Gale Pacific Limited · ASX:GAP
Gale Pacific — FY2023 Earnings Presentation
25 slides from Gale Pacific's earnings presentation, Aug 29, 2023
Slide 1: FY23 Results
F Y 2 3 R E S U LT S 29 AUGUST 2023
Slide 2: About Gale Pacific
ABOUT GALE PACIFIC F ounded in Melbourne, Australia, in 1951, GALE Pacific is the market-leading manufacturer of technical fabrics used for consumer and commercial applications around worldwide. Today, GALE employs more than 550+ people based in Australia, China, the United States, Europe, and Asia,
Slide 3: Business Overview
BUSINESS OVERVIEW DID YOU KNOW? Map legend: Head Office Sales Office Warehouse Manufacturing Since the start of FY19 GALE Pacific has... processed over 50,000 tonnes of material. That is the same weight as: Charlotte, USA Ningbo, China 222 Statues 90 Airbus 333 Blue The Sydney Los Angeles, USA Orlan
Slide 4: Contents
CONTENTS ■ Results Overview ■ Regional Overview ■ Company Strategy ■ Outlook
Slide 5: Results Overview
RESULTS OVERVIEW
Slide 6: Macro Backdrop | Result Drivers
MACRO BACKDROP | RESULT DRIVERS Challenging trading conditions leading to demand headwinds in FY23 due to: Historically Broad market Consumers Housing market Poor weather aggressive inflation for shifting spend challenged by across AUS interest consumers, from goods to affordability & US in prime ra
Slide 7: 2023 Results At A Glance
2023 RESULTS AT A GLANCE $ 187.6M $ 20.7M Global inventory reduced by Opened new US HQ in REVENUE EBITDA $ 27.1 million Charlotte, NC PCP: $205.5m PCP: $22.9m ($80.4 million to $53.3 million) November - June $ 8.4M Product lead-times reduced by NET CASH FROM OPERATIONS Design phase completed PCP: $7
Slide 8: Results For FY23
RESULTS FOR FY23 Revenue of $187.6 million % vs % vs % vs down 9% vs. prior year due FY23 FY22 FY21 FY20 FY22 FY21 FY20 to poor weather conditions, Revenue 187.6 205.5 205.2 156.3 (9%) (9%) 20% EBITDA 20.7 22.9 28.2 18.7 (10%) (27%) 11% a shift in consumer spending EBIT 8.9 13.0 19.0 7.0 (32%) (53%)
Slide 9: Results For FY23
RESULTS FOR FY23 Net cash from operating activities of Net Cash from Operating Activities $8.4 million increased $1.2 million compared to previous year from lower $ 8.4 million working capital (lower inventory) offset FY22: 7.2m by higher income taxes. Net debt of $15.8 million increased over the pr
Slide 10: Regional Overview
REGIONAL OVERVIEW
Slide 11: Americas
AMERICAS ■ Revenue FY23: $91.9 million, a 4% decline vs FY22 ■ 6% EBITDA decline due to lower volumes, manufacturing inefficiencies & warehousing costs ■ Revenue up 25% & EBITDA up 3% vs pre-pandemic ■ Inventory reduced by USD $10.3 million or 45% from Nov to Jun ■ New placements of key products and
Slide 12: Australia/New Zealand
AUSTRALIA/NEW ZEALAND ■ Revenue FY23: $82.2 million, 12% decline vs FY22 ■ 10% EBITDA decline due to lower volumes & manufacturing inefficiencies ■ Revenue up 27% and EBITDA nearly double pre-pandemic levels ■ Inventory reduced $14.3 million or 40% from November peak ■ Secured placements at Bunning’
Slide 13: Developing Markets
DEVELOPING MARKETS ■ Revenue FY23: $13.4 million, a 17% decline vs FY22 ■ 5% EBITDA decline; price maintenance & cost control measures ■ 20% revenue growth in Europe and Southeast Asia ■ Reduced outstanding debtor balances by 34% ■ Strict credit policies and operating measures in place ■ Improved ma
Slide 14: Company Strategy
COMPANY STRATEGY
Slide 15: Company Strategy
COMPANY STRATEGY To build GALE Pacific into a faster-growing, world-class global fabrics technology business Product Category Improved New Innovation Growth Operations Markets
Slide 16: Growth Acceleration Plan
CATEGORIES VALUES Consumer and commercial Integrity | Respect technical fabrics and Collaboration GROWTH associated finished goods People Community ACCELERATION Innovation PLAN VISION Build GALE Pacific The Growth Acceleration Plan defines into a fast-growing, how we will grow our company over the w
Slide 17: How We Grow
GROWTH ACCELERATION PLAN Delivered with EDGE: HOW WE Every Day Great Execution GROW CATEGORIES MARKETS PEOPLE CAPABILITIES SUPPLY CHAIN Develop and launch Drive category Develop our functional Simplify our business Leverage one Global breakthrough growth in retail leadership capabilities and ways of
Slide 18: Categories
GROWTH ACCELERATION PLAN CATEGORIES THE COOLEST EXPERIENCE Comparing surface temperature of HeatShield® fabric (left) vs standard fabric (right) UNDER THE SUN Fabric feels up to 10˚C or 15˚F cooler for people, pets, and play Double protection PVC-free printable “We all noticed a drop in temperature,
Slide 19: Markets
GROWTH ACCELERATION PLAN MARKETS Breakthrough new Nationwide umbrella program elevated pet beds launching at Bunnings Core shade & pet expansion with HeatShield™ in LATAM; Market to drive overall category launching in 2H FY24 growth in FY24 development in Europe Extend Our Borders into Drive Categor
Slide 20: People
GROWTH ACCELERATION PLAN PEOPLE Executive functional and regional leadership Global engagement reorganization complete; well above benchmarks; new, high caliber, capability New training & recognition & communication; and capacity Americas team talent development engagement teams launched in place to
Slide 21: Capabilities
GROWTH ACCELERATION PLAN CAPABILITIES Reorganized, streamlined global and regional teams Completed design Currently in-field with target with clear operating and soon to begin consumers in the United States processes and defined implementing new to unlock attitudes and usage accountability for globa
Slide 22: Supply Chain
GROWTH ACCELERATION PLAN SUPPLY CHAIN Over $4.7 million saved in Reduced inventory by FY23 because of global Restructuring $27.2 million or 34% and processes focused on programs launched lowered product lead-times reducing cost of inefficiency in AUS & US; Custom by 50% in FY23 because of coupled wi
Slide 23: Gale Pacific Differentiators
GALE PACIFIC DIFFERENTIATORS Category & market High quality, Customer Consumer & commercial Sustainable leading brands innovative products partnerships diversification product portfolio Technical fabrics Vertically integrated Global distribution On-trend, outdoor Sun safety expertise manufacturing &
Slide 24: Outlook
OUTLOOK ■ First half trading conditions expected to remain challenging with continued demand headwinds ■ Profit-enhancing & structural cost reducing measures actioned in Australia and the Americas exiting FY23 to benefit FY24 ■ Accelerated productivity and operating efficiency programs at our manufa
Slide 25: Thank You
THANK YOU 145 Woodlands Drive Braeside, Victoria 3195, Australia Phone +613.9518.3333 GALEPacific.com Disclaimer: Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry grow