Venture Life Group Plc · LSE:VLG
Venture Life — H1 2015 Earnings Presentation
24 slides from Venture Life's earnings presentation, 2015
Slide 1: Disclaimer
Disclaimer This presentation has been prepared by Venture Life Group plc (the “Company”) and is general background information about the Company’s activities at the date of this presentation. The information in this presentation is provided in summary form only and does not purport to be complete. T
Slide 2: In summary
In summary • Momentum continues • Integration complete • New commercial deals • China first orders • Manufacturing growth – existing and new customers • New product development progresses • Evaluating M&A opportunities Page 2 2015 Interim Results Presentation
Slide 3: Highlights
Highlights Financial Highlights • Revenue growth to £4.4 million (2014: £3.1 million) • EBTA loss of £0.4 million (H1 2014: loss of £0.2 million) Operating highlights • Seven new distribution agreements, including China • First orders (with upfront payments) and shipments to China • New agreements t
Slide 4: Commercial development - update
Commercial development - update • Signed three new, long-term distribution agreements in H1 2015 • Eight product launches in H1 2015 with [x] products still in registration • Post-period end - signed four new distribution deals, including one in India, with two product launches – Signed long term de
Slide 5: Commercial development - China
Commercial development - China • Long term exclusive distribution agreement in China – Lubatti brand to be launched - 15 SKU’s in total – Registration underway – [11] products already registered with Chinese FDA, 4 remaining – First and second orders placed, 50% paid up front – Launch planned for Au
Slide 6: Commercial development - China
Commercial development - China Lubatti Cleaning Range Page 6 2015 Interim Results Presentation
Slide 7: Active+ - first presence in the UK market
Active+ - first presence in the UK market • AXA tie up with VLG’s key brands on www.myactiveplus.com • Website now live - July 2015 • Targeting AXA’s UK customer base • AXA to publicly announce September/ October – VLG will then start promoting • VLG to add more products, e.g. vonalei™ • Co-ordinate
Slide 8: Commercial development – key brands
Commercial development – key brands • Benecol Capsules – Challenges over the number of capsules to be taken daily • Benecol Sachet – Two flavours formulated and initial stability passed – Pilot batch underway and official stability and other testing to start – Marketing anticipated to start in H1 20
Slide 9: Commercial development – key brands
Commercial development – key brands • Women’s Health – vonalei™ range – Developed four new products in women’s health – Three new products to be finalised by end Q4 2015 – Signed deal in Romania already, first product to be launched Q1 2016 – Strong interest in range Page 9 2015 Interim Results Pres
Slide 10: Manufacturing development – New business
Manufacturing development – New business • Significant new agreements for volume in factory • Bioscalin trade mark sold to Giuliani – 100% of export production requirements for Bioscalin – 75% of Italian production requirement for Bioscalin • New agreement signed with Polichem for production of nail
Slide 11: Manufacturing development – existing customers
Manufacturing development – existing customers • Sinclair - new HA line for aesthetic dermatology • Collistar - new Perfecta Plus and new mask • Giulliani - new Monoderma cream, age-spot cream, eye contour gel • Deborah - new regenerating serum • Paglieri – new Bath Line • Coswiss - new fluid founda
Slide 12: Manufacturing development – upgrades
Manufacturing development – upgrades • Water supply upgrade for full operational capacity of nine tonne machine and existing mixers • Cooling system installed for reducing timing of cooling of the nine tonne machine • Installation of two filling lines for improving capacity of jars and bottle for Ch
Slide 13: New product highlights – 2015 progress
New product highlights – 2015 progress • vonalei™ – new women’s health portfolio: – First four products ready for October 2015 – Other three products to follow: two for hot flashes and one for menopausal acne will be ready for first quarter 2016 • New formulation of Procto-eze (benzocaine and parabe
Slide 14: New product highlights – 2016 plans
New product highlights – 2016 plans • Oncology support – range of products for side effects of oncology • Rosacea – innovative range of products • Diabetes – one food supplement for glucose regulation, and topicals for ulceration and skin conditions • All expected to be completed in 2016 Page 14 201
Slide 15: OptiBiotix Health collaboration
OptiBiotix Health collaboration • Pre and pro-biotics are an interesting area • VLG sees potential for products in this area • OptiBiotix have some interesting technologies • Currently selecting therapy areas to focus on • Formalising agreement • Products will not be ready before 2017 Page 15 2015 I
Slide 16: Financial highlights
Financial highlights On a constant currency (cc) basis Reported numbers H1 2015 H1 2015 H1 2014 % (reported) (cc) (reported) (cc) • Revenues of £4.4m (H1 2014: £3.1m) Revenue £4.4m £4.9m £3.1m +55% • Revenue growth of 39% Gross £1.5m £1.7m £1.2m +38% profit • Gross margin achieved of 35% Gross 35% 3
Slide 17: Half yearly revenue by segment
Half yearly revenue by segment • Revenues in Brands business still lumpy, but expected to even out from 2016 onwards Page 17 2015 Interim Results Presentation
Slide 18: Cash, debt and cash flow
Cash, debt and cash flow Use of cash during H1: • Operating cash outflow of £0.5m • Movement in working capital – outflow of £0.6m – build up of inventory for China manufacturing – large customers paying immediately post-period end • Repayment of interest bearing debt – £0.4m • FX and other - £0.2m
Slide 19: Reported Group Income Statement
Reported Group Income Statement All amounts expressed as £’000 Six months ended Six months ended Year ended under IFRS 30 June 2015 30 June 2014 31 December 2014 Revenue 4,372 3,146 7,189 Cost of sales (2,841) (1,913) (4,535) Gross profit 1,531 1,233 2,654 Gross margin 35% 39% 37% Administrative exp
Slide 20: Reported Group balance sheet
Reported Group balance sheet £’000 30 June 2015 31 December 2014 30 June 2014 Fixed assets Intangibles 12,689 12,982 12,600 Property, plant & equipment 979 975 948 AFS assets - - 5 Fixed assets - total 13,668 13,957 13,553 Current assets Inventories 2,043 1,856 2,133 Trade and other receivables 3,35
Slide 21: Growth drivers/catalysts
Growth drivers/catalysts • Lubatti launch in China, possible new ranges • New distribution deals • Restructured BD team • Geographic expansion • Volume expansion at factory • NPD pipeline • M&A opportunities Page 21 2015 Interim Results Presentation
Slide 22: News flow expectations
News flow expectations • Launch of Lubatti in China • Benecol re-launch - sachet • More deals, especially vonalei™ • More volume through Biokosmes – deals signed that will deliver in 2016 • Aim to become cash generative short term • M&A progress to be made Page 22 2015 Interim Results Presentation
Slide 23: Summary
Summary • Momentum continues – integration complete • Partnering deals have been slow but making progress now • We have invested in BD team but had to make changes • Operating at 50% capacity at Biokosmes – opportunity for growth • Deal in China will launch 2015, India will launch 2016 • 15 brands,
Slide 24: Management team
Management team Jerry Randall Gianluca Braguti Chief Executive Officer Manufacturing Director jrandall@venture-life.com gbraguti@venture-life.com Sharon Collins James Hunter Commercial Director Chief Financial Officer scollins@venture-life.com jhunter@venture-life.com Venture Life Group plc Venture