Travis Perkins Plc · LSE:TPK
Travis Perkins — FY2024 Earnings Presentation
20 slides from Travis Perkins's earnings presentation, April 2025
Slide 1: 2024 Full Year Results
2024 Full Year Results April 2025
Slide 2: Agenda
INTRODUCTION FINANCIAL REVIEW 2024 Full Year Results April 2025 02 04 13 14 19 Q&A APPENDICES CONTACT Introduction Financial review Q&A Appendices Contact TRAVIS PERKINS PLC / 2024 Full Year Results / April 2025 1
Slide 3: Introduction
Introduction INTRODUCTION Geoff Drabble, Chair FINANCIAL REVIEW Q&A APPENDICES CONTACT TRAVIS PERKINS PLC / 2024 Full Year Results / April 2025 2
Slide 4: Strong fundamentals but tactical missteps
The Group has strong ...but there have INTRODUCTION fundamentals... been tactical missteps FINANCIAL REVIEW • Comprehensive UK network • Too much attrition in key sales • Experienced teams and operations roles • Long-standing customer • Sound strategic initiatives not well implemented in the field Q
Slide 5: Financial review
Financial review INTRODUCTION Duncan Cooper, CFO FINANCIAL REVIEW Q&A APPENDICES CONTACT TRAVIS PERKINS PLC / 2024 Full Year Results / April 2025 4
Slide 6: Good progress on balance sheet and portfolio actions but trading challenges are clear
Good progress on balance sheet and portfolio INTRODUCTION actions but trading challenges are clear FINANCIAL REVIEW • Toolstation UK progressing well • Merchant businesses have • Tackled European losses underperformed Q&A • Strong cash generation • Oracle implementation challenges • Refinanced with
Slide 7: Financial overview
Financial overview INTRODUCTION FINANCIAL REVIEW Year ended 31 December 2024 2023 (£m unless otherwise stated) 2024 (re-presented1) Change Revenue 4,607 4,837 (4.7)% Adjusted operating profit excluding property profits 141 183 (23.0)% Q&A Adjusted operating profit 152 198 (23.2)% Adjusted earnings p
Slide 8: Challenging trading environment becoming increasingly competitive
Challenging trading environment INTRODUCTION becoming increasingly competitive Year ended 31 December 2024 FINANCIAL REVIEW (£m unless otherwise stated) 4,837 (82) • Continued weakness in RMI / (174) new housebuilding • Competitor activity has intensified PRICE DEFL ATION 50 4,607 Q&A (24) • Deflati
Slide 9: Gross margin decline partially mitigated by cost savings
Gross margin decline partially INTRODUCTION mitigated by cost savings Year ended 31 December 2024 FINANCIAL REVIEW (£m unless otherwise stated) 198 (116) • Gross profit decline driven by deflation and decline in volume • Significantly improved cost discipline 7 152 Q&A 11 13 • Ongoing Toolstation UK
Slide 10: Adjusting items
Adjusting items INTRODUCTION FINANCIAL REVIEW Year ended 31 December 2024 2023 (£m unless otherwise stated) 2024 (re-presented1) • Impairments related to Merchant branches and Staircraft Branch impairment 63 – • Supply chain charge resulting from Staircraft impairment 33 – DC closures and stock rati
Slide 11: Significantly enhanced cash generation
Significantly enhanced INTRODUCTION cash generation FINANCIAL REVIEW Year ended 31 December 2024 2023 (£m unless otherwise stated) 2024 (re-presented1) YoY • Clear focus on cash has protected the balance sheet EBITDA 332 369 (37) Access costs / • Debtors and creditors impacted by Oracle Q&A disconti
Slide 12: Good progress on net debt reduction
Good progress INTRODUCTION on net debt reduction FINANCIAL REVIEW Year ended 31 December 2024 31 Dec 31 Dec (£m unless otherwise stated) 2024 2023 Change Covenant • Significant reduction in net debt driven by strong cash inflow Net debt £845m £922m £77m • Unwind of legacy pension Net debt / adjusted
Slide 13: Outlook and guidance
Outlook and guidance INTRODUCTION Current trading and outlook Guidance FINANCIAL REVIEW • Pricing stabilised with modest • Base capital expenditure of volume decline in Merchanting around £80m Q&A • Solid start in Toolstation UK • Property profits of around £3m • Expected ETR of 30% on • Uncertainty
Slide 14: Q&A
Q&A INTRODUCTION FINANCIAL REVIEW Q&A APPENDICES CONTACT TRAVIS PERKINS PLC / 2024 Full Year Results / April 2025 13
Slide 15: Appendices
Appendices INTRODUCTION FINANCIAL REVIEW Q&A APPENDICES CONTACT TRAVIS PERKINS PLC / 2024 Full Year Results / April 2025 14
Slide 16: Definitions
Definitions INTRODUCTION Metric Definition FINANCIAL REVIEW Operating profit Profit before tax, financing charges and income Earnings per share (‘EPS’) Ratio of net profit after taxation adjusted for minority interests to weighted number of ordinary shares outstanding Adjusted operating profit / Ope
Slide 17: £125m US PP debt mix and maturity profile
£125m US PP debt mix and maturity profile INTRODUCTION Offering summary FINANCIAL REVIEW Series Series A Series B Series C Series D Series E Tenor 3-year 4-year 5-year 7-year 10-year Currency USD GBP GBP GBP GBP Q&A Amount $40,000,000 £10,000,000 £21,000,000 £37,000,000 £25,000,000 APPENDICES CONTAC
Slide 18: Sales drivers by reporting segment
Sales drivers by reporting segment INTRODUCTION (% unless otherwise stated) Merchanting Toolstation Total Group FINANCIAL REVIEW Total revenue Q1 Q2 H1 Q3 Q4 H2 FY Q1 Q2 H1 Q3 Q4 H2 FY Q1 Q2 H1 Q3 Q4 H2 FY 2024 (6.0) (5.7) (5.8) (7.1) (5.8) (6.5) (6.2) 0.9 3.6 2.3 3.0 2.2 2.6 2.5 (4.9) (4.2) (4.5) (
Slide 19: Branch numbers
Branch numbers INTRODUCTION Year ended 31 December 2024 31 Dec 2023 Openings Closures 31 Dec 2024 Travis Perkins General Merchant 552 5 (8) 549 FINANCIAL REVIEW Benchmarx1 70 0 (42) 28 Keyline 42 0 (1) 41 CCF 36 1 0 37 Q&A BSS 54 0 0 54 TF Solutions 15 0 0 15 Merchanting 769 6 (51) 724 APPENDICES To
Slide 20: Contact
INTRODUCTION FINANCIAL REVIEW Q&A Strong customer and supplier relationships Comprehensive UK network Toolstation growth potential APPENDICES Contact Matt Worster +44 (0) 7990 088 548 CONTACT [email protected] Unique portfolio of brands Experienced people 19