Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — H1 2021 Earnings Presentation
21 slides from Elixinol Wellness's earnings presentation, Aug 17, 2021
Slide 1: H1 FY21 Results Presentation
ASX:EXL | OTCQB:ELLXF H1 FY21 Results Presentation August 2021 1
Slide 2: Disclaimer
This presentation contains summary information about Elixinol Wellness Limited (Elixinol Wellness) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with Elixinol Wellness’ other periodic and continuous d
Slide 3: Table of Contents
• Agenda • Executive Summary • H1 Financial Highlights • H1 Operational Highlights • H1 Elixinol Highlights • H1 Hemp Foods Australia Highlights • H1 Results Summary • Segment Performance • Financial Summary • Cash Flow • Financial Position • Strategy & Outlook • Global Consumer trends • Regulatory
Slide 4: FY21 Executive Summary
FY21 Executive US operations continued its restructuring program reducing Summary operating expenses by $5.4m to $5.7m (H1 FY20: $11.1m). Critical new leadership capability is driving turnaround agenda anchored in e-commerce growth, a push towards national retail and new Continued business optimisat
Slide 5: Positive outlook as US market recovers, new product launches and e-commerce drive growth
Positive outlook as US market recovers, new product launches and e-commerce drive growth and business transformation continues With the US CBD market stabilising, store traffic improving and the trend for CBD and plant-based products continuing, the Company currently expects an improving US trading
Slide 6: Financial Highlights
Financial Highlights Elixinol is in the best EBITDA and cash position it has been over recent periods, on track for a strong turnaround. Adjusted EBITDA by Half Revenue by Channel H1 FY19 A$ million, 31 December year end H2 FY19 H1 FY20 H2 FY20 H1 FY21 44% 10 A$ million, half year ending 30 June 7.9
Slide 7: Operational Highlights
Operational Large scale business transformation largely All business units showed significantly improved EBITDA Highlights completed and further optimisation initiatives being implemented. contributing to an overall cost reduction of $7.7m vs H1 FY20 Despite a highly challenging business and regulat
Slide 8: Elixinol Brand Highlights
Elixinol Brand Highlights Through H1 Elixinol invested further in positioning its brand towards the natural nutraceutical category. A new, high performing range of products was launched where our CBD is blended with other actives for improved efficacy and the ability to make health claims. Expanded
Slide 9: Hemp Foods Australia Brand Highlights
Hemp Foods Australia Brand Highlights We optimised our portfolio, deleting low margin grocery products and adding new core products. Together with strong growth in e-commerce, these changes drove profitability improvements for HFA. E-commerce +54%* New Core Range Portfolio Optimisation Revenues from
Slide 10: Global E-commerce Highlights Q2 FY21
Global E-commerce Highlights Q2 FY21 40% of revenue was derived from e-commerce in H1 FY21. Continued efforts to move toward a digitally native business have yielded strong progress, with more upside ahead as we focus on attracting new consumers and improving user experience. US Digital EU Digital H
Slide 11: FY21 Segment Performance
FY21 Segment Performance Significant EBITDA improvement across all business units. A$’m Americas Europe Australia Corporate H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 Revenue 2.6 4.8 0.3 1.0 1.9 2.0 Gross profit 1.8 2.1 0.1 0.3 0.6 0.6 GP% 72% 44% 24% 29% 31% 27% Operating expen
Slide 12: FY21 Financial Summary
FY21 Financial Summary Focus on higher margin branded products and e-commerce, and tight cost controls driving significant profit improvement. A$’m H1 FY21 H1 FY20 Revenue 4.8 7.9 Cost of goods sold (2.3) (4.9) Gross profit 2.5 3.0 GP% 52% 37% Operating expenses (10.0) (17.7) Non-operating (expenses
Slide 13: FY21 Cash Flow
FY21 Cash Flow 47% reduction in cash used in operations. • Simplified operating model has driven significant cost savings: • 47% reduction in cash used operating activities vs H1 FY20 • 18% reduction in normalised operating cash outflows vs H2 FY20 A$’m H1 FY21 H1 FY20 • Based on Q2 FY21, more than
Slide 14: FY21 Financial Position
FY21 Financial Position Well funded with $19m cash and virtually no debt. A$’m 30 Jun 2021 31 Dec 2020 Current assets Cash and cash equivalents 19.0 27.7 Trade & other receivables 1.5 1.2 Inventories 2.0 4.7 Other 1.7 1.6 Total current assets 24.2 35.4 Non-current assets Property, plant and equipmen
Slide 15: Outlook & Strategy
Outlook & Strategy 15
Slide 16: Elixinol Wellness is well positioned to benefit from the wellness macro trend
Elixinol Wellness is well positioned to benefit from the wellness macro trend. Today’s consumer views wellness across six dimensions. “79% of the consumers say they believe that wellness is important, and 42% consider it a top priority. Consumers in every researched market reported a substantial inc
Slide 17: Global Regulatory Outlook & Market Dynamics
Global Regulatory Outlook & Market Dynamics Sustained growth outlook as consumers are adopting CBD at a rapid rate but legislation is progressing only slowly. +28% CAGR US regulatory framework progressing slowly: Brightfield US (US$ 'm) • Market remains fragmented and highly competitive, but cannabi
Slide 18: Global Strategy & Initiatives
Global Strategy & Initiatives Vision: To create a healthier everyday life through the power of hemp & plant-based products Regional Priorities: As we re-build profitability, we will focus our investments on our most established markets in the US and Australia where we have a strong competitive posit
Slide 19: New Product Development Initiatives
New Product Development Initiatives Extensive market research in the US, AU and UK has informed a 12-month new product development pipeline grounded in the latest consumer trends and scientific research. • New UK specific range • Pet wellness • Zero THC consumer • Beauty wellness • Mental wellness E
Slide 20: Summary
Business transformation has improved and will further strengthen fundamentals Well positioned in global Improved outlook consumer wellness trend due to a better economic for natural and plant-based food environment and rejuvenated and nutraceuticals regional leadership Summary E-commerce shows New p
Slide 21: Thank you
Thank you QO ElixinolWellness Natural wellness for people and the planet