A.g. Barr P.l.c. · LSE:BAG
A.g. Barr P.l.c — H1 2022/23 Earnings Presentation
26 slides from A.g. Barr P.l.c's earnings presentation, September 2022
Slide 1: Interim Results
INTERIM RESULTS 26 weeks ended 31 July 2022
Slide 2: Overview: Strong first half performance
OVERVIEW Strong first half performance 26 wks to 31st July 2022 27 wks to 1 Aug 2021** % Change Revenue £157.9m £135.3m 16.7% Reported profit before tax £24.7m £24.4m 1.2% Adjusted profit before tax * £25.3m £20.6m 22.8% Adjusted operating profit margin * 16.2% 16.2% Flat Cash and cash equivalents £61.3
Slide 3: Agenda
Agenda ● Welcome & introductions ● Market update ● Financial review ● Business update ● Summary & outlook ● Questions Roger White Stuart Lorimer Chief Executive Finance Director 3
Slide 4: Market Update
4 MARKET UPDATE Roger White
Slide 5: Soft drinks market
Soft drinks market Total UK soft drinks value Total UK soft drinks volume ▲ 8.1% ▼ 3.0% Carbonates value Carbonates volume ▲ 7.2% ▼ 3.2% Stills value Stills volume ▲ 9.2% ▼ 2.8% Source: IRI Marketplace 26 weeks to 30/07/22 5
Slide 6: Total UK soft drinks market - sub categories
Total UK soft drinks market - sub categories Source : IRI Marketplace 26 weeks to 30/07/22 6
Slide 7: Cocktail market - on trade
Cocktail market - on trade £664m 44.6k Cocktail Value of on-trade Number of outlets distribution in cocktails in GB cocktails stocked in outlets has doubled ▲13.2% ▲6.2% since 2014 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 Pornstar Mojito Sex on the Long Island Flavoured Espresso Piña Woo Woo Martini Beach Ice
Slide 8: Cocktail market - at home
Cocktail market - at home Ready to Drink (RTD) market year-on-year ▲5% ▲24% RTD Category Cocktail Segment 8 Source: Nielsen Pre Mixed Alcoholic Drinks Total Coverage Data MAT 30/07/2022 ▼1%
Slide 9: Financial Review
9 FINANCIAL REVIEW Stuart Lorimer
Slide 10: H1 2022/23 Profit overview
H1 2022/23 Profit overview Reported PBT + £0.3m Adjusting items Adjusted PBT +£4.7m 10
Slide 11: Financial scorecard
Financial scorecard H1 22/23 H1 21/22* v H1 21/22 % v H1 21/22 Case volumes (million cases) 27.8 26.4 1.4 5.4% ⬤ Net revenue (£m) 157.9 135.3 22.6 16.7% ⬤ Profit before tax (£m) (Adjusted) 25.3 20.6 4.7 22.8% ⬤ Profit before tax (£m) (Reported) 24.7 24.4 0.3 1.2% ⬤ Gross margin (Adjusted) 44.0% 45.4%
Slide 12: Gross margin (%)
Gross margin (%) Soft Drinks (83% of total revenue) ● Volume growth, positive mix and appropriate pricing help mitigate high ▼ ▲ ▲ ▼ inflationary environment and supply chain (1.5)pp 1.1pp N/A (1.5)pp challenges Funkin (14% of total revenue) ● Double digit revenue and gross profit growth in both on an
Slide 13: Commodities, cost base & currencies
Commodities, cost base & currencies Energy Aluminium Gas Extreme & volatile Peak price 2022 Peak price 2022 General Other inc. inflation +95% +1445% inflation Marketing v 10 year average v 10 year average Materials Sugar Mango Employee Peak price 2022 Average price Sustained Costs +21% 2022 +66% inflat
Slide 14: Operating costs and margin
Operating costs and margin ● £6.3m reported cost increase driven by upweighted marketing support across Barr Soft Drinks and Funkin and the consolidation of MOMA ● Underlying costs, excluding marketing and MOMA, are up 4% - labour and logistic inflation partially mitigated by strong cost control in o
Slide 15: Balance Sheet
Balance Sheet Strong funding platform Well invested asset base Robust investment returns Effectively managed pension obligations H1 F21 H1 F22 15
Slide 16: Cash and Cash flow
Cash and Cash flow 5.6 100 — 15.4 24.7 3.4 75 lao 111 68.7 61.3 50 — a 25 0 Opening Cash and Reported PBT Depreciation and Working capital Capex Corporation Tax Finance leases _ Dividends Paid Closing Gash and Cash Equivalents amortisation movements Cash Equivalents Jan-22 July-22
Slide 17: 2022/23 Financial outlook
2022/23 Financial outlook H1 on a comparative basis benefited from good summer weather and extra week in the prior year Revenue H2 will continue to deliver growth through volume and ongoing pricing benefits → delivering low double digit growth for full year H1 cost pressures were partially mitigated b
Slide 18: Business Update
18 BUSINESS UPDATE Roger White
Slide 19: Barr Soft Drinks
Barr Soft Drinks Core brand growth supported by continued brand investment IRN-BRU ▲ 5.6% Rubicon ▲23.8% Barr Flavours ▲ 13.4% Sources : AG Barr revenue 26 weeks to 31/07/22 19
Slide 20: Funkin
Funkin UK - Strong recovery across on trade and at home - new Funkin marketing campaign International - Ireland & Australia progressing well - US initial state trial planned for 2023 On trade ▲ 23.5% At home ▲17.3 % International Sales doubled Sources : AG Barr revenue 26 weeks to 31/07/22 20
Slide 21: MOMA
MOMA Early stage of investment - supporting future growth potential New marketing campaign - across TV, out of home and paid social (Sep) Brits now drinking plant based milk 32% Oat milk category growth 16% MOMA growth 30+%* Sources : Mintel Sep 2021 ; Kantar May 2022 ; Nielsen 52 weeks ending July
Slide 22: Responsibility
Responsibility H1 highlights Approved near and long-term science-based emissions reduction New 3-year employee-chosen targets with the Science Based Target charity partnership initiative (SBTi) Note : Full details of our science-based emissions reduction and science-based net-zero targets can be fou
Slide 23: DRS in Scotland
DRS in Scotland ● Go-live August 2023 ● Forecast year 1 producer fee, to fund running costs, now published : PET : 3.17p Metal : 3.42p Still to be confirmed Glass : 4.45p UK-wide SKU surcharge : 1.133p ● Cut-over / transition arrangements ● AG Barr approach : Scotland specific SKUs for all owned brand
Slide 24: Capital investment
Capital investment MILTON KEYNES New 250ml can capacity New small case cardboard multipacker On track for November commissioning allowing in-house production of Funkin RTD cans including nitro CUMBERNAULD 4-year c.£30m asset refresh programme First phase underway - to be completed by end FY 23/24 ●
Slide 25: Summary & Outlook
25 SUMMARY & OUTLOOK Roger White
Slide 26: Summary
Summary ● Strong start to the year and continued good momentum continues across our business and brands ● Inflation accelerated across the summer ● We continue to take action to mitigate cost pressures ● Current economic environment expected to impact consumer purchasing behaviour however we remain c