A.g. Barr P.l.c. · LSE:BAG
A.g. Barr P.l.c — H1 2024/25 Earnings Presentation
21 slides from A.g. Barr P.l.c's earnings presentation, September 2024
Slide 1: Interim Results
INTERIM RESULTS 26 weeks ended 27 July 2024 1
Slide 2: Agenda
Agenda ● Welcome & introductions ● Business update ● Financial review ● Outlook ● Questions 2
Slide 3: Business Update
BUSINESS UPDATE Euan Sutherland
Slide 4: H1 Highlights
H1 Highlights FINANCIAL BRAND OPERATIONS Revenue £221.3m +5.2% Soft Drinks Revenue +7.0% Boost & Rio in-sourcing Op % (adj) 13.0% +50bps Strong double digit NEW small PET line in revenue growth Cumbernauld PBT (adj) £29.3m +8.5% Stand-out Business change projects Net Cash £43.7m (£3.6m) Euros campai
Slide 5: Market performance
Market performance SOFT DRINKS COCKTAILS OAT MILK UK Soft Drinks Value +2.0% RTD Alcohol Value +2.7% Plant Based Milk Value (0.6%) UK Soft Drinks Volume (0.4%) RTD Cocktails Value +9.1% Oat Milk Value +5.4% OFCs Value (1.3%) On-Trade Cocktails Value (1.3%) OFCs Volume (5.6%) # of Outlets Stocking Co
Slide 6: H1 brand highlights
H1 brand highlights IRN-BRU SCORES AT THE EUROs ● H1: Successful Euros marketing campaign and Text limited editions NPD ● Distribution gains in England: 2.5% YoY increase in stores contributing to retail sales growing c.5% ● Future growth drivers: Significant distribution headroom opportunity in Engl
Slide 7: H1 brand highlights
H1 brand highlights “There’s a BOOST for that!” Masterbrand campaign ● H1: Retail sales growth ahead of the soft drinks market through ATL advertising and distribution ● Margin / Profit improvement: Pricing & pack changes + in-sourcing production ● Future growth drivers: Distribution opportunities th
Slide 8: Operating margin rebuild
Operating margin rebuild 50 bps improvement YoY = margin rebuild plan on track Chart shows Operating Margin (adjusted) 8
Slide 9: Business change programme
Business change programme Good progress with strategic projects to improve efficiency and accelerate growth H1 - COMPLETED H2 - ON TRACK SOFT DRINKS ROUTE TO MARKET BOOST INTEGRATION ● Closure of Barr Direct completed June 24 ● In-sourcing of Boost and Rio production programme progressing 2024-27 ●
Slide 10: Manufacturing investment - 24/25
Manufacturing investment - 24/25 Investing in long-term capability & capacity to improve margin and customer service CUMBERNAULD MILTON KEYNES H1: New small format PET line installed as part H1: Further in-sourcing of Boost & Rio cans with of manufacturing line refresh programme both brands to be co
Slide 11: Financial Review
FINANCIAL REVIEW Stuart Lorimer
Slide 12: Financial scorecard
Financial scorecard H1 24/25 H1 23/24 Movement Volumes - Cases (m) 36.0 34.9 3.2% ⬤ Revenue - £m 221.3 210.4 5.2% ⬤ Gross Margin % 40.3% 37.7% 260 bps ⬤ Operating Margin % (adjusted) 13.0% 12.5% 50 bps ⬤ Profit Before Tax - £m (adjusted) 29.3 27.0 8.5% ⬤ Profit Before Tax - £m 24.9 27.8 (10.4%) ⬤ Divi
Slide 13: Profit (PBT) bridge
£m H1 23/24 H1 24/25 Profit (PBT) bridge PBT 27.8 24.9 Adjusting Items (0.8) 4.4 PBT (Adjusted) 27.0 29.3 PBT (Adjusted) +£2.3m (8.5%) 13 13
Slide 14: Gross margin
Gross margin YoY Gross Margin: Cost Base Profile: Energy Energy 3rd Party Other inc. Manufacturing Marketing Other inc. Marketing Employee Employee Raw Costs Costs Materials ● Gross Margin +2.6pp YoY driven by a combination of price ahead of cogs and synergy benefits more than offsetting adverse sales
Slide 15: Operating costs
Operating costs Distribution People Operating Costs Marketing +£7.5m Services & Other H1 23/24 People Marketing Services & Distribution H1 24/25 Other ● Operating costs increase driven by investment in people and marketing ● Salary inflation remains in both own workforce and indirectly through servic
Slide 16: Cashflow & cash allocation
Cashflow & cash allocation Strong cash generation from operations utilised in line with capital allocation principles £19.2m (£29.1m) Cash generated from operations Cash used in investing and financing 16
Slide 17: Outlook
OUTLOOK Euan Sutherland
Slide 18: 2024/25 Full year outlook
2024/25 Full year outlook GUIDANCE UNCHANGED - GROWTH AHEAD OF THE MARKET Revenue Mid single digit revenue growth Margins c.13% - margin rebuild programme on track for 14-15% in 25/26 Adjusting Items c.£5m of one-off costs related to business change projects - £4m cash Capex c.£20m Dividend Progress
Slide 19: Strategy update
Strategy update ● We are a business with strong fundamentals and an ambitious vision for growth ● Our strategy continues to be founded on a strong consumer base, consistent brand investment, brilliant commercial execution and integrated manufacturing ● Our aim is to consistently deliver a “5 / 15 /
Slide 20: Appendix
APPENDIX
Slide 21: Appendix - Adjusting items
Appendix - Adjusting items H1 £m FY Expected £m Cash People costs (2.9) (3.0) Asset write down & Non-Cash (1.5) (2.0) technology costs Total (4.4) (5.0) The costs above relate to the business change projects involving the closure of the Barr Direct operation and the integration of the Boost business