Metcash Limited · ASX:MTS
Metcash — FY2006 Earnings Presentation
22 slides from Metcash's earnings presentation, May 24, 2006
Slide 1: Financial Results 52 Weeks Ended April 2006
Financial Results 52 Weeks Ended April 2006
Slide 2: Note
Note Î All figures include the ex FAL business unless otherwise stated from 1 November 2006. Î The presentation will focus on the "ongoing businesses" excluding significant non-recurring items.
Slide 3: Agenda
Agenda Î Financial Highlights Î Operating Performance and Strategic Update per Business
Slide 4: Financial Highlights
Financial Highlights 52 weeks ended April 2006 Î Growth of 10 % in wholesale sales to $7.7 billion. Î Growth of 19.5% in ebita to $226.9 million. Î Cashflow from trading of $236.9 million for the year. Î Increased net interest paid of $39 million as a result of "gearing up" the balance sheet. Î Redu
Slide 5: Wholesale Sales
Wholesale Sales (Excluding Sales to Franklins) 7,683 6,988 6,083 6,442 5,465 5,070 $M 2001 2002 2003 2004 2005 2006
Slide 6: Ebita
Ebita 226.90 189.90 179.50 152.70 $M 117.40 91.60 FY2001 FY2002 Fy2003 FY2004 FY2005 FY2006
Slide 7: Ebita Margin
Ebita Margin 2.93% 2.72% 2.56% 2.28% 2.04% 1.70% % 1.35% FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
Slide 8: Operating Cash flow after Tax
Operating Cash flow after Tax 236.90 171.30 136.00 148.00 129.30 $m 58.70 FY2001 FY2002 FY2003 FY2004 FY2005 Fy2006
Slide 9: Cost of doing business as a % of Gross Profit
Cost of doing business as a % of Gross Profit 80.50% % 75.20% 71.00% 68.65% 68.24% 67.16% FY 2001 FY2002 FY2003 FY2004 FY2005 FY2006
Slide 10: Profit After Tax
Profit After Tax 127.90 98.9 103.30 81.30 79.80 $m 59.40 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 Note: 2006 pre CULS, CUPS and Restructure Costs and 2005 stated under Agaap.
Slide 11: Full Year Average Weighted Earnings Per share
Full Year Average Weighted Earnings Per share 21.55 16.06 16.00 13.10 cents 8.89 1.80 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 Note: 2006 pre CULS, CUPS and Restructure Costs
Slide 12: Operating Performance – IGA>D
Operating Performance – IGA>D 52 Weeks ended April 2006 Î Wholesale sales up 7.4% to $4.1 billion. Î Excluding sales to Franklins in FY 2005 sales up 21%. Î Comp store sales (excluding the acquired FAL businesses) up 6.3%. Î Market share per A.C. Nielsen at year end 18.5% compared to 13.5% in the pr
Slide 13: Operating Performance – IGA>D
Operating Performance – IGA>D 52 Weeks ended April 2006 Î Ebit $175.8 million up 24.1% on last year. Î Ebit excluding Franklins up 32.3% on last year. Î Voice-Pick implemented at all four dry grocery warehouses – frozen and chilled DC's to be completed by April 2007. Î Western Australian warehouses
Slide 14: Operating Performance – IGA>D
Operating Performance – IGA>D 52 Weeks ended April 2006 Î 44 new stores opened during the year adding 39,249 m2 Î 48 major refurbishments done during the year Î 76 new stores "on the drawing board" Î IGA store numbers now: Supa IGA 357 IGA 670 Friendly Grocer/IGA Xpress 301 Î IGA successfully
Slide 15: Operating Performance – IGA>D
Operating Performance – IGA>D 52 Weeks ended April 2006 Î Ex Action stores trending positively. Î All ex Action stores (excluding 12 in WA) to be sold and handed over by November 2006. Î Further strong Corporate Brands growth: Black & Gold - 972 sku's IGA/Controlled Brands - 553 sku's Î Teamwork
Slide 16: Performance – Foodworks
Operating Performance – Foodworks Business Summary: Key Data Î Sales: $1.4b AUS annualised Î Stores: 700 (350 Branded). Î Growth: Like for like growth of 6% Î Corporate Identity: Rebranded 350 stores. Î Store Development: 37 new stores over the next 12 months and 44 refurbished and expanded stores Î
Slide 17: Operating Performance – ALM
Operating Performance – ALM 52 Weeks ended April 2006 Î Sales up 11.6% on last year Î Independent Brands of Australia Cellarbrations 225 stores IGA Plus Liquor 452 stores Liquor Force 863 stores Cheeers 107 stores Liquor Wise (Hotels) 173 outlets Î Harbottle on Premise $296 million wholesa
Slide 18: Operating Performance – ALM
Operating Performance - ALM 52 Weeks ended April 2006 Î Ebit up 17.6% to $30.7 million Î After installing Voice-Pick total case through put improved After 12 months 15-20% After 24 months >25% Î We expect to improve productivity by up to 15% after completion of the Crestmead Qld Mega Center.
Slide 19: Performance – Campbells Cash & Carry
Operating Performance-Campbells Cash & Carry 52 Weeks ended April 2006 Î Sales up 15.8% on last year: Primary categories up 34.2% Confectionery up 30.4% Î Ebit up 22.5% to $21.2 million Favorable product mix change: Primary sales now over 55% of total.
Slide 20: Operating Performance – Campbells Cash & Carry
Operating Performance-Campbells Cash & Carry 52 Weeks ended April 2006 Î Traditional Convenience Business 2.8% down. Î Modern Petrol and Convenience Businesses sales grew by 16.4% through the CSD Division. Market share now at 26% of a $3.6billion market Sales to 7-Eleven up 66% with a further $1
Slide 21: Group Summary
Group Summary Î Strong performance of Core IGA>D business. Î Successful integration of FAL WA and Qld businesses. Î Great launch of IGA as a National Chain of 1300+ stores. Î FAL logistics and efficiency gains "on track" with expectations. Î Opportunity identified to increase IGA>D teamwork scores.
Slide 22: Champion of the Independent Retailer
“Champion of the Independent Retailer”