4imprint Group Plc · LSE:FOUR
4imprint — FY2023 Earnings Presentation
17 slides from 4imprint's earnings presentation, March 2024
Slide 1: Full Year Results 2023
=. Full Year Results 2023
Slide 2: Highlights
Highlights Kevin Lyons-Tarr, CEO Full Year Results 2023 1
Slide 3: Results Summary
Results Summary Revenue Operating profit Basic EPS $1.33bn $136.2m 377.9c 16% 32% 32% Total paid and Cash and bank deposits proposed regular DPS $104.5m 215.0c 2022: $86.8m 2022: 160.0c Full Year Results 2023 2
Slide 4: Financial Review
Financial Review David Seekings, CFO Full Year Results 2023 3
Slide 5: Income Statement
Income Statement • Revenue +16% o H1 +23%; H2 +11% o US $1,302.6m; UK $23.9m 2023 2022 • Gross profit +25% $m $m o Significant improvement in YOY GP% o Recovery from pandemic-related factors Revenue 1,326.5 1,140.3 16% Gross profit 401.9 321.9 25% • Marketing costs +24% Gross profit margin 30.3% 28.
Slide 6: Balance Sheet
Balance Sheet 2023 2022 • Fixed asset additions include: $m $m o Screen printing and embroidery machinery o Initial phase of DC expansion ($3.8m) Fixed assets 35.2 30.2 Right-of-use assets 11.4 13.1 • Working capital net negative $7.9m o Significant improvement in supply chain Goodwill 1.0 1.0 condi
Slide 7: Cash Flow
Cash Flow 2023 2022 $m $m At start of period 86.8 41.6 Operating profit 136.2 102.9 • Excellent operating cash generation through the year Share option non-cash charges 1.1 0.8 o Strong trading and operating profit Pension admin costs paid by Plan 0.5 0.5 o Supply chain pressures in 2022 fully addre
Slide 8: Operational Review
Operational Review Kevin Lyons-Tarr, CEO Full Year Results 2023 7
Slide 9: Market
Market • After two exceptional years fuelled by ASI Industry Sales North America 2004 - 2023 $bn the strong post-pandemic recovery, annual industry growth in 2023 of 1.2% 28.0 25.8 25.8 26.1 (~$310m) was the lowest in more than 26.0 24.7 a decade (with the exception of 2020), 24.0 22.9 23.6 23.2 an
Slide 10: Marketing Effectiveness
Marketing Effectiveness US and Canada Acquired and Retained % • Total marketing spend +24% at $159.9m (2022: $128.7m) inclusive of planned marketing testing in H2 • Revenue per marketing dollar KPI slightly below 2022 but still well above pre- pandemic levels and includes cost of planned testing in
Slide 11: Operational Update
Operational Update Supply chain • Supply chain challenges of 2022 fully resolved over the back half of 2023, allowing for customer service and order processing efficiency to return to normal. This, combined with work done to build appropriate resource levels led to improved customer satisfaction, re
Slide 12: Operational Update (cont'd)
Operational Update (cont’d) Increased apparel decorating capacity (cont’d) • $20m DC expansion project announced in H2 last year well underway and on schedule for Q3 completion. • Brings total footprint to 450,000sq.ft. from current 300,000sq.ft. Full Year Results 2023 11
Slide 13: Operational Update (cont'd)
Operational Update (cont’d) • More than 15,000 Better Choices ‘tags’ have now been applied to items included in the programme, an 83% increase over 2022. Better Choices products represented $310m in total revenue in 2023, an increase of 58% over 2022 ($196m). • Significant progress has been made in
Slide 14: Outlook
Outlook The Group has made significant operational and financial progress in 2023, reflecting a clear strategy and a highly resilient business model. Trading results in the first two months of 2024 have been in line with both the Board’s expectations and consensus forecasts. We are confident that we
Slide 15: Appendices
Appendices Full Year Results 2023 14
Slide 16: 2024 Financial Guidance
2024 Financial Guidance • 2024 revenue split (approximate): H1 47%; H2 53% • 2024 capex c.$22.1m; includes remaining $16.2m in respect of DC expansion • Depreciation charge c. $5.3m (pre-IFRS 16) • 2024 effective tax rate c. 25% (2023: 25%) • Share-based payment (IFRS 2) charge $1.4m in 2024 • Avera
Slide 17: Results Summary
Results Summary Revenue ($m) Operating profit ($m) 1,326.5 136.2 1,140.3 102.9 860.8 787.3 560.0 53.6 4.0 30.6 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Basic EPS and dividend per share (cents) Net cash - year end ($m) EPS Divi per share 377.9 104.5 285.6 86.8 215.0 152.4 160.0 45.0 41.1 39.