG brands significantly increased year on year
Product portfolio - VLG brands significantly increased year on year Revenue split between VLG and Customer Brands: Customer Brands VLG Brands H1-2021 H2-2021 H1-2022 Customer VLG Brands Brands 36% 31% 47% 64% 69% 53% Venture Life Group plc 10
Slide 11: Product portfolio - VLG Brands Overview
Product portfolio - VLG Brands Overview VLG Brands Contribution % 14.0% Proportion of VLG Brand Revenue 12.0% • Long standing Group expertise in 10.0% Customer VLG Brands oral care and skincare and recent 8.0% Brands additions of key brands in 6.0% H1 2021 women’s health, diabetes and 4.0% oncology
Slide 12: H1 2022 Gross margin %
H1 2022 Gross margin % Gross Margin H1 21 – H1 22 Comments: 1. Overall Gross margin improvement of 5.0% Supply Chain between 2021 and 2022 Challenges 2. Anticipated supply chain challenges adversely impacted H1-22 by 2.5ppts FY22E 3. Mix impact of 0.9ppts from FY20 FY21 legacy brand revenues which w
Slide 13: H1 2022 Administrative expenses
H1 2022 Administrative expenses Comments: • Overall administrative expenses increased £2.5m between 2021 and 2022 Non-cash • The main contributors were: items • £0.5m from inclusion of the BBI Healthcare operation • £1.2m additional non-cash costs of amortisation and depreciation • £0.6m investment
Slide 14: 2022 profit and loss account
2022 profit and loss account £ million 2022 2021 Change Comments: 1) Significant revenue, gross Revenue 18.9 13.9 +36.0% margin & Adj. EBITDA growth Gross Profit 7.7 4.9 +55.0% 2) Improvement in gross margin and Adj. EBITDA percentages Gross Margin 40.6% 35.6% +5.0ppts 3) Administrative increase ref
Slide 15: Balance sheet 30 June 2022
Balance sheet 30 June 2022 £ million June 2022 June 2021 Movement Comments: Intangible non-current 64.3 61.7 +2.6 1) Intangibles increase driven by assets acquisition of HICP (Aug-21) Tangible non-current assets 9.7 10.6 -0.9 2) Tangibles reduction reflects Deferred tax asset 2.5 - +2.1 dep’n and FX
Slide 16: Commercial highlights
Conclusions Commercial highlights Commercial Financial Highlights Highlights
Slide 17: Women's Intimate Healthcare & Diabetes H1 2022 highlights
Women’s Intimate Healthcare & Diabetes H1 2022 highlights • +10%/+£0.5m growth in H1 22 to £5.4m (FY20: £4.9m) of ‘ex-BBI business’ UK Market • Lift driving growth across most channels • Increased usage post COVID • New partner in Ireland • Balance Activ – increased distribution in major grocery ret
Slide 18: Oral Care brands H1 2022 highlights
Oral Care brands H1 2022 highlights • -8%/-£0.2m decrease in total oral care brands to £2.2m in H1 22 (H1 21: £2.4m) due to sluggish market UK - Dentyl • Difficult market conditions – mouthwash market in decline • Implemented a 14% CPI without losing distribution • Retail expansion – new discounters
Slide 19: International business H1 2022 highlights
International business H1 2022 highlights Oncology Support • +5%/£0.05m increase in H1 22 to £0.9m (FY20: £0.8m) • Pomi-T – now partnered in Germany, The Netherlands & Singapore • Good interest in Gelclair in USA, Brazil and Canada – advanced discussions ongoing Customer Brands Business • 3%/+£0.6m
Slide 20: VLG's Manufacturing Scalability
VLG’s Manufacturing Scalability 120 Item Group 100 Units produced LTM 28m units Units produced (million) 80 Existing capacity 65m units 100 60 Utilisation (% of capacity) 43.1% 75 40 55 Capacity with £4.0m capex 91m units investment 20 26 16 16 Capacity with further £8.0m capex 2 10 116m units - inv
Slide 21: Sustainable Life – to be a Trusted, Responsible and Sustainable Business
Sustainable Life – to be a Trusted, Responsible and Sustainable Business Sustainable Development Goals (SDGs) • The 2030 Agenda for Sustainable Development, was adopted by all United Nations Member States in 2015, and provides a shared blueprint for peace and prosperity for people and the planet, no
Slide 22: Sustainable Life – Next steps and ESG progress
Sustainable Life – to be a Trusted, Responsible and Sustainable Business Next steps & target timelines: • Agree KPIs for measuring progress against each of the priority SDGs –December 2022 • Establish baseline measures for KPI’s – March 2023 • Achieve Bcorp status - by end December 2023 • Report aga
Slide 23: Priority SDGs
Priority SDGs SDG 3 – Good health and wellbeing • Supporting our colleagues and consumers to lead healthier lives SDG 7 – Affordable & clean energy • Progressing towards sourcing more of our energy from renewable resources SDG 8 – Decent work and economic growth • Helping our colleagues to succeed b
Slide 24: Continued growth in a challenging year
Continued growth in a challenging year H1 Highlights H2 Outlook • Legacy business overall flat in H1, • Legacy business revenues weighted revenues weighted much more to much more to H2 H2 • High visibility of H2 revenue • Acquired businesses in growth through strong order book +9.5% • Careful supply
Slide 25: Appendices
Conclusions Appendices Financial Highlights Appendices
Slide 26: Net Cash position remains stable
Net Cash position remains stable June December June £’million Comments 2022 2021 2021 Repaid in full during 2021 pursuant Italian term loans - - 5.0 to the revolving credit facility Revolving Credit Facility Maintained to support inventory 8.5 8.5 3.5 (RCF) build of £2.5m since 31/12/21 Repaid in fu
Slide 27: VLG loan position 30 June 2022
VLG loan position 30 June 2022 Loan €’million Balance €’million Planned Full Repayment Interest rate RIBA 2.5 nil On demand <1% Loan £’million Balance £’million Planned Full Repayment Interest rate RCF Santander Bank 15.0 4,26 18/06/24 SONIA + 2.5% RCF Silicon Valley Bank 15.0 4.26 18/06/24 SONIA +
Slide 28: Shareholder register 30 June 2022
Shareholder register 30 June 2022 Major Shareholders The percentage of shares that are not in public hands is 21.4%. Shareholder Number of shares held % issued share capital Slater Investments 19,621,431 15.51% J O Hambro Capital Management Limited 11,000,000 8.70% River & Mercantile Asset Managemen