Slide 1: Financial Results FY22 H1
FINANCIAL RESULTS FY22 H1 9 FEBRUARY 2022
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements relating to expected or anticipated results, performance or events. Such statements are subject to normal risks associated with the uncertainties in our business, supply chain and consumer demand along with risks associated wit
Slide 3: Agenda
AGENDA SECTION SPEAKER 01 Key Messages Jonathan Myers 02 FY22 H1 Financial Results Sarah Pollard 03 FY22 Outlook Sarah Pollard 04 Strategy Update Jonathan Myers Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 3
Slide 4: Key Messages
KEY MESSAGES JONATHAN MYERS CEO Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 4
Slide 5: Key Messages
KEY MESSAGES Return to revenue growth Continued progress against our strategy: Building brands for life. Today and for future generations. Brand investment delivered share gains and allowed us to navigate cost pressures Adjusted FY22 PBT guidance remains within the range of consensus estimates Inter
Slide 6: FY22 H1 Results
FY22 H1 RESULTS SARAH POLLARD CFO Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 6
Slide 7: Financial Headlines
FINANCIAL HEADLINES ONE-YEAR PERFORMANCE IMPACTED BY COVID-19. STRONG MARGINS Revenue Adjusted Adjusted Adjusted Operating Margin ** Profit Before Tax ** Basic EPS ** 11.6% flat £284m £32m 5.64p -2% lower * -8% lower -15% lower Gross Margin +40bps Statutory Profit Before Tax ** £35m (+8% higher) Net
Slide 8: Underlying Business Momentum Continues
UNDERLYING BUSINESS MOMENTUM CONTINUES Must Win Brands Total CONTINUED GROWTH +10% Business Must +5% Win ex-Carex Brands Total Total Business +20% Must Win Business Brands +13% -9% -11% H1 FY22 H1 FY22 H1 FY22 H1 FY22 Q1 Q2 H2 Two-year * One-year * One-year * Financial Results FY22 H1 * like for lik
Slide 9: Normalisation of the Hygiene Category Post-Pandemic Peak
NORMALISATION OF THE HYGIENE CATEGORY POST-PANDEMIC PEAK BABY AND BEAUTY CONTINUE THEIR STRONG MOMENTUM - AND WITH PRICE / MIX IMPROVEMENTS Hygiene (-12%) Baby (+1%) Beauty (+21%) 8% 13% 6% -5% -10% -2% Excluding Carex (+6%) Volume Price / Mix - Volume +1% - Price / Mix +5% Financial Results FY22 H1
Slide 10: Europe and Americas
EUROPE AND AMERICAS Highlights CAREX LAPPING THE PEAK PANDEMIC-DRIVEN DEMAND Demand for Hand Hygiene category normalises at higher levels than pre-Covid Carex extends its market leadership position Revenue Adjusted Must Win Brands Operating Margin in growth Original Source back in growth Strong dema
Slide 11: Asia Pacific
ASIA PACIFIC Highlights SUSTAINABLE, PROFITABLE REVENUE GROWTH Continued growth of Morning Fresh despite lapping pandemic-peak Morning Fresh extends its leadership in the Revenue Adjusted Must Win Brands manual dishwash market Operating Margin in growth Cussons Baby flat, despite severe pandemic res
Slide 12: Africa
AFRICA Highlights STRONG REVENUE GROWTH AND PROFITABILITY IMPROVES AGAIN Growth from all Must Win Brands - and in Portfolio Brands, such as Electricals Morning Fresh and Revenue Adjusted Must Win Brands Premier maintain their Operating Margin in growth market leading positions Growth across all of N
Slide 13: Gross Margin Improvement Allowed for Increased M&C Investment
GROSS MARGIN IMPROVEMENT ALLOWED FOR INCREASED M&C INVESTMENT CONTINUED PRICE / MIX PROGRESS +40 bps +70 bps (30) bps (80) bps 11.6% 11.6% Operating Margin Gross Profit Overheads Media & Consumer PZ Wilmar Operating Margin H1 FY21 investment H1 FY22 Financial Results FY22 H1 FOR EVERYONE, FOR LIFE,
Slide 14: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG REALISING VALUE FROM THE PORTFOLIO Portfolio optimisation +£12.6m £(14.6)m +£1.8m +£7.2m £(4.7)m £(5.9)m +£39.6m £(14.3)m +£1.1m £(10.5)m £(30.7)m £(2.6)m Net Debt Operating five:am Nigeria Working Loans to JV Capex Tax Dividends Net finance FX / other Net Debt 31 May 20
Slide 15: Low to Mid Single-Digit Sustainable Profitable Revenue Growth
LOW TO MID SINGLE-DIGIT SUSTAINABLE PROFITABLE REVENUE GROWTH Q2 REVENUE GROWTH ON A QUARTER OF GROWTH IN THE PRIOR YEAR FY20 FY21 H1 FY22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 15
Slide 16: FY22 Outlook
FY22 OUTLOOK SARAH POLLARD Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 16
Slide 17: Commodity and Freight Cost Headwinds Continue
COMMODITY AND FREIGHT COST HEADWINDS CONTINUE LATEST ESTIMATED COGS INFLATION OF 10%+ IN FY22 Raw Materials Logistics £366m FY21 Cost of Resins China to China to Asia to Palm Oils Oleochemicals Goods Australia Africa UK Production FY22 FY23 Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD.
Slide 18: Revenue Growth Management and Cost Savings
CONTINUING OUR CO-ORDINATED PLANS TO PROTECT MARGINS ACCELERATING REVENUE GROWTH MANAGEMENT AND COST OPTIMISATION INITIATIVES REVENUE GROWTH COST SAVINGS MANAGEMENT Turbo Boost Turbo Boost Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 18
Slide 19: FY22 Outlook
FY22 OUTLOOK Expecting revenue growth in H2 despite continued Covid-19 volatility and supply chain disruptions Cost pressures into H2 and FY23 Working to both protect margins and continue investing in the business Adjusted FY22 PBT guidance remains within the range of consensus estimates Financial R
Slide 20: Strategic Update
STRATEGIC UPDATE JONATHAN MYERS Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 20
Slide 21: Building Brands for Life
BUILDING BRANDS FOR LIFE. TODAY AND FOR FUTURE GENERATIONS. We build brands to serve consumers better with Hygiene, Baby and Beauty at our core Low to mid single-digit sustainable, profitable revenue growth Where to play How to win PZ Cussons Focus on leading brands PZ Cussons Growth Wheel in priori
Slide 22: Sustained Must Win Brand Momentum
SUSTAINED MUST WIN BRAND MOMENTUM Europe and Americas Asia Pacific Africa Carex Cussons Baby Morning Fresh Original Source Morning Fresh Premier St. Tropez (US) Joy St. Tropez (UK) Cussons Baby Sanctuary Spa Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 22
Slide 23: Carex - Strengthening Our Market Leadership Position
CAREX - STRENGTHENING OUR MARKET LEADERSHIP POSITION Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 23
Slide 24: For Everyone, For Life, For Good.
FOR EVERYONE, FOR LIFE, FOR GOOD.
Slide 25: Beauty Continues to Outperform
BEAUTY CONTINUES TO OUTPERFORM Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 25
Slide 26: Progressing Our Key Strategic Initiatives
PROGRESSING OUR KEY STRATEGIC INITIATIVES Reducing Cultural Leadership & Sustainability Complexity Transformation Capabilities MD, Business Development Paul Yocum Reviewing strategy Nigeria residential property disposals Progressing B-Corp MD, Beauty Tracey Mann Financial Results FY22 H1 FOR EVERYON
Slide 27: Summary
SUMMARY Return to revenue growth Brand investment delivered share gains and allowed us to navigate cost pressures Adjusted FY22 PBT guidance remains within the range of consensus estimates Interim dividend maintained Continued progress against our strategy: Building brands for life. Today and for fu
Slide 28: Q&A
Q&A Financial Results FY22 H1 FOR EVERYONE, FOR LIFE, FOR GOOD. 28