Prestal Holdings Limited · ASX:PTL
Prestal — Pental — H1 2016 Earnings Presentation
21 slides from Prestal's earnings presentation, Feb 22, 2016
Slide 1: Driving Growth Half Year Investor Presentation
For personal use only DRIVING GROWTH HALF YEAR INVESTOR PRESENTATION HALF YEAR ENDED 27 DECEMBER 2015 (26 WEEKS) Charlie McLeish – Chief Executive Officer Albert Zago – Chief Financial Officer 1
Slide 2: Overview
OVERVIEW For personal use only • Reported NPAT up 12.0% • Underlying EBIT up 5.7% driven by cost savings and favourable FX • Gross sales overall slightly down - 0.7% • Australia Gross sales down 2.2% mainly from the under supply of stock (leading to missed sales) due to the inconsistent performance
Slide 3: Financial Headlines
FINANCIAL HEADLINES For personal use only $’000 Dec 15 Dec 14 Change % KEY POINTS Gross Sales (GSV) 54,046 54,424 (378) -0.7% • Australia GSV down 2.2% • New Zealand GSV up 5.3% Net Sales Revenue 38,990 39,897 (907) -2.3% • Sales into Asia commenced with $82k in H1 Underlying EBITDA (i) 4,225 3,918
Slide 4: Underlying Net Profit Before Tax Up 7.1%
UNDERLYING NET PROFIT BEFORE TAX UP 7.1% Reduced media For personal use only EBA increase, Decrease in line advertising fees due to Increased in-store redirected to in- production inefficiency & reduction of promotions with trade store promotional banking facility $'000 spend at 27.9% of Gross activ
Slide 5: Balance Sheet
BALANCE SHEET For personal use only $’000 Dec 15 Jun 15 $’000 Dec 15 Jun 14 Trade & other receivables 21,005 24,118 Net Assets 81,100 81,734 Inventories 7,917 7,400 Net Cash/(Debt) 11,202 11,040 Trade & other payables (14,072) (15,371) Working Capital 14,850 16,147 Working Capital 14,850 16,147 Plan
Slide 6: Cash Flow
CASH FLOW For personal use only $’000 Dec 15 Dec 14 KEY POINTS Strong cash profit Cash in flow from 5,526 4,812 Commenced paying tax in Dec. operating activities 2015 Improved working capital by Capital expenditure (2,911) (1,144) $1.297 million Capital expenditure projects (some overlapping financi
Slide 7: Delivering on Major Capital Projects
DELIVERING ON MAJOR CAPITAL PROJECTS For personal use only PROJECT STATUS STATUS BENEFIT Progress on $5.3 million of capital projects: Replacement of Bleach completed Dec 2015 Reduced waste and Line A filler downtime Soap Manufacturing completed Dec 2015 Improve soap quality & “SWING” plant reduced
Slide 8: New Capital Projects Underway
NEW CAPITAL PROJECTS UNDERWAY For personal use only PROJECT CAPEX STATUS STATUS BENEFIT Bulk filling line $1.2m - Equipment ordered Growth in commercial - Target completion & industrial channels + July 2016 cost savings Soap cutting and $0.4m - Equipment ordered Growth into Asian wrapping equipment
Slide 9: Investing in Brands
INVESTING IN BRANDS For personal use only White King advertising in the digital space with integrated sponsorship during January 2016 Australian tennis season DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 7
Slide 10: Investing in Brands
INVESTING IN BRANDS For personal use only White King 2016 Australian Summer/Tennis Campaign Tactical Support DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 8
Slide 11: Investing in Brands
INVESTING For personal use only IN BRANDS Pental Brands featured in ‘Australian Icon’ Edition of Retail World DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 9
Slide 12: Investing in Brands
INVESTING IN BRANDS For personal use only Pental Brand Advertisements featured in ‘Australian Icon’ Edition of Retail World DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 10
Slide 13: Export to Asia 2016: Country Life
EXPORT TO ASIA 2016 COUNTRY LIFE For personal use only DISTRIBUTION CHANNELS • SUPER MARKET • SHANGHAI FTZMALL.COM.CN • PHARMACY • AIRPORT DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 11
Slide 14: Export to Asia 2016: Velvet
EXPORT TO ASIA 2016 VELVET For personal use only DISTRIBUTION CHANNELS • SUPER MARKET • SHANGHAI FTZMALL.COM.CN • PHARMACY • AIRPORT DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 12
Slide 15: Country Life Family Bar Soap Refresh
COUNTRY LIFE For personal use only FAMILY BAR SOAP REFRESH 5-Pack Country Life Bar Soap • Daintree Breeze • Fresh Linen • Outback Sunset • Summer Ocean Breeze • Raspberry Seed Oil DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 15
Slide 16: White King: The King of Clean
WHITE KING For personal use only THE KING OF CLEAN • Transition the brand to be known • Update logo more than a bleach product • National campaign including media spend • Take a leadership positon • Consumer promotions • Clear call out to efficacy DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 16
Slide 17: Softly: Love Your Clothes
SOFTLY For personal use only LOVE YOUR CLOTHES • Create a power brand • Update logo • Transition to specialist products • National campaign including media spend • Take a leadership position • Introduce new innovative products DRIVING GROWTH – HALF YEAR INVESTOR PRESENTATION 17
Slide 18: Pental & Pental Brand Websites
PENTAL & PENTAL BRAND WEBSITES For personal use only APPROACH APPOINTED AGENCY STAGE 1. 2016 STAGE 2. 2016 STAGE 3. 2018 Pental website • White King website • Online Store • Velvet website (eCommerce) • Softly website • Live Chat • Little Lucifer website • Country Life website DRIVING GROWTH – HALF
Slide 19: Driving Growth Strategy
DRIVING GROWTH STRATEGY For personal use only 1 2 5 CREATE A OPTIMISE DRIVE SOLID PLATFORM VALUE GROWTH YEAR ON FOR GROWTH: FROM THE CURRENT YEAR REAL PORTFOLIO: Nail the basics: Safety, People PRODUCTIVITY Engagement, Environment , Quality & customer Service Focus on and over invest in Growth SAVIN
Slide 20: Outlook
OUTLOOK For personal use only No change in positive growth outlook expressed at AGM in November 2015 Key priority is to bed down new equipment to support sales demand, which will drive EBITDA Growth opportunities being driven via multiple paths: • Creating a solid operational platform – plant effici
Slide 21: Disclaimer
DISCLAIMER For personal use only The material in this presentation is a summary of the results of Pental Limited (Pental) for the half year (26 weeks) ended 27 December 2015 and an update on Pental’s activities and is current at the date of preparation, 22 February 2016. Further details are provided