Procook Group Plc · LSE:PROC
Procook — H1 FY24 Earnings Presentation
22 slides from Procook's earnings presentation, Dec 13, 2023
Slide 1: FY24 Interim Results
FY24 Interim Results 13 December 2023 Bringing joy to everyday cooking
Slide 2: Introduction
2 ProCook | FY24 Interim Results Introduction Lee Tappenden CEO
Slide 3: First impressions
First impressions Significant opportunity to accelerate growth 3 ProCook | FY24 Interim Results Strength in own-brand, direct-sourced model Specialist retail with high quality product range Low awareness, strong loyalty once discovered Outstanding service, passionate colleagues Strong and well-estab
Slide 4: FY24 H1 highlights
FY24 H1 highlights Making good strategic progress in challenging trading conditions 4 ProCook | FY24 Interim Results DIFFICULT CONSUMER BACKDROP UK revenue -1.2% YoY1 HOLDING MARKET SHARE with retail outperformance PRODUCT EXTENSION Electricals Phase 1 range launched NEW WEBSITE conversion +15% now
Slide 5: Financial review
5 ProCook | FY24 Interim Results Financial review Dan Walden CFO
Slide 6: Market context
Market context Holding market share during challenging volatile trading conditions with a broadly flat market backdrop 6 UK Market vs ProCook UK growth % ProCook | FY24 Interim Results 50% Strong Summer Sale event Strong June heatwave New website teething issues. Black Easter weakens with favourable
Slide 7: Revenue
Revenue Revenue -1.2% YoY excluding the discontinued Amazon channels. Retail channel back to positive LFL growth 7 £m H1 FY24 H1 FY23 YoY% Year on Year revenue £m ProCook | FY24 Interim Results Revenue 26.3 27.4 (3.8%) Core UK Business AMZ EU -1.2% -2.6% Ecommerce 9.1 11.4 (20.2%) Retail 17.2 16.0 7
Slide 8: Gross margin
Gross margin Strong recovery in GM% following unwinding of shipping cost impacts 8 £m H1 FY24 H1 FY23 YoY % Gross margin % quarterly trend ProCook | FY24 Interim Results 70% Gross profit 17.6 16.7 5.1% 67.8% 68% 67.2% 66.7% 66.3% Gross margin % 66.7% 61.0% 570 bps 65.5% 66% Ecommerce gross margin %
Slide 9: Operating expenses
Operating expenses H1 operating expenses flat year on year despite inflationary cost pressures and growth investment 9 Underlying operating expenses £m Underlying operating profit £m H1 FY24 H1 FY23 YoY % ProCook | FY24 Interim Results Ecommerce 1.9 1.2 53.1% OP% 20.5% 10.8% Retail 2.3 1.2 95.9% OP%
Slide 10: Profit before tax reconciliation
Profit before tax reconciliation Underlying operating loss improved YoY by £0.9m (36.3%) to £1.5m in H1 FY24 10 Underlying operating profit to reported loss before tax £m ProCook | FY24 Interim Results Non-underlying items £1.5m — Significantly higher interest cost YoY due to rates, partly offset by
Slide 11: Free cash flow
Free cash flow Disciplined cash management in H1 resulting in £0.3m free cash outflow and net debt of £3.2m (FY23 year end: £2.8m). Improved product intake and clearance management whilst maintaining strong availability 11 ProCook | FY24 Interim Results After non-underlying items of £1.5m (£1.0m) Fi
Slide 12: Current trading update
Current trading update Return to market share growth, with stronger Black Friday and improved value offer 12 ProCook | FY24 Interim Results 8 weeks to 10 Dec 2023 £m FY24 FY23 YoY% Revenue 13.7 13.5 1.5% Ecommerce 5.5 6.1 (9.9%) Retail 8.2 7.4 10.7% LFL Revenue1 12.9 13.2 (1.7%) LFL Ecommerce 5.5 6.
Slide 13: Outlook and guidance
Outlook and guidance FY24 full year guidance 13 ProCook | FY24 Interim Results P&L — Anticipate revenue to be similar to, or slightly ahead of LY — GM% on track for recovery to ~65% full year — £3m cost improvement plan, partially offsetting cost pressures — Non-underlying costs for full year of £1-
Slide 14: Strategy update
14 ProCook | FY24 Interim Results Strategy update Lee Tappenden CEO
Slide 15: Good strategic progress in H1
Good strategic progress in H1 Becoming the customers’ first choice for kitchenware 15 ProCook | FY24 Interim Results Raise brand Improve service Expand our retail 1 awareness 2 excellence 3 estate • Matt Tebbutt campaign • 4.8 star Trustpilot • 2 new stores • Meta growth • Training and rota scheduli
Slide 16: Priorities for growth
Priorities for growth Building a stronger customer-focused business to deliver profitable and sustainable growth for all stakeholders 16 ProCook | FY24 Interim Results Reset our VALUE POSITION against our competitive set Build our DIGITAL MARKETING capability CATEGORY DEVELOPMENT including seasonal
Slide 17: Summary
Summary Good strategic progress in challenging trading conditions with clear opportunities to accelerate growth over the medium term 17 ProCook | FY24 Interim Results Trading metrics improving in a difficult consumer environment Good strategic progress creating a stronger business Step change as we
Slide 18: Appendices
18 ProCook | FY24 Interim Results Appendices
Slide 19: Income Statement
Income Statement H1 FY24 H1 FY24 H1 FY24 H1 FY23 H1 FY23 H1 FY23 19 Non- Non- ProCook | FY24 Interim Results £m Underlying Reported Underlying Reported underlying underlying Revenue 26.3 - 26.3 27.4 - 27.4 Gross profit 17.6 - 17.6 16.7 - 16.7 GP% 66.9% 66.9% 61.0% 61.0% Net operating costs (19.1) (1
Slide 20: Financial Position
Financial Position £m 15 October 2023 16 October 2022 2 April 2023 20 Non current assets 10.9 8.0 10.5 ProCook | FY24 Interim Results Right of use assets 25.5 31.8 25.5 Inventories 11.9 12.8 11.5 Trade and other receivables 3.4 3.1 2.2 Corporation tax 0.9 1.0 0.6 Cash and cash equivalents 1.4 2.1 2.
Slide 21: Cash flow
Cash flow £m H1 FY24 H1 FY23 Revolving credit facility 21 Reported loss before tax (3.2) (3.5) Facility £10.0m D&A, impairment and loss on disposal 2.6 2.5 Expiry April 2025 ProCook | FY24 Interim Results Share based payments 0.7 0.6 Committed Yes Net working capital inflow 2.6 3.8 Covenants1 Financ
Slide 22: Glossary of terms
Glossary of terms 12m 12 month full financial year period KPI Key Performance Indicator 22 bps Basis points LBT Loss before tax ProCook | FY24 Interim Results D&A Depreciation and Amortisation LFL Like for Like EBITDA Earnings before interest, tax, depreciation and amortisation IPO Initial Public Of