Wynnstay Group Plc · LSE:WYN
Wynnstay — FY2023 Earnings Presentation
26 slides from Wynnstay's earnings presentation, January 2024
Slide 1: Final Results – Year ended 31 October 2023
Supporting Sustainable Agriculture FINAL RESULTS Year ended 31 October 2023 Gareth Davies Rob Thomas Chief Executive Officer Group Finance Director
Slide 2: Presentation Team
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 2 Presentation Team Gareth Davies, CEO • Appointed as CEO in July 2018 • Previously Joint Managing Director of Wynnstay (Agricultural Supplies) Ltd and before that Head of Agriculture • Joined Wynnstay in
Slide 3: Business Overview
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 3 Business Overview Helping Farmers to Feed the UK in a More Sustainable Way Comprehensive range of agricultural products, supported by expert advice Agriculture Specialist Agricultural Merchanting Glasson
Slide 4: Geographic Reach
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 4 Geographic Reach 12 manufacturing sites 53 depots c.105 vehicles c.944 employees
Slide 5: Overview
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 5 Overview Solid underlying Strong financial Investment plans performance in a Strategic progress position continue difficult market Overall, much softer Reach and capability Strong balance sheet and Inves
Slide 6: Financial Overview
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 6 Financial Overview • Revenue up 3% to £735.9m (2022: £713.0m), reflecting: ― first full-year contributions from the Humphrey Feeds and Tamar Milling acquisitions, record grain trading volumes, partly off
Slide 7: Financial Track Record
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 7 Financial Track Record Continuing operations Revenue (£m) Gross profit (£m) 713.0 735.8 90.8 79.0 67.9 490.6 500.4 62.0 60.8 431.4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 …………………………………………………………
Slide 8: Dividend – 20 years of annual growth
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 8 Dividend – 20 years of annual growth (pence per share) 17.0 17.25 15.5 14.6 14 13.36 12.6 12 11.1 10.2 9.3 8.5 7.8 7.1 6.5 6 5 5.25 5.47 4.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 9: Income Statement
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 9 Income Statement Year ended Year ended £000 31 October 2023 31 October 2022 Revenue 735,877 713,034 • Revenue up 3% year-on-year Cost of sales (656,829) (622,228) ― first full year’s Gross profit 79,048
Slide 10: Balance Sheet
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 10 Balance Sheet £000 Year ended 31 October 2023 Year ended 31 October 2022 NON-CURRENT ASSETS Goodwill 15,530 16,133 • Reflects Tamar Milling Investment property 1,850 1,850 acquisition Property, plant an
Slide 11: Cash Flow
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 11 Cash Flow Year ended Year ended £000 31 October 2023 31 October 2022 Cash generated from operations 20,272 13,839 • Operating cash flow Interest received – cash 528 166 benefits from working Interest pa
Slide 12: Net Cash Reconciliation
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 12 Net Cash Reconciliation Year ended Year ended £000 31 October 2023 31 October 2022 • Profits readily convert to EBITDA before non-recurring items 16,885 28,310 cash – EBITDA £16.9m Adjustment for pre-ta
Slide 13: Cash Flow Bridge
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 13 Cash Flow Bridge *Excluding IFRS 16 property leases **Includes £6.1m of property lease roll-overs and £0.3m of property lease liabilities acquired with Tamar Milling Opening Opening Opening Adj. EBITDA
Slide 14: Net Cash / (debt) cycle
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 14 Net Cash / (debt) cycle Oct 2023 Net cash at 31 October 2023 Oct 2022 Oct 2021 19.0** 18.2** Oct 2020 15.5** *net cash including property 14.7** leases (IFRS basis): £10.74m 14.15* Oct 2016 Oct 2017 Oct
Slide 15: Segmental Analysis
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 15 Segmental Analysis 2023 £151.48m Underlying Group PBT*: £9.2m Revenue £735.8m +3% £6.1m £3.7m £584.31m …………………………………………………………………………………………………………………………………….................................................
Slide 16: Trading Environment in FY 2023
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 16 Trading Environment in FY 2023 End-Oct End-Oct YoY 2023 2022 Change Feed wheat/tonne £176 £256 -31% – Grain prices weakened significantly after an Feed barley/tonne £157 £238 -34% exceptionally strong 2
Slide 17: Feed – Phase One of Carmarthen feed mill investment completed
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 17 Agriculture Division Feed – Phase One of Carmarthen feed mill investment completed • Total like-for-like feed volumes down 5.3% – better than national trend (management view) ― reduced demand from: Inte
Slide 18: Arable – significant variation in performances across operation
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 18 Agriculture Division Arable – significant variation in performances across operation • Significant variations in performance across the division • Grain marketing operation, GrainLink, delivered record
Slide 19: Glasson – fertiliser raw material prices normalised
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 19 Agriculture Division Glasson – fertiliser raw material prices normalised from historic highs in 2022 • Performance impacted by one-off stock losses at fertiliser blending activity Fertiliser market shar
Slide 20: Depots, Youngs
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 20 Specialist Agricultural Merchanting Division Depots, Youngs • Specialist Agricultural Merchanting Division performed behind management expectations ― revenues increased by 2% reflecting inflation – like
Slide 21: ESG – progressing with goals
INTERIM RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 21 ESG – progressing with goals Internal focus Customer focus • First TCFD* report – 2023 Annual Report • Supporting farmers’ environmental transition • Resource Efficiency Action Team established (follo
Slide 22: Summary and Outlook
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 22 Summary and Outlook • Solid underlying trading against a more difficult trading background, particularly in H2 ― overall results reflected, in particular, the absence of previous year’s significant GROU
Slide 23: Supplementary Information
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 23 Supplementary Information • Acquisitions • Market Trends
Slide 24: Acquisitions (2015-2022)
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 24 Acquisitions (2015-2022) DATE ACQUISTION BUSINESS TYPE ARABLE FEEDS DEPOTS Nov 2022 Tamar Milling Limited Feed manufacturer & supplier ✓ Mar 2022 Humphrey Feeds and Pullets Ltd Poultry feed manufacturer
Slide 25: Market Trends
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 25 Market Trends Sources: 1 AHDB, 2 Defra, RESAS, DAERA, AHDB, 3 Defra, AHDB, Andersons Deadweight Sheep Price (p/kg) 1 Deadweight Cattle Price (p/kg) 1 Average Farmgate Milk Price (p/l) 2 Monthly Dynamic
Slide 26: Market Trends
FINAL RESULTS | 2023 | ……………………………………………………………………………………………………………………………………..................... 26 Market Trends Sources: 1 The Ranger, 2 Andersons, 3 Defra, ONS, 4 USDA Number of eggs packed in UK packing stations vs. Feed Wheat Price (£/tonne) 2 UK farm-gate egg price: 2017-20221 Global Grain Suppl