Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — H1 FY2023 Earnings Presentation
20 slides from Elixinol Wellness's earnings presentation, Aug 30, 2023
Slide 1: H1 FY23 Results Presentation
H1 FY23 Results Presentation 30 August 2023 11
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about Elixinol Wellness Limited (Elixinol Wellness) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with Elixinol Wellness’ other periodic and c
Slide 3: Contents
CONTENTS • Vision & Purpose • Operational Highlights • Financial Highlights • H1 FY23 Results Summary • Segment Performance • Financial Summary • Cash Flow • Financial Position • Strategy & Outlook • Summary 33
Slide 4: Vision Ambition Purpose
Hemp Foods Australia (foods, supplements & skincare) Vision To create a healthier everyday life through the power of hemp and plant-based products Ambition Building a global, natural wellness consumer products company Elixinol Americas (digestible & topical products) Purpose Changing lives naturally
Slide 5: Operational Highlights
Operational Hemp Foods Australia’s focus on revenue growth and profitability Investment focus on AU and US markets with strongest competitive with a complete brand and position simplifies our business Highlights packaging refresh enabling new distribution and ranging model and enables the Group to c
Slide 6: Financial Highlights
Financial Highlights Adjusted EBITDA significantly improved for the 7th consecutive half year period. 36% cost base reduction Operational and corporate expense reduction initiatives have continued to significantly reduce operating expenses. $4.5m in H1 FY23 vs $7.0m in H1 FY22 56% improvement in nor
Slide 7: H1 FY23 Results Summary
H1 FY23 Results Summary 7
Slide 8: Segment Performance
Segment Performance Driving EBITDA improvement across all business units. A$’m Australia Americas Rest of World Corporate H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 Revenue 2.1 1.7 1.3 1.5 - - - - Gross profit 0.7 0.5 0.9 0.9 - - - - GP% 32% 31% 66% 63% - - - - Operating expense
Slide 9: Financial Summary
Financial Summary Tight cost controls drive significant profit improvement. A$’m H1 FY23 H1 FY22 Revenue 3.5 3.2 Cost of goods sold (1.9) (1.7) Gross profit 1.6 1.5 GP% 46% 47% Operating expenses (4.5) (7.0) Non-operating (expenses)/income 0.3 0.1 Adjusted EBITDA (2.6) (5.4) • 9% revenue growth vs P
Slide 10: Cash Flow
Cash Flow • Simplified operating model has driven further significant 56% reduction in normalised net operating cash utilised. cost savings: • 56% reduction in normalised net operating cash utilised vs H1 FY22 • 13% reduction in operating cash outflows vs H2 FY22 A$’m H1 FY23 H1 FY22 • Cost reductio
Slide 11: Financial Position
Financial Position $3.0m cash on hand as at 30 June 2023. A$’m 30 June 2023 31 December 2022 Current assets Cash and cash equivalents 3.0 2.9 Trade & other receivables 2.8 4.0 Inventories 1.7 1.7 Other 0.6 0.7 Total current assets 8.1 9.3 Non-current assets Property, plant and equipment 0.3 0.4 Inve
Slide 12: Strategy & Outlook
Strategy & Outlook 12
Slide 13: Business Transformation
Business Transformation • Leader in innovating, marketing and selling • Premium hemp and plant-based health brand • Creates a global plant-based food, health and hemp derived and plant-based products with Tier 1 Australian retail relationships wellness company, with pro forma Australian revenues to
Slide 14: Background Strategic Rationale
Background Strategic Rationale Creates a global plant-based • Strengthens product portfolio across health food nutrition, hemp-based nutraceuticals such as CBD and pet nutritional supplements food, health and wellness • Optimises access to large Australian based hemp-growing farmer network company •
Slide 15: Highly Complementary Product Range
Highly Complementary Product Range Combined group to deliver products across 4 key verticals Human Nutrition CBD Consumer Products Pet Wellness Skincare 15 15
Slide 16: Leveraging a Diversified Distribution Network
Leveraging a Diversified Distribution Network Immediately broadens the distribution network Retail: ✔ Strengthened retail network with complementary expansion in distribution channel for both EXL and TSN • Combined Australian distribution of over 4,000 stores: • Hemp Foods Australia products stocked
Slide 17: Increase in Operational Scale and Size
Increase in Operational Scale and Size Increased scale with a clear pathway Access to a large Australian based Expected to realise economies of scale to profitability hemp-growing farmer network within the larger combined group • Significant uplift in revenue immediately realised through combination
Slide 18: Strong Tailwinds
Strong Tailwinds Group ideally positioned to benefit from significant macroeconomic tailwinds Plant-based protein market CBD in the USA • Rise in dietary trends such as vegan / vegetarian and flexitarian • EXL has right sized the US business to drive cost effective has seen consumers turn to plant-b
Slide 19: Summary
Well positioned in global consumer wellness trend Summary for natural and plant-based food and nutraceuticals New product development Improving outlook pipeline will drive entry into due to a better economic new product categories and drive environment and end of incremental growth COVID-19 restrict
Slide 20: Thank You
-Organic- Wholefood Plant Protein Chocolate Flavour Thank you @ ElixinolWellness Natural wellness for people and the planet