Slide 1: Results for 6 months to 31 December 2010
For personal use only Paul Maguire Managing Director McPherson’s Limited Results for 6 months to 31 December 2010 1
Slide 2: Group financial summary for H1 2011
Group financial summary for H1 2011 For personal use only 6 months to 6 months to Dec 2009 Dec 2010 ($A million) ($A million) Sales 190.1 189.7 EBITDA 27.1 30.8 Depreciation & amortisation (2.8) (2.8) EBIT 24.3 28.0 15% EBIT growth Interest (4.2) (4.0) Interest cover 7.0 times NPBT 20.1 24.0 Tax (6.
Slide 3: Balance sheet
Balance sheet For personal use only Dec 2009 Dec 2010 ($A million) ($A million) Fixed assets (including intangibles) 213.1 210.2 Net working capital 100.6 100.5 Other (43.0) (45.6) 270.7 265.1 Shareholders’ funds 189.5 203.1 Net debt 81.2 62.0 24% reduction in net debt Total funds employed 270.7 265
Slide 4: Financial summary
McPherson’s Consumer Products: Financial summary For personal use only 6 months to 6 months to Dec 2009 Dec 2010 ($A million) ($A million) Sales 157.7 158.4 EBITDA 26.1 30.4 Depreciation / amortisation (1.3) (1.3) 17% growth in EBIT, EBIT 24.8 29.1 benefiting from favourable currency EBITDA / sales
Slide 5: Trading commentary
McPherson’s Consumer Products: Trading commentary For personal use only • The retail environment was subdued primarily due to successive interest rate rises • Increased competitiveness was evident in the retail market • Despite the above, McPherson’s still achieved growth in key brands • Gross margi
Slide 6: Operations
McPherson’s Consumer Products: Operations For personal use only • Operations in Australia, New Zealand, and Singapore • Hong Kong / China sourcing division • Distributors in Canada and South Africa • Sophisticated logistics capability and large in-field presence • Established relationships with a mu
Slide 7: Four product categories
McPherson’s Consumer Products: Four product categories For personal use only Housewares Personal care Household Impulse consumables merchandising ~ 35% of sales ~ 25% of sales ~ 30% of sales < 10% of sales 3,000+ SKUs 1,500+ SKUs 200+ SKUs 100+ SKUs Channels: Channels: Channels: Channels: •Departmen
Slide 8: Housewares
McPherson’s Consumer Products: Housewares For personal use only • All the products needed for food preparation and dining: cutlery, bakeware, cookware, knives, kitchen gadgets, dinnerware and glassware • Housewares purchases are often discretionary, but some McPherson’s housewares products and brand
Slide 9: Personal care
McPherson’s Consumer Products: Personal care For personal use only • Beauty care, hair care and skin care products • Manicare, Lady Jayne and Swisspers are leading brands in their channels • Glam, Cosmetica and Artiste are brands recently launched under the umbrella brand Manicare • Personal care is
Slide 10: Household consumables
McPherson’s Consumer Products: Household consumables For personal use only • Products for food preparation, food storage and kitchen refuse disposal • Multix is well established in the retail market • A market leading brand in its segments • One of McPherson’s largest brands 10
Slide 11: Impulse merchandising
McPherson’s Consumer Products: Impulse merchandising For personal use only • Clip strip products for major supermarkets and discount stores in Australia and New Zealand • Clip strips tailor-made to suit each retailer • Products delivered direct to stores and merchandised by McPherson’s field team •
Slide 12: Printing: Financial summary
McPherson’s Printing: Financial summary For personal use only 6 months to 6 months to Dec 2009 Dec 2010 ($A million) ($A million) Sales 32.4 31.3 EBITDA (before equipment leases) 3.9 3.7 Equipment lease expense (0.9) (0.8) Depreciation / amortisation (1.5) (1.5) EBIT 1.5 1.4 EBITDA (before equipment
Slide 13: Outlook
Outlook For personal use only • Retail environment to remain challenging; the business will be managed accordingly • Ongoing upward pressure on product costs in China • Innovation, product development and sourcing to remain a high priority • Further efficiency gains expected through rigorous cost co
Slide 14: Questions
For personal use only 14 Questions