Nwf Group Plc · LSE:NWF
Nwf — FY2023 Earnings Presentation
35 slides from Nwf's earnings presentation, Jul 27, 2023
Slide 1: NWF Group plc Final results to 31 May 2023
NWF Group plc Final results to 31 May 2023 NWF GROUP PLC
Slide 2: Leadership team: an experienced and capable team – succession planned
Group overview Leadership team An experienced and capable team – succession planned Richard Whiting Chris Belsham Chief Executive Chief Executive designate Succession Succession • Retiring from NWF (aged 60) in March 2024 • In line with the Board succession plans, will be appointed CEO in March 2024
Slide 3: Key highlights: specialist distributor of fuel, food and feed across the UK
Group overview Key highlights NWF is a specialist distributor of fuel, food and feed across the UK Summary Fuels Food Feeds Supplying fuel to The leading North West Delivering nutritional • Strong track record of delivering commercial and domestic ambient grocery advice and feed to increased shareho
Slide 4: Results summary
Group overview Results summary Strong results, significantly ahead of initial market expectations* Revenue Headline operating profit¹ Headline profit before tax¹ £1,053.9m £21.0m £19.6m +20.0% -3.7% -6.2% 23 £1,053.9m 23 £21.0m 23 £19.6m 22 £878.6m 22 £21.8m 22 £20.9m 21 £675.6m 21 £12.9m 21 £11.9m
Slide 5: Fuels operating highlights
Fuels Operating highlights Fuels Resilient performance Revenue • Very resilient performance in tough market conditions • Oil supply issues in the autumn/winter period: UK £757.2m +21.9% removed Russian sourced oil 23 757.2 • Trunked oil across the country, benefitting from 621.1 national supply agre
Slide 6: Food operating highlights
Food Operating highlights Food Continued successful development Revenue • Strong outperformance with increased outloads and backhaul work £70.9m +13.3% • Warehouses fully utilised throughout the year 23 70.9 • Focus on our people, reduced staff turnover and 22 62.6 has resulted in a significant impr
Slide 7: Feeds operating highlights
Feeds Operating highlights Feeds Outstanding performance Revenue • Farmers focused on nutritional advice to optimise yields with a high milk price £225.8m +15.9% • Effective management of commodity price volatility: 23 225.8 • Managed a beneficial position in 22 194.9 summer 2022 21 173.0 • Signific
Slide 8: Financial review
Financial review NWF GROUP PLC FINAL RESULTS TO 31 MAY 2023 8
Slide 9: Income statement summary
Group overview Financial review Income statement summary May 2023 May 2022 • Revenue increased by £175.3 million (20.0%): £m £m • £207.4 million from higher commodity prices and product Revenue mix movements Fuels 757.2 621.1 • £7.1 million from acquisitions Food 70.9 62.6 • Offset by £39.2 million
Slide 10: Income statement summary (profit before tax)
Group overview Financial review Income statement summary May 2023 May 2022 • Headline PBT of £19.6 million £m £m • Bank interest increased to £0.8 million (2022: £0.4 Operating profit 20.6 13.2 million) due to higher interest rates offsetting lower Finance costs (1.7) (1.2) average debt levels Headl
Slide 11: Balance sheet summary
Group overview Financial review Balance sheet summary May 2023 May 2022 • Fixed assets increased with the acquisition of £m £m Sweetfuels Limited Fixed assets 75.5 68.1 • Lower net working capital due to decreasing oil and Right of use assets 29.1 27.5 commodity prices across the year combined with
Slide 12: Pension summary
Group overview Financial review Pension summary May 2023 May 2022 25 £m £m Assets 29.6 39.7 20 11.9 (9.7) Liabilities (39.2) (49.0) Deficit (9.6) (9.3) 15 £m Related deferred tax asset 2.4 2.3 (2.6) 10 9.3 9.6 Net pension liability (7.2) (7.0) 0.7 Discount rate 5.35% 3.45% 5 Inflation rate (RPI) 3.1
Slide 13: Cash flow summary
Group overview Financial review Cash flow summary May 2023 May 2022 • Headline EBITDA* of £26.1 million (2022: £26.6 £m £m million) Operating profit 20.6 13.2 • Working capital movement as a result of short-term Depreciation and amortisation 15.3 14.0 timing differences at the year end Profit on dis
Slide 14: Net debt summary
Group overview Financial review Net debt summary • Renewed facilities of £61 million with NatWest until May 2026 60 with additional accordion facilities of £20 million 50 3.5 (5.1) • Net cash of £16.3 million at May 2023 with substantial facility 35.9 (3.7) and covenant headroom 40 (2.2) (2.2) (9.0)
Slide 15: A clear development strategy – a platform for growth
Group overview Development strategy A clear development strategy – a platform for growth Summary Fuels Food Feeds Supplying fuel to The leading North West Delivering nutritional • Diversified source commercial and domestic ambient grocery advice and feed to of earnings customers across the UK consol
Slide 16: Fuels: consolidation opportunity
Fuels Development strategy Consolidation opportunity Key Existing depot New depots acquired in last 12 months • Fragmented oil distribution businesses in the UK: • NWF number 3, with 2% market share, over 150 smaller players • Clear proven acquisition process, 2 completed in last 12 months, 7 since
Slide 17: Food: targeted warehouse expansion
Food Development strategy Targeted warehouse expansion • Successful history of warehouse expansion to meet Crewe facility Customer locations 2023 customer needs over last 60 years • Step change in 2020 with Crewe warehouse adding 240,000 ft2 , 35,000 pallet spaces, exceeding planned returns • Based
Slide 18: Feeds: utilise national platform
Feeds Development strategy Utilise national platform NWF principal Feed Mills and Farming customers 2023 Feed Mill Farming customers • Optimally located, well invested mills in Cumbria, Cheshire and Devon • Capability to increase volumes from all facilities to meet customer needs and leverage the co
Slide 19: ESG framework: delivering sustainable value
Group overview ESG framework Delivering sustainable value Our sustainability framework consists of four strategic objectives that reflect our values and are designed to ensure we take a proactive and responsible approach to the way we operate. Together with our stakeholders and across our three divi
Slide 20: The NWF investment case
Group overview Summary and outlook The NWF investment case Strong Group wide Growth Asset management opportunities backing team e Bu rvic ital investment ild e Cap in Solid track record Consolidate and Strong balance s go er with ambition optimise sheet tom na 7 1 £217.6m cus sol id p e in total ass
Slide 21: Strong results & a clear strategy
Group overview Summary and outlook Strong results & a clear strategy Very strong result in 2023 • Fuels performed resiliently in a volatile market with a cost-of-living crisis • Food demonstrated strong continued development • Feeds delivered an outstanding performance • Excellent cash generation, a
Slide 22: Q&A
Group overview Q&A Richard Whiting Chris Belsham Chief Executive Chief Executive designate NWF GROUP PLC FINAL RESULTS TO 31 MAY 2023 22
Slide 23: Appendix: additional information
Group overview Appendix Additional information • Analyst coverage and consensus forecasts • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF GROUP PLC FINAL RESULTS TO 31 MAY 2023 23
Slide 24: Analyst coverage and consensus forecasts
Group overview Analyst coverage and consensus forecasts Forecast1 Actual Consensus forecasts Analysts 2023 2023 2023 2024 2025 Peel Hunt* Charles Hall Revenue £893.1m £1,053.9m £1,061.5m £1,006.9m £1,048.9m Panmure Gordon Adrian Kearsey Headline operating profit £12.9m £21.0m £20.1m £15.2m £16.1m Sh
Slide 25: Fuels business overview: key figures
Fuels Business overview Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 660 million litres across the UK to 100,000 customers. It is one of the largest authorised distributors of Texaco and is a major customer of other fuel suppliers including Shell and Jet.
Slide 26: Food business overview: key figures
Food Business overview Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,000,000ft² of warehousing and significant distribution assets. It works with over 130 customers including Arla and Typhoo. Pallets stored Trucks 122,000 144 Pe
Slide 27: Feeds business overview: key figures
Feeds Business overview Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to over 4,000 customers in the UK, feeding 1 in 6 dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and Devon. Tonnes Trucks 514,000 39 People Trailers
Slide 28: Business locations
Group overview Business locations Feeds Aspatria Longtown Wardle* Wixland Food Crewe Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Crewe* Droitwich Dyserth Edenbridge Faringdon Fishers Pond Glastonbury Great Yarmouth Home Counties Kenilworth Immingham Kirkby Lonsdale Long Marston
Slide 29: Organisation
Group overview Organisation Non-Executives Chief Executive Chair: Philip Acton Richard Whiting Richard Armitage Dawn Moore Chief Executive designate Company Secretary Chris Belsham Rob Andrew Fuels Food Feeds Dave Walmsley Angela Carus Andrew Downie 329 employees 785 employees 226 employees NWF GROU
Slide 30: Wardle – main operating site
Group overview Wardle – main operating site NWF GROUP PLC FINAL RESULTS TO 31 MAY 2023 30
Slide 31: Track record
Group overview Track record Revenue Headline PBT 1,200 25 1,053.9 20.9 1,000 19.6 878.6 20 800 671.3 687.5 675.6 611.0 15 13.2 555.8 11.9 £m £m 600 10.2 465.9 9.7 10 8.3 8.5 400 200 5 - 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Headline EPS Dividend 40.0 9 35.
Slide 32: Divisional track record
Group overview Divisional track record Fuels Food 800.0 20 80 4.5 700.0 18 70 4 16 3.5 600.0 60 Operating profit £m 14 Operating profit £m 3 500.0 50 Revenue £m 12 Revenue £m 2.5 400.0 10 40 2 300.0 8 30 1.5 6 200.0 20 1 4 100.0 2 10 0.5 0.0 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 33: Fuels additional market data
Fuels Group overview Fuels additional market data NWF GROUP PLC FINAL RESULTS TO 31 MAY 2023 33
Slide 34: Feeds additional market data
Feeds Price per tonne $ Price per tonne £ 50 50 100 100 0 0 400 300 500 300 200 200 150 150 450 350 550 350 250 250 NWF GROUP PLC 01/06/2022 6/1/2022 15/06/2022 6/15/2022 Group overview 29/06/2022 6/29/2022 FINAL RESULTS TO 31 MAY 2023 13/07/2022 7/13/2022 27/07/2022 7/27 /2022 10/08/2022 8/10/2022
Slide 35: Thank you
Thank you NWF GROUP PLC