Big River Industries Ltd. · ASX:BRI
Big River Industries — H1 FY2023 Earnings Presentation
18 slides from Big River Industries's earnings presentation, Feb 24, 2023
Slide 1: HY23 Results Presentation
HY23 Results Presentation Big River Industries Ltd (ASX:BRI) 23/02/2023 23/02/2023 1 1
Slide 2: Contents
Contents 01 Growth Momentum Continues Presenters Jim Bindon 02 Business Overview CEO & Managing Director 03 Performance Headlines 1H23 John Lorente Incoming CEO 05 Divisional Performance John O’Connor 06 Profit & Loss CFO 07 Profitability Waterfall 08 Balance Sheet 09 Capital Management 10 Cash Flow
Slide 3: Growth Momentum Continues
01 Growth Momentum Continues Revenue ($m) U-EBITDA ($m) U-NPAT ($m) 250 30 16 14 25 200 12 20 10 150 15 8 100 6 10 4 50 5 2 0 0 0 HY20 HY21 HY22 HY23 HY20 HY21 HY22 HY23 HY20 HY21 HY22 HY23 1 1 Cash Conversion Gearing ROFE 80% 30% 30% 70% 25% 25% 60% 50% 20% 20% 40% 15% 15% 30% 10% 10% 20% 10% 5% 5%
Slide 4: Business Overview
02 Business Overview Asset mix 21% of revenue 3 Supply chain diversity Manufactured by BRI 20% of revenue Direct Import by BRI 26 7 Manufacturing 4 Frame & Truss Plywood / panel Sites across major 59% of revenue population centres Sites prefabrication manufacturing plants plants Sourced from local s
Slide 5: Performance Headlines 1H23
03 Performance Headlines 1H23 U-EBITDA up 31 Financial Highlights .2 Underlying EBITDA up 31.2% on 1H22 to $28.2m Revenue up % and EBITDA margin 19.9% increased to 12.1%. Working Capital 17 % Strong working Capital .7 management, with net working capital to revenue ratio at 17.7% consistent with Jun
Slide 6: Performance Headlines 1H23
04 Performance Headlines 1H23 Operational Highlights Supply chain pressures started to improve in Q2 Organic Growth 10.8% delivering improved profitability. The group achieved 10.8% organic revenue Increased focus on debtor growth, delivered across all divisions, well ahead of addressable market gro
Slide 7: Divisional Performance
05 Divisional Performance Revenue EBITDA EBITDA margin AUD in millions 1HFY23 1HFY22 % Change 1HFY23 1HFY22 % Change 1HFY23 1HFY22 Construction products 165.7 137.1 20.9% 20.7 13.1 58.0% 12.5% 9.6% Panels 66.7 56.7 17.6% 10.6 10.9 (2.8%) 15.9% 19.2% Corporate costs - - - (3.1) (2.5) 24.0% - - Total
Slide 8: Profit & Loss
06 Profit & Loss AUD in millions 1HFY23 1HFY22 % Change Highlights Revenue 232.4 193.8 19.9% • Total Revenue up 19.9% driven by strong organic growth and Raw materials and consumables (168.1) (142.5) 18.0% acquisitions. Gross profit 64.3 51.3 25.3% • Gross margin was up 116 basis points versus 1H22.
Slide 9: Profitability Waterfall
07 Profitability Waterfall 10.8% Organic revenue growth of 10.8% delivered 25.6% growth in EBITDA 116bps Gross margin improvement of 116 bps delivered 11.6% growth in EBITDA. 11.6% Acquisitions delivered 11.6% growth in EBITDA. 12.8% Organic cost increases of 12.8% 23/02/2023 9
Slide 10: Balance Sheet
08 Balance Sheet AUD in millions 31 Dec 2022 30 Jun 2022 Highlights Cash 16.9 19.8 • Strong balance sheet to support the Trade and other receivables 56.3 63.4 growth and acquisition strategy. Inventories 80.5 72.8 • Inventories increased by $7.7m (10.6%) Fixed assets 22.8 21.9 – sensibly contained i
Slide 11: Capital Management
09 Capital Management AUD in millions 31 Dec 2022 30 Jun 2022 Highlights Total borrowing facility 68.1 68.1 • Net debt increased by $7.8 Facility drawn 46.0 41.0 million reflecting the cash paid Utilisation ratio % 67.5% 60.2% in respect of new acquisitions and contingent consideration Cash 16.9 19.
Slide 12: Cash Flow
10 Cash Flow AUD in millions 1HFY23 1HFY22 Highlights Receipt from customers 262.7 213.2 • OCFBIT to EBITDA conversion of 74.1% Payment to suppliers and employees (241.8) (201.7) ahead of pcp. Government grants _ 3.3 • Working capital (net of acquisitions) grew Operating cash flow before interest an
Slide 13: Outlook
11 Outlook Big River’s market diversity will support continued growth • Strong residential builder • Project delays due to • Product cost increases orderbook and project labour constraints of the past few years pipelines expected to continue to extend the have largely stablised as continue into FY24
Slide 14: Strategy & Financial Outlook
12 Outlook Strategy & Financial • Strong pipeline of • Our Grafton • January trading above acquisition opportunities Consolidation project, previous year despite being considered across behind schedule due to many builders taking Panels, Construction. equipment delays, is extended holidays. • We are
Slide 15: Appendix - Profitability
13 Appendix - Profitability AUD in millions 1HFY20 1HFY21 1HFY22 1HFY23 Revenue 126.1 133.5 193.8 232.4 EBITDA - Construction 7.1 7.6 13.1 20.7 - Panels 3.5 4.4 10.9 10.6 - Corporate costs (1.9) (2.0) (2.5) (3.1) Total EBITDA 8.7 10.0 21.5 28.2 Depreciation (3.6) (4.2) (5.3) (5.6) Amortisation (0.3)
Slide 16: Appendix – Cash Flow
14 Appendix – Cash Flow AUD in millions 1HFY20 1HFY21 1HFY22 1HFY23 EBITDA 8.7 10.0 21.5 28.2 Working capital changes & other items (4.3) (2.4) (6.7) (7.3) Operating cash flow before interest and tax 4.4 7.6 14.8 20.9 (OCFBIT) Interest paid (0.8) (0.9) (1.5) (1.4) Income tax paid (1.0) (1.8) (1.8) (
Slide 17: Appendix – Capital Management
15 Appendix – Capital Management AUD in millions 31-Dec-2019 31-Dec-2020 31-Dec-2021 31-Dec-2022 Overdraft and trade finance 0.8 1.5 2.8 2.7 Bank bills 22.6 12.2 36.0 41.0 Equipment finance liability 2.0 2.0 2.4 2.3 Less: cash - (6.5) (6.5) (16.9) Net debt 25.4 9.2 34.7 29.1 Equity 70.0 78.1 105.0 1
Slide 18: Important Notice and Disclaimer
16 Important Notice and Disclaimer This presentation is dated 24th February 2023. Big River Industries Limited (the "Company") advises that the information contained in this presentation is intended to be general background information about the Company's activities as at the date of this presen
Big River Industries — H1 FY2023 Earnings Presentation on 6ix