Slide 1: Half Year 2024
HALF YEAR 2024 PRESENTED JULY 2024
Slide 2: Welcome to our Half Year Presentation
W elcome TO OUR HALF YEAR PRESENTATION Half Year 2024 Presentation | July 2024 | 2
Slide 3: Agenda
AGENDA ANDREW MILNE CHIEF EXECUTIVE OFFICER STRATEGIC & OPERATIONAL REVIEW RICHARD NEWMAN CHIEF FINANCIAL OFFICER FINANCIAL REVIEW AND OUTLOOK ANDREW MILNE CHIEF EXECUTIVE OFFICER LOOKING AHEAD Half Year 2024 Presentation | July 2024 | 3 3
Slide 4: Half Year 2024 Highlights
HALF YEAR 2024 HIGHLIGHTS • Adjusted PBT growth of +18.0% vs HY23 • Consistent strong earnings and cash generation • Volume (+4.9%) and revenue (+5.3%) growth in UK Packaged • Market share gains and highest ever Retail Sales Value (RSV) for the Vimto brand • Successful implementation of Out of Home
Slide 5: Strategic & Operational Review
S trategic & Operational REVIEW Half HalfYear Year2024 Presentation||July 2024Presentation 2024||18 July2024 55
Slide 6: Our Strategy
OUR STRATEGY ACCELERATE GROWTH IN OUR PACKAGED BUSINESS AND DRIVE BOTTOM LINE VALUE FROM OUR OUT OF HOME BUSINESS Accelerating organic growth through core brands, categories, channels and geographies GROWTH PILLARS Driving incremental growth through innovation, acquisition and geographic expansion F
Slide 7: Market Update
M arket UPDATE Half HalfYear Year2024 Presentation||July 2024Presentation 2024||18 July2024 77
Slide 8: UK Soft Drinks Market Performance
UK SOFT DRINKS MARKET PERFORMANCE Total ‘take home’ Soft Drinks Value £5.2bn Value Volume Volume 3.3bn litres +2.7% -0.7% • A resilient soft drinks market WINNERS • Inflation driving value over volume ENERGY WATER PURE JUICE • Energy consistently performing well, attracting new shoppers VALUE: +7.7%
Slide 9: Vimto Delivering Market Share Growth
VIMTO DELIVERING MARKET SHARE GROWTH SQUASH VALUE: -0.3% +1.2% • UK Vimto Brand Value £49.6m at HY24 VOLUME: -0.9% +2.8% - Value +3.3%, Volume +5.2% • FLAVOURED CARBS • Volume growth driving performance VALUE: +1.5% +9.3% • No. 2 Squash brand VOLUME: -4.8% +12.8% • 2nd fastest growing carbonates bra
Slide 10: Strategy in Action: More from the Core
STRATEGY IN ACTION: MORE FROM THE CORE UK PACKAGED INTERNATIONAL PACKAGED – MIDDLE EAST INTERNATIONAL PACKAGED – REST OF WORLD • Growth in UK of +5.3% vs HY23 driven by volume gains • Strong execution in market driving awareness and • Strong ROW performance of +4.9% underpinned by strong distributio
Slide 11: Strategy in Action: Thirst for New
STRATEGY IN ACTION: THIRST FOR NEW UK PACKAGED UK PACKAGED – LEVI ROOTS INTERNATIONAL PACKAGED – SIERRA LEONE • Strong innovation across UK Packaged market • Strong performance on Levi brand (+27% vs HY23) • Launch into new West African market - Launch of Discoveries, Energy, Minis and Squash • Perf
Slide 12: Strategy in Action: Fuel for Growth
STRATEGY IN ACTION: FUEL FOR GROWTH OUT OF HOME BUSINESS TRANSFORMATION INTERNATIONAL PACKAGED - SENEGAL • Implementation of actions following the strategic • Transformation project on track with design phase • Phased can production commenced in Senegal review largely delivered complete • Production
Slide 13: Strategy in Action: Happier Future
STRATEGY IN ACTION: HAPPIER FUTURE EVERYONE MATTERS PRODUCTS WE’RE PROUD OF OWNING OUR CLIMATE IMPACT • Real Living Wage Employer Accreditation • On track to reach our 2024 rPet target in our UK • Embedding our sustainability expectations through Packaged portfolio strategic partnership contracts •
Slide 14: Financial Review
F inancial REVIEW Half Year 2024 Presentation | July 2024 | 1414
Slide 15: Half Year - Highlights
HALF YEAR - HIGHLIGHTS 1 Excluding exceptional items 2 Free cash flow is the net increase in cash and cash equivalents before acquisition funding and dividends 3 Adjusted return on capital employed is the rolling 12 months’ adjusted operating profit divided by the average period-end capital employed
Slide 16: Half Year - Revenue
HALF YEAR - REVENUE • Packaged business revenue increased by +1.3% 85.5 84.0 - UK Packaged revenue increased by +5.3% 1.3 2.3 - Growth across all sales channels (1.4) (1.3) (2.4) - Product innovation driving distribution gains - Increased brand and promotional investment - International Packaged rev
Slide 17: Half Year - Adjusted Profit Before Tax
HALF YEAR - ADJUSTED PROFIT BEFORE TAX • Adjusted operating profit +14.1% to £13.1m • Adjusted profit before tax +18.0% to £14.5m 0.6 14.5 1.8 • Gross profit of £37.0m (HY23: £35.2m) 12.3 (0.0) (0.2) - Inflationary pressures easing • Gross margin of 44.0% (HY23: 41.1%) - Prior year pricing actions n
Slide 18: Half Year - Exceptional Items
HALF YEAR – EXCEPTIONAL ITEMS • Total exceptional cost of £2.7m (HY23: £1.1m) • Business Change Programme and Systems Development £2.7m £m - Costs incurred on SAP design and build phase - Expected ‘Go-Live’ Q1 2025, benefits from 2026 Business Change Programme and Systems Development 2.7 0.2 • Out o
Slide 19: Half Year - Free Cash Flow
HALF YEAR - FREE CASH FLOW 11.4 • Strong free cash flow of £9.0m (HY23: £5.4m) 67.0 1.4 70.3 (0.1) (0.1) (0.6) - Cash and cash equivalents of £70.3m (FY23: £67.0m) (5.7) (3.2) • Capital expenditure at £0.1m (HY23: £0.1m) • Working capital well controlled £m • Final dividend paid £5.7m • Adjusted ROC
Slide 20: Dividend and Capital Allocation
DIVIDEND AND CAPITAL ALLOCATION • Adjusted Earnings per Share (basic) of 29.87p • Dividend in line with 2x cover policy • Interim dividend proposed 14.9p - Ex-dividend date will be 1st August 2024 - Payment will be made on 6th September 2024 subject to shareholder approval • Special dividend propose
Slide 21: Looking Ahead
L ooking AHEAD 1821 Half Year 2024 Presentation | July 2024 | 21
Slide 22: Our Strategy: Focus for H2 2024
OUR STRATEGY: FOCUS FOR H2 2024 MORE FROM THE CORE THIRST FOR NEW THIRST FOR NEW FUEL FOR GROWTH Strong growth in Africa First launch into Continued focus on acquisitions in Delivery of due to phased can production closer to Malaysia UK Packaged market Business Transformation Programme the point of
Slide 23: Summary and Outlook
SUMMARY AND OUTLOOK • A resilient soft drinks category • Clear and focused strategy - Accelerate growth in Packaged business - Drive bottom line value from OoH - Continued focus on driving efficiencies through the Business Transformation Programme • Confident in delivering long-term shareholder valu
Slide 24: Questions
Q uestions Half Year 2024 Presentation | July 2024 | 27 Half Year 2024 Presentation | July 2024 | 2424
Slide 25: Appendices
A ppendices Half Year 2024 Presentation | July 2024 | 27 Half Year 2024 Presentation | July 2024 | 2525
Slide 26: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Audited Half year to Half year to Year ended 30 June 2024 30 June 2023 31 December 2023 £’000 £’000 £’000 Continuing operations Revenue 83,976 85,546 170,741 Cost of sales (47,021) (50,356) (98,565) Gross profit 36,955 35,190 72,176 Distribution expe
Slide 27: Segmental Reporting
SEGMENTAL REPORTING Packaged Regions Total Out of Total UK International Packaged Home Central Group H124 £m £m £m £m £m £m Continuing operations Revenue 45.4 20.0 65.4 18.6 - 84.0 Adjusted operating profit 18.8 3.0 (8.6) 13.1 Return on sales (ROS %) 28.7% 15.9% 15.6% Net finance income 1.4 Adjusted
Slide 28: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited Unaudited Unaudited Audited 30 June 30 June 31 December 30 June 30 June 31 December 2024 2023 2023 2024 2023 2023 ASSETS £’000 £’000 £’000 LIABILITIES £’000 £’000 £’000 Non-current assets Current liabilities Property, plant and
Slide 29: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Unaudited Audited Half year to Half year to Year ended 30 June 2024 30 June 2023 31 December 2023 £’000 £’000 £’000 £’000 £’000 £’000 Cash flows from operating activities Profit for the financial period 8,876 8,504 18,362 Adjustments for: Depreciation a
Slide 30: Laurel House, Woodlands Park, Ashton Road, Newton-Le-Willows
Laurel House, Woodlands Park, Ashton Road, Newton-Le-Willows, WA12 0HH. 01925 22 22 22 www.nicholsplc.co.uk Half Year 2024 Presentation | July 2024 | 2030