Slide 1: 1H22 Results Presentation
1H22 RESULTS PRESENTATION 23 FEBRUARY 2022
Slide 2: Disclaimer
DISCLAIMER The following provisions apply to this presentation. Please consider its contents carefully. Currency of information The information contained in this presentation is current as at the date of this presentation or such earlier date as specified in this presentation. Summary information Th
Slide 3: 1H22 Results Presentation Agenda
1H22 RESULTS PRESENTATION AGENDA 1. Overview 2. Financial Performance 3. Division Highlights 4. Update on Operational Review 5. Outlook 1h22 results release
Slide 4: Overview
OVERVIEW 1H22 SUMMARY: ▪ Organic domestic growth with owned brand sales $108.8M 11% up 11%, driven by Manicare, Lady Jayne and TOTAL SALES ORGANIC GROWTH - Swisspers, despite COVID-19 related challenges REVENUE DOMESTIC OWNED ▪ Underlying* PBT of $6.7m and statutory LBT of 1H21: $101.7M BRANDS ($3.0
Slide 5: Health, Wellness & Beauty – A $17bn Market
HEALTH, WELLNESS & BEAUTY – A $17BN MARKET MCP CORE BRANDS OUTPERFORMING PHARMACY AND GROCERY AND CHANNEL GROWTH STRONG DEMAND FOR OUR BRANDS LEADING BRANDS #1 Australian Leading Natural #1 Beauty Tools #1 Hair Tools & #1 Foil, Bake, Garbage #1 Cotton Haircare Source: Data sourced from IRI MarketEdg
Slide 6: Market Conditions and COVID-19
MARKET CONDITIONS AND COVID-19 DEMAND SUPPLY 2H22 MCP brand breadth strong! • Supply chain disruptions in • Material selling price • Skincare struggling as November and December 2021 increases implemented in lockdowns, missing daigou and and substantial increases in household consumables internation
Slide 7: Market Trends
MARKET TRENDS DEMAND FOR AT-HOME HEIGHTENED GROWTH IN "CLEAN" DEMAND FOR ETHICAL & GROWTH OF PRO-ACTIVE BEAUTY TOOLS & AWARENESS OF BEAUTY / SKINCARE SUSTAINABLE PRODUCTS BEAUTY TREATMENTS INTERNAL HEALTH BRANDS • Consumers opting for in-home • 61% of Australians • 75% of Australians have used • Cus
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Dr lewinn’s Line Smoothing Complex S8 8 8
Slide 9: 1H22 Sales Revenue Performance by CBU
1H22 SALES REVENUE PERFORMANCE BY CBU All Figures $m 1H22 1H21 % change Total Group Sales 108.8 101.7 6.9% ANZ CBU - Beauty & H'hold Consumables Skin, Hair & Body 12.9 12.2 6.2% Domestic sales of Dr. LeWinn’s and A’kin products grew 3% and 17% respectively Essential Beauty 38.3 32.4 18.3% 25% growth
Slide 10: Bridge of Underlying EBIT Impacts 1H22 vs 1H21
BRIDGE OF UNDERLYING* EBIT IMPACTS 1H22 vs 1H21 $AM $15 $14 FX gain 1.3 Full six months $13 EBIT from Increased Health Brands contribution 1.1 $12 from Beauty Brands 3.3 $11 Up $10 Commodity Down cost increases $9 (2.6) $8 Higher shipping Lower costs (1.8) EBIT from $7 Dr. Higher LeWinn’s ANZ carton
Slide 11: Strong Balance Sheet with Low Net Debt & Gearing
STRONG BALANCE SHEET WITH LOW NET DEBT & GEARING Gearing* % (31 DECEMBER) NET DEBT* ($M - 31 DECEMBER) 45 35.0% 40 30.0% 35 25.0% 30 20.0% 25 15.0% 20 10.0% 15 5.0% 10 0.0% 2016 2017 2018 2019 2020 2021 5 • Net debt remains low at $8.8m at 31 December 21 0 • Gearing remains low at 7% at 31 December
Slide 12: Interim Dividend & Capital Management Consideration
INTERIM DIVIDEND & CAPITAL MANAGEMENT CONSIDERATION Interim Dividend Capital Management • Interim ordinary dividend of 3.0 cents • Prudent to defer any decision to per share (cps) fully franked (1H21: return capital while there is a high 3.5cps) level of uncertainty in the market • Payout ratio of
Slide 13: Divisional Highlights
DIVISIONAL HIGHLIGHTS Dr lewinn’s Line Smoothing Complex S8 13
Slide 14: ANZ - 1H22 Highlights
ANZ - 1H22 HIGHLIGHTS Segment performance 1H22 1H21 Change Change 1H22 SALES v 1H21 ($m) ($m) ($m) (%) Sales revenue 96.7 92.6 4.1 4% Manicare 19% Underlying EBIT 10.8 11.3 (0.5) (4%) Swisspers 25% ▪ Strong core brand performance with increased sales of all core owned brands Lady Jayne 10% ▪ Market
Slide 15: Health - 1H22 Highlights
HEALTH - 1H22 HIGHLIGHTS Segment performance 1H22 1H21 Change ($m) ($m) ($m) Sales revenue 8.4 1.3 7.1 Underlying EBIT 1.3 0.2 1.1 ▪ Results for 6 months versus one month in prior year ▪ Availability challenges addressed in FY21, lead times for production and raw materials in FY22 still challenging
Slide 16: International - 1H22 Highlights
INTERNATIONAL - 1H22 HIGHLIGHTS Segment performance 1H22 1H21 Change Change ($m) ($m) ($m) (%) Sales revenue 3.7 7.8 (4.1) (53%) Underlying LBIT (1.1) (0.5) (0.6) (120%) ▪ Strategy to broaden channel participation and decrease risk profile ▪ Well advanced in finalising target operating model in key
Slide 17: Update on Operational Review
UPDATE ON OPERATIONAL REVIEW 17 17
Slide 18: Progress Against Key Pillars
PROGRESS AGAINST KEY PILLARS Target $300 million sales and $50 million EBIT in FY26 6 CORE OWNED BRANDS & HEALTH & WELLNESS SELECTIVELY EXPAND MARGIN KEY CHANNELS A NEW GROWTH PLATFORM INTERNATIONAL FOOTPRINT OPTIMISATION INITIATIVES TARGETED TO DELIVER MATERIAL SELLING PRICE INCREASES INITIATIVES T
Slide 19: Progress Against Strategic Plan
PROGRESS AGAINST STRATEGIC PLAN ACTIONS TAKEN TO PROGRESS THESE OUTCOMES DURING 1H22 CONTINUED FOCUS ON CORE OWNED BRANDS AND KEY New leadership, structure, business performance process and focus in ANZ DOMESTIC CHANNELS ▪ Continued innovation and ranging increments driving brand performance ▪ Growi
Slide 20: Outlook
OUTLOOK Dr lewinn’s Line Smoothing Complex S8 20 20
Slide 21: Board Changes
BOARD CHANGES Graham Cubbin Helen Thornton 1h22 results release 21
Slide 22: Unchanged FY22 Sales and Underlying PBT Outlook
UNCHANGED FY22 SALES AND UNDERLYING* PBT OUTLOOK ▪ Retain confidence in resilience of market leading owned brands ▪ Subject to domestic market stability and no material impact from supply chain disruptions, re-affirm FY22 guidance provided on 1 November 2021 ▪ FY22 sales growth forecast in the range
Slide 23: Unique Capabilities
UNIQUE CAPABILITIES Innovation driving Supply chain and Market-leading additional ranging warehouse capacity brands and value offers opportunities Strong balance Rejuvenated team sheet driving execution of strategy 1h22 results release 23
Slide 24: Q&A
Q&A Dr lewinn’s Line Smoothing Complex S8 24 24
Slide 25: Thank You
THANK YOU 23 FEBRUARY 2022