Nichols Plc · LSE:NICL
Nichols — H1 2022 Earnings Presentation
29 slides from Nichols's earnings presentation, July 2022
Slide 1: Half Year to June 2022
HALF YEAR TO JUNE 2022 PRESENTED July 2022
Slide 2: Our Purpose
N I C HNOILCSH OP L SC P– LHCA –L FY EY AE RA RE NJ DU EN DE 2 0 2 02 PURPOSE OUR
Slide 3: Agenda
AGENDA N I C HNOILCSH OP L SC P– LHCA –L FY EY AE RA RE NJ DU EN DE 2 0 2 02 ANDREW DAVID ANDREW MILNE RATTIGAN MILNE Chief Executive Chief Financial Chief Executive Officer Officer Officer STRATEGIC & FINANCIAL LOOKING FORWARD – OPERATIONAL REVIEW AND A CLEAR FOCUS REVIEW OUTLOOK
Slide 4: 2022 Highlights
2022 HIGHLIGHTS • Encouraging revenue and earnings growth N I C HNOILCSH OP L SC P– LHCA –L FY EY AE RA RE NJ DU EN DE 2 0 2 02 • Continued market share gains in Squash within the UK • Strong volume growth in the Middle East during Ramadan • Continued strong investment in the Vimto brand • Continued
Slide 5: NNI CI CHHNOOILCLSHS POPL LCS CP– –LHCHAA–L LFYF EYYAEEARARER NJJUDUEN2NDE0E 2 210022021
NNI CI CHHNOOILCLSHS POPL LCS CP– –LHCHAA–L LFYF EYYAEEARARER NJJUDUEN2NDE0E 2 210022021
Slide 6: UK Soft Drinks Market
UK SOFT DRINKS MARKET PERFORMANCE WINNERS LOSERS Total ‘take home’ Soft Energy Mixers Drinks Value Volume Value Volume Value £4.5bn +13.5% +3.4% -14.4% -23.3% N I NC HI COHLOSL PS LPCL –C H– AYLEFA YR EEANRD JE UD N2E0 2 0 2 2 Volume 3.5bn litres Squash Plain Volume Value Value Volume Water -0.3% +2
Slide 7: Vimto Growth in Squash & Stills
VIMTO GROWTH IN SQUASH & STILLS SQUASH FLAVOURED RTD’s STILL CARBS JUICE DRINKS N NI CI CHNHOIOLCLSHSOP LPL SLC CP– L–HCHA –AL LFYFEYAYE REA ARERNJ DJU EUNDNE E22 020 202 021 2 Value Value Value Value Value Value -4.9% -1.2% +4.2% +9.8% +13.5% +22.6% Volume Volume Volume -15.4% Volume Volume Volume
Slide 8: UK Packaged
UK PACKAGED N I CNHIOCLHSO LP SL CP L– CH –A LYFE AY RE AERN DJ EU DN E2 02 20 02 2 Roll out of our new bottle across Strong flavour Innovation Multipack Cans launched in our squash portfolio launched across the portfolio cardboard Strong in store promotions to Strong TTL integrated marketing Larges
Slide 9: Strong Momentum
Strong Momentum N NI CI CHNHOIOLCLSHSOP LPL SLC CP– L–HCHA –AL LFYFEYAYE REA ARERNJ DJU EUNDNE E22 020 202 021 2 Value -4.9% Volume -15.4% Levi Range achieving double digit New distribution gains driving Launch of a new clear plastic bottle as growth and market outperformance strong visibility and a
Slide 10: International Middle East
INTERNATIONAL MIDDLE EAST N NI CI CHNHOIOLCLSHSOP LPL SLC CP– L–HCHA –AL LFYFEYAYE REA ARERNJ DJU EUNDNE E22 020 202 021 2 Outstanding market execution Launch of the first Zero cordial Strong brand investment in the delivering strong in market sales across the region ‘Sweet Togetherness’ campaign pe
Slide 11: International Africa
INTERNATIONAL AFRICA N NI CI CHNHOIOLCLSHSOP LPL SLC CP– L–HCHA –AL LFYFEYAYE REA ARERNJ DJU EUNDNE E22 020 202 021 2 Launch of Vimto cans into 3 new Strong marketing campaigns were Launch of new branding across a markets across Africa – Angola, launched across a number of key range of countries wit
Slide 12: Out of Home
OUT OF HOME • Out of Home sector continues to recover N NI CI CHNHOIOLCLSHSOP LP SLC CP– L–HCHA –AL LFYFEY AYE REA ARERNJ DJU EUN2DNE0E22 0120 202 021 2 • Strong growth delivered in 2022 due to 2021 lockdowns • 2022 is still behind 2019 Volume levels • Progress has been made on the strategic review
Slide 13: Our Happier Future Strategic Framework
OUR HAPPIER FUTURE STRATEGIC FRAMEWORK HAPPIER FUTURE
Slide 14: Happier Future 2022 H1 Achievements
2022 H1 ACHIEVEMENTS INAUGURAL ESG REPORT People Our Engagement Score – 85% Established our first two community groups – Female Leaders and LGBTQ+ Healthier Hydration UKP HFSS compliance work completed New NAS product launches in Vimto Carbonates and ICEE Limited Edition Green Energy All UK location
Slide 15: N NINCII CHCNHOHIOLOCLSLHSSOP LPLPSLCL CCP– L––HCHAH–ALA LFLYFFEYAYEYREAE ARAERRNJ DJUJEUNUDNENEE22 02022020021221
N NINCII CHCNHOHIOLOCLSLHSSOP LPLPSLCL CCP– L––HCHAH–ALA LFLYFFEYAYEYREAE ARAERRNJ DJUJEUNUDNENEE22 02022020021221
Slide 16: Revenue
REVENUE • Still +4.9%, Carbonates +34.9% • Strong OoH recovery H1'22 H1'21 Movement • UK +29.3% Revenue 80.2 67.4 19.1% • UK packaged +5.1% • Accelerated ingredient, packaging and distribution inflation N I CNHIOCLHSO LP SL CP L– CH –A LYFE AY RE AERN DJ EU DN E2 02 2002 2 • Overall soft drinks cate
Slide 17: Adjusted PBT
ADJUSTED PBT • Gross Profit up +£4.5m H1'22 H1'21 Movement • Gross Margin % -1.6ppt to 42.8% Adjusted profit before tax 11.3 8.9 26.7% • lower margin carbonate revenues as OoH reopens • Significant and accelerating inflationary pressures • Ingredient, Packaging and Distribution • Diversified busines
Slide 18: PBT - Exceptionals
PBT - EXCEPTIONALS • Total exceptional costs -£1.2m Adj H1'22 H1’22 • H1 21: £0.3m Profit before tax 11.3 10.1 • UK Packaged Supply Chain -£1.1m • Dilutes production moved to new contract manufacturer NNI ICCNHHI OCOLHLSOS LPPSLLCPC L––C HH–AALYLFEF AYYREEAEARNR DJJEUUDNNE2E 02220002212 £11.3 • Succ
Slide 19: Net Assets and Capital Employed
Net Assets and Capital Employed • Strong and improving EBITDA +£12.4m at 15.5% H1'22 FY’21 Movement • Reinvestment in Working Capital -£5.9m • Out of Home Cash and Cash Equivalents 49.2 56.7 (13.2%) • Dilutes contract manufacturing • Inflation £56.7 N INCNIHCI OCHLHOSOL LSPSLPCPL LC–C–H–AHLYAFEL AFY
Slide 20: Interim Dividend
Interim Dividend N INCNIHCI OCHLHOSOL LSPSLPCPL LC–C–H–AHLYAFEL AFYREYAERAN RDJEUJDNU EN2 0E220202012 2 • Dividend policy is broadly 2x cover • Adjusted Earnings Per Share (basic) 24.8p, therefore • Interim dividend of 12.4p • Record date will be 5 August 2022 • Payment will be made on 9 September 2
Slide 21: Financial Outlook
Financial Outlook • FY 2022 Group Adjusted PBT expectations 1 remain unchanged N INCNIHCI OCHLHOSOL LSPSLPCPL LC–C–H–AHLYAFEL AFYREYAERAN RDJEUJDNU EN2 0E220202012 2 • Significant inflation • 13.6% underlying for FY 2022 • Mitigation plans in place • Accelerating inflation • 13.6% full year, is as t
Slide 22: Nichols plc – Year Ended 2020
NICHOLS PLC – YEAR ENDED 2020
Slide 23: Good Momentum on Our 5 Key Strategic Drivers
GOOD MOMENTUM ON OUR 5 KEY STRATEGIC DRIVERS N NI CNI HCINOHC ILOHCSLOHSLPOSLP CSLP CLP–CL–HC–AH –LAH FLAYFLEYFAEY AREY RAEERANJRUDJ EUNJ2DN A clear focus to drive accelerated Set ourselves up to win in the long A strategic review across our Out growth across our UK and term through our operational
Slide 24: Summary
SUMMARY • The strength of the diverse business has been a key factor again in 2022. • Highly profitable and cash generative with a strong balance sheet N NI CNI HCI NCOHIH • Good momentum on 5 strategic drivers LOCSLOHSLOPSLP SCLPCP–L L–CHCAH––LAYFLYEFEYAAEYRRAE RAERNN • Confident in delivering our
Slide 25: THE
N NI CI HCNOH ILOCSLHSPO LP CSL CP– L–HCAH –LA FLYFEY AEY ARE RAERNJ UDJ EUN2DNE0E2 102 20 02 2 THE
Slide 26: Appendices: Consolidated Income Statement
N NI CNI HCI NCOHIH LOCSLOHSLOPSLP SCLPCP–L L–CHCAH––LAYFLYEFEYAAEYRRAE RAERNN J DUJDEUN2DNE 0E22021 20 02 2 Consolidated Income Statement APPENDICES
Slide 27: Appendices: Consolidated Statement of Financial Position
N NI CNI HCI NCOHIH LOCSLOHSLOPSLP SCLPCP–L L–CHCAH––LAYFLYEFEYAAEYRRAE RAERNN J DUJDEUN2DNE 0E22021 20 02 2 Consolidated Statement of Financial Position APPENDICES
Slide 28: Appendices: Consolidated Cash Flow
N NI CNI HCI NCOHIH LOCSLOHSLOPSLP SCLPCP–L L–CHCAH––LAYFLYEFEYAAEYRRAE RAERNN J DUJDEUN2DNE 0E22021 20 02 2 APPENDICES Consolidated Cash Flow
Slide 29: N NI CI HCNOHNILOCISLCHSHOP OLPLSCLSCP– PL–HLCAHC–LA–FLYYFEYEAEYARAER RAEERNJNDUJDEUN2DNE0E2 021 20 02 2
N NI CI HCNOHNILOCISLCHSHOP OLPLSCLSCP– PL–HLCAHC–LA–FLYYFEYEAEYARAER RAEERNJNDUJDEUN2DNE0E2 021 20 02 2