Slide 1: FY23 Preliminary Results
FY23 Preliminary Results 28 June 2023 1 ProCook | FY23 Preliminary Results
Slide 2: FY23 Review
FY23 Review Dan Walden CFO
Slide 3: Market context
- 2 4 8 6 10 12 14 16 18 10% 12% 0% 2% 4% 8% 6% Oct 20 Apr 17 Dec 20 Aug 17 Feb 21 Dec 17 FY23 review Apr 21 Apr 18 Inflation YoY Jun 21 Aug 18 Dec 18 Aug 21 Apr 19 Oct 21 Aug 19 Dec 21 Dec 19 Feb 22 Apr 20 Current trading Aug 20 Supply Chain costs $’000 Apr 22 Dec 20 Jun 22 Market context Apr 21 Au
Slide 4: Market context (cont.)
FY23 review Current trading Strategy update Appendices Market context (cont.) The kitchenware market has remained steady, albeit with significant channel, category and price / volume shifts year on year 4 UK Kitchenware Market (£’bn) UK Market vs ProCook UK (ex. Amazon) growth % ProCook | FY23 Preli
Slide 5: Customers
FY23 review Current trading Strategy update Appendices Customers We have attracted almost 700,000 new customers and increased our active customer base. Conversion remains challenging 5 New customers (‘000) 12 month repeat rate ProCook | FY23 Preliminary Results 30.0% 723 692 28.0% 26.0% 24.0% 417 22
Slide 6: Revenue
FY23 review Current trading Strategy update Appendices Revenue Revenue of £62.3m was down 5.0% excluding the discontinued Amazon channels. LFL revenue remains +112.2% vs pre-pandemic 6 £m FY23 FY22 YoY% FY20 Yo3Y% Year on Year revenue £m ProCook | FY23 Preliminary Results Revenue 62.3 69.2 (9.9%) 39
Slide 7: Gross margin
FY23 review Current trading Strategy update Appendices Gross margin Gross margin of 61.5% reflects higher shipping costs and FX impacts, partly offset by price increases 7 £m FY23 FY22 YoY % ProCook | FY23 Preliminary Results Gross profit 38.3 45.0 (14.9%) Gross margin % 61.5% 65.1% -360bps Ecommerc
Slide 8: Underlying operating profit
FY23 review Current trading Strategy update Appendices Underlying operating profit Underlying operating profit of £0.8m1 reflects the impact of lower sales and GM%, and higher costs YoY 8 Underlying operating profit £m Operating profit £m FY23 FY22 YoY % ProCook | FY23 Preliminary Results Ecommerce
Slide 9: Profit before tax reconciliation
FY23 review Current trading Strategy update Appendices Profit before tax reconciliation Non-underlying items included the development and transition costs for our new HQ, impairment charges and IPO share based payment awards 9 ProCook | FY23 Preliminary Results Underlying operating profit to reporte
Slide 10: Free cash flow
FY23 review Current trading Strategy update Appendices Free cash flow £2.5m improvement in free cash flow year on year, despite £5.2m investment in new HQ and retail stores, funded by planned inventory reduction 10 ProCook | FY23 Preliminary Results After exceptional costs of £6.4m £5.2m reduction i
Slide 11: Current trading
Current trading Dan Walden CFO
Slide 12: FY24 Q1 trading results
FY23 review Strategy update Appendices Current trading FY24 Q1 trading results Challenging conditions persist, but holding market share 12 £m Q1 FY24 Q1 FY23 YoY% ProCook | FY23 Preliminary Results Revenue 10.7 11.4 (6.7%) Ecommerce 3.9 5.1 (24.1%) Retail 6.8 6.3 7.3% LFL Revenue1 10.2 11.1 (7.9%) L
Slide 13: Our business model
FY23 review Strategy update Appendices Current trading Our business model Specialist proposition with clear price advantage, and control over all operations and routes to market 13 ATTRACTING MORE ProCook | FY23 Preliminary Results CUSTOMERS TO OUR BRAND DEVELOPING OUR CUSTOMER PROPOSITION 1 Price a
Slide 14: FY24 guidance
FY23 review Strategy update Appendices Current trading FY24 guidance Our guidance for FY24 remains unchanged 14 — Cautious about sales growth expectations in difficult trading conditions ProCook | FY23 Preliminary Results — Broadly flat retail LFLs, 2 new stores — Small recovery in website performan
Slide 15: Strategy update
Strategy update Daniel O’Neill CEO & Founder
Slide 16: Strategy overview
FY23 review Current trading Appendices Strategy update Strategy overview Becoming the customers’ first choice for kitchenware 16 ProCook | FY23 Preliminary Results 1 Raise brand awareness 2 Improve retail service excellence 3 Expand our retail estate 4 Develop a world class website 5 Extend and impr
Slide 17: Attracting more customers to our brand
FY23 review Current trading Appendices Strategy update Attracting more customers to our brand Customer awareness of ProCook remains relatively low, providing a significant opportunity for continued growth 17 Progress this year Awareness to purchase funnel ProCook | FY23 Preliminary Results ProCook P
Slide 18: Retail service excellence and expansion
FY23 review Current trading Appendices Strategy update Retail service excellence and expansion Providing customers a convenient and inspirational shopping experience with exceptional service 18 Progress this year ProCook | FY23 Preliminary Results - Retained Trustpilot “excellent” rating - 85,000 5
Slide 19: Developing a world class website
FY23 review Current trading Appendices Strategy update Developing a world class website Our website must be our biggest and best shop to attract, inspire and engage customers 19 Progress this year ProCook | FY23 Preliminary Results - Exit of Amazon channels to focus on core Mobile first - Technical
Slide 20: Extend and improve product ranges
FY23 review Current trading Appendices Strategy update Extend and improve product ranges We are obsessed about our product quality and the better value we offer customers by cutting out the middle-man. Our new small electricals category will expand our market boundaries 20 Progress made this year Ou
Slide 21: Efficient logistics and supply chain
FY23 review Current trading Appendices Strategy update Efficient logistics and supply chain Now we have completed our move into our new DC, our focus is on capturing the operational efficiencies 21 Progress made this year ProCook | FY23 Preliminary Results - Completed development of new DC & HQ - Be
Slide 22: Summary
FY23 review Current trading Appendices Strategy update Summary Taking bold action to emerge stronger 22 ProCook | FY23 Preliminary Results - FY23 was challenging with disappointing results but was a pivotal year to position our business for future growth - Market remains difficult, consumers under s
Slide 23: Appendices
Appendices
Slide 24: Creating an even better place to work
FY23 review Current trading Strategy update Appendices Creating an even better place to work Our people are key to our success and we continue to take big steps forward in creating an even better place to work 24 Progress this year ProCook | FY23 Preliminary Results - Launched Colleague Advisory Pan
Slide 25: Reducing our environmental footprint
FY23 review Current trading Strategy update Appendices Reducing our environmental footprint As a B Corp we are committed to reducing our impact on the environment for the benefit of our stakeholders as a whole 25 Progress this year ProCook | FY23 Preliminary Results - B Corp certified in September 2
Slide 26: Income Statement
FY23 review Current trading Strategy update Appendices Income Statement FY23 FY22 YoY% (FY22 26 Non- Non- Underlying) £m Underlying Reported Underlying Reported underlying underlying ProCook | FY23 Preliminary Results Revenue 62.3 62.3 69.2 - 69.2 (9.9%) Gross profit 38.3 38.3 45.0 - 45.0 (14.9%) GP
Slide 27: Financial position
FY23 review Current trading Strategy update Appendices Financial position £m 02 April 23 03 April 22 27 Non current assets 10.5 7.3 ProCook | FY23 Preliminary Results Right of use assets 25.4 21.0 Inventories 11.5 16.8 Trade and other receivables 2.2 2.0 Corporation tax 0.6 0.3 Cash and cash equival
Slide 28: Cash flow and financing facilities
FY23 review Current trading Strategy update Appendices Cash flow and financing facilities £m FY23 FY22 Revolving credit facility 28 Reported (loss)/profit before tax (6.5) 0.1 Facility £10.0m Depreciation, amortisation, impairment and profit/loss on disposal 5.1 4.1 ProCook | FY23 Preliminary Result
Slide 29: Glossary of terms
FY23 review Current trading Strategy update Appendices Glossary of terms 12m 12 month full financial year period GP Gross profit 29 %pts Percentage points H1 First half of the financial year (28 weeks) ProCook | FY23 Preliminary Results AOV Average Order Value (ex-VAT) H2 Second half of the financia