Gusbourne Plc · OTC:SLLFF
Gusbourne — FY2023 Earnings Presentation
34 slides from Gusbourne's earnings presentation, March 2024
Slide 1: Final Results for the Year Ended 31 December 2023
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023 A YEAR OF STRONG REVENUE GROWTH UNDERPINNED BY FURTHER STRATEGIC PROGRESS GUSBOURNE 2024
Slide 2: Mission quote from CEO Jonathan White
“We use our detail-obsessed, sustainable approach to craft, sell and serve world-class English wine.” Jonathan White Chief Executive Officer GUSBOURNE 2024 22
Slide 3: Agenda
Agenda • CEO: Highlights and Strategy Update • CFO: Financial Review • CEO: Conclusions and Outlook GUSBOURNE 2024 3
Slide 4: Highlights and Strategy Update
01 HIGHLIGHTS AND STRATEGY UPDATE GUSBOURNE 2024
Slide 5: 2023 Summary: Continued Strong Progress
2023 Summary: Continued Strong Progress FINANCIAL HIGHLIGHTS • Net revenue up by 13% to £7.1m, reflecting continued sales growth across all channels. • Gross profit up 30% to £4.8m. • Gross margin improved to 68.2% (2022: 59.2%). OPERATIONAL HIGHLIGHTS • New CEO, CCO, COO and Board appointments. • E
Slide 6: Gusbourne Strategic Framework
Gusbourne Strategic Framework OUR To use our detail-obsessed, sustainable approach to craft, sell and serve world-class English wine MISSION OUR To craft the finest wines in the world VISION OUR Meticulously crafting fine wines and Enhancing our luxury brand and Developing relationships with our STR
Slide 7: Significant Increase In Land, Underpinning Future Growth
Significant Increase In Land, Underpinning Future Growth 160 • 93 hectares of mature vineyards planted at Gusbourne in their sites 140 in Kent and West Sussex. 120 • In 2022 the company purchased a PLANTED HECTARES 100 further 55 hectares of new land in Kent. 80 • Gusbourne plans to plant an additio
Slide 8: Ongoing Enhancement Of Product Range
Ongoing Enhancement Of Product Range FIFTY ONE DEGREES NORTH - £195 RRP EXTRA BRUT AGRAFE - £85 RRP ENGLISH ROSÉ - £25 RRP Follow-on vintage launched in September 2023 Launched in December 2023 Launched in April 2023 Created to represent the pinnacle of English winemaking. A classic blend aged entir
Slide 9: Price Positioning Maintained
Price Positioning Maintained • We use price as a differentiator and aim for our RRPs to be the highest in the category to maintain our premium positioning. Brand A • Introducing new products enhances our Brand B, C, D Brand E brand proposition and suitable line Brand F extensions fill gaps in our ra
Slide 10: Awards
Awards 40 Five trophies, including World Champion Classic Rosé Brut at the Champagne and Sparkling Wine World Championships 2023 A Best in Show award for Blanc de Blancs at the Decanter World Wine Awards 2023 Four trophies, including Top Still Wine as well as retaining Estate Winery of the Year, med
Slide 11: Strong Growth Across All Sales Channels
Strong Growth Across All Sales Channels UK INTERNATIONAL DIRECT TO CONSUMER (DTC) UK Trade sales grew by 13% to £3.5m. International sales grew by 7% DTC net revenue grew by 18% to £1.5m and accounted for 21% of total to £2.0m driven by online sales and UK Trade sales represent 49% (2022: net revenu
Slide 12: Sustained DTC Growth
Sustained DTC Growth ONLINE Driving awareness and reaching new audiences through investment in DOOH advertising. Building our presence through paid media and increasing volume of sessions and purchases. Creating rich and engaging content to share with growing consumer database, supporting compelling
Slide 13: Sustained DTC Growth: The Nest
Sustained DTC Growth THE NEST Gusbourne welcomed 15,000 visitors to the Nest in 2023, Gusbourne’s cellar door operation in Kent. Our average visitor bought 1.1 bottles of wine, which increased marginally compared to 2022. We offered a broader range of tasting and tour experiences and events, with pr
Slide 14: Sales Growth Client Concentration
Sales Growth Client Concentration Growth of UK Trade sales by 13% to £3.5m despite difficult UK trade account type UK trade account type economic outlook and decreasing consumer confidence. (as % of client base) by revenue % Customer number grew by more than 10% to 750. Continued focus on luxury F&B
Slide 15: International Markets
International Markets SCANDINAVIA Norway growth continued with monopoly listings for Rosé and Blanc de Noirs.. Sold out launch of Fifty One Degrees North in Norway. Growth in Finnish market with increased on-trade distribution. ASIA PACIFIC Launch of Fifty One Degrees North into Japan, Hong Kong and
Slide 16: Financial Review
02 FINANCIAL REVIEW GUSBOURNE 2024
Slide 17: Revenue Growth
Revenue Growth • Revenue growth across all segments • Regular RRP price increases passed through GUSBOURNE 2024 17
Slide 18: P&L Summary
P&L Summary 2021 2022 2023 Variance £m £m £m % Wine sales 4.2 6.2 7.1 12.8% Other Income 0.4 0.6 0.6 1.0% Gross sales 4.6 6.9 7.7 11.8% Duty (0.4) (0.6) (0.6) -0.3% Net revenue 4.2 6.2 7.1 13.0% Gross profit 2.3 3.7 4.8 30.1% Gross profit % 55.9% 59.2% 68.2% 9.0% Sales & marketing expenses to sales
Slide 19: 2023 Key Cash Flow Movements
2023 Key Cash Flow Movements • Working capital investment mainly inventory to support long-term growth • Capex – additional facilities and machinery • Increased net debt supported by PNC facility and £1.5m short-term loan • Increase in lease liability as new property lease (IFRS 16) GUSBOURNE 2024 1
Slide 20: Key Balance Sheet Items
Key Balance Sheet Items £’000 2021 2022 2023 Change Fixed Assets 13,382 15,221 15,872 651 Inventories 10,638 12,579 15,546 2,967 Trade and other receivables 1,275 1,291 1,836 545 Trade and other payables (1,118) (1,500) (1,880) (380) Working capital 10,795 12,370 15,502 3,132 Cash 3,128 269 71 (198)
Slide 21: Guidance / Plans for 2024
Guidance / Plans for 2024 DOUBLE DIGIT REVENUE GROWTH EBITDA BREAKEVEN REDUCED CAPEX EXPENDITURE GUSBOURNE 2024 21
Slide 22: Conclusions and Outlook
03 CONCLUSIONS AND OUTLOOK GUSBOURNE 2024
Slide 23: 2023: Great Progress
2023: Great Progress FINANCIAL HIGHLIGHTS • Sustained YOY revenue growth across all channels. • Gross margin up 900 basis points due to improvement in price/mix. OPERATIONAL HIGHLIGHTS • Exceptional harvest resulting in wines of excellent quality. • Significant number of awards, medals and trophies
Slide 24: 2024: Another Exciting Year Ahead
2024: Another Exciting Year Ahead KEY FINANCIAL PRIORITIES • Drive revenue growth through increased volume and improvements in price/mix. • chieve EBITDA breakeven. KEY OPERATIONAL PRIORITIES • Develop Gusbourne’s meticulously crafted fine wine portfolio. • Launch range of new single-vineyard still
Slide 25: Appendix
04 APPENDIX GUSBOURNE 2024
Slide 26: Consolidated P&L – 5 Year Summary
Consolidated P&L – Years Ended 31 December – 5 Year Summary Detailed P&L 2019 2020 2021 2022 2023 £’000 £’000 £’000 £’000 £’000 % UK Trade 934 721 1,997 3,058 3,454 12.9% Direct to Consumer (DTC) 299 586 1,016 1,185 1,489 25.7% UK Wine Sales 1,233 1,307 3,013 4,243 4,943 16.5% International 292 634
Slide 27: Consolidated Balance Sheet – 5 Year Summary
Consolidated Balance Sheet – Years Ended 31 December – 5 Year Summary Balance Sheet £’000 2019 2020 2021 2022 2023 Assets Freehold land and buildings 6,383 6,263 6,134 7,830 7,937 Right of use assets** 2,068 2,022 1,976 1,930 2,587 Vineyards 3,144 3,004 2,858 2,712 2,569 Plant, machinery and other e
Slide 28: Consolidated Cash Flow – 5 Year Summary
Consolidated Cash Flow – Years Ended 31 December – 5 Year Summary £’000 2019 2020 2021 2022 2023 Cash flows from operating activities Loss for the year before tax (2,601) (3,066) (3,573) (2,599) (3,003) Adjustments for: Depreciation of property, plant and equipment 699 647 599 601 661 Sale of proper
Slide 29: Classic Sparkling Wines
Classic Sparkling Wines VINTAGE ENGLISH SPARKLING WINE BRUT RESERVE BRUT ROSÉ BLANC DE BLANCS BLANC DE NOIRS This classic blend of Chardonnay, Comprised of a blend of Chardonnay, Receiving extensive ageing in bottle, Characteristically deep and Pinot Noir and Pinot Meunier is Pinot Noir and Pinot Me
Slide 30: Limited-Edition Sparkling Wines
Limited-Edition Sparkling Wines VINTAGE ENGLISH SPARKLING WINE AGRAFE SINGLE VINEYARD LATE DISGORGED FIFTY ONE DEGREES NORTH A classic blend aged entirely Our single-vineyard sparkling Every year, we release a small Our most exclusive vintage under cork. This Agrafe bottling wines highlight the terr
Slide 31: Retail and White-Label Sparkling Wines
Retail and White-Label Sparkling Wines EXCLUSIVE RELEASE LIMITED RELEASE WHITE-LABEL WINES WHITE-LABEL PARTNERS A classic blend of Chardonnay, A classic blend of Chardonnay, Our Limited Release wine is also sold as The Royal Collection (Platinum Jubilee Pinot Noir and Pinot Meunier grown Pinot Noir
Slide 32: Classic Still Wines
Classic Still Wines ENGLISH ROSÉ PINOT MEUNIER CHARDONNAY GUINEVERE PINOT NOIR A Rosé that is made for the A still red wine produced from just A barrel fermented Chardonnay. A barrel fermented Pinot moment, and produced from Pinot Meunier. Often this wine is a Single vineyard, non ‘Guinevere’ Noir.
Slide 33: Planting and Production
Planting and Production GUSBOURNE 2024 33
Slide 34: GUSBOURNE 2024
GUSBOURNE 2024