Ig Design Group Plc · LSE:IGR
Ig Design — FY2024 Earnings Presentation
21 slides from Ig Design's earnings presentation, Jun 25, 2024
Slide 1: 2024 Full Year Results
2024 Full Year Results Paul Bal (CEO) & Rohan Cummings (CFO) 25 June 2024
Slide 2: FY2024 Highlights – performance ahead of initial expectations
FY2024 Highlights – performance ahead of initial expectations FY2024 Results Strategy FY2025+ Outlook • Adjusted operating profit • Completed 2nd year of 3- • Consumer demand up 94% to $31.1m year turnaround remains weak • Margin up 210 bps to 3.9% • Further self-help • Margin recovery aspiration op
Slide 3: FY2024 Financial Summary
FY2024 Financial Summary Revenue ($m) Adjusted Operating Profit ($m) Adjusted EBITDA ($m) 41.2 73.3 37.8 965.1 6.6% 890.3 59.8 61.1 873.2 800.1 31.1 3.9% 48.4 9.6% 624.3 4.3% 8.4% 38.3 7.6% 16.1 5.4% 4.0% 1.8% 0.4% 3.8 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY20
Slide 4: Category Performance
Category Performance Revenue by product FY2024 FY2023 category Revenue by season FY2024 FY2023 Gift Packaging 47% $369.2m 45% $396.6m Christmas 42% $337.2m 42% $374.7m Party 15% $121.6m 17% $154.0m Minor seasons 8% $66.0m 9% $76.5m Goods not for resale 7% $59.4m 7% $63.9m Everyday 50% $396.9m 49% $4
Slide 5: DG Americas Update
DG Americas Update Commercial • 16% revenue decline: • Lower volume orders reflected key customers forecasting lower consumer demand, initially in Everyday and then also in Seasonal products • All categories impacted, but especially the more discretionary spend areas: Party (especially Seasonal Déco
Slide 6: DG International Update
DG International Update Commercial • Very slight revenue increase: • Continued resilience in continental Europe • Weakness in the UK and Australia continues, especially in more discretionary spend categories such as Party • Volume driven, as overall pricing under pressure • Favourable FX TM • Very s
Slide 7: Group Revenue
Group Revenue Revenue DG Americas FY2024 $m 500.3 FY2023 $m 593.0 Growth % (16%) DG International 299.8 299.6 0% Elims / Central costs - (2.3) - Total 800.1 890.3 (10%) $m 900 890.3 850 (68.7) 800.1 800 (15.5) (12.4) 2.3 (5.9) (2.6) 12.6 750 volume & mix 700 FY2023 DGA seasonal DGA everyday DGA net
Slide 8: Adjusted Operating Profit
Adjusted operating Adjusted Operating Profit FY2024 FY2023 Growth Profit $m $m % DG Americas 6.8 2.9 132% DG International 32.3 19.8 63% Elims / Central costs (8.0) (6.6) - Total 31.1 16.1 94% $m 50 (8.6) 8.7 40 34.8 (3.4) 0.7 (0.8) 31.1 30 (33.3) 16.1 20 10 16.9 0 -10 -20 -30 FY2023 Sales decline D
Slide 9: Profit & Loss
Profit & Loss Adjusted Reported FY2024 FY2023 Change FY2024 FY2023 $m $m $m $m Revenue FY2024 FY2023 Growth Revenue 800.1 890.3 (10%) 800.1 890.3 $m $m % Gross profit 142.1 133.1 7% 141.6 131.7 DG Americas 500.3 593.0 (16%) DG International 299.8 299.6 0% Gross margin 17.8% 14.9% 290bps 17.7% 14.8%
Slide 10: Cash Flow
Cash Flow FY2024 FY2023 $m $m Adjusted EBITDA 61.1 48.4 Working capital analysis Add back for share based payment charge 1.5 0.8 FY2024 FY2023 Movements in working capital 26.7 11.2 $m $m Receivables 4.0 37.0 Adjusted cash generated by operations 89.3 60.4 Inventory 40.4 17.9 Adjusting items within
Slide 11: The New Strategy: Enabling us to win together
The New Strategy: Enabling us to win together By being the partner of choice that is: 11. 11 IG DESIGN GROUP PLC 2024 FULLYEAR RESULTS PRESENTATION
Slide 12: Our Strategic Priorities
Our Strategic Priorities Strategic Adaptive Dependable Strong Collaborative Informed Purposeful Design-led Resilient supply chain Talent-rich Open-minded Data-driven • Clearer category • Continuing to invest in • Embarking on further • Strengthening our sales • Digitise and standardise • Consolidati
Slide 13: Working Better Together
Working Better Together The Group’s Purpose: The Group’s Values: Making Moments Special • A passion for creativity, excellence innovation The Group’s Vision: There when you create and celebrate • People with integrity and ethics your special moments working together The Group’s Mission: • Delivery a
Slide 14: Our Aspirations
Our Aspirations • Good progress over the first 2 years of our 3-year turnaround journey: to return to proforma pre-Covid-19 adjusted operating profit margins of at least 4.5% in FY2025 • Proforma reflects the full-year contribution from CSS Industries (acquired in March 2020) for FY2020 • Our second
Slide 15: Summary and Outlook
Summary and Outlook Summary • Strong results achieved for FY2024 with adjusted operating profit up due to re-built margins driven mostly by continuing “self-help” initiatives • DG Americas turnaround continues under the strengthened team • Cash generation significant: focus on lower working capital
Slide 16: Appendix
APPENDIX IG DESIGN GROUP PLC [PRESENTATION TITLE HERE] 16 16. IG DESIGN GROUP PLC 2024 FULLYEAR RESULTS PRESENTATION
Slide 17: Our Strengths
Our Strengths Relationships - with the biggest global retailers • Consistently serving household names through recent global challenges: Covid-19, supply-chain disruption and the current “cost of living crisis” • Continued demand for our products • Top 20 customers: 67% of revenues, at $537m • Walma
Slide 18: IG DESIGN GROUP PLC 2024 FULLYEAR RESULTS PRESENTATION
18. IG DESIGN GROUP PLC 2024 FULLYEAR RESULTS PRESENTATION 18.
Slide 19: IG IG DESIGN DESIGN GROUP
19. IG IG DESIGN DESIGN GROUP GROUP PLC PLC 2024 2024 FULLYEAR FULLYEAR RESULTS RESULTS PRESENTATION PRESENTATION 19.
Slide 20: Financing
Financing Facilities: Facility size ABL: Up to $125m depending on US receivables availability UK Overdraft: £8.5m (c. $10.6m) Tenure: June 2026 Accordion $35m available Pricing: SOFR plus bank margin ranging from 1.85% to 2.35% (including credit spread adjustment), depending on excess liquidity Curr
Slide 21: Largest Shareholders
Largest Shareholders* Hedlund Family Canaccord WM Octopus Fidelity 23.32% 14.88% 10.47% 10.00% Employee Interactive Hargreaves Rowan Benefit Trust Investor (EO) Lansdown Dartington 3.08% 3.01% 2.74% 2.69% *Information taken from Equiniti Share Register Analysis 31 May 2024 21. IG DESIGN GROUP PLC 20