Brait Plc · JSE:BAT
Brait — Iceland Foods — Q1 FY2019 Earnings Presentation
18 slides from Brait's earnings presentation, Aug 15, 2018
Slide 1: Fiscal Year 2019 Interim Results
FISCAL YEAR 2019 INTERIM RESULTS 12 WEEKS ENDED 22 JUNE ’18 15 AUGUST 2018 1
Slide 2: Agenda
Agenda Key Highlights Financial Review Outlook Q&A Presenter: Richard Ewen (Finance Director) Q&A: Richard Ewen and Tarsem Dhaliwal (Group Managing Director) First quarter: 12 weeks ending 22 June 2018 Second quarter: 12 weeks ending 14 September 2018 Third quarter: 16 weeks ending 4 January
Slide 3: Key Highlights
Key Highlights Iceland
Slide 4: Key Highlights
Key Highlights The Market • The UK Retail market continues to be competitive, with only small volume growth as consumers try to manage inflation. Based on the latest Kantar data (12 weeks ending 17 June‘18), the grocery market grew 2.2%, with food inflation at 1.4%. The Big 4 Supermarkets continue t
Slide 5: First quarter results versus Fourth quarter outlook
First quarter results versus Fourth quarter outlook • Current trading: Overall Group sales continue to grow, but LFL % for the year to date is negative (impacted by the timing of Easter). Underlying LFL sales remain slightly positive year on year. • We opened 7 net new stores opened in FY19 Quarter
Slide 6: Financial Review
Financial Review Iceland
Slide 7: First Quarter Sales Performance (£m)
First Quarter Sales Performance (£m) FY19 Q1 FY18 Q1 Var Var% Base Estate (LFL) 637.6 644.1 (6.5) (1.0%) FY18 & FY19 New 31.7 10.5 21.2 3.2% Stores Other Group Co’s 13.7 6.6 7.1 1.1% Turnover 683.0 661.2 21.8 3.3% 7
Slide 8: Like for Like Sales by Quarter
Like for Like Sales by Quarter LFL Sales % 8% 6.4% 6% *FY19 Q1 LFL 4% excluding 2.2% 1.8% Easter timing 2% was 0.0% 0.3% 0% (2%) (1.0%) FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 8
Slide 9: First Quarter Profit and Loss (£m)
First Quarter Profit and Loss (£m) FY19 Q1 FY18 Q1 Var • Total Sales up £21.8m, driven by new stores. LFL Group Turnover 683.0 661.2 21.8 decline of (1.0%) was only slightly behind the market and impacted by the timing of Easter and trading over Cost of Sales (650.7) (617.3) (33.4) strong LFL perfor
Slide 10: First Quarter Cash Flow (£m)
First Quarter Cash Flow (£m) FY19 Q1 FY18 Q1 Var • Adverse movement in working capital of (£9.0m), predominately driven by the timing of trade Group EBITDA 20.3 28.8 (8.5) payments as a result of Easter falling in the last Movement in Working Capital (9.0) 41.9 (50.9) week of FY18. We still expect p
Slide 11: Net Debt (£m)
Net Debt (£m) FY19 Q1 FY18 Q1 Var Cash at Bank and in hand 99.1 193.3 (94.2) Debt (772.2) (847.8) 75.6 Finance Leases (36.5) (20.5) (16.0) Net Debt (709.6) (675.0) (34.6) Net Leverage 4.8x 4.1x (0.7x) *Leverage calculations based on rolling 12 month EBITDA 11
Slide 12: FY19 Bond Buy Backs (Company and related parties)
FY19 Bond Buy Backs (Company and related parties) Company Buy Backs • No Bond buy backs completed by the Company during FY19 Quarter 1. Other affiliated entities • Sir MC Walker and affiliates purchased £1.2m nominal value of the SSN 7.5 years 4.625% Bonds in FY19 Quarter 1. We and our affiliated en
Slide 13: Outlook
Outlook Iceland
Slide 14: Outlook
Outlook • Current trading: Overall Group sales continue to grow, with a positive LFL % for the quarter and year to date driven by increased transactions. • We have opened 5 net new stores in Quarter 2 to date (4 Food Warehouse, 1 Iceland, 1 Ireland, (1) Iceland closure). In total, we plan to open 10
Slide 15: Q&A
Q&A Iceland
Slide 16: Appendix
Appendix Iceland
Slide 17: Iceland and The Range form strategic alliance
5 August 2018 Iceland and The Range form strategic alliance The fast-growing UK retailers Iceland Foods and The Range have agreed a strategic alliance that will introduce Iceland’s food offer into The Range’s home, garden and leisure stores. The alliance will initially see the opening of Iceland sto
Slide 18: About The Range
ABOUT THE RANGE The Range, founded in 1989, is a destination value and, traditionally, non-food retailer operating throughout the UK with a preference for out of town locations. It is one of the UK’s fastest growing retailers, regularly featuring in the Sunday Times Fast Track and Top Track tables,