Metcash Limited · ASX:MTS
Metcash — Foodland Associated — H1 2005 Earnings Presentation
20 slides from Metcash's earnings presentation, 2005
Slide 1: H1 Fiscal 2005 Commentary on Results
Foodland Associated Limited H1 FISCAL 2005 Commentary on Results Slide 1
Slide 2: H1 2005 Financial Highlights
H1 2005 Financial Highlights Like for like profit up 5.6% to $54.9 million. Earnings from trading divisions up 2.8% to $128.3 million despite highly competitive market conditions in Australia and New Zealand. Earnings per share before goodwill amortisation excluding asset sale gains was 64.3 cents.
Slide 3: H1 2005 Results Summary
H1 2005 Results Summary H1 2005 H1 2004 Change $M $M Supermarkets Australia 19.3 21.9 (11.9%) New Zealand 77.1 73.3 5.2% 96.4 95.2 1.3% Franchise & Supply Australia 25.5 24.1 5.8% New Zealand 6.4 5.5 16.4% 31.9 29.6 7.8% EBITA FROM TRADING DIVISIONS 128.3 124.8 2.8% Other Property income and gains 0
Slide 4: H1 2005 Earnings and Dividends Per Share
H1 2005 Earnings and Dividends Per Share H1 2005 H1 2004 Change (cents) (cents) Earnings per share Unadjusted 45.3 66.6 (32.0%) Unadjusted before goodwill amort. 64.3 84.7 (24.1%) Continuing operations excluding unusuals before goodwill amort. 64.3 64.8 (0.7%) Interim dividend 43.0 (1) 43.0 (2) (1)
Slide 5: Supermarkets Australia
Supermarkets Australia H1 2005 H1 2004 Change Sales $M 692.3 664.4 4.2% EBITA $M 19.3 21.9 (11.9%) EBITA to sales (%) 2.80 3.30 Store trading area (‘000m2) 164.8 162.9 1.9 Store numbers 80 81 (1) Slide 5
Slide 6: Supermarkets Australia Achievements
Supermarkets Australia Achievements Launched new Action supermarket format which is now in four Queensland and two WA stores. Refurbished Queensland stores have increased combined turnover by over 12%. There are now 36 stores with seafood departments of which eight were opened in the last twelve mon
Slide 7: Store Network Changes - Australia
Store Network Changes - Australia Queensland Western Australia Refurbished Cannon Hill Broome Mermaid Waters Port Hedland Opened Boambee - new Kalamunda – replacement Closed Collie East Fremantle Underway Rochedale S.C. Alexander Heights Surfers Paradise Geraldton Noranda Ocean Keys (extension) Wood
Slide 8: Supermarkets New Zealand
Supermarkets New Zealand H1 2005 H1 2004 Change Sales NZ$M 1,982.7 1,903.2 4.2% EBITA NZ$M 83.9 83.6 0.1% EBITA to sales (%) 4.23 4.39 Store trading area (‘000m2)(1) 284.5 282.7 1.8 Store numbers (1) 150 150 (1) Excludes Woolworths at Gull micro-markets and convenience stores Slide 8
Slide 9: Supermarkets New Zealand – Achievements
Supermarkets New Zealand – Achievements Cabinet Ready Meat plant commenced operations. All North Island stores to be supplied by year end. Savings of NZ$4.0 million projected for Fiscal 2006 and NZ$6.0 million p.a thereafter. Foodtown Auckland City an outstanding success, will be the model for other
Slide 10: Store Network Changes – New Zealand
Store Network Changes – New Zealand Refurbished Countdown Ashburton Countdown Wainuiomata Countdown Whangarei Foodtown Whangaparoa Woolworths Masterton Opened Foodtown Howick - replacement Closed Woolworths at Gull Norton Road Underway Woolworths Queensgate Woolworths New Plymouth Woolworth Parapara
Slide 11: Franchise & Supply Australia
Franchise & Supply Australia H1 2005 H1 2004 Change Sales $M (1) 693.8 654.7 6.0% EBITA $M 25.5 24.1 5.8% EBITA to sales (%) 3.70 3.68 (1) Includes internal sales Slide 11
Slide 12: Franchise & Supply Australia - Achievements
Franchise & Supply Australia - Achievements Launched Eziway third tier franchise group now with 50 members. Status quo for Western Australian trading hours. Franchisee store upgrade activity has accelerated. Main warehouse service levels/stock availability substantially improved. House brand sales n
Slide 13: Franchise & Supply Australia Store Network Changes
Franchise & Supply Australia Store Network Changes Three additional Dewsons stores and a further six rebranded. Now 63. Two Dewsons Express stores now trading and a third under construction Seven further stores rebranded to Supa Valu. Now 117. 13 Quickstop fuel locations now trading. Fuel offer now
Slide 14: Franchise & Supply New Zealand
Franchise & Supply New Zealand H1 2005 H1 2004 Change Sales NZ$M 148.6 134.2 10.7% EBITA NZ$M 7.0 6.3 11.1% EBITA to sales (%) 4.71 4.69 Slide 14
Slide 15: Franchise & Supply New Zealand - Achievements
Franchise & Supply New Zealand - Achievements Reliability of supply from South Island distribution centre prompts higher proportion of sourcing by franchisees. There are currently 11 Fresh Choice and 30 SuperValue franchisees. All stores now observing extended trading hours including Sundays. Refurb
Slide 16: H1 2005 Capital Expenditure Summary
H1 2005 Capital Expenditure Summary H1 2005 H1 2004 $M $M Supermarkets Australia 27.3 50.7 New Zealand 39.7 31.1 Franchise & Supply Australia 6.6 3.8 New Zealand 2.4 0.1 Property Australia 22.6 0.7 New Zealand 11.7 6.3 Corporate 1.7 Farmers 0.5 112.0 93.2 Amounts shown above are cash flow. Slide 16
Slide 17: Balance Sheet and Capital Management Issues
Balance Sheet and Capital Management Issues 30-Jan-05 1-Aug-04 $m $m • Property, plant and equipment increases due to continued store network Current Assets development. Cash 66.3 59.2 Receivables 96.9 229.0 •Stock days across the Group are tracking in line with prior year with further Inventories 4
Slide 18: Corporate Issues
Corporate Issues The preferred merchandising system vendor has been selected but project is on hold pending the outcome of corporate activity. Warehouse management system replacement estimated to cost between $6 to $8 million over a three year period is being progressed. Demand Tec price optimisatio
Slide 19: 2005 Group EBITA Forecast
2005 Group EBITA Forecast 2005 Forecast 2004 Actual Full Year $A million Total F H1 A H2 F Total A H1 A H2 A Change Supermarkets Australia 40.0 19.3 20.7 39.1 21.9 17.2 2.3% New Zealand 158.4 77.1 81.3 149.0 73.3 75.7 6.3% 198.4 96.4 102.0 188.1 95.2 92.9 5.5% Franchise & Supply Australia 50.4 25.5
Slide 20: Foodland Associated Limited H1 Fiscal 2005 Commentary on Results
Foodland Associated Limited H1 FISCAL 2005 Commentary on Results Slide 20