Slide 1: FY21 Financial Results and FY22 Q1 Update
FY21 Financial Results FY22 Q1 Update Building brands for life. Today and for future generations.
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 Key Messages FY21 Financial Results Q&A Q1 Trading and FY22 Outlook Strategy Update Building brands for life. Today and for future generations. 3
Slide 4: Key Messages
Key Messages Jonathan Myers Chief Executive Officer Building brands for life. Today and for future generations. 4
Slide 5: Key Messages
Key Messages Solid financial performance in FY21 - delivering what we said Progress against our new strategy - more to do Working to manage near term cost pressures - and invest behind our brands Moving through Q1 decline to deliver our financial framework - FY22 another year of progress Financial f
Slide 6: FY21 Financial Results
FY21 Financial Results Sarah Pollard Chief Financial Officer Building brands for life. Today and for future generations. 6
Slide 7: Financial Review
Financial Review Adjusted EPS growth and dividend increased £68.6m 13.12p £(16.6)m +11% +8% Adjusted PBT * of £68.6m, up Adjusted basic EPS * of 13.12p, up +8% Statutory loss after tax of £(16.6)m +11% - ahead of consensus - due to historical FX on disposal of loss-making Nutricima £30.7m 6.09p +5%
Slide 8: Operating and Financial Highlights
Operating and Financial Highlights Revenue growth, improved profit margins and balance sheet discipline Revenue Adjusted Adjusted Free Cash Flow Operating Margin Profit Before Tax conversion £603m +7% growth * 11.8% £68.6m 70% Must Win +60 bps expansion +11% growth Brands +11% growth * * organic gro
Slide 9: Europe and Americas
Highlights Europe and Americas Carex growth and Hygiene demand and Beauty growth, coupled with increased marketing investment retained category leadership Original Source and Imperial Leather Revenue Adjusted Must Win Brands decline Operating Margin in growth Strong Beauty growth St. Tropez Ashley G
Slide 10: Asia Pacific
Highlights Asia Pacific Cussons Baby Revenue growth across each Must Win Brand and in both key markets remains a market leader in Indonesia Accessing higher margin Baby categories Revenue Adjusted Must Win Brands Operating Margin in growth Morning Fresh increased market share in Australia Morning Fr
Slide 11: Africa
Highlights Africa Revenue growth across Strong revenue growth and a return to profitability all markets / categories All leading brands grew Profit margins Revenue Adjusted Must Win Brands improved Operating Margin in growth Higher profitability in PZ Wilmar joint venture Nutricima milk divestment £
Slide 12: Positive price / mix in all our core categories
Positive price / mix in all our core categories Hygiene Baby Beauty +9% +5% +4% +4% (1)% +2% Volume Price / Mix Building brands for life. Today and for future generations. 12
Slide 13: Gross Margin improvement and higher M&C investment
Gross Margin improvement and higher M&C investment 11.8% 11.2% Operating Margin Gross Profit Overheads Media & Consumer PZ Wilmar Operating Margin FY20 investment FY21 Building brands for life. Today and for future generations. 13
Slide 14: Balance Sheet provides flexibility for increased investment
Balance Sheet provides flexibility for increased investment 16.2 8.2 (3.7) (6.2) (8.9) 77.1 (20.0) (5.4) (30.7) (6.1) (49.2) (24.5) Net Debt Operating Nutricima Working Loans to JV Capex Tax Dividends Net finance FX / other Net Debt 31 May 2020 Cash Flow proceeds Capital cost* 31 May 2021 * includin
Slide 15: Low to mid single-digit sustainable, profitable revenue growth
Low to mid single-digit sustainable, profitable revenue growth FY21 was in line with our strategic financial framework Sustainable Profitable Revenue Growth Building brands for life. Today and for future generations. 15
Slide 16: Q1 Update and FY22 Outlook
Q1 Update and FY22 Outlook Sarah Pollard Chief Financial Officer Building brands for life. Today and for future generations. 16
Slide 17: Q1 up against unprecedented Hygiene demand in FY21
Q1 up against unprecedented Hygiene demand in FY21 Back in revenue growth by the end of the quarter and continued strategic progress Revenue Media & Consumer Net Debt investment £131m +13% two-year LFL * +20% -9% one-year LFL * focused behind our £23m Must Win Brands P3 return to growth * organic gr
Slide 18: Must Win Brands continue their strong momentum
Must Win Brands continue their strong momentum Return to total business revenue growth from Q2 Must Win Brands Total +23% Business +13% Q1 Q1 P1 P2 P3 Q2+ two-year LFL * two-year LFL * one-year LFL * * organic growth shown at constant currency and adjusted for the impact of acquisitions and disposal
Slide 19: Commodity and freight cost headwinds
Commodity and freight cost headwinds Estimated COGS inflation of 9-10% in FY22 Materials Logistics FY22 - raw materials cost increase FY22 - freight cost increase £366m FY21 Cost of Resins Goods Palm Oils Oleochemicals China to China to Australia Africa Production FY22 - factory costs flat Building
Slide 20: Co-ordinated plans to protect margins
Co-ordinated plans to protect margins PZ Cussons Growth Accelerating Revenue Growth Management initiatives Wheel UK AUSTRALIA / NZ INDONESIA NIGERIA Selected price increases Selected price increases Price increases across all Price increases across all leading brands leading brands Beauty portfolio
Slide 21: FY22 Outlook
FY22 Outlook Expecting a return to revenue growth from Q2 Volatility remains from Covid-19 and supply chain disruption Co-ordinated efforts underway to navigate commodity and freight cost pressures Continuing to invest behind our brands Low to mid single-digit revenue growth and adjusted PBT within
Slide 22: Strategic Update
Strategic Update Jonathan Myers Chief Executive Officer Building brands for life. Today and for future generations. 22
Slide 23: Delivering for all our stakeholders in difficult times
Delivering for all our stakeholders in difficult times Keeping our Serving our Partnering our Meeting our financial employees safe consumers communities commitments Building brands for life. Today and for future generations. 23
Slide 24: 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 25: Focus on leading brands in priority markets
Focus on leading brands in priority markets Must Win Brands revenue +11% in FY21 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 Building brands for life. Today and for futur
Slide 26: Continued strategy in action
Continued strategy in action PZ Cussons Growth Must Win Brands activation Wheel CONSUMABILITY ATTRACTIVENESS MEMORABILITY SHOPPABILITY Best in class formulation Driving growth of high margin Strengthened awareness, Route to market optimisation categories relevance and brand equity Developed in-house
Slide 27: Progressing our key strategic initiatives
Progressing our key strategic initiatives Sustainability What we have already done What we will do next Further reduced our environmental Holistic review of all sustainability metrics, footprint - water / waste including packaging Started our ambitious journey towards Fully develop our roadmap to B-
Slide 28: Continuing to invest in capabilities and evolve our culture
Continuing to invest in capabilities and evolve our culture Culture What we have already done What we will do next Improved employee engagement scores Refresh and launch our new values Defined our new company purpose Upgrade people processes and systems Leadership and Capabilities Continued to build
Slide 29: Summary
Summary Solid financial performance in FY21 - delivering what we said Progress against our new strategy - more to do Working to manage near term cost pressures - and invest behind our brands Moving through Q1 decline to deliver our financial framework - FY22 another year of progress Financial flexib
Slide 30: Q&A
Q&A Building brands for life. Today and for future generations. 30