Gale Pacific Limited · ASX:GAP
Gale Pacific — H1 FY2024 Earnings Presentation
25 slides from Gale Pacific's earnings presentation, Feb 20, 2024
Slide 1: 1H FY24 Results
1 H F Y 2 4 R E S U LT S 20 FE BRUARY 2024
Slide 2: Agenda
AGENDA ■ Results Overview ■ Regional Overview ■ Company Strategy ■ FY24 Outlook
Slide 3: About Gale Pacific
ABOUT GALE PACIFIC F ounded in Melbourne, Australia, in 1951, GALE Pacific is the market-leading manufacturer of technical fabrics used for consumer and commercial applications around worldwide. Today, GALE employs more than 550+ people based in Australia, China, the United States, Europe, and Asia,
Slide 4: Business Overview / Did You Know?
BUSINESS OVERVIEW DID YOU KNOW? Map legend: Head Office Sales Office Warehouse Manufacturing Since the start of FY19 GALE Pacific has... processed over 50,000 tonnes of material. That is the same weight as: Charlotte, USA Ningbo, China 222 Statues 90 Airbus 333 Blue The Sydney Los Angeles, USA Spart
Slide 5: Gale Pacific Differentiators
GALE PACIFIC DIFFERENTIATORS Category & market High quality, Customer Consumer & commercial Sustainable leading brands innovative products partnerships diversification product portfolio Technical fabrics Vertically integrated Global distribution On-trend, outdoor Sun safety expertise manufacturing &
Slide 6: Results Overview
RESULTS OVERVIEW
Slide 7: Macro Backdrop | Result Drivers
MACRO BACKDROP | RESULT DRIVERS Challenging trading conditions leading to demand headwinds in 1H FY24 due to: Unfavorable Improved global Shipments for US Continued rotation High interest Housing market weather across supply chain led to summer moved of consumer rates and challenged by Australia led
Slide 8: Results for 1H FY24
RESULTS FOR 1H FY24 Profit before tax of $(6.1)m was 1H FY24 1H FY23 Change lower compared to the $0.6m A$ million A$ million % delivered in 1H FY23 with revenue Revenue 77.0 92.6 (17) of $77.0m lower compared to EBITDA 2.5 7.9 (68) $92.6m delivered in 1H FY23. EBIT (3.9) 2.1 (>100) The Directors ha
Slide 9: Results for 1H FY24
RESULTS FOR 1H FY24 Net cash from operating activities Net Cash from Operating Activities of $19.6m at 31 December 2023 improved over 31 December 2022 $ 19.6 million from lower global inventory, cost 1H FY23: $(11.7)m discipline and strong cash collection in the Americas region. Net debt of $2.2m im
Slide 10: Global Debt Financing & Treasury Transition
GLOBAL DEBT FINANCING & TREASURY TRANSITION ■ GALE Pacific has secured long-term debt financing and group-wide global treasury management services from HSBC Bank ■ The Company’s borrowing capacity will increase to approximately AUD $85.0m, up from approximately AUD $60.0m under its previous borrowin
Slide 11: Regional Overview
REGIONAL OVERVIEW
Slide 12: Americas
AMERICAS ■ Revenue 1H FY24: $29.7 million, 21% decline vs 1H FY23 ■ Continued retailer inventory destocking; Q3 vs Q2 promotional load-ins; lower consumer spending; ongoing housing challenges. ■ New product placements in 2H lead by Coolaroo® with Heat Shield® shade and pet products. ■ Record revenue
Slide 13: Australia/New Zealand
AUSTRALIA/NEW ZEALAND ■ Revenue 1H FY24: $42.6 million, 15% decline vs 1H FY23 ■ Poor weather across region, dampened demand for commercial grain handling and water containment fabrics, and consumer home shade categories. ■ New consumer products: Coolaroo® with Heat Shield® shades; umbrella range at
Slide 14: Developing Markets
DEVELOPING MARKETS ■ Revenue 1H FY24: $4.7 million, 3% decline vs 1H FY23 ■ Reduced demand for consumer products in Japan, shift in demand timing in Italy and Spain, and lower commercial fabric demand in Israel due to ongoing conflict. ■ Orders in Israel have been secured for Q3 with further recover
Slide 15: Company Strategy
COMPANY STRATEGY
Slide 16: Company Strategy
COMPANY STRATEGY To build GALE Pacific into a faster-growing, world-class global fabrics technology business Product Category Improved New Innovation Growth Operations Markets
Slide 17: Growth Acceleration Plan
CATEGORIES VALUES Consumer and commercial Integrity | Respect technical fabrics and Collaboration GROWTH associated finished goods People Community ACCELERATION Innovation PLAN VISION Build GALE Pacific The Growth Acceleration Plan defines into a fast-growing, how we will grow our company over the w
Slide 18: How We Grow
GROWTH ACCELERATION PLAN Delivered with EDGE: HOW WE Every Day Great Execution GROW CATEGORIES MARKETS PEOPLE CAPABILITIES SUPPLY CHAIN Develop and launch Drive category Develop our functional Simplify our business Leverage one Global breakthrough growth in retail leadership capabilities and ways of
Slide 19: Categories
GROWTH ACCELERATION PLAN CATEGORIES Heat reflective technology makes fabrics up to 10°C cooler and leading PVC-free printable to category GROWTH banner fabric capable of and customer Digital and in-store awareness 100% closed loop recycle EXPANSION and trial campaigns led to record & reuse solution
Slide 20: Markets
GROWTH ACCELERATION PLAN MARKETS Launching new ranges of on-shelf Roller Shades including Heat Shield® integrated fabrics, new packaging, and new merchandising. Expanding Coolaroo outdoor roller shades Core shade & pet with Heat Shield® expansion in LATAM; New breakthrough across 189 new stores Mark
Slide 21: People
GROWTH ACCELERATION PLAN PEOPLE 84% Executive functional and regional leadership reorganization complete; new, high caliber, capability Global engagement and capacity Americas team New Training & well above benchmarks; in place to deliver growth Development, Leadership recognition & communication; a
Slide 22: Capabilities
GROWTH ACCELERATION PLAN CAPABILITIES Further improved demand planning led with to lower global and ERP transition to technology regional teams with clear Microsoft Dynamics Innovative Heat Shield® operating processes and 365 on time, on technology being launched defined accountability budget, in sc
Slide 23: Supply Chain
GROWTH ACCELERATION PLAN SUPPLY CHAIN Restructuring New efficiency projects Lowered global programs in Australia launched in FY23 inventory and & custom roller shade reading through in FY24 working capital manufacturing transition with additional cost in 1H; increased complete, savings reduction ini
Slide 24: Outlook
OUTLOOK The Company expects improved results in the second half, driven largely by: ■ the launch of patented new Coolaroo with ■ favourable trading conditions and Heat Shield® shade products in the US, market share gains resulting in increased demand for the Company’s ■ increased distribution of cor
Slide 25: Thank You
THANK YOU 145 Woodlands Drive Braeside, Victoria 3195, Australia Phone +613.9518.3333 GALEPacific.com Disclaimer: Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the Company, industry grow