Animalcare Group Plc · LSE:ANCR
Animalcare — H1 2023 Earnings Presentation
17 slides from Animalcare's earnings presentation, Sep 26, 2023
Slide 1: Interim results 2023
I N V E S TO R P R E S E N TAT I O N Interim results 2023 Jenny Winter, Chief Executive Officer Chris Brewster, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by the Company. It has not been verified by the Company and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accord
Slide 3: Dynamic, growing animal health market
Dynamic, growing animal health market Competitive sector with attractive long-term fundamentals • Market growth returning to more pre-Covid levels 62% of UK households owned a • Companion Animals the main driver of growth • Continuing high levels of pet ownership1 • Increased propensity to spend on
Slide 4: What is Animalcare?
What is Animalcare? Animalcare is a profitable, cash generative business with strong margins, low levels of debt and the financial means and ambition to invest in organic and M&A growth 4
Slide 5: A clear strategy guiding long-term value creation
A clear strategy guiding long-term value creation Strong Growth Business Innovative Organisation finances portfolio development pipeline for growth Financial Focused portfolio in Grow through M&A, Launch new Sales and marketing sustainability key therapy areas in licensing and products and capabilit
Slide 6: Highlights from H1 2023
Highlights from H1 2023 Expanding margins and increased cash conversion; strategy execution FINANCES PORTFOLIO BUSINESS DEVELOPMENT PIPELINE ORGANISATION • 1.5% expansion in • Positive market • Animalcare continues • Orthros Medical • Resources re-aligned gross margins to response to to be highly ac
Slide 7: Robust H1 performance against strong comparator
Robust H1 performance against strong comparator Revenue Underlying* EBITDA ↓4.1% ↓10.8% 2023 2022 £36.7m £7.2m H1 £36.7m £38.3m £7.2m £8.0m H1 Down 6.8% at CER Underlying EBITDA margin 19.5% (21.0% for prior year) Gross margin Net debt ↑1.5% 2023 2022 H1 57.5% ↓£1.6m £3.8m 2023 2022 H1 57.5% 56.0% £
Slide 8: Improved margins as demand normalises
Improved margins as demand normalises 6 months ended 30 June Change at Underlying financial results 2023 2022 AER Revenue £36.7m, decline of 4.1% (AER) compared to strong prior year Revenue £36.7m £38.3m (4.1%) • Affected by normalisation in veterinary demand Gross profit £21.1m £21.4m (1.8%) Gross
Slide 9: Companion Animals: main driver of growth
Companion Animals: main driver of growth H1 2023 revenue £26.0m ↓2.5% Companion Animals: Companion Animals H1 2023 performance summary • Strong Plaqtiv+ demand helps • Continued investment in sales and partially offset wholesaler marketing activities to drive destocking in certain territories and Da
Slide 10: Production Animals: continuing demand for protein
Production Animals: continuing demand for protein H1 2023 revenue Production Animals: H1 2023 performance summary • Production Animal revenues, which period to £7.7m, predominantly are chiefly generated by our driven by phasing of orders and Southern European and generic competition International Pa
Slide 11: Equine and others: attractive specialist market
Equine and others: attractive specialist market H1 2023 revenue Equine: H1 2023 performance summary • Equine and other sales increased • Expect Danilon growth to £3.0m ↑6.3% by 6.3% to £3.0m, benefiting from accelerate during the second half bringing Danilon, one of our due to stock in channel place
Slide 12: Identicare builds revenue and profit momentum
Identicare builds revenue and profit momentum Refocus and specialist leadership is unlocking potential of pet reunification business Repositioning of pet reunification business as a scalable, high margin, recurring-revenue subscription platform helps drive growth • Identicare continues to deliver Ro
Slide 13: Cash conversion strengthens financial firepower
Cash conversion strengthens financial firepower Cash conversion 6 months ended 30 June Increased leverage capacity supports pursuit of 2023 2022 business development opportunities Underlying EBITDA £7.2m £8.0m • Cash conversion improved to 52.5%; expect cash Working capital (£3.4m) (£5.7m) conversio
Slide 14: Capital allocation supports growth ambitions
Capital allocation supports growth ambitions Investing in organic and inorganic opportunities Strong profit and cash generation Invest in drivers Invest in Dividends to and low debt of organic in-organic shareholders growth, opportunities including R&D through M&A, pipeline licensing and partnering
Slide 15: Business development: ambitious, active and disciplined
Business development: ambitious, active and disciplined Inorganic growth central to strategy • Seeing increasingly openness to explore dealmaking options Financial flexibility and • Reallocation of internal resources further strengthens focus on firepower to execute M&A identification and pursuit of
Slide 16: Orthros agreement progressing as planned
Orthros agreement progressing as planned Partnership model yielding results; opening pathways to options for novel therapies STATUS: Agreement Agreement to to co-develop. co-develop. Pre-clinical studies on LICENCE Animalcare to commercialise, Animalcare to commercialise, track and showing specific
Slide 17: Summary and outlook
Summary and outlook • Group delivers expansion in gross margins and improved cash conversion despite easing in rate of demand growth across markets • Strong financial position supports ongoing investment in value-creating growth opportunities; business development top priority for the Group • Animal