Venture Life Group Plc · LSE:VLG
Venture Life — FY2023 Earnings Presentation
16 slides from Venture Life's earnings presentation, April 2023
Slide 1: The partner of choice for self-care products
The partner [ of choice for self-care products Venture Life Group plc [ Interim Results 2021 and update on Acquisitions FY23 Results Presentation April 2023 September 2021
Slide 2: Disclaimer
This document (the "Presentation") is being provided to a limited number of parties who have previously expressed an interest in acquiring an interest (the "Investor Interest") in Venture Life Group plc (the "Company"). If you are in any doubt about the investment to which the Presentation relates,
Slide 3: FY23 highlights
Strong growth with improved profitability FY23 highlights Group revenue Adjusted EPS Free cash flow +16.9% 5.20p £4.8m (or +5.4% LFL) (2022: 4.30p) (2022: £2.8m) Adjusted EBITDA 10yr revenue CAGR Net leverage +29.0% 24% 1.30x (or +7.5% LFL) (2022: 1.65x) 3
Slide 4: Commercial highlights
New product development widens distribution and sales opportunities Commercial highlights 6% New Product Development new products contribution to group revenue 18 new SKUs 9% Thrush Intimate HerFlora Intimate Cream Daily Foam Supplement Daily Wipes increase in UK distribution points (excluding Denty
Slide 5: Performance by therapy areas
5 out of 7 therapy areas outperformed Group revenue growth Performance by therapy areas Women's Energy intimate Customer Group management health ENT Oral care Oncology Footcare Dermatology VLG brands brands revenue 40.8% 59.2% Customer Brands VLG Brands FY23 15.1% 10.7% 6.5% 3.9% 25.4% 6.5% 9.3% 0.6
Slide 6: Key VLG brands driving growth
Identifying pivotal growth drivers Key VLG brands driving growth We are cultivating “power brands” through marketing, NPD and broadening distribution points as primary revenue drivers 0 5 10 15 20 25 30 Dermatology £ mln Footcare 2022 4.7% 6.8% 10.1% 16.4% 17.9% 21.2% 22.8% Oncology Oral care ENT Wo
Slide 7: Therapy highlights: Energy Management
Energy Management (+15.1% LFL) Therapy highlights Energy Management +52% 4 online revenue new SKUs • Lift Fast Acting Glucose Shots +100%, Chews +21% in online sales • Launch of Lift e-commerce website in Sept 2023 • Post period, gaining market share due to new product launch • New launch in Sainsbu
Slide 8: Therapy highlights (continued): Women's Health
Women’s Health (+10.7% LFL) Therapy highlights (continued) Women’s Health +17% 4 online revenue new products “UK’s No.1 BV treatment” • UK distribution points +16% vs 2022 • New product Thrush cream quickly became growth driver - Superdrug doubled distributing store numbers • Comprehensive marketing
Slide 9: Therapy highlights (continued): ENT
ENT (+6.5% LFL) Therapy highlights (continued) ENT £0.2m 1 online revenue new product (1st yr launch) “UK’s No.1 ear wax removal spray” • Earol Olive Spray won the Natural Healthcare category for 2023 MVP Award • New launch in Tesco in August 2023 (+20% of its UK distribution points) • Product manuf
Slide 10: Private Label
New revenue driver with strategic considerations Private Label Products developed, manufactured, and packaged specifically for retailers, who then distribute them No7 Rosacea through their own retail channels. Treatment Serum Launched in 2023 New revenue driver £279k in net revenue in 4 months Enhan
Slide 11: Corporate development
Strive for sustainable growth both commercially and environmentally Corporate development Operational improvement ESG practices at 2 manufacturing sites Executed carbon footprint study (2020-2023) Expansion of marketing team with a focus on brand building Entity and group structure rationalization •
Slide 12: Financial highlights
Continuing upward trajectory despite a challenging environment Financial highlights Revenue £m Gross Profit £m Adj. EBITDA1 £m/% 12 22.5% 25.0% 20.1% 20.4% 10 20.0% 8 14.8% 15.1% 15.0% 20.2 6 11.6 51.4 17.7 10.0% 44.0 4 9.0 13.0 6.6 32.8 10.7 26.7 8.0 2 4.0 5.0% 20.2 3.0 0 0.0% 2019 2020 2021 2022 2
Slide 13: Margin performance
Clear trend of EBITDA margin progression Margin performance Margin % Consistent margin improvement factors Impact description Segment at operating level Online sales Dilutive impact of D2C selling plus change of accounting impact VLG brands growth VLG and One-off impact 40.1% 40.2% Inventory One-off
Slide 14: Cash and net debt performance
Deleveraging progress on track thanks to strong cash position Cash and net debt performance Cash Generated from Operations Active leverage reduction resulting from strong cash generation: 12.0 85% 100% 10.0 69% 80% 8.0 60% 6.0 Cash generated from operations improved 59% to £9.8m. 30% 9.8 40% 4.0 6.2
Slide 15: Post-period & Outlook
More to expect in 2024 Post-period & Outlook New revenue stream – private label NPD pipeline tapping into new addressable markets Margin improvement measures including higher sales price Continuation of internalizing manufacturing New distribution partnerships in discussion with top UK & US retail c
Slide 16: Q&A
Q&A