Slide 1: Results for the half year ended 25 March 2016
Results For the half year ended 25 March 2016
Slide 2: Highlights
HIGHLIGHTS Strong growth driven by food to go businesses Sustained investment in capacity and capability Further enhancements to strong commercial pipeline 2
Slide 3: Financial Review
FINANCIAL REVIEW Alan Williams Chief Financial Officer
Slide 4: Financial Summary
FINANCIAL SUMMARY H1 16 Versus H1 15 Revenue1 £691.6m +7.5% Convenience Foods revenue1 £667.9m +7.8% Operating profit2 £43.5m +8.5% Operating margin2 6.3% unchanged Adjusted PBT3 £36.5m +9.3% Adjusted earnings per share3 8.2p +7.9% Interim dividend per share [2.55p] 2.55p +6.25% 1. Revenue growth ex
Slide 5: Convenience Foods
CONVENIENCE FOODS Food to go led strategy driving growth H1 16 H1 15 H1 16 constant currency revenue growth £m £m % change 13.1% 11.5% Revenue 667.9 614.7 +8.7% reported 7.8% Operating 42.9 39.3 +9.2% profit2 1.6% 1.7% Operating 6.4% 6.4% unchanged UK UK UK US Convenience margin2 Food to Go Prepared
Slide 6: Ingredients & Property
INGREDIENTS & PROPERTY % change H1 16 H1 15 Division Actual Constant £m £m currency currency represents less Revenue 23.7 25.1 ‐5.6% ‐1.6% than 5% of Group activity Operating profit2 0.6 0.8 ‐25.0% Constant currency revenue and operating profit lower reflecting a challenging global dairy commodity
Slide 7: Financing, Tax, Pensions & Exceptional Items
FINANCING, TAX, PENSIONS & EXCEPTIONAL ITEMS Financing Bank interest payable of £7.6m (H1 15: £7.6m): higher average net debt offset by lower rates and £0.3m higher capitalisation of interest Tax Group effective tax rate at 2% (H1 15 1%) Substantially all UK historic losses recognised in the b
Slide 8: Cashflow and Net Debt
CASHFLOW AND NET DEBT Net debt at 25 March 2016 of £316.0m ‐ 2.4x Net Debt / EBITDA* £m H1 16 H1 15 EBITDA2 60.3 54.3 Key features of net debt movement: Better operating cashflow Working capital movement (17.1) (45.4) performance than H1 15 Net capex (44.6) (43.7) Seasonal working capital outflo
Slide 9: Borrowings Profile
BORROWINGS PROFILE Primary bank facility extended for a further year (to March 2021) immediately after the half year USD100m of maturing private placement notes repaid in October 2016 – to be refinanced Total committed facilities at end March 2016 of £451m Weighted average debt maturity of 4
Slide 10: Summary Financial Performance
SUMMARY FINANCIAL PERFORMANCE Strong revenue growth driven by food to go businesses Operating profit growth of 8.5% and margin maintained despite pressure from start‐up costs and capability investments Adjusted EPS up 7.9% versus H1 15 10
Slide 11: Operating Review and Outlook
OPERATING REVIEW AND OUTLOOK Patrick Coveney Chief Executive Officer
Slide 12: H1 FY16 – A Period of Significant Progress
H1 FY16 – A PERIOD OF SIGNIFICANT PROGRESS H1 delivery Investing in the future Food to go strategy New business wins 1 working well 4 fuelling future growth UK portfolio trading Significant investments 2 strongly 5 in capacity and capability 3 US network taking shape 12
Slide 13: Food to Go Strategy Working Well
1 FOOD TO GO STRATEGY WORKING WELL UK US UK UK Food to Go Food to Go Prepared Grocery Meals 45% 15% 20% 20% Combined H1 FY16 LFL revenue growth of 12.7% Note: Percentages shown are as a percentage of HY Convenience Foods revenues, rounded to the nearest 5% 13
Slide 14: UK Portfolio Trading Strongly
2 UK PORTFOLIO TRADING STRONGLY… H1 Growth Rates Growth underpinned by positive long‐term trends Convenience 13.1% Health & freshness Customer brand focus Product investment model 7.2% More collaborative approach across the supply chain 1.9% 2.1% Sustained focus on productivity and Tot
Slide 15: … With Good Progress in Each UK Division
2 … WITH GOOD PROGRESS IN EACH UK DIVISION 1 Food to Go Exceptional revenue growth of 13.1%, vs. market growth 5.6%* Rollout of several new customer contracts Significant investments in capacity, distribution and capability 2 Prepared Meals Revenue growth of 1.6% Good ready meals and quich
Slide 16: US Network Taking Shape
3 US NETWORK TAKING SHAPE GREENCORE USA ‐ GEOGRAPHIC FOOTPRINT SEATTLE, WA Opening June 16 Products: Food to Go MINNEAPOLIS, MN LFL revenue growth of Employees: 200 Products: Frozen Food to 11.5%; strengthening in Go DANVERS, MA Greencore USA Q2 HQ Strong growth with two CHICAGO, IL QUONSET, RI
Slide 17: New Business Wins Fuelling Future Growth
4 NEW BUSINESS WINS FUELLING FUTURE GROWTH Finalisation of Food to Go portfolio for Northampton Overall sole supply agreement progressing tightly to plan for completion in Q2 FY17 Construction of new sandwich facility (Unit D) complete and now in production Good progress on additional new unit
Slide 18: Significant Investments in Capacity and Capability
SIGNIFICANT INVESTMENTS IN CAPACITY 5 AND CAPABILITY Distribution People & Processes New picking and distribution centres in Worksop and Hatfield Introduction of new automated processes and systems to enable additional distribution volumes in FY16 Have already DOUBLED direct store delivery to
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK Strong performance in H1 16 led by food to go strategy and growth Significant step‐up in capability and capacity investments to enable new business growth Challenging industry and political backdrop Confident in ability to deliver performance in line with market expectati
Slide 20: The Greencore Way
the greencore @ way