Trellidor Holdings Ltd. · JSE:TRL
Trellidor — FY2023 Earnings Presentation
25 slides from Trellidor's earnings presentation, Sep 28, 2023
Slide 1: Final Results Presentation
Trellidor Holdings Limited 30 June 2023 Final Results Presentation 28 September 2023 | 10:00 | Hosted by PSG Capital WELCOME We will begin shortly holdings.trellidor.co.za
Slide 2: Final Results for the Year Ended 30 June 2023
TRELLIDOR HOLDINGS LIMITED FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2023
Slide 3: Salient Points
SALIENT POINTS R502 million Revenue for the year (2022: R513 million) TERRY DENNISON GROUP CEO 38% Gross Profit Margin (2022: 38%) for the year 4.2 cents Headline earnings per (2022: 0.4 cents) share for the year Cash from operations R39 million for the year (2022: R39 million) Excluding the Labour
Slide 4: Strategic Objectives for F23 and Progress Made
STRATEGIC OBJECTIVES FOR F23 AND PROGRESS MADE Focus on rebuilding franchise selling capacity • Sales consultants are been actively recruited in main centres with additional heads being added in Cape Town and Johannesburg during F23. TERRY DENNISON • Trellidor has completed its initial Sales Interns
Slide 5: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES Recruitment of additional selling resources in Trellidor UK • The UK operation has been focused on expanding its customer base, both commercially and in the residential sector. TERRY DENNISON • Listing as a preferred supplier has been achieved with two new retail cha
Slide 6: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES Rebuilding the fundamentals of the Taylor business • The new management structure was fully populated during F23 H1 and the results through F23 are very encouraging. TERRY DENNISON • Despite softer revenue, gross profit margins have improved by 3.9% to 28.9% (F22: GR
Slide 7: Progress on Strategic Objectives
PROGRESS ON STRATEGIC OBJECTIVES Introducing new products focusing on expanding our product offering into the commercial property space in South Africa • The first sectional door product, Coroview, was launched during F23. This specific product TERRY DENNISON is targeted at the automotive and emerge
Slide 8: Prospects
PROSPECTS • Sales in July and August are marginally ahead of prior year, although demand remains subdued locally. • Trellidor’s UK business has been awarded a significant contract to manufacture security TERRY DENNISON GROUP CEO products through to Q3 F24 and has started supplying against orders rec
Slide 9: Prospects
PROSPECTS • Except for Corosteel, no new products are anticipated to be launched through F24 and focus will be on bedding down the products recently introduced. • The Trellidor owned and managed branches in three of the major cities in South Africa TERRY DENNISON GROUP CEO continue to show positive
Slide 10: Group Financial Performance
GROUP FINANCIAL PERFORMANCE
Slide 11: Sales Analysis – Group Contribution
SALES ANALYSIS – GROUP CONTRIBUTION Group revenue has decreased by 2.1% • Trellidor is up 0.9% driven mainly by recovery in the Rest of Africa. • Taylor is down 9.6% as result of softer sales in both the Western Cape and Gauteng. • NMC has increased 3.4% on the back of increased sales in Cape Town a
Slide 12: Sales Analysis – Geographical Presence
SALES ANALYSIS – GEOGRAPHICAL PRESENCE Trellidor revenue has increased 0.9%: • A key driver in the growth has been the Rest of Africa whose contribution increased from 14% to 15% with sales up 32% from F22. • Volume through the RSA franchises in the major cities has improved because of the increased
Slide 13: Sales Analysis – Product Type
SALES ANALYSIS – PRODUCT TYPE Trellidor’s Traditional product has shown growth: • The contribution of the Traditional Trellidor product set has increased 9% vs F22. • Rollerstyle’s contribution has declined from 13% to 7% in F23 as result of subdued demand in the UK which is expected to improve thro
Slide 14: Trading Margin – Cost % of Net Sales
TRADING MARGIN – COST % OF NET SALES • The Group’s GP% has remained flat at 38% vs F22 • Improvement has been across the business units: • Trellidor’s material consumption has improved to 32.1% of Net Sales from F22, but are still behind pre-Covid levels; DAMIAN JUDGE • Taylor has improved its mater
Slide 15: EBITDA
EBITDA • The Group’s EBITDA has decreased to R41.5m (F22: R61.4m excluding the Labour Appeal Court provision). • Overheads have increased 10% year-on-year which include: − Inflationary increases; DAMIAN JUDGE GROUP CFO − The addition of the Hillcrest and Southern Suburbs franchises during the year;
Slide 16: Group Financial Performance
GROUP FINANCIAL PERFORMANCE HY 23 vs FY 23 vs 5 YR R’m HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 22 FY 22 CAGR Revenue 274.8 421.5 281.6 518.4 283.5 513.2 273.3 502.3 -4% -2% -1% DAMIAN JUDGE Gross profit 122.5 175.5 125.6 219.4 113.7 197.2 119.5 193.4 5% -2% 2% GROUP CFO EB
Slide 17: Earnings Per Share
EARNINGS PER SHARE R’m HY 23 vs HY FY 23 vs HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 22 FY 22 DAMIAN JUDGE GROUP CFO Profit attributable to ordinary shareholders 26.3 -21.3 30.4 39.8 24.1 0.4 24.3 3.5 1% 732% Adjusted for: Profit on disposal of property, plant and equipment 0.
Slide 18: Covenants
COVENANTS • As at 30 June 2023 Group’s debt/EBITDA ratio of 5.1x (excluding IFRS 16) breached the required covenant of 2.0x • Total senior debt service cover of 0.8 breached the covenant of 1.3. DAMIAN JUDGE • Detailed performance and operating plans for the next 12 to 24 months have been GROUP CFO
Slide 19: Group Financial Position
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Slide 20: Group Balance Sheet
GROUP BALANCE SHEET • Debt/Equity ratio of 70% represents an increase from F22 at 58%. • Key driver for the increase is the debt raised to settle the Labour Appeal Court judgement. DAMIAN JUDGE GROUP CFO • Interest cover ratio of 2.2x (F22: 7.7x excluding the Labour Appeal Court provision) has decre
Slide 21: Group Net Working Capital
GROUP NET WORKING CAPITAL • Investment in inventory has increased from F22 by R6.0m although this has decreased R7.7m from F23 H1. • Steel and Aluminium on average are still 69% and 36% more expensive then pre-Covid DAMIAN JUDGE levels and these increases are now embedded in our stock holding. GROUP
Slide 22: Group Summarised Cash Flow
GROUP SUMMARISED CASH FLOW • Cash from operating activities have improved 9% from F22 after adjusting for the Labour Appeal Court Provision. • Free Cash Flow has improved 4% to R21.4m. DAMIAN JUDGE GROUP CFO • Improvement driven by reduced investment in net working capital in F23 compared to F22. •
Slide 23: Capital Allocation
CAPITAL ALLOCATION • Debt Servicing − Paydown of interest-bearing term liabilities of R28.0m including interest (F22: R21.2m). − Debt reduction key focus area for management during F24 and F25. DAMIAN JUDGE • CAPEX GROUP CFO − R17.1m which includes Cape Town branch showroom and additional equipment
Slide 24: Group Summarised Balance Sheet
GROUP SUMMARISED BALANCE SHEET R’m HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 Non current assets Property, plant and equipment 57.2 56.8 58.2 57.6 60.5 59.9 63.3 69.0 RoU Assets 21.0 19.6 20.0 15.4 47.1 42.2 40.0 40.6 Goodwill and other intangibles 111.7 82.7 89.6 88.5 94.2 99.4
Slide 25: Thank You
TERRY DENNISON DAMIAN JUDGE GROUP CEO GROUP CFO THANK YOU holdings.trellidor.co.za