Slide 1: McBride plc Results Presentation: September 2020
McBride plc Results Presentation: September 2020
Slide 2: Agenda
Agenda 1. Headlines 2. Commercial update 3. Financial results 4. Key activities and actions 5. Outlook 6. Q&A McBride plc 1 Results Presentation: September 2020
Slide 3: Headlines
Headlines Strong second half response to Covid-19; ‘Compass’ strategy phase 1 concluded by the new CEO Business Financial • Chris Smith appointed as CEO, June 2020 • Group revenues £706.2m, 1.7% lower at constant • Strong profit performance in last four months currency, mostly from Aerosols UK exit
Slide 4: Commercial update
Commercial update McBride plc 3 Results Presentation: September 2020
Slide 5: Revenue performance FY20
Revenue performance FY20 European household revenues by category £m Group revenues – continuing operations £m Constant currency variances Constant currency variances 4.9 2.9 6.6 2.0 7.4 9.3 (7.9) (6.6) (13.3) (12.4) (12.5) (3.6) (1.3) (2.5) (5.0) (2.8) (0.2) Auto Cleaners Bleach, Fabric Laundry Laun
Slide 6: Market update – UK
Market update – UK Overall PL market +0.9%(1), McBride -7.7% • Contract losses not offset • Household PL growth +0.9% • Covid-19 retailer impact: by new wins (-3.4%, 12 months to Feb 20) • March: “Panic Buying” • Low run rates to February 20 • Covid-19 impact PL growth – Bargain Stores and +9.7%(2)
Slide 7: Market update – Germany
Market update – Germany Overall PL market +2.1%(1), McBride +2.0% • McBride performance in • Total Household market • Discounters decline; line with overall PL market grew +8.1% supermarkets benefited more from one‑stop • Cleaners and dishwash • Brands grew +10.2% shopping in recent months revenues
Slide 8: Market update – France
Market update – France Overall HH PL market +4.3%(1), McBride -2.3% • Contract losses offset by • Covid-19 channel shifts • PL expected to grow faster 2.7% run rate increase favouring PL vs brands: than brands for first time in some years • Higher Covid-19 demand • Increase in Online and for surface
Slide 9: Continued wins in Contract Manufacturing
Continued wins in Contract Manufacturing FY 2019 FY 2020 21% 22% Total Local Total Local £77.6m Multi-national £86.7m Multi-national 79% 78% • Full-year revenue growth of 12%: • Contract Manufacturing has grown to 12.9% of total • strongest growth in auto dishwash and cleaners Household sales (2019:
Slide 10: Financial results
Financial results Clive Jennings Interim Chief Financial Officer McBride plc 9 Results and Strategy Presentation: September 2020
Slide 11: Financial headlines
Financial headlines • Revenues at constant currency • Adjusted profits before tax • Good operating cash flows down 1.7% at £706.2m from continuing operations at £59.7m (2019: £18.8m) of £24.2m down slightly on • Household revenues • Working capital £37.7m, prior year (2019: £24.5m) unchanged at cons
Slide 12: Revenue development
Revenue development Continuing revenues Change in continuing revenues Household revenues by year £m for FY20 (at CCY) £m £m 721.3 718.7 706.2 47.7 47.6 35.2 4.9 673.6 671.1 671.0 21.4 21.2 21.4 21.2 26.1 26.1 79.4 79.1 88.4 166.4 165.5 167.5 652.2 649.9 644.9 122.0 121.3 118.5 (5.0) 111.3 110.9 110.
Slide 13: Operating profit development
Operating profit development Continuing EBITA Continuing EBITA by segment EBITDA (excluding IFRS 16) £m £m £m 39.9 40.2 33.1 28.9 28.8 28.3 47.3 47.1 45.4 2.2 FY19 FY19 CCY FY20 FY19 FY19 CCY FY20 (4.0) (4.4) (7.0) (7.0) (7.0) Household Aerosols Corporate FY19 FY19 CCY FY20 • Adjusted operating prof
Slide 14: Income statement
Income statement Gross margin ROS Overhead % of gross profit Continuing adjusted % % and labour costs % of sales interest cost and tax rate £m 91.6% 34.6% 5.5% 91.4% 34.2% 30% 28% 88.4% 28% 33.3% 86.5% 88.0% 33.4% 4.8% 4.0% 1.1 0.7 0.6 4.0% 19.7% 19.0% 3.8% 18.6% 3.7 18.8% 3.4 3.5 FY18 FY19 FY20 FY1
Slide 15: Balance sheet and cash flow
Balance sheet and cash flow ROCE (excluding IFRS 16) Cash flow from operations before Net debt (pre IFRS 16) % exceptional items £m £m/cover x times 120.9 114.3 2.6 92.8 22.5% 64.9 2.1 2.1 15.3% 16.1% 43.0 25.7 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 ROCE Net debt Debt cover (accounting) • Slig
Slide 16: Other financials
Other financials Exceptional items Payments to shareholders Group pension liability £m pence £m 0.3 30.9 31.1 31.5 2.9 2.8 21.7 2.4 1.8 0.8 0.81 4.1 0.78 11.1 6.9 5.4 5.2 1.2 1.4 1.5 1.5 4.1 1.1 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY18 FY19 FY20 Operating Finance Tax Cash flow Liability Funding
Slide 17: Costs update
Costs update Group price index Transport costs as % of sales 104 102 100 7.8% 8.1% 98 7.1% 96 94 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 FY18 FY19 FY20 Recycled plastics • Input costs have been mixed, linked to underlying feedstock prices 34% 50% 64% • Increased use of recycled plastics has
Slide 18: Key activities and actions
Key activities and actions Chris Smith Chief Executive Officer McBride plc 17 Results Presentation: September 2020
Slide 19: Key activities and actions
Key activities and actions Despite senior leadership team changes, we have continued to make progress Factory footprint – Barrow closure • Laundry powder decline • Production transfers to factories in France and Luxembourg • Plant will close in late 2020 Asia expansion • New premises to be operation
Slide 20: Key activities and actions (continued)
Key activities and actions (continued) Aerosols • Standalone reorganisation completed • Agility demonstrated during Covid‑19; now profitable M&A • Acquisition of assets to enable growth in Household Europe and Aerosols Category investments • Continued investment in capsules and auto dishwash • Forma
Slide 21: Product sustainability
Product sustainability Our targets for 2025 Our 2025 product plans will deliver initiatives linked to reducing the environmental impacts of the products we supply. We will endeavour to ensure that every new product we develop will deliver a more sustainable footprint than the product it replaces. Pl
Slide 22: Outlook
Outlook McBride plc 21 Results Presentation: September 2020
Slide 23: Demand levels mixed, full-year outlook: modest improvement expected
Demand levels mixed, full-year outlook: modest improvement expected • Consumer behaviours due to Covid-19 • First two months showing continuation continue to skew demand for our of higher demand for cleaners and product categories auto dishwash, laundry remains subdued • Retailer ordering patterns:
Slide 24: Q&A
Q&A McBride plc 23 Results Presentation: September 2020
Slide 25: Appendices
Appendices 1. Income statement 2. Segmental reporting 3. Exceptional items 4. Balance sheet 5. Cash flow 6. Use of cash 7. Funding headroom McBride plc 24 Results Presentation: September 2020
Slide 26: Appendix 1: income statement
Appendix 1: income statement Constant currency(1) 2019/20 2018/19 2018/19 Continuing operations £m £m y/y £m y/y Revenue 706.2 721.3 (2.1%) 718.7 (1.7%) Gross profit 244.2 240.4 1.6% 239.5 1.9% Gross margin 34.6% 33.3% 1.3 ppt 33.3% 1.3 ppt Distribution costs (57.3) (56.6) 1.2% (56.4) 1.6% Administr
Slide 27: Appendix 2: segmental reporting
Appendix 2: segmental reporting Constant currency 2019/20 2018/19 2018/19 Continuing revenue £m £m y/y £m y/y UK 159.8 173.1 (7.7%) 173.1 (7.7%) France 118.5 122.0 (2.9%) 121.3 (2.3%) North 110.7 111.3 (0.5%) 110.9 (0.2%) South 88.4 79.4 11.3% 79.1 11.8% East 167.5 166.4 0.7% 165.5 1.2% Household Eu
Slide 28: Appendix 3: exceptional items
Appendix 3: exceptional items 2019/20 2018/19 £m £m Continuing operations Reorganisation and restructuring costs: Acquisition of Danlind — 0.7 UK Aerosols closure 0.1 (1.2) Factory footprint review 9.4 0.9 Review of strategy, organisation and operations 1.3 — Total charged to operating profit 10.8 0
Slide 29: Appendix 4: balance sheet
Appendix 4: balance sheet 2019/20 2018/19 £m £m y/y Goodwill and other intangible assets 28.4 29.5 (3.7%) Property, plant and equipment 134.7 136.0 (1.0%) Right-of-use assets 7.3 — n/a Other non-current assets 13.8 11.6 19.0% Working capital 37.7 58.6 (35.7%) Net other debtors/(creditors) (5.2) (5.0
Slide 30: Appendix 5: cash flow
Appendix 5: cash flow 2019/20 2018/19 £m £m y/y Adjusted operating profit 26.1 29.6 (11.8%) Depreciation 17.1 18.4 (7.1%) Depreciation right-of-use assets 3.7 — n/a Share-based payments 0.4 (0.2) (300.0%) Additional cash funding on pension scheme (4.0) (4.2) (4.8%) Impairment of goodwill 0.5 — n/a I
Slide 31: Appendix 6: use of cash and reconciliation of net debt
Appendix 6: use of cash and reconciliation of net debt 28.6 80 Proceeds from sale of property, plant and 0.3 equipment 70 0.5 Other items Working capital 15.2 movement Movement in 60 net debt Net proceeds 28.1 (excluding 2.2 from sale IFRS 16 liability) of Hull 4.9 Other creditor/debtor movement 50
Slide 32: Appendix 7: funding headroom
Appendix 7: funding headroom Committed Facility Drawn headroom £m £m £m Committed facilities: – revolving facilities (June 2022) 159.7 (104.3) 55.4 – invoice discounting facility 29.1 (29.1) — – other loans — — — – leases 8.7 (8.7) — Total committed facilities 197.5 (142.1) 55.4 Uncommitted faciliti
Slide 33: Appendix 8: IFRS 16 transition
Appendix 8: IFRS 16 transition As at As at 30 June IFRS 16 1 July 2019 adjustment 2019 £m £m £m Non-current assets Right-of-use assets — 8.2 8.2 Liabilities Lease liability — 9.9 9.9 Provisions 7.9 (2.4) 5.5 Net assets 64.2 0.7 64.9 Equity Accumulated loss (97.9) 0.7 (97.2) Total equity 64.2 0.7 64.