Nichols Plc · LSE:NICL
Nichols — H1 2023 Earnings Presentation
28 slides from Nichols's earnings presentation, July 2023
Slide 1: Half Year 2023
HALF YEAR 2023 PRESENTED JULY 2023
Slide 2: Half Year Results Presentation July 2023
HALF YEAR RESULTS PRESENTATION JULY 2023 HALF YEAR PRESENTATION v 2
Slide 3: Agenda
H A L F Y E A R R E S U LT S P R E S E N TAT I O N AGENDA JULY 2023 ANDREW MILNE CHIEF EXECUTIVE OFFICER STRATEGIC & OPERATIONAL REVIEW DAVID TAYLOR & GARY EDEN INTERIM CHIEF GROUP FINANCIAL FINANCIAL OFFICER CONTROLLER FINANCIAL REVIEW AND OUTLOOK ANDREW MILNE CHIEF EXECUTIVE OFFICER LOOKING FORWAR
Slide 4: Half Year 2023 Highlights
HCAI LT FY YP ERAE RS ERNETSAUTLITOS N P R E S E N T A T I O N HALF YEAR 2023 HIGHLIGHTS JULY 2023 • Strong top line growth delivered across the business • Continued accelerated sales momentum across our International business • Strong investment in Vimto continues to deliver long-term brand equity
Slide 5: Update
HALF YEAR RESC U ILTT YS PP RR EE SS EE N N TT A T I O N JULY 2023 v UPDATE 5
Slide 6: UK Soft Drinks Market
HALF YEAR RESU C IL TT YS PP RR EE SS EE N N TT AA TT II O ONN UK SOFT DRINKS MARKET JULY 2023 PERFORMANCE Total ‘take home’ Soft Drinks Value Volume Value £5bn +11% -2.4% Volume 3.4bn litres • A resilient soft drinks market WINNERS • Inflation driving value over volume ENERGY SPORTS COLA • Energy c
Slide 7: Vimto Growing in Still Sub-Categories
HALF YEAR RESU C IL TT YS PP RR EE SS EE N N TT AA TT II O ONN VIMTO GROWING IN STILL SUB-CATEGORIES JULY 2023 SQUASH VALUE: +5.1% +0.7% VOLUME: -8.6% -14.8% • UK Packaged Brand Value £51.4m: Value +0.4%, Volume -13.5% • Value over volume strategy RTDs STILL JUICE • Driving household penetration in
Slide 8: Middle East Region
C LI T YS P R E S E N T A TT II O HALF YEAR RESU O NN MIDDLE EAST REGION JULY 2023 Strong in store Vimto Continued strong availability and celebrated its brand investment visibility of the 100th in ‘Sweet brand Ramadan togetherness’ campaign campaign New innovation Broader range driving delivering c
Slide 9: Africa
H A L F Y E A R R E S UCLI TT SY PP RR EE SS EE NN TT AA TT II O O NN AFRICA JULY 2023 Strong sales Continued delivered accelerated across Ivory organic growth Coast after in core launch with markets new partner Continued New branding investment in driven strong marketing consumer campaigns engageme
Slide 10: UK
H A L F Y E A R R E S UC LI T SY P R E S E N T A T I O N UK JULY 2023 Flavour Launch of Vimto Strong execution in innovation has into Energy store driving been pivotal in category visibility and driving new availability distribution Strong Launch of investment in new SLUSH ‘Find your PUPPiE range di
Slide 11: Out of Home
H A L F Y E A R R E S UC LI TT YS P R E S E N T A T I O N OUT OF HOME JULY 2023 STRATEGIC REVIEW MAKING STRONG PROGRESS: • A simplified business model • Exit all frozen national accounts (except Cinema) • Exit our coffee business • Exit of the in-house central frozen region • Closure of a number of
Slide 12: Operational Change
HA C IL TF Y Y PE RA ER S R ENE ST UA LT TI O S NP R E S E N T A T I O N JULY 2023 OPERATIONAL CHANGE • Enhanced capacity across UK Packaged Business for future growth • Improved efficiency and service due to logistics tender completion • Strong investment in enhancing our purchasing capability with
Slide 13: Our Happier Future ESG 2023 Half Year Update
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N OUR HAPPIER FUTURE ESG 2023 HALF YEAR UPDATE JULY 2023 Employee DRS Scotland & UK Reduction of Wellbeing Forum Scope 1 & 2 Packaging Design for carbon impact Recycling by 20% in UK Paranetball Vimto Zero Cordial ME Partnership with Employee Ma
Slide 14: Review
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N JULY 2023 v REVIEW 14
Slide 15: Revenue
HF A U L FL Y E A R R E S UC LI T YS P R E S E N T A T I O N REVENUE JULY 2023 H1’23 H1’22 Movement Revenue (£m) 85.5 80.2 +6.6% • Strong revenue growth +6.6% £85.5 • Packaged revenues +10.4% • International +24.6% • Double digit growth in all regions • Middle East +17.5% • Africa +26.1% £80.2 • ROW
Slide 16: Adjusted PBT
HF A U L FL Y E A R R E S UC LI T YS P R E S E N T A T I O N ADJUSTED PBT • Adjusted Profit Before Tax Margin 14.4% (H1’22: 14.0%) JULY 2023 • Gross Profit up +£0.8m H1’23 H1’22 Movement Adjusted profit before tax (£m) 12.3 11.3 +9.1% • Gross Margin % -1.7ppt to 41.1% • Excluding inherent dilutive e
Slide 17: Segmental Reporting
HF A U L FL Y E A R R E S UC LI T YS P R E S E N T A T I O N SEGMENTAL REPORTING JULY 2023 Packaged Regions Total Total UK International Packaged Out of Home Central Group H1 2023 £m £m £m £m £m £m • Group Packaged and Out of Home Continuing operations • New segmental reporting for FY23 Revenue 43.1
Slide 18: PBT - Exceptionals
HF A U L FL Y E A R R E S UC LI T YS P R E S E N T A T I O N PBT - EXCEPTIONALS JULY 2023 Adj H1’23 H1’23 Profit before tax (£m) 12.3 11.2 • Total exceptional costs -£1.1m £12.3 • Out of Home Strategic Review -£0.6m £11.2m • Strategic review actions being implemented • Group Systems Review -£0.5m •
Slide 19: Net Assets and Capital Employed
HF A U L FL Y E A R R E S UC LI T YS P R E S E N T A T I O N NET ASSETS AND CAPITAL EMPLOYED JULY 2023 H1’23 FY22 Movement Cash and Cash Equivalents (£m) 56.1 56.3 (0.4%) • EBITDA +£11.6m at 13.5% £56.3 £56.1 • Working capital normalised • Capital investment • Historically OoH weighted, continued fo
Slide 20: Dividend Proposal
HFA CUILLTFLY YYPEERAAERRS R ERN EESTSUAULTLTITO SS NPPRREESSEENNTTAATTI IOONN DIVIDEND PROPOSAL JULY 2023 • Dividend policy remains at broadly 2x cover • Adjusted Earnings Per Share (basic) 25.70p • Interim dividend 12.6p • Record date will be 4 th August 2023 • Payment will be made on 8 th Septemb
Slide 21: Financial Outlook
FHUA C LILLTF YYYEPEARARER SRR EEN ESSTUUALLTTTISO PPRREESSEENNTTAATTI IOONN S N CITY PRESENTATION FINANCIAL OUTLOOK JULY 2023 MARCH 2023 • Firm focus on strategic agenda • Accelerate Packaged division • UK value over volume • International momentum • Marketing to drive brand equity • Implement OoH
Slide 22: Ahead
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N JULY 2023 v AHEAD 22
Slide 23: Strategic Areas of Focus
H A L F Y E A R R E S UCLI TT SY PP RR EE SS EE NN TT AA TT II OO NN STRATEGIC AREAS OF FOCUS JULY 2023 A clear focus to M&A focused on Maximise value in drive accelerated Packaged simplified OoH growth across our business business UK and International Packaged businesses Implement the Deliver Busin
Slide 24: Summary
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N SUMMARY JULY 2023 • Encouraging first half financial performance • Our diverse business model is proving pivotal • A clear strategic plan • Highly profitable and cash generative • Confident in delivering our long-term objectives and profitable
Slide 25: Appendix
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N JULY 2023 v 25
Slide 26: Consolidated Income Statement
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N CONSOLIDATED INCOME STATEMENT JULY 2023 Unaudited Unaudited Audited Half year to Half year to Year ended 30 June 2023 30 June 2022 31 December 2022 £’000 £’000 £’000 Continuing operations Revenue 85,546 80,232 164,926 Cost of sales (50,356) (4
Slide 27: Consolidated Statement of Financial Position
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N CONSOLIDATED STATEMENT OF JULY 2023 FINANCIAL POSITION Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited 30 June 30 June 31 December 30 June 30 June 31 December 30 June 30 June 31 December 2023 2022 2022 2023
Slide 28: Consolidated Cash Flow
H A L F Y E A R R E S UC LI T YS P R E S E N T A T I O N CONSOLIDATED CASH FLOW JULY 2023 Unaudited Unaudited Audited Half year to Half year to Year ended 30 June 2023 30 June 2022 31 December 2022 £’000 £’000 £’000 £’000 £’000 £’000 Cash flows from operating activities Profit for the financial peri