Brait Plc · JSE:BAT
Brait — Iceland Topco — FY2017 Earnings Presentation
17 slides from Brait's earnings presentation, Jun 5, 2017
Slide 1: Fiscal Year 2017 Audited Results
FISCAL YEAR 2017 AUDITED RESULTS 52 WEEKS ENDED 24 MARCH 2017 ICELAND TOPCO LTD CONSOLIDATED ACCOUNTS 5 JUNE 2017
Slide 2: Financial Review
Financial Review
Slide 3: Key Highlights: The Market
Key Highlights The Market • The IGD recorded like for like sales decline for the market of (0.8%) for the 52 weeks ending 24 March 2017. • Food prices rose by 1.7% in the year to March 2017 (ONS: Consumer Price Inflation March 2017). • Tesco, Asda and Sainsbury’s continue to lose market share (Kanta
Slide 4: Key Highlights: Iceland
Key Highlights Iceland Full year results based on the audited financial statements for the year ended 24 March 2017 • Turnover up 6.9% year on year in the fourth quarter with full year turnover up 4.4%. • Fourth quarter LFL % of 4.9%, a 1.1% improvement on the third quarter performance of 3.8%. • Fu
Slide 5: Key Highlights: Iceland
Key Highlights Iceland • Fourth quarter Group EBITDA of £46.6m, £3.0m up on last year. Full Year EBITDA of £160.0m, £9.5m up year on year. • Fourth quarter Group EBITDA % of Turnover was 7.1%, in line with last year. Full Year EBITDA % of Turnover of 5.7%, 0.1% up year on year. • Full year Cash from
Slide 6: Fourth Quarter Results versus Third Quarter Outlook
Fourth Quarter Results versus Third Quarter Outlook • Current trading: Like for like sales continue to be positive. • 3 net new stores will open in FY17 quarter 4 (4 Food Warehouse, (1) Iceland closure). • Our strategy focusing on frozen innovation continues, with a trading platform that supports of
Slide 7: Fourth Quarter Sales Performance (£m)
Fourth Quarter Sales Performance (£m) FY17 Q4 FY16 Q4 Var Var% Base Estate (LFL) 629.3 600.1 29.2 4.9% New Stores 18.6 7.0 11.6 1.9% Other Group Co’s 7.1 5.5 1.6 0.3% Turnover 655.0 612.6 42.4 6.9% 7
Slide 8: Full Year Sales Performance (£m)
Full Year Sales Performance (£m) FY17 FY16 Var Var% Base Estate (LFL) 2,677.8 2,626.0 51.8 2.0% New Stores 92.7 32.3 60.4 2.2% Other Group Co’s 21.7 16.4 5.3 0.2% Turnover 2,792.2 2,674.7 117.5 4.4% 8
Slide 9: Like for Like Sales by Quarter
Like for Like Sales by Quarter 7.0% 4.9% 5.0% 3.8% 3.0% 0.8% 1.0% (1.0%) (3.0%) (2.0%) (2.5%) (2.4%) (2.9%) (3.1%) (5.0%) FY16 FY16 FY16 FY16 FY17 FY17 FY17 FY17 Q1Q1 FY16 FY16 Q2Q2 FY16 Q3Q3 FY16 Q4Q4 FY17 Q1Q1 FY17 Q2Q2 FY17 Q3Q3 FY17 Q4Q4 9 FY16 FY17
Slide 10: Fourth Quarter Profit & Loss (£m)
Fourth Quarter Profit & Loss (£m) • Gross Profit up £0.5m in cash terms year on year, although Gross Profit margin is down (0.6%). The FY17 Q4 FY16 Q4 Var Gross Profit from the increase in sales was offset by inflationary costs (predominantly wages). Underlying Group Turnover 655.0 612.6 42.4 tradin
Slide 11: Full Year Profit & Loss (£m)
Full Year Profit & Loss (£m) FY17 FY16 Var • Gross profit up £4.5m in cash terms year on year. This was primarily driven by sales outperformance, although Group Turnover 2,792.2 2,674.7 117.5 margin % has decreased due to a combination of Cost of Sales (2,577.1) (2,464.1) (113.0) inflationary costs
Slide 12: Fourth Quarter Cash Flow (£m)
Fourth Quarter Cash Flow (£m) • Fourth quarter movement in working capital of (£25.4m), FY17 Q4 FY16 Q4 Var an improvement of £6.9m year on year driven by an Group EBITDA 46.6 43.6 3.0 increase in sales and profitability, as well as the timing of Movement in Working Capital (25.4) (32.3) 6.9 supplie
Slide 13: Full Year Cash Flow (£m)
Full Year Cash Flow (£m) FY17 FY16 Var • Full year movement in working capital of £35.1m, up £36.8m year on year, driven by a combination of an Group EBITDA 160.0 150.5 9.5 increase in sales and timing of supplier payments. Movement in Working Capital 35.1 (1.7) 36.8 • Net capital expenditure is sli
Slide 14: Net Debt (£m)
Net Debt (£m) FY17 FY16 Var Cash at Bank and in hand 193.2 164.9 28.3 Debt (847.8) (885.6) 37.8 Finance leases (20.5) (10.4) (10.1) Net Debt (675.1) (731.1) 56.0 Net Leverage 4.2x 4.9x 0.7x 14
Slide 15: Bond Buybacks (Company and related parties)
Bond Buybacks (Company and related parties) Quarter Date Tranche Value (£m) FY17 Q2 Jul ’16 SSN 7 Yr 6.25% 9.0 FY17 Q2 Aug ‘16 SSN 7 Yr 6.25% 24.8 FY17 Q2 Sep ‘16 SSN 7 Yr 6.25% 5.0 Gross value 38.8 In addition, MC Walker purchased £4.9m nominal value of the FRN 6 Yr 4.25% plus LIBOR in FY18 Q1. We
Slide 16: FY18 Capital Expenditure
FY18 Capital Expenditure • New Stores • Refits \ estate maintenance • In-store Wi-Fi • Pick centre (our second) • Website development 16
Slide 17: Outlook
Outlook • Current trading: Like for like sales continue to be positive. • Net 8 stores will open in FY18 quarter 1 (5 Food Warehouse, 1 Iceland, 3 Ireland, (1) Iceland closure). • Our strategy focusing on frozen innovation continues, with a trading platform that supports offering our customers great