4imprint Group Plc · LSE:FOUR
4imprint — FY2022 Earnings Presentation
18 slides from 4imprint's earnings presentation, March 2023
Slide 1: Full Year Results 2022
A imprint: Full Year Results 2022
Slide 2: Highlights
Highlights Kevin Lyons-Tarr, CEO Full Year Results 2022 1
Slide 3: Results Summary
Results Summary Revenue Operating profit Basic EPS $1.14bn $102.90m 285.57c 45% 236% 255% Proposed total regular Proposed special dividend Cash & bank deposits dividend per share per share $86.75m 160.00c 200.00c 2021: $41.59m 2021: 45.00c 2021: Nil Full Year Results 2022 2
Slide 4: Financial Review
Financial Review David Seekings, CFO Full Year Results 2022 3
Slide 5: Income Statement
Income Statement 2022 2021 • Revenue +45% o H1 +58%; H2 +36% $'000 $'000 o US $1,120.5m; UK $19.8m Revenue 1,140,286 787,322 45% 321,935 42% • Gross profit +42% Gross profit 226,023 o Margin broadly stable; product cost inflation Gross profit % 28.23% 28.71% mostly offset by price adjustment Marketi
Slide 6: Cash Flow
Cash Flow 2022 2021 $'000 $'000 At start of period 41,589 39,766 Operating profit 102,902 30,646 • Sharp increase in operating profit primary factor Share option non-cash charges 815 602 driving cash generation Pension admin costs 521 340 Depreciation and amortisation 4,018 3,674 • Cash conversion 9
Slide 7: Balance Sheet
Balance Sheet 2022 2021 $'000 $'000 Fixed assets 30,212 25,712 • Capital expenditure $8.1m, including: Right-of-use assets 13,103 11,725 o $1.8m DC solar array Goodwill 1,010 - o $2.9m screen printing equipment and facilities o $1.1m embroidery equipment Deferred tax assets 2,381 600 Retirement bene
Slide 8: Operational Review
Operational Review Kevin Lyons-Tarr, CEO Full Year Results 2022 7
Slide 9: Market
Market ASI Industry Sales North America 2001 - 2022 $bn 28.0 25.8 25.8 26.0 24.7 • Industry sales returned to pre- 23.6 23.2 24.0 22.9 pandemic (2019) level, driven by 21.5 22.0 22.0 20.5 20.7 market recovery and price inflation 19.6 19.8 19.4 20.0 18.6 18.5 17.8 18.0 16.5 16.9 17.4 • 4imprint share
Slide 10: Marketing Effectiveness
Marketing Effectiveness US and Canada Acquired and Retained % 50% 90,000 • Total marketing spend +1% at $128.7m 45% 80,000 (2021: $127.5m); Revenue +45% 40% 70,000 • Dramatic increase in revenue per 35% 60,000 marketing dollar driven by: 30% o Order volume growth 50,000 25% o Higher AOV due to price
Slide 11: Operational Update
Operational Update Supply Chain • Supply chain challenges felt in H2 2021 and early 2022 not fully resolved but have eased substantially • Inflation on product costs still present, but moderating significantly Team • 2022 placed a significant strain on our people as they worked to provide the best p
Slide 12: Operational Update – Sustainability
Operational Update – Sustainability CarbonNeutral® company certification from our external consultant Climate Impact Partners renewed in September 2022 • Encompasses scope 1 & 2 as well as some scope 3 elements, primarily those related to transportation of goods from our Tier 1 suppliers to our cust
Slide 13: Operational Update – Sustainability
Operational Update – Sustainability Additional initiatives in support of our environmental and sustainability objectives • Participation in the UPS carbon neutral shipping programme, (Scope 3), which supports emissions reduction projects that help mitigate the impact of the shipment of parcels to ou
Slide 14: Operational Update – Sustainability
Operational Update – Sustainability • Launched in Q1 2022 • Allows customers to easily filter the 4imprint range of products to find the best match for the values of their organisation and their brand • Each Better Choices™ designation is rigorously researched and supported by third party certificat
Slide 15: Outlook
Outlook Following an extremely strong trading performance in 2022, we enter the 2023 financial year with momentum and confidence. Trading results in the first few weeks of 2023 have been encouraging. Full Year Results 2022 14
Slide 16: Appendices
Appendices Full Year Results 2022 15
Slide 17: 2023 Financial Guidance
2023 Financial Guidance • 2023 revenue split (approximate): H1 47%; H2 53% • 2023 capex c.$8.3m • Depreciation charge c. $4.6m (pre-IFRS 16) • 2023 effective tax rate c. 25% (2022: 23%) • Share-based payment (IFRS 2) charge $0.9m in 2023 • Average shares in issue FY 2023 c. 28.1m; fully diluted c. 2
Slide 18: Results Summary
Results Summary Revenue ($m) Operating profit ($m) 1140.3 102.9 860.8 787.3 738.4 560.0 53.62 44.32 3.97 30.65 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Basic EPS and dividend per share (cents) Cash and bank deposits - year end ($m) 285.57 EPS Divi per share Special dividend 86.75 200.00 152