Maggie Beer Holdings Ltd. · ASX:MBH
Maggie Beer — H1 FY23 Earnings Presentation
28 slides from Maggie Beer's earnings presentation, Feb 23, 2023
Slide 1: H1 FY23 Results
1 ASX: MBH H1 FY23 RESULTS 23 February 2023 maggiebeerholdings.com.au MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 2: MBH had a strong Q2 FY23 with net sales growing 4.3%
2 MBH had a strong Q2 FY23 with net sales growing by 4.3% over Q2 FY22 MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 3: H1 FY23 key take aways
3 H1 FY23 key take aways A strong Q2 FY23 for Continuing Operations (Maggie Beer Products and Hampers & Gifts Australia) ✓ Net sales of $49.9 million were 4.5% lower than H1 FY22, with Q1 FY22 benefiting from a substantial uplift from Covid-19 ✓ Growth returned in Q2 FY23 with total net sales increa
Slide 4: Revenue from Continuing Operations was up 4.3% in Q2 FY23
4 Revenue from Continuing Operations was up 4.3% in Q2 FY23 Key takeaways from Y20 As expected, Q1 FY23 didn’t cycle the Covid-19 uplift of Q1 FY22. Pleasingly H1 FY23 sales were only down 4.5% on the Covid-19 inflated H1 FY22 NET GROSS TRADING EBITDA AS A % NPAT STRONG SALES MARGIN EBITDA OF SALES
Slide 5: Large e-commerce audience still to be fully monetised
5 Large e-commerce audience still to be fully monetised Our large e-commerce customer base will continue to drive growth for MBH HGA NET 900K AUDIENCE HGA’S NEW HGA CHEESE & NEW PROMOTER STILL TO BE CORPORATE ENTERTAINING PRODUCTS SCORE FULLY SALES TEAM HAMPERS ARE BEING MONETISED ACHIEVED A GREW BY
Slide 6: H1 FY23 was impacted by lower Q1 FY23 consumer spending
H1 FY23 was impacted by lower Q1 FY23 consumer spending 6 Website Visits WEBSITE VISITS HAMPER EMPORIUM GIFTS AUSTRALIA WERE DOWN MAGGIE BEER H1 FY23 H1 FY23 WITH LESS H1 FY23 CONSUMER -8.73% -4.86% -6.29% SHOPPING IN Q1 FY23 COMPARED On H1 FY22 On H1 FY22 On H1 FY22 TO Q1 FY22, BUT PLEASINGLY MBH’S
Slide 7: Increased investment in digital advertising
7 Increased investment in digital advertising Customer acquisition costs HAMPER EMPORIUM GIFTS AUSTRALIA MAGGIE BEER H1 FY23 H1 FY23 H1 FY23 INCREASED +30.31% +37.92% +22.31% INVESTMENT IN OUR LARGEST E- On H1 FY22 On H1 FY22 On H1 FY22 COMMERCE SITE DROVE AN INCREASE IN Number of repeat customers N
Slide 8: Diversification of MBH's revenue is proving resilient
8 The diversification of MBH’s revenue is proving resilient against the current economic headwinds MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 9: Financial Information
9 Financial Information MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 10: Continuing Operations performed against headwinds – 27.5% CAGR over 4 years
Continuing Operations performed against headwinds – 27.5% CAGR 10 over 4 years ($'000) H1 FY23 H1 FY22 %Change H1 FY21* %Change Retail Sales 14,048 13,904 1.0% 13,253 6.00% Online Sales 35,877 38,359 -6.5% 28,332 26.6% Net Sales 49,925 52,263 -4.5% 41,585 20.1% Gross Margin 26,626 27,695 -3.9% 22,27
Slide 11: Provision for earn-out liability HGA
11 Provision for earn-out liability HGA The HGA transaction has been EPS accretive and cash flow generative for MBH It has diversified MBH’s revenue stream to be approx. 60% e-commerce and 40% grocery retail on a FY basis The purchase of HGA included a provision for an earnout payment to be achieved
Slide 12: E-Commerce sales perform strongly over Christmas
12 E-Commerce sales perform strongly over Christmas E-commerce Sales %Change H1 FY23 H1 FY22* %Change H1 FY21* ($’000) on H1 FY23 Online Sales 35,877 38,359 -6.9% 28,332 26.6% Online Gross Margin 20,239 21,310 -5.3% 16,126 25.5% GM% 56.4% 55.6% 0.8 pts 56.9% -0.5 pts E-commerce sales for H1 FY23 wer
Slide 13: MBP grocery retail sales continue to grow in H1 FY23
13 MBP grocery retail sales continue to grow in H1 FY23 MBP grocery retail sales were up 1% in H1 FY23 vs H1 FY22 a solid result in a challenging consumer space GM% decreased by 0.4%, mainly due to product mix, with the large sales growth in our lower margin 3rd party produced products such as our c
Slide 14: Positive operating cashflow as inventory sells through
14 Positive operating cashflow as inventory sells through Cash increased in Q2 FY23 as inventory was converted to cash. $5m undrawn working capital facility in place Some retail grocery receipts not received until late February/March 23 for November & December 22 sales Cash movement includes the $3.
Slide 15: Total group result including assets held for sale
15 Total group result including assets held for sale The below links the Continuing and Discontinued Operations to the H1 FY23 Financial Statements. . ($'000) H1 FY23 Trading EBITDA 5,591 Change in earnout provision 4,000 LTIP accrual reversal 435 Other non trading (84) Statutory EBITDA 9,942 Intere
Slide 16: Strong balance sheet with $17.4m in cash
16 Strong balance sheet with $17.4m in cash ($'000) 31-Dec-22 30-Jun-22 Strong balance sheet with $17.4m cash and no debt* Assets Inventory at $11.3m and will decrease further in H2 FY23 Cash 17,394 10,801 as working capital patterns return to normal and Trade receivables 6,426 5,632 Christmas 23 st
Slide 17: Strategy & looking forward
17 Strategy & looking forward MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 18: Key growth focus areas
18 Key growth focus areas Expand core ranging in Innovative new product Implement strategic Continue to refine our Australia and export development across our marketing plans to manufacturing, markets core brands linked to capitalise on core distribution & consumer trends and brand strengths. operat
Slide 19: Expansion of existing ranging, innovation & launching new products
Expansion of existing ranging, innovation & launching new 19 products Key focus areas of growth MBP MBP MBP HGA HGA/MBP MBP National ranging in National ranging in Launching new Cheese & New Maggie’s Living New Finishing Sauce major retailer of new major grocery retailer innovative pate and fruit En
Slide 20: Increased investment in marketing & brand awareness
20 Increased investment in marketing & brand awareness Key focus areas of growth Upweighted Extensive retail Strength of the Brand awareness & Targeted radio & Evolution of MBP investment in marketing campaigns combined 900k education for core streaming cheese, paste & pate marketing initiatives ali
Slide 21: Beautiful imagery & content increased sales over Christmas for MBP & HGA
Beautiful imagery & content increased sales over 21 Christmas for MBP & HGA MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 22: New Maggie's Living range developed for eCommerce & specialty retail markets
New Maggie's Living range developed for eCommerce 22 & specialty retail markets MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 23: Looking forward
Looking forward 23 Focus on Growth Assets We continue to focus on growing our key brands of MBP and HGA with the launch of new products and investing in marketing to drive ranging of core products FY23 trading H1 FY23 was a strong result delivering 27.5% CAGR over 4 years and maintaining momentum de
Slide 24: Our recipe for success – MBH's Group Values
24 Our recipe for success – MBH’s Group Values MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 25: Environmental, Social, Governance MBH Initiatives
25 Environmental, Social, Governance MBH Initiatives ENVIRONMENT SOCIAL GOVERNANCE Worked with farmers to Donation of food to Foodbank Diversity and Inclusion Policy achieve carbon neutral status Donating % of sales from Grievance Policy Hamper boxes are made of 70% Hamper Emporium to recycled mater
Slide 26: Thank you. Questions?
26 THANK YOU. QUESTIONS? MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23
Slide 27: Disclaimer
27 Disclaimer This presentation is provided by Maggie Beer Holdings Ltd (MBH) to provide summary information about MBH and its subsidiaries and their activities as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete and ma
Slide 28: Thank you
28 Thank you MAGGIE BEER HOLDINGS | INVESTOR REPORT | HY23