Treatt Plc · LSE:TET
Treatt — H1 2013 Earnings Presentation
14 slides from Treatt's earnings presentation, May 2013
Slide 1: Interim Results 6 Months ended 31 March 2013
Interim Results 6 Months ended 31 March 2013 May 2013 Daemmon Reeve Group CEO Richard Hope Group Finance Director
Slide 2: Contents
Contents Financial Summary Group Overview Strengths Group Strategy Progress Overview Future Focus 2
Slide 3: Half Year Review
Half Year Review Summary - Six months to 31 March 2013 EBITDA up 25% to £3.0m (£2.4m) PBT up 29% to £2.0m (£1.6m) EPS up 40% to 14.1p (10.1p) Revenue of £33.6m (£36.0m) Interim dividend up 8% to 5.5p Margins up reflecting shift away from “traded” to “added- value” products 3
Slide 4: Group Overview
Group Overview Ingredient solution provider for the flavour, fragrance & consumer goods industries Focus on global multi-national customers Heritage - Founded in London in 1886 Product innovation and market knowledge Compete aggressively on quality and service whilst growing margins 4
Slide 5: Treatt in 2012/13
Treatt in 2012/13 Managed change at the company - New Chairman, Tim Jones - Strengthened board - US CEO Daemmon Reeve steps up to Group CEO - Senior management changes/additions New strategy developed autumn 2012 Early indicators of the impact of new strategy are positive Renewed focus on driving va
Slide 6: Strengths
Strengths Independent Innovative ingredient solutions ̶ Natural but consistent ̶ Tea, coffee, citrus ̶ Alcoholic & non-alcoholic beverages Global – focus on established and emerging markets Worldwide sourcing & product knowledge Focused product range Experienced risk management – raw material prices
Slide 7: Group Strategy
Group Strategy To grow group profitability in the flavour, fragrance and consumer goods markets through: Focussed sales approach to large multinationals in key growth markets Market-driven new product development Concentrated product range Increasing group margins – added-value manufacturing Cost co
Slide 8: Progress Overview
Progress Overview Global sales structure Re-alignment of resources Cost control culture Focus on core manufactured products – value-added ingredients Increased investment and focus on R&D Targeting rapidly growing flavoured beverage markets 8
Slide 9: 2013 Half Year Review: Cash
2013 Half Year Review Cash Total of £22m bank facilities with HSBC, Lloyds and Bank of America Portion of all three facilities on three year renewal Renewals staggered Headroom of £6m Cash outflow in 1st 6 months of £3.4m Significant cash inflow projected for H2 9
Slide 10: 2013 Half Year Review
2013 Half Year Review Six months to 31 March 2013 2013 2012 Revenue £33.57m £36.00m -7% EBITDA £3.02m £2.42m +25% Profit before tax £2.01m £1.56m +29% Earnings per share 14.1p 10.1p +40% Dividends per share 5.5p 5.1p +8% Net Assets per share 250p 225p +11% 10
Slide 11: 2013 Half Year Review: Summary Balance Sheet
2013 Half Year Review Summary Balance Sheet All figures £m March 2013 March 2012 Goodwill £1.1m £1.2m Fixed Assets £12.8m £12.0m Inventories £24.9m £20.0m Debtors £14.0m £14.2m Creditors (£7.2m) (£9.4m) Working Capital £31.7m £24.8m Taxation £0.2m (£0.1m) Net Debt (£16.3m) (£11.3m) Other net liabili
Slide 12: Interim / Final Profit Before Tax
Interim / Final Profit Before Tax 2005-2013 £6,000k £5,000k £4,000k £3,000k £2,000k £1,000k £k Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 MONTHS 1H 2H
Slide 13: Interim / Final Dividends
Interim / Final Dividends 2005-2013 16 14 12 10 8 6 4 2 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 MONTHS 1H 2H
Slide 14: Prospects for H2
Prospects for H2 Q3 momentum New business wins Increased margins New strategy continues to drive success 14