Mcbride Plc · LSE:MCB
Mcbride — H1 2004/05 Earnings Presentation
25 slides from Mcbride's earnings presentation, Feb 10, 2005
Slide 1: McBride plc 2004-05: Interim Results
McBride plc 2004-05: Interim Results 10 February 2005 © McBride plc 2005
Slide 2: Key Messages
Key Messages • Sales £268.0m up 5.5% (£254.0m) • Continued growth in Europe • Operating Profit £18.7m* up 8.7% (£17.2m) • Strong underlying Cash Generation reduced Net Debt • ROACE increased • Earnings per Share 7.0p*, up 7.7% (6.5p) • Interim Dividend is 1.5p up 25% (1.2p) • Started share buy back
Slide 3: Trading Highlights
Trading Highlights • Core PL/MB sales up 6.6% at constant currency • European Growth PL/MB up 8.2% • UK PL/MB up 4.7% • Central European sales up 19.4% • Personal Care PL/MB up 31.3% • Breda factory closure successfully completed © McBride plc 2005
Slide 4: Strategic Objectives
Strategic Objectives • Build on No 1 Private Label household & personal care position • Be Retail Partner of choice • Focus on profitable sales • Improve operational efficiency and increase asset utilisation • Maintain focus on cash generation • Return value to Shareholders © McBride plc 2005
Slide 5: Consistent Profit Growth Half Years
Consistent Profit Growth 8 Half Years 20 18 16 14 12 £m 10 8 6 4 2 0 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun-04 Dec 04 Operating Profit Pre Tax Profit * Pre Goodwill and Exceptional © McBride plc 2005
Slide 6: Europe: Continued sales development
Europe: Continued sales development 100% 90% 80% *59% 70% 56% 58% 58% 60% 51% 54% 50% 40% 43% 48% 49% 30% 20% 10% 0% 1997/98 1998/99 1999 /00 2000/01 2001/02 2002/03 2003/04 H1 2004/05 Continental Europe / ROW UK * CE / ROW would be 59% excluding APL © McBride plc 2005
Slide 7: Financial Highlights
Financial Highlights • Pre tax profit* £18.1m up 5.2% (£17.2m) • Earnings per Share* 7.0p, up 7.7% (6.5p) • Operating Cash Flow* £24.9m (£29.3m) • Net Debt at £29.5m vs. £31.4m at 30th June 04 • ROACE 28.5% vs. 25.4% year to 30th June 04 • IFRS - Compliance on track * Pre Goodwill amortisation and P
Slide 8: Operating Profit up 8.7%
Operating Profit up 8.7% £m Dec 2004 Dec 2003 Sales 268.0 254.0 Operating profit 18.7 17.2 Share of JV Operating Profit 0.1 0.5 Goodwill Amortisation (0.6) (0.7) Net Interest (0.7) (0.5) Profit Before tax 17.5 16.5 Tax (5.5) (5.6) Profit After Tax 12.0 10.9 EPS before goodwill 7.0p 6.5p © McBride pl
Slide 9: Strong Cash Generation
£m Strong Cash Generation £24.9m Dec 2004 Dec 2003 Operating profit pre Goodwill amortisation 18.7 17.2 Depreciation 9.2 10.2 EBITDA 27.9 27.4 Working Capital Movement 3.3 4.9 Tax (3.0) (2.7) Financing & Exchange (3.3) (0.3) Operating Cash Flow pre Breda 24.9 29.3 Capital Expenditure (8.7) (6.1) Bre
Slide 10: Impact of APL
Impact of APL Purchased Joint Venture partners share 6th Sept Consideration £1.0m Goodwill on acquisition £(1.3)m Post Consolidation Sales £10.7m Operating Profit £0.5m Share of Joint Venture profit £0.1m © McBride plc 2005
Slide 11: Strong Balance Sheet
Strong Balance Sheet £m Dec Dec 2004 2003 Intangible fixed Assets 8.1 8.3 Tangible Fixed Assets 135.1 125.0 Fixed Assets 143.2 133.3 Stocks 43.7 41.3 Debtors 109.0 113.9 Creditors (155.3) (149.1) Working Capital (2.6) 6.1 Provisions (11.0) (7.6) Net Debt (29.5) (43.6) Net Investments in JV ---- (1.4
Slide 12: Key Financial Ratios
Key Financial Ratios Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 ROACE % 12.2 13.6 15.6 18.0 21.6 24.2 26.8 28.5 Cash Flow / Share* 2.6 2.4p 9.7p 11.2p 12.2p 13.1p 9.0p 9.1p EPS ** 4.6p 3.7p 4.1p 5.1p 5.9p 6.5p 7.0p 7.0p Dividend / share H1/H2 2.0 0.7p 1.4p 0.8p 2.1p 1.2p 2.8p 1.5p Net D
Slide 13: Key Drivers of Private Label Growth
Key Drivers of Private Label Growth • Retailer Concentration • Discount Sector Growth • Consumer Propensity to Buy © McBride plc 2005
Slide 14: UK Top Retailers Increase Concentration
UK Top 4 Retailers Increase Concentration Market Share (£) 2004 * 2005 * 26.6% 29.0% 16.7% 17.1% 16.3% 15.9% 14.5% 12.4% 74.1% 74.4% * 12wks Ending Source TN Sofres © McBride plc 2005
Slide 15: CE Hard Discounters still growing Share
CE Hard Discounters still growing Share 18 16 14 12 % Share 10 8 6 4 2 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 © McBride plc 2005
Slide 16: UK Household PL/MB sector gained share
UK Household PL/MB sector gained share (vol) 60% 50% % Volume Share 40% 30% 20% 10% 0% Textile Fabric WUL MDW Cleaners Toilet Care Air Care Conditioner 2003 2004 Source TN Sofres © McBride plc 2005
Slide 17: CE Household Products PL gained share in Major Countries
CE Household Products PL gained share in Major Countries € 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 96 97 98 99 00 00-01 01-02 02-03 03-04 France Italy Spain Netherlands Source: 1995-1999 Neilsen 2000 - 2004 IRI © McBride plc 2005
Slide 18: Business Strategy
Business Strategy • Household and personal care - Private Label focus • Europe main growth opportunity • CSL/ speed to market - competitive edge • Flexible large scale supply - efficiency gains • Lowest cost asset base - rationalisation • Scope and Resources for disciplined expansion • Maintain Cash
Slide 19: Group-wide Sales Growth in PL/MB
Group-wide Sales Growth in PL/MB Constant Currency H1 H1 % 2003 2004 McBride UK Household & Personal Care 106.2 111.2 +4.7% sales McBride Europe Household & Personal 134.5 145.5 +8.2% Care sales Group Household & Personal Care 240.7 256.7 +6.6% Contract Sales 10.5 11.3 +7.6% Group Sales at constant
Slide 20: McBride Expansion in CEE
McBride Expansion in CEE • Private label sales in CEE +16% • Personal Care up in all CEE markets • Intersilesia Sales +10% • Sales in The Czech Republic +53% • Sales in Hungary +51% © McBride plc 2005
Slide 21: Cost Control Efficiency Benefits
Cost Control Efficiency Benefits • Improved Material usage supported have held Gross Margin despite Selling Price deflation. • Improved Asset utilisation benefits Overheads and Labour Efficiency • Smooth closure and transfer of Breda tonnage • Direct and indirect cost efficiencies in strong focus ©
Slide 22: Performance Index
CE PL/MB Sales + 6.3% pa Total Labour Productivity + 4.4% pa 135 130 125 Performance Index 120 115 110 105 100 99-00 00-01 01-02 02-03 03-04 Dec-04 Group sales per Employee CE PL/MB Sales © McBride plc 2005
Slide 23: Managing Raw Material Prices is a Core Skill
Managing Raw Material Prices is a Core Skill • Core Skill • Many influences on raw material prices • Oil affects to some degree about 60% of input prices • Buy Long • Value Engineering • Alternative sources and materials • Material yield/ Productivity © McBride plc 2005
Slide 24: Current Trading
Current Trading Early trading in the second half of the year has started in line with expectations. The trading environment is as challenging as the market has known for many years and requires further improvements in internal efficiency. Looking ahead we will maintain our focus on sales growth, cos
Slide 25: Summary
Summary • Sales up 5.5% (£268.0 m vs £254.0m) • Operating Profit* up 8.7 % (£18.7m vs £17.2m) • Operating margin* 7.0% vs 6.8% • Strong underlying Cash Generation • EPS* up 7.7% (7.0p vs 6.5p) • Dividend up 25% (1.5p vs 1.2p) * Pre Exceptional items and Goodwill amortisation © McBride plc 2005