Slide 1: 2023 Full Year Results
2023 FULL YEAR RESULTS 26 SEPTEMBER 2023
Slide 2: Agenda
AGENDA 1 Introduction 2 Financial review 3 Strategic update 4 Summary 5 Q&A 2
Slide 3: Key Messages
KEY MESSAGES BUILDING A HIGHER GROWTH, HIGHER MARGIN, SIMPLER AND MORE SUSTAINABLE BUSINESS 1 2 3 4 5 Third Navigating Progress FY24 priorities Attractive consecutive near-term against the are clear long-term year of LFL external strategy opportunities revenue growth uncertainties Introduction Finan
Slide 4: Financial Review
FINANCIAL REVIEW SARAH POLLARD - CHIEF FINANCIAL OFFICER 4
Slide 5: Summary Financials
SUMMARY FINANCIALS SOLID FINANCIAL PERFORMANCE IN THE CONTEXT OF ONGOING EXTERNAL VOLATILITY AND UNCERTAINTY £m, unless otherwise stated FY23 FY22 10.7% reported revenue growth includes contribution of Childs Farm Revenue 656.3 592.8 and favourable FX LFL revenue growth (%) 6.1% 2.9% Third consecuti
Slide 6: Group Revenue
GROUP REVENUE REVENUE GROWTH LED BY AFRICA AND CHILDS FARM ACQUISITION Price/mix growth of 12.1%. Volume (6.0)% LFL +6.1% 15.1 656.3 10.9 30.4 8.0 General 592.8 (0.9) Childs Farm depreciation grew 12% of Sterling Europe/ FY22 revenue APAC Africa Childs Farm FX and Central1 FY23 revenue Americas Amou
Slide 7: Margin Bridge
MARGIN BRIDGE GROSS MARGIN EXPANSION FUNDING INVESTMENTS 80bps (100)bps New leadership roles, investment in capabilities and LTIP Excluding Childs Farm, margin would 20bps - (10)bps have grown 10bps 11.3% 11.2% Underlying growth more than offsetting adverse Continued Increase in geographic mix inves
Slide 8: Segmental Performance: Europe and the Americas
SEGMENTAL PERFORMANCE: EUROPE AND THE AMERICAS SIGNIFICANTLY IMPROVED TRENDS IN H2 WITH MARGIN IN LINE WITH GUIDANCE Total revenue growth driven primarily £m, unless otherwise stated FY22 H1 23 H2 23 FY23 by Childs Farm Decline in UK Washing & Bathing Revenue 193.0 99.5 106.3 205.8 category of 3%1 L
Slide 9: Europe and the Americas: UK Washing & Bathing Trends
EUROPE AND THE AMERICAS: UK WASHING & BATHING TRENDS FY23 REVENUE DRIVEN BY UNDERLYING CATEGORY TRENDS. Q1 TRENDING POSITIVELY Shower Hand hygiene Bath Bar soap Market Size £0.4bn £0.2bn £0.1bn £0.1bn Largest brands Category FY23 growth Brand Improvement Bath in Category to low single Q1 growth grow
Slide 10: Segmental Performance: APAC
SEGMENTAL PERFORMANCE: APAC STRONG REVENUE AND MARGIN GROWTH £m, unless otherwise stated FY22 H1 23 H2 23 FY23 Very strong revenue growth and share Revenue 173.8 102.2 88.5 190.7 gains in Australia LFL revenue growth 3.0% 7.5% 1.1% 4.4% Indonesia decline due to consumer spending and de-stocking Oper
Slide 11: Segmental Performance: Africa
SEGMENTAL PERFORMANCE: AFRICA FURTHER REVENUE AND PROFIT GROWTH DESPITE MACRO CHALLENGES £m, unless otherwise stated FY22 H1 23 H2 23 FY23 LFL revenue driven by further distribution gains and multiple price Revenue 222.0 133.2 123.1 256.3 increases throughout the year Each of our major brands report
Slide 12: Cash Flow and Net Debt
CASH FLOW AND NET DEBT NET CASH POSITION DRIVEN BY OPERATING PROFIT AND DISPOSALS, PARTLY OFFSET BY ADVERSE FX £m FY22 Net Debt / (Cash) 9.8 69.9 (15.6) 14.4 (29.4) Change 15.5 FY23 Net Debt / (Cash)1 (5.7) of which gross debt 251.7 of which gross cash2 (257.4) £m (23.8) EBITDA 92.4 Adjusting items
Slide 13: FY24 Nigeria Outlook
FY24 NIGERIA OUTLOOK SIGNIFICANT MACRO CHALLENGES, BUT MITIGATING ACTIONS WELL UNDERWAY Underlying challenges Mitigation Consumer spending power significantly reduced Price/mix growth Increased input costs due to FX movements Operational improvements and simplification Challenges in obtaining suffic
Slide 14: FY24 Outlook
FY24 OUTLOOK A FOURTH YEAR OF LFL REVENUE GROWTH, AND STRONG CONSTANT CURRENCY OPERATING PROFIT GROWTH Group Nigeria devaluation implications Continued LFL revenue growth Naira £15m year on year adverse FX impact to operating profit Strong constant currency operating profit Net finance cost driven b
Slide 15: Strategic Update
STRATEGIC UPDATE JONATHAN MYERS - CHIEF EXECUTIVE OFFICER FOR EVERYONE, FOR LIFE, FOR GOOD. 15
Slide 16: Our Strategy in Summary
OUR STRATEGY IN SUMMARY BUILD SERVE REDUCE DEVELOP GROW BRANDS CONSUMERS COMPLEXITY PEOPLE SUSTAINABLY Introduction Financial review Strategic update Summary 16
Slide 17: Serving the Cost-Conscious Consumer
SERVING THE COST-CONSCIOUS CONSUMER CONSUMERS ACROSS OUR PRIORITY MARKETS HAVE BEEN UNDER PRESSURE FROM COST INFLATION UK NIGERIA INDONESIA Inflation rates 6.8% 20.1% 4.4% Steep rise Threefold increase in energy Jump in prices of key food in mortgages costs items and energy and household bills Intro
Slide 18: Serving the Cost-Conscious Consumer (Continued)
SERVING THE COST-CONSCIOUS CONSUMER (CONTINUED) BRINGING BETTER VALUE TO CONSUMERS ACROSS THE VALUE SPECTRUM Leveraging the portfolio and innovation Pack-price architecture across markets • Launch of value • Seeking to brand offering accelerate liquid everyday great prices wash segment • Already the
Slide 19: Reducing Complexity Through Simplifying the Supply Chain
REDUCING COMPLEXITY THROUGH SIMPLIFYING THE SUPPLY CHAIN WE ARE TRANSFORMING OUR SUPPLY CHAIN TO DRIVE INNOVATION, EFFICIENCY AND CAPABILITY Overall transformation UK benefits identified • Closure of in-house fragrances operations Improved efficiency • Outsourced to world-class and quality fragrance
Slide 20: Positioning Nigeria to Drive Future Growth
POSITIONING NIGERIA TO DRIVE FUTURE GROWTH WE ARE CONTINUING TO SIMPLIFY AND STRENGTHEN OUR PRESENCE IN NIGERIA Operational improvements Corporate simplification Total stores covered up by Number of Golden Stores1 Buy-out and de-listing provides strategic flexibility to maximise opportunities and 50
Slide 21: Adjacency Expansion
ADJACENCY EXPANSION EARLY SUCCESS IN MOVING MORNING FRESH IN TO THE AUTO DISHWASH CATEGORY Manual Auto Market size1 A$172M A$354M 6.8% Growth1 2.6% Introduction Financial review Strategic update Summary 21 1 Market size and growth based on Nielsen Grocery Scan MAT to July 2023.
Slide 22: Geographic Expansion: Original Source Launch in Spain
GEOGRAPHIC EXPANSION ORIGINAL SOURCE LAUNCH IN SPAIN Launched in Market size of July 2023 £300m Already in over Marketing focused on 1,700 stores social and Out-of-Home Further distribution plans for later in FY24 Introduction Financial review Strategic update Summary 22
Slide 23: Geographic Expansion: Imperial Leather Launch in Thailand
GEOGRAPHIC EXPANSION IMPERIAL LEATHER SHOWER GEL LAUNCH IN THAILAND Launched in Strong social July 2023 launch with key influencers Market size of £200m Leveraging existing leading position in bar soap Introduction Financial review Strategic update Summary 23
Slide 24: Childs Farm Acquisition
CHILDS FARM ACQUISITION SUCCESSFULLY GROWING CHILDS FARM UNDER OUR OWNERSHIP THROUGH UK AND INTERNATIONAL EXPANSION Recruiting UK mums through innovation, …and good momentum in building brand-building activity and distribution… the international business Childs Farm Baby weekly EPOS data 1. Transfor
Slide 25: Our Scorecard So Far
OUR SCORECARD SO FAR…. BUILDING A HIGHER GROWTH, HIGHER MARGIN, SIMPLER AND MORE SUSTAINABLE BUSINESS BUILD SERVE REDUCE DEVELOP GROW BRANDS CONSUMERS COMPLEXITY PEOPLE SUSTAINABLY Re-launch of Navigated consumer Supply Chain Strengthened Sustainability several brands headwinds transformation team t
Slide 26: We Know There Is More Work To Do
WE KNOW THERE IS MORE WORK TO DO WE ARE FOCUSED ON 4 PRIORITIES OVER THE NEXT 12 MONTHS 1 Further simplifying and strengthening Nigeria 2 Returning the UK to sustainable, profitable growth 3 Driving further expansion from the core 4 Continuing to transform capabilities Introduction Financial review
Slide 27: Long-Term Opportunities
LONG-TERM OPPORTUNITIES LONG-TERM OPPORTUNITIES GIVEN THE ATTRACTIVE MARKET PRESENCE AND STRENGTH OF OUR BRANDS Attractive market presence Brand strength Unique ‘challenger’ position in most of our categories and markets Must Win Brands Portfolio balanced split between developing and developed marke
Slide 28: Key Messages
KEY MESSAGES BUILDING A HIGHER GROWTH, HIGHER MARGIN, SIMPLER AND MORE SUSTAINABLE BUSINESS 1 2 3 4 5 Third Navigating Progress FY24 priorities Attractive consecutive near-term against the are clear long-term year of LFL external strategy opportunities revenue growth uncertainties Introduction Finan
Slide 29: Q&A
Q&A FOR EVERYONE, FOR LIFE, FOR GOOD. 29
Slide 30: Appendix
APPENDIX FOR EVERYONE, FOR LIFE, FOR GOOD. 30
Slide 31: Glossary
GLOSSARY Term Definition Adjusted net debt Cash, short-term deposits and current asset investments, less bank overdrafts and borrowings. Excludes IFRS 16 lease liabilities Adjusted earnings per share Earnings per share from continuing operations adjusted for the impact of adjusting items A B Corp is
Slide 32: Foreign Exchange Analysis
FOREIGN EXCHANGE ANALYSIS £m % FY23 revenue FY22 average FY23 average Revenue impact (£m) GBP 27% 1.00 1.00 - NGN 35% 558 536 8.0 AUD 14% 1.84 1.78 2.7 IDR 11% 19,331 18,174 4.7 USD 7% 1.35 1.20 4.2 Other 6% - - (3.9)1 Total 100% 15.7 Table shows the impact of translating FY22 revenue at FY23 foreig
Slide 33: Impact of Naira Devaluation on FY23 Financials
IMPACT OF NAIRA DEVALUATION ON FY23 FINANCIALS At July/August 2023 £m At reported rates Difference Operating profit would have been average rates £14.7m lower had the average rates across July and August 2023 been used Group operating profit 73.3 58.6 (14.7) to translated the FY23 results Group cash