Slide 1: McBride plc Results Presentation: February 2021
McBride plc Results Presentation: February 2021
Slide 2: Agenda
Agenda 1. Headlines 2. Commercial update 3. Financial results 4. Key activities and actions 5. Outlook 6. Q&A 1 McBride plc Results Presentation: February 2021
Slide 3: Headlines
Headlines Strong first half improvement in challenging times; new Compass organisation in place Business Financial • Strong profit performance in period from higher • Group revenues 1.7% higher revenues and improved gross margins • Adjusted profit before tax 74% higher at £16.9m • Household contract
Slide 4: Commercial update
Commercial update 3 McBride plc Results Presentation: February 2021
Slide 5: Revenue performance H1 FY21 vs H1 FY20
Revenue performance H1 FY21 vs H1 FY20 European household revenues by category £m Group revenues £m Constant currency variances Constant currency variances 1.5 2.0 2.5 6.2 7.3 (1.2) 4.5 1.5 2.2 (4.6) (1.7) 9.0 9.2 (6.0) 2.2 (8.2) (6.0) (1.4) Auto Cleaners Washing Bleach, Fabric Laundry Laundry Laund
Slide 6: Key markets update
Key markets update • Brands share higher UK Germany France • Shopper preferences Market: Market: Market: • Retailer share changes +2.3% +2.0% +4.6% • Online McBride McBride McBride underlying: underlying: underlying: • Category outlook • Retailer ‘price matches’ +2.5% +7.2% +4.6% 5 McBride plc Resul
Slide 7: Continued wins in Contract Manufacturing
Continued wins in Contract Manufacturing H1 2019/20 H1 2020/21 Constant currency 24% 20% Total Local Total Local £43.7m Multi-national £54.1m Multi-national 76% 80% • H1 revenue growth of 23.8% mainly coming from: • Contract Manufacturing has grown to 16.4% of • laundry capsules gain total Household
Slide 8: Financial results
Financial results Mark Strickland Chief Financial Officer 7 McBride plc Results Presentation: February 2021
Slide 9: Financial headlines
Financial headlines • Revenues at constant currency • Adjusted diluted EPS from • Operating cash flows up 1.7% to £362.9m continuing operations of 7.1p of £9.2m (2019: £14.8m) (2019: 3.7p) • Household revenues up 1.1% to • Working capital up £344.1m at constant currency • Share buy-back: 2.1 million
Slide 10: Revenue development
Revenue development Revenue Change in revenues for H1 (at CCY) Household revenues by half year £m £m £m 362.9 334.4 336.6 344.1 350.4 356.7 14.0 13.4 16.3 18.8 12.1 16.0 45.2 43.2 50.9 12.1 11.9 13.4 6.2 82.7 84.8 82.9 328.5 330.7 59.4 59.1 59.6 322.3 2.5 52.7 58.0 63.2 2.2 1.5 82.3 77.5 74.1 H1 H1
Slide 11: Operating profit development
Operating profit development Continuing EBITA Continuing EBITA by segment EBITDA £m £m £m 20.8 14.9 15.3 19.0 29.3 21.9 22.4 11.6 12.0 0.4 0.3 0.9 H1 H1 CCY H1 H1 H1 CCY H1 2019/20 2019/20 2020/21 2019/20 2019/20 2020/21 (3.7) (3.6) (2.7) Household Aerosols Corporate H1 2019/20 H1 CCY 2019/20 H1 202
Slide 12: Income statement
Income statement Gross margin ROS Overhead % of gross profit Adjusted interest % % and labour costs % of sales cost and tax rate £m 35.2% 5.2% 90.2% 35.7% 30% 4.7% 86.8% 85.4% 26% 33.7% 23% 0.3 0.2 0.3 3.3% 18.8% 19.2% 1.9 1.9 18.5% 1.6 H1 2019/20 H2 2019/20 H1 2020/21 H1 2019/20 H2 2019/20 H1 2020/
Slide 13: Balance sheet and cash flow
Balance sheet and cash flow ROCE(1) Cash flow from operations Net debt Capital expenditure % before exceptional items £m/cover x times and depreciation £m £m 47.1 121.7 13.4 117.6 10.1 10.3 10.5 10.3 101.5 19.3% 9.1 15.6% 13.2% 25.3 2.8 2.1 2.2 17.8 14.2 0.4 H1 2019/20 H2 2019/20 H1 2020/21 2018/19
Slide 14: Other financials
Other financials Exceptional items Payments to shareholders Group pension liability £m pence £m 31.8 31.5 32.6 2.9 2.8 11.1 1.8 0.80 0.81 0.81 5.2 5.0 3.0 [•] 1.4 1.5 1.5 1.1 2.4 2.4 0.0 H1 2019/20 FY 2020 H1 2020/21 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 H1 2019/20 FY 2020 H1 2020/21 Operating Int
Slide 15: Costs update
Costs update Group price index Transport costs as % of sales 110 105 100 8.2% 7.8% 8.1% 95 90 Jun 2018 Dec 2018 Jun 2019 Dec 2019 Jun 2020 Dec 2020 FY 2019 FY 2020 H1 2020/21 Feedstock index • Slight softening of certain input pricing continued 250 through first four months • Some feedstocks increas
Slide 16: Key activities and actions
Key activities and actions Chris Smith Chief Executive Officer 15 McBride plc Results Presentation: February 2021
Slide 17: Product sustainability
Product sustainability The first major commitment under our new ESG ambition • Our 2025 product plans will deliver initiatives linked to reducing the environmental impacts of the >50% PCR products we supply content in • We endeavour to ensure that every new product plastic bottles we develop will de
Slide 18: Key activities and actions
Key activities and actions Good progress, despite challenging backdrop Barrow • Production transfers to France and Luxembourg completed • Plant closed in October 2020 • Site clearance in progress Asia Pacific expansion • New Malaysia factory – two month delay due to Covid-19 • Fully operational Apri
Slide 19: Key activities and actions (continued)
Key activities and actions (continued) Aerosols • Sanitiser ranges – new product formats • Additional filling line installed • H1 sales growth 15% M&A • Three of the four liquids production lines acquired from liquidated competitor installed Category investments • Auto dishwash format capability • L
Slide 20: Outlook
Outlook 19 McBride plc Results Presentation: February 2021
Slide 21: Full year outlook unchanged
Full year outlook unchanged • Short-term order level variability • Compass organisation in place, business operating with new divisional • As anticipated, rising input cost pressure management teams • Medium-term category performance linked • Continued vigilance around operational to Covid-19 impact
Slide 22: Q&A
Q&A 21 McBride plc Results Presentation: February 2021
Slide 23: Appendices
Appendices 1. Income statement 2. Segmental reporting 3. Exceptional items 4. Balance sheet 5. Cash flow 6. Use of cash 7. Funding headroom 22 McBride plc Results Presentation: February 2021
Slide 24: Appendix 1: income statement
Appendix 1: income statement Constant currency(1) H1 2020/21 H1 2019/20 H1 2019/20 Continuing operations £m £m y/y £m y/y Revenue 362.9 350.4 3.6% 356.7 1.7% Gross profit 129.7 118.0 9.9% 120.1 8.0% Gross margin 35.7% 33.7% 2.0 ppt 33.7% 2.0 ppt Distribution costs (29.7) (28.7) 3.5% (29.2) 1.7% Admi
Slide 25: Appendix 2: segmental reporting
Appendix 2: segmental reporting Constant currency H1 2020/21 H1 2019/20 H1 2019/20 Revenue £m £m y/y £m y/y UK 74.1 82.3 (10.0%) 82.3 (10.0%) France 59.6 59.4 0.3% 61.0 (2.3%) North 63.2 52.7 19.9% 54.2 16.6% East 82.9 82.7 0.2% 84.6 (2.0%) South 50.9 45.2 12.6% 46.4 9.7% Household Europe 330.7 322.
Slide 26: Appendix 3: exceptional items
Appendix 3: exceptional items H1 2020/21 H1 2019/20 £m £m UK Aerosols closure 0.4 0.1 Factory footprint review 0.1 2.0 Review of strategy, organisation and operations 1.7 — Total continuing operations 2.2 2.1 Sale of PC Liquids business 0.2 0.3 Discontinued 0.2 0.3 Group 2.4 2.4 25 McBride plc Resul
Slide 27: Appendix 4: balance sheet
Appendix 4: balance sheet 31 Dec 30 Jun 31 Dec 2020 2020 2019 £m £m y/y £m y/y Goodwill and other intangible assets 27.9 28.4 (1.8%) 29.1 (4.1%) Property, plant and equipment 135.9 134.7 0.9% 128.1 6.1% Right-of-use assets 10.7 7.3 46.6% 6.7 59.7% Other non-current assets 14.5 13.8 5.1% 12.5 16.0% W
Slide 28: Appendix 5: cash flow
Appendix 5: cash flow H1 2020/21 H1 2019/20 £m £m y/y Adjusted operating profit 19.0 11.6 63.8% Depreciation 8.4 8.6 (2.3%) Depreciation right-of-use assets 1.9 1.7 11.8% Share-based payments 0.3 0.2 50.0% Additional cash funding on pension scheme (2.0) (2.0) 0.0% Impairment of fixed assets 0.1 — n/
Slide 29: Appendix 6: use of cash and reconciliation of net debt
Appendix 6: use of cash and reconciliation of net debt 60 (11.7) 50 1.2 Payment to Foreign (1.7) shareholders exchange Non-cash (5.6) 40 (1.5) Purchase of items own shares (3.7) Taxation (1.6) Financing cost £m 0.8 Other items (5.0) Exceptionals Movement 30 0.2 (16.1) in net debt Proceeds from sale
Slide 30: Appendix 7: funding headroom
Appendix 7: funding headroom Committed Facility Drawn headroom £m £m £m Committed facilities: – revolving facilities (June 2022) 157.3 (73.4) 83.9 – invoice discounting facility 50.2 (50.2) — – other loans — — — – lease liabilities 11.7 (11.7) — Total committed facilities 219.2 (135.3) 83.9 Uncommit