Prestal Holdings Limited · ASX:PTL
Prestal — Pental — FY2019 Earnings Presentation
33 slides from Prestal's earnings presentation, Aug 27, 2019
Slide 1: Investor Presentation – Full Year Results
Investor Presentation Pental Limited - Full Year Results Investor Presentation Pental – Full Year Results Investor Presentation 2019 27 August 2019 1
Slide 2: Agenda
Agenda • Pental Overview • Pental Team • FY19 Business Review • FY19 Financial Performance • Business Outlook FY20 Pental – Full Year Results Investor Presentation 2
Slide 3: Pental Overview
Pental Overview Pental – Full Year Results Investor Presentation 3
Slide 4: Our Vision
Our Vision “To be a leading supplier of shelf stable products to its chosen markets, built around a reputation of delivering quality, innovation and sustainability to the satisfaction of customer needs whilst enhancing shareholder value.” “We are active in developing new products to grow market shar
Slide 5: Pental Team
Pental Team Peter Robinson Mark Hargraves John Rishworth John Etherington Jeff Miciulis Oliver Carton Non Executive Non Executive Non Executive Non Executive Non Executive Company Secretary Independent Chairman Vice Chairman Independent Director Independent Director Independent Director Senior Execu
Slide 6: Core Values
PEOPLE QUALITY Trust & Development Quality Control • Compassion, honesty and consistency • Immensely proud of our quality • Empower, trust and support others • Accountability for achieving business objectives • Encourage positive can-do attitudes • Agile, flexible and welcome change • Work as one te
Slide 7: FY19 Business Review
FY19 Business Review Pental – Full Year Results Investor Presentation 7
Slide 8: Delivering the Strategy
Delivering the Strategy Value Added Projects • New agency Driving Sales agreements Growth • New products Export Market categories • Value add promotions • Grow New Zealand • Defend our position • China strategy • Strong customer • Enter Vietnam Relationships • Explore other Asian • Key brand focus m
Slide 9: Business Scorecard
Business Scorecard Sales Revenue up $24.8 million No.1 Position agreement New distributorship with Duracell White King Liquid Bleach1 Jiffy Firelighters1 Softly Fabric Care1 $542k Underlying EBIT Net Working Capital UP down $1.451 million on FY18 32.5% Indirect wages down (despite absorbing addition
Slide 10: FY19 Operational Performance
FY19 “Operational Performance” Distribution Warehouse Manufacturing Improvements Improvements Improvements Successfully and New energy Delivery seamlessly absorbed efficient boilers accuracy up on previous year additional Duracell and LED lighting volume implemented Optimum transport 100% Picking ac
Slide 11: Retail Environment
Retail Environment • Weekly half price promotions have become the norm • Increase in major retailer margin requirements • No exclusivity on promotions i.e. promotional overlaps • Increase in total costs to remain on shelf • Dishwashing category in New Zealand became a race to the bottom on price and
Slide 12: FY19 – Sales and Marketing
FY19 – Sales and Marketing Sales Performance Brand and Product ▪ Commenced a strategic partnership ▪ Continued Pental Brand consolidation with Duracell strategy with the plan to focus on core brands. This strategy will result with Pental ▪ We invested in defending market having 5 key retail brands t
Slide 13: New Duracell Partnership
New Duracell Partnership • The Australian and NZ battery category size is approx. AUD $201 million in annual retail sales. • Predominantly an alkaline market making up 75% with Zinc 11%. • Key Duracell customers are Coles, Metcash, Bunnings, and battery specialties. • The Australian and New Zealand
Slide 14: Growing Unilever Partnership
Growing Unilever Partnership Traditional Pears Range Replaced the traditional Pears products with new improved packaging and formulations Pental – Full Year Results Investor Presentation 14
Slide 15: New Products
New Products The Complete Toilet Cleaning Solution White King Range Recapturing Market Share in the Toilet Category with market leading innovation. Pental – Full Year Results Investor Presentation 15
Slide 16: New Products
New Products JANOLA – for bathroom and toilet New Janola Cleaning Range New Zealand’s favourite cleaning brand is set to launch across multiple segments. Household Cleaning Toilet Cleaning Bathroom Cleaners In-The-Bowl Cleaners Pental – Full Year Results Investor Presentation 16
Slide 17: Brand Strategy
Brand Strategy Implementation of Softly Master Brand Strategy Implementation successful within Woolworths & Independent channel - 5% increase of volume in first 5 months. Pental – Full Year Results Investor Presentation 17
Slide 18: FY19 Financial Performance
FY19 Financial Performance Pental – Full Year Results Investor Presentation 18
Slide 19: Financial Performance
Financial Performance Key Consolidated Income Statement Items ▪ Gross sales up 42.02% & Net sales revenue up $’000 FY 19 (i) FY 18 (ii) Change % 32.75% ▪ Driven by successful integration of Duracell Gross Sales (GSV) 153,986 108,427 45,559 42.02% distributorship offsetting impact of deep Trade Spend
Slide 20: Financial Performance
Financial Performance Key Statement of Financial Position Items $’000 Jun-19 Jun-18 Change ▪ Cash movement – refer to Cash flow ASSETS analysis. Cash 246 7,045 (6,799) Trade and other receivables 17,617 14,517 3,100 ▪ Working capital requirements for new distributorship funded out of Inventories 22,
Slide 21: Financial Performance
Financial Performance Key Consolidated Statement of Cash Flows Items $’000 FY 19 FY 18 Change ▪ Operating Cash Flow down $9.74 million due to funding of Duracell Profit / (Loss) after Tax 1,921 (27,839) 29,760 distributorship working capital Add non cash items (impairment, depreciation, amortisation
Slide 22: Business Outlook FY20
Business Outlook FY20 Pental – Full Year Results Investor Presentation 22
Slide 23: FY20 Manufacturing Outlook
FY20 Manufacturing Outlook New non chemical liquid filling line planned New trade waste system to reduce chemical usage Investing in productivity Appointed and efficiency new head Continue to improvement engineer to measures manage plant reduce gas and electricity and usage equipment Creating a grea
Slide 24: Driving Out Costs
Driving Out Costs FY20 Operations Focus • No lost time injuries. Safe workplace • Partnering with expense reduction analysts • Questioning and benchmarking operational costs • Major focus on waste reduction • Increasing measurements to improve efficiencies • Measure product yields with improvement i
Slide 25: FY20 – Launching New Products
FY20 – Launching New Products White King White King Innovation led new product development to Identifying white space and drive Laundry Category growth. easing consumer tension through the development of convenience-based cleaners Pental – Full Year Results Investor Presentation 25
Slide 26: FY20 – Launching New Products
FY20 – Launching New Products Confirmed ranging in multiple markets Sunlight’s new range of premium dish washing liquid will be on shelf in New Zealand and IGA Australia from October 2019 Contains Real Charcoal Pental – Full Year Results Investor Presentation 26
Slide 27: FY20 – Launching New Products
FY20 – Launching New Products Country Life Country Life Identifying white space in the personal care Revitalizing our Goats Milk range to be market & leveraging off generational competitive. Utilizing identifiable concern for environmental issues. characters & fragrances on trend with consumer insig
Slide 28: FY20 Marketing - Getting Social
FY20 Marketing - Getting Social Country Life strategic campaign will be encouraging consumers to ‘Wash without a “Wash without a bottle” bottle’, amplifying the sustainability and unique benefits of bar soap. Pental – Full Year Results Investor Presentation 28
Slide 29: Social Media Communications Strategy
Social Media Communications Strategy @countrylifesoap @huggiesoftener @softlyfabricsolutions @velvetpuresoap Pental – Full Year Results Investor Presentation 29
Slide 30: Social Media Communications Strategy
Social Media Communications Strategy @janolacleannz @sunlightdishcleananz @whitekingclean Pental – Full Year Results Investor Presentation 30
Slide 31: FY20 Growth Opportunities
FY20 Growth Opportunities Continuing Marketing Distributorship New Export Enhancing Quality Innovation Support Partners Partners Control Systems Pipelines • Leveraging networks • Expand into new • Enhancing our Asian • Launching new • Setting higher product segments footprint: products standards • O
Slide 32: FY20 Outlook In Summary
FY20 Outlook In Summary • Highly competitive market • Margin pressures continue • Strong retailer relationships • Brand protection • Competitive and innovative • Costs out/down initiatives from FY19 to flow through to FY20 • Continued focus on productivity improvements • Strong team environment • Ne
Slide 33: Thank You
Thank You Pental – Full Year Results Investor Presentation 2019 33