Prestal Holdings Limited · ASX:PTL
Prestal — H1 FY2020 Earnings Presentation
30 slides from Prestal's earnings presentation, Feb 24, 2020
Slide 1: Pental Limited 2020 Half Year Results Investor Presentation
Pental Limited 2020 Half Year Results Investor Presentation February 2020
Slide 2: Agenda
Agenda • Pental Overview • Interim Financial Performance Presented by • HY20 Business Update Charlie McLeish, CEO • Outlook Neil Godara, CFO 2
Slide 3: Pental Overview
Pental Overview
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 “We are active in developing new products to shareholder value.” grow market shar
Slide 5: Pental Team
Pental Team Mark Hardgrave Fred Harrison John Etherington Jeff Miciulis Oliver Carton Non-Executive Non-Executive Non-Executive Non-Executive Company Secretary Chairman Independent Director Independent Director Independent Director Senior Executive Team Substantial Shareholders (1) Alan Johnstone –
Slide 6: Core Values
PEOPLE QUALITY Trust & Development Quality Control • Immensely proud of our quality • Compassion, honesty and consistency • Accountability for achieving • Empower, trust and support others business objectives • Encourage positive can-do attitudes • Agile, flexible and • Work as one team, communicati
Slide 7: Interim Financial Performance
Interim Financial Performance
Slide 8: On the right track
On the right track Strong and robust Trusted brands A strategy that is working • Pental’s products are mostly • Growth strategy through agency brands • Challenging market environment – low manufactured in Australia growth, wage stagnation, tough retail • Returning strong growth in New Zealand enviro
Slide 9: Interim Financial Performance Highlights
Interim Financial Performance Highlights • EBIT $2.214 million – up 6.2% on pcp • Net Profit After Tax $1.475 million – 2.6% increase on pcp • EBITDA was $4.169 million – 5% up on pcp on like for like basis1 • Total Sales Revenue $55.259 million – up 15.1% on pcp • Basic EPS 1.08 cents • Interim ful
Slide 10: Interim Financial Performance: Key Consolidated Income Statement Items
Interim Financial Performance Key Consolidated Income Statement Items • Gross sales increased by $11.1 million and net sales have increased by $7.2 million on previous Dec-19 Dec-18 Change Change $’000 $’000 $’000 % corresponding period. This was driven predominantly by two additional months of Dura
Slide 11: Key Statement of Financial Position Items
Interim Financial Performance Key Statement of Financial Position Items Dec-19 Jun-19 Change $’000 $’000 $’000 ASSETS • Working capital down compared to Cash 1,119 246 873 June 19 position by $0.421 million as Trade and other receivables 15,386 17,617 (2,231) a result of active debtor and inventory
Slide 12: Key Consolidated Statement of Cash Flow Items
Interim Financial Performance Key Consolidated Statement of Cash Flow Items Dec-19 Dec-18 Change $’000 $’000 $’000 • A strong cash conversion ratio of 81.7% through effective working Profit after Tax 1,475 1,438 37 capital management enabled funding of FY 19 final dividend and capital Add non cash i
Slide 13: HY20 Business Update
HY20 Business Update
Slide 14: Brand Building for the Future
Brand Building for the Future • Targeted consumer NPD • New White King products • Maintain market leadership • New Soap Bars • Advertising support • Best quality products • Specialised formulations • Strengthening positioning • In-store activation Laundry • Brand consolidation • Specialised formulat
Slide 15: Challenging Retail Environment
Challenging Retail Environment Retailers growing own Shelf Space brands Return Brand Range ROI Rationalisation Retailer Margin expectations increasing Price Compression 15
Slide 16: Strategy
Strategy Driving Develop New Value Manufacturing Product and Sales Export Continuous Sales Growth Added Market Channels Improvement Projects • Defending our • Launch New • Creating • Grow New Zealand • Cost Savings position Products Partnerships • China Strategy • CAPEX to drive • Promotional driven
Slide 17: Pental - Core Brands
Pental- Core Brands • Brand consolidation strategy focused on supporting key retail brands • Development of new branded products in line with retailer range reviews • Implemented sales structure to support our brands and products at store level • New pack designs and formats developed for changing c
Slide 18: Pears - Brand
Pears - Brand • We now enter our 7th year of being the sales partner for the distinguished Pears Brand • Overall growth between this year and last year has been driven by sales success in Chemist Warehouse both instore and Online • Launched 3 new 500ml Pears Bodywash in IGA • Successfully ranged 3 n
Slide 19: Duracell - Brand
Duracell - Brand • Pental will be the official distributor of Procell Professional batteries in Australia and New Zealand • This half we have 6 full months of Duracell sales compared to 4 months in 2018 • Ranged new Duracell speciality lithium coin batteries and Mobile Phone/Tablet Power Banks into
Slide 20: New Zealand Business
New Zealand Business • The New Zealand sales represents 22% of the total Pental Core Branded Business • A strong performance in the first half – net sales up 8.36% on prior comparative period • Even though this is a very competitive market, NZ leads the way with promotional effectiveness with very g
Slide 21: China Market
China Market KEY EXPORT PARTNER: “The Export Group” • The Export Group (TEG) is a sales and marketing company that manages the distribution of Australian and western FMCG, luxury, health and lifestyle brands into China and South East Asia • TEG has an exceptional track record for executing sales and
Slide 22: New Export Markets
New Export Markets Vietnam South Korea Thailand Philippines • Continue the journey with expansion into Asia. This includes discussions and negotiations in the Philippines, Thailand, South Korea and Vietnam • Export project into Vietnam to supply commercial sized products has materialised with the en
Slide 23: Operations - Investing for Growth
Operations - Investing for Growth • New non chemical Liquid Line installed in September allowing versatility with new in-line filler to fill from 400ml through to 2 litre bottles • This line has the flexibility to fill fabric care, personal care and homecare liquids with application for caps, trigge
Slide 24: Operations - Continuous Improvements
Operations- Continuous Improvements Warehouse Distribution Improvements Manufacturing Improvements Improvements Ongoing New non chemical Liquid Delivery accuracy Productivity Filling Line tracking at 100% improvements is Reduction in trade waste to a major focus reduce chemical usage Warehouse picki
Slide 25: Business Outlook
Business Outlook
Slide 26: Business Outlook
Business Outlook • Negotiating with a major non-grocery retailer for ranging of White King (supply opportunity looks very positive) • Negotiating with major FMCG branded company to contract manufacture their product range • Several tenders in place for the contract supply of Private Label • New liqu
Slide 27: Brand Outlook for the Future
Brand Outlook for the Future • Rejuvenate Country Life Brand • Maintain market leadership • Kids Soap Bars • New White King Disinfectant • Best quality products on the • Formulating Hand Sanitisers • New White King Window Australian Market. Cleaners • Product Extensions • Digital and TV Advertisemen
Slide 28: Business Outlook Summary
Business Outlook Summary • Focus on effective branded promotions • Tendering for a wider range of Private Label Products Outlook • Building a wider customer network with Duracell Batteries • Renew the Unilever supply contract with Pears • Investigate other Agency Distribution Opportunities • Costs o
Slide 29: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Pental Limited ACN 091 035 353 (Company). This presentation contains summary information about the Company, its subsidiaries and the entities, businesses and assets they own and operate (Group) and their activities current as at
Slide 30: Thank you
eb COUN LIFEv Thank you