Mcbride Plc · LSE:MCB
Mcbride — FY2008-09 Earnings Presentation
30 slides from Mcbride's earnings presentation, September 2009
Slide 1: McBride plc 2008-09 full year results presentation
McBride plc 2008-09 full year results presentation September 2009 Passionate about Private Label
Slide 2: Introduction
Introduction Iain Napier - Chairman Passionate about Private Label
Slide 3: Introduction
Introduction » A return to: - organic sales growth - recovery in operating margins - improved return on capital employed » Dividend up 7% » Good start to new year 2008-09 Full Year Results Presentation Passionate about Private Label 3
Slide 4: Summary
Summary Miles Roberts Passionate about Private Label
Slide 5: Summary
Summary » Private Label grew share in all markets » Organic revenue up 4%, core categories up 7% » Increased investment in NPD, service and efficiency » Margin recovery, expansion in Europe » Strong cash generation » Return on capital employed 17.1% » Dividend up 7% » Good start to new year 2008-09
Slide 6: Financial review
Financial review Paul Bergin - Interim Finance Director Passionate about Private Label
Slide 7: Financial headlines
Financial headlines 2008-09 2007-08 Y/Y Revenue (£m) 792.4 700.9 +13% EBIT (£m) 36.2 27.0 +34% EBIT margin 4.6% 3.9% +0.7 pts Profit for the year (£m) 23.2 15.6 +49% Diluted earnings per share (pence) 12.8 8.6 +49% Dividend per share (pence) 6.0 5.6 +7% EBITDA (£m) 60.0 48.8 +23% Cash generated from
Slide 8: Financial KPIs
Financial KPIs 2008/09 2007/08 Organic revenue growth +4% -2% EBIT margin 4.6% 3.9% EPS growth +49% -32% Net current assets * £6.9m £16.9m ROCE 17.1% 12.8% EBIT margin 4.6% 3.9% Asset turnover 3.7 3.3 All figures before amortisation of intangible assets and exceptional items (*) Excluding net cash /
Slide 9: Revenue bridge 2007-08 to 2008-09
Revenue bridge 2007-08 to 2008-09 800.0 792.4 +64.5 750.0 +27.0 700.0 700.9 £m 650.0 600.0 550.0 500.0 2007-08 Organic growth Currency 2008-09 2008-09 Full Year Results Presentation Passionate about Private Label 9
Slide 10: Income statement
Income statement 2008-09 2007-08 Y/Y Revenue 792.4 700.9 +13% Gross profit 268.2 230.0 +17% Gross margin 33.8% 32.8% +1.0 pts Distribution costs (52.7) (47.2) +12% Administrative costs (179.3) (155.8) +15% EBIT 36.2 27.0 +34% Net financing costs (5.2) (5.7) -9% Profit before taxation 31.0 21.3 +46%
Slide 11: Regional performance
Regional performance Revenue(1 ) Operating profit (1 )(2 ) 2008-09 2007-08 Y/Y 2008-09 2007-08 Y/Y £m £m £m £m UK 311.4 297.3 +5% 16.2 15.2 +7% Western Continental Europe 469.8 395.4 +19% 20.9 11.4 +83% Eastern Continental Europe 33.2 32.1 +3% 2.0 2.1 -5% Sub-total 814.4 724.8 +12% 39.1 28.7 +36% In
Slide 12: Movement in net debt June 2008 to June 2009
Movement in net debt June 2008 to June 2009 Cash generated Foreign Opening net from Capital Dividend Interest exchange Closing net debt operations expenditure payments payments Other (1) effects debt -20.0 61.8 (20.0) -50.0 (10.1) £m (4.7) (0.9) (5.2) -80.0 (82.4) (103.3) -110.0 (1) Other includes t
Slide 13: Cash Generation 2009
Cash Generation 2009 £m 2009 Cash generated from operations 61.8 Other net outflows (25.6) Free cash flow 36.2 Dividends (10.1) Exchange (5.2) Debt reduction (20.9) Opening net debt (103.3) Closing net debt (82.4) 2008-09 Full Year Results Presentation Passionate about Private Label 13
Slide 14: Business review
Business review Miles Roberts Passionate about Private Label
Slide 15: Agenda
Agenda » Strategy » Markets » Achievements » Outlook 2008-09 Full Year Results Presentation Passionate about Private Label 15
Slide 16: Strategy
Strategy Lead the growth of Private Label Household and Personal Care products in Europe Commercial Operational leadership Enabling leadership Attractive product Customer service High performance categories excellence leadership and culture New product Leverage increasing Improve efficiency developm
Slide 17: European Household and Personal Care markets
European Household and Personal Care markets » Household and Personal Care markets in Western Europe worth £59 billion and growing 2% pa » Household and Personal Care markets in Eastern Europe worth £16 billion growing at 13% pa 2008-09 Full Year Results Presentation Passionate about Private Label 1
Slide 18: McBride is the clear leader in European Private Label
McBride is the clear leader in European Private Label Household and Personal Care 1000 900 800 Annual revenue (€m) 700 600 500 400 300 200 100 0 P e l li Da ifa Be ba al a sa z z ls ee In sa Th l ep d in e s le P r an n M s im ck Sh bec ld to Sa o de k va In l o PA er a Da nd in ye te hn rid Pi ho e
Slide 19: Private Label is growing in all markets
Private Label is growing in all markets » Private Label products give best balance between performance and price » Consumers are increasingly price sensitive and willing to switch purchases » Retailers re-emphasising Private Label ranges » Private Label gaining share in all markets » Higher growth i
Slide 20: McBride's growth product categories - attractive growth potential
McBride’s growth product categories - attractive growth potential Compound annual growth rates for various product categories in Western Europe (2003-2008) 14.0% McBride’s growth 12.0% product categories 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Household Specialist Air care Personal Automatic Laundry products
Slide 21: Consumers accept that Private Label Household products are equivalent to leading brands
Consumers accept that Private Label Household products are equivalent to the leading brands Question: All things considered, how similar are store brands (e.g supermarket own brands) in the following categories compared to well know leading famous brands Far Inferior Slightly Inferior Identical - no
Slide 22: British consumers buying more Private Labels
British consumers buying more Private Labels 55% Branded Supermarket Private products Label products 4% 33% 19% 14% 3% 3% 4% 1% I only ever Buying Buying No change Buying Buying Only ever buy brands brands a lot brands a Private Private buy Private more little more Label a little Label a lot Label m
Slide 23: Private Label Household products growth outperforming the market
Private Label Household products growth outperforming the market 6 5 4 % Value growth 3 2 1 0 UK Italy France Germany -1 -2 Market PL Sources: UK TNS to June 09 France TNS to June 09 Italy IRI to June 09 Germany Gfk to March 09 2008-09 Full Year Results Presentation Passionate about Private Label 23
Slide 24: Private Labels benefit in times of recession
Private Labels benefit in times of recession Private Labels gain and continue to grow share during and after recessions % Private Label share of UK packaged groceries 45 40 35 30 25 20 15 79 80 81 82 89 90 91 92 93 06 07 08 09 Source TNS, Datamonitor 2008-09 Full Year Results Presentation Passionate
Slide 25: Private Label is forecast to gain share worldwide
Private Label is forecast to gain share worldwide 47 Switzerland 46 43 UK 39 37 Germany 34 Spain 29 32 Private Label Belgium 28 31 penetration is France 27 29 generally highest in Netherlands 24 27 Europe and lower in Canada 21 24 emerging markets, but Australia 25 poised to grow fast. 21 23 WORLD A
Slide 26: Achievements
Achievements Growth » Organic growth +4%, core categories +7% » New business wins » High potential territories - Central and Eastern Europe » Small acquisition of sachet assets » Evaluating further acquisition opportunities » Innovative NPD Innovation - sachets, gels, automatic dishwashing, Personal
Slide 27: Achievements
Achievements People » Performance and talent management processes » Strengthened new divisional MD’s » Employee morale up by 4% Sustainability » Waste recycled, recovered and reused up 1% to 67% » Water consumption reduced by 8% year on year » Total waste generated fell 3% » Energy consumption and C
Slide 28: Key objectives
Key objectives To enhance returns to shareholders through: » Further investment in NPD of core categories » Focus in high growth markets » Target improved customer service » Further efficiency improvements » Continue to seek suitable acquisitions 2008-09 Full Year Results Presentation Passionate abo
Slide 29: Conclusion and Outlook
Conclusion and Outlook » Continuing Private Label growth in all markets » Strategy consistently applied » Benefiting from stronger and larger business » Recovery of margins and ROCE » Good start to current year 2008-09 Full Year Results Presentation Passionate about Private Label 29
Slide 30: McBride plc "Passionate about Private Label"
McBride plc “Passionate about Private Label” Passionate about Private Label