Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — FY2024 Earnings Presentation
32 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, June 2024
Slide 1: Full Year Results for the 52 weeks ended 30 March 2024
Full Year Results for the 52 weeks ended 30 March 2024
Slide 2: Agenda
AGENDA H IGH L IGH TS F IN A N CIA L R E V IE W B U S IN E S S R E V IE W CU R R E N T TR A D IN G & OU TL OOK
Slide 3: Highlights
HIGHLIGHTS A year of excellent progress Managed LFL Revenue Adjusted profit Adjusted EPS Dividend per sales before tax share FY2024 £359.1m £20.5m 24.48p 17.75p (52 weeks) +11.0% +7% +61% +52% +21% FY2023 £336.6m £12.7m 16.10p 14.68p (53 weeks)
Slide 4: A Business Built for Continued Success
A BUSINESS BUILT FOR CONTINUED SUCCESS Underpinned by solid foundations and a clear growth strategy Long-term fundamentals are excellent • Predominately freehold, well-invested estate in iconic locations • Strong Balance Sheet • Highly cash generative business • Premium positioning • Proactive manag
Slide 5: Financial Review
FINANCIAL REVIEW The Forester, Ealing
Slide 6: Income Statement
INCOME STATEMENT FY2024 FY2023 £m • Significant progress with revenues £m increased 7% to £359.1m Revenues 359.1 336.6 +7% • Adjusted profit increased by 61% Operating costs (324.6) (311.5) to £20.5m, with adjusted EPS growing by 52% to 24.48p Adjusted operating profit 34.5 25.1 • Underlying effecti
Slide 7: Divisional Results
DIVISIONAL RESULTS FY2024 FY2023 • Revenue in Managed Pubs and Hotels £m £m increased by 6% Managed Pubs and Hotels • Excluding the impact of the 23 sites Revenue 325.3 306.8 transferred to Tenanted Inns in the year, revenue increased by 10% Operating profit* 41.6 30.0 EBITDA* 64.0 53.4 • Operating
Slide 8: Managed Revenue Analysis
MANAGED REVENUE ANALYSIS LFL Sales v PY • Excellent like for like sales growth against +15.6% prior year at +11.0% +11.0% +6.4% +8.0% • All areas of the estate in strong growth, led by urban up 15.6% Rural Suburban Urban Total No of 30 70 67 167 sites • Well-balanced revenues with strong Total Sales
Slide 9: Sales Mix and Pricing
SALES MIX AND PRICING Sales Growth Price/Mix LFL sales • Food and drink volume growth delivered in FY2024 14.5% • 1.1% volume growth in drink 10.7% 8.7% 9.8% • 3.8% volume growth in food • Reflecting strong underlying growth and recognition of our customers’ appreciation of our offer Drink Food
Slide 10: Cost Environment Easing
COST ENVIRONMENT EASING Impact Response • FY2025 forward market purchases – 89% • Utilities cost for FY2024 is £11.6m, down 14% hedged for electricity, 92% for gas Energy (£2m) on FY2023, expecting further reduction • Further reductions in usage – 6.5% gas and of £2m in FY2025 3.5% electricity in FY
Slide 11: Strong Balance Sheet
STRONG BALANCE SHEET FY2024 FY2023 £m £m • High quality asset base Property, plant & equipment 581.9 583.3 • 88% of Fuller’s estate are freehold sites Right-of-use assets (IFRS 16) 58.7 66.4 • Invested £27m into the estate to maintain Other non-current assets 48.9 46.7 and enhance our premium positi
Slide 12: Net Debt
NET DEBT • Net debt at 30 March 2024 of £133.1m excluding leases (1 April 2023: £132.8m) • Reduced leverage – net debt/EBITDA** of 2.5 times (1 April 2023: 3.0 times) • Significant cash headroom – will be boosted further with the sale of The Mad Hatter, Southwark, in July 2024, which will realise £2
Slide 13: Cashflow
CASHFLOW FY2024 FY2023 £m £m • Strong cashflow generation has delivered Adjusted EBITDA 60.8 51.8 shareholder returns and enabled continued Working capital 7.7 (1.1) investment in the estate Interest (10.4) (8.7) • Underlying earnings growing with adjusted Tax payment (1.0) - EBITDA up 17% Pension (
Slide 14: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Policy Targets & Philosophy FY2024 Update and FY2025 Outlook • Invested £27m into the estate in FY2024 with Invest in long-term Returns-based approach to plans to invest over £30m in FY2025, including organic growth capital investment 26 transformational schemes Sustaina
Slide 15: FY2025 Guidance
FY2025 GUIDANCE • Continued sales and earnings growth • Easing inflationary environment • Depreciation expected to be in the region of £28m • Interest charge expected to be in the region of £14m • Adjusted effective tax rate estimated at 28% • Capital expenditure of c.£30m • IFRS 16 reconciliation i
Slide 16: Business Review
BUSINESS REVIEW
Slide 17: Standing Out from the Competition
STANDING OUT FROM THE COMPETITION Initiatives and Investments Results • Proactive management of our estate, with 23 • Financial firepower to invest in premium assets sites transferred from Managed to Tenanted – both new and existing and the sale of 37 sites to Admiral Taverns • Great pubs, attractin
Slide 18: Our Premium Customer
OUR PREMIUM CUSTOMER • Affluent, premium customer base – more resilient to cost pressures • Looking for a great customer experience – trading up to more premium products • Improved segmentation of customer base to better tailor offer around food, drink and price Household Income (£) Fuller’s Average
Slide 19: Reasons to Visit
REASONS TO VISIT
Slide 20: Focusing on Delicious Food
FOCUSING ON DELICIOUS FOOD • Like for like food sales up by 14.5% • Volume growth of 3.8% through enhanced menus and confident upselling • Appointed Carrie Joslin to the role of Food & Drink Director • Invested in a bespoke development kitchen and training hub to inspire creativity and innovation •
Slide 21: Continually Evolving Our Drinks Range
CONTINUALLY EVOLVING OUR DRINKS RANGE • Like for like drinks sales up 9.8% Asahi Super Dry Rugby • Hosted over 100 guest ales with unique beers World Cup Partnership from breweries including Siren and Tiny Rebel – planned additional focus on cask in the coming year • Added trade ups to every spirits
Slide 22: So Much More to Accommodation
SO MUCH MORE TO ACCOMMODATION • Like for like accommodation sales rose 7.8% Case Study: Cotswold Inns & Hotels • RevPAR up 9% to £97.26 (FY2023: £89.47) The Close, Tetbury • Occupancy rates up at 79% (FY2023: 78%) • Average room rate of £119.84 – an increase of 9% • Enhanced rooms – with schemes inc
Slide 23: Investing in Our Iconic Estate
INVESTING IN OUR ICONIC ESTATE Five schemes over £500k completed during the year, with another three already completed this year Clockwise from top left: The Windmill, Portishead Investment: £0.9m The Counting House, Cornhill Investment: £1.6m The Astronomer, Liverpool Street Investment: £0.7m The R
Slide 24: Investing in Our People-First Culture
INVESTING IN OUR PEOPLE-FIRST CULTURE Strong leadership building engaged teams, delighting customers and growing sales • Invested £1.3m in training and development in the last year, with a total of 4,636 training days across the business • All Operations and General Managers participated in our Lead
Slide 25: A Holistic ESG Strategy: Life is too good to waste
A HOLISTIC ESG STRATEGY: Life is too good to waste Our People Our Planet Our Communities • Rolled out Inclusion • Near-term science- • Raised a total of £218k Action Plan based emissions for Special Olympics GB • Our diverse workforce reduction target • Increased matched includes Team Members approv
Slide 26: Tenanted Inns
TENANTED INNS • Tenanted Inns revenue rose 13% to £33.8m (FY2023: £29.8m) • Tenanted pubs are an integral part of our long-term balanced estate • Excellent Tenanted estate that is well- invested, well-located, with pubs run by high calibre, entrepreneurial Tenants • Continued development of turnover
Slide 27: Enhancing Our Growth Potential
ENHANCING OUR GROWTH POTENTIAL • Proactive asset management – transferred 23 Managed pubs to Tenanted during the year • Disposal of 37 non-core pubs where we saw limited long-term growth potential, will realise £18.3m • Combined with the imminent sale of The Mad Hatter, total of £38m cash will be re
Slide 28: Summary and Outlook
SUMMARY AND OUTLOOK • Excellent progress – delivering on all areas of our strategy, with strong momentum as we go into the new financial year • Strong Balance Sheet, outstanding pubs and hotels, and an engaged and motivated Exec Team with a continued ambition to grow • Business in great shape with s
Slide 29: GM Conference 2024
GM Conference 2024
Slide 30: Appendix: Fuller's Estate
Appendix: Fuller’s Estate 1 Apr 30 Mar 13 June 2023 New Disposed Transfers 2024 Transfers 2024 Total Fuller’s 377 - (7) - 370 (1) 369 Managed Pubs & Hotels 204 - (2) (22) 180 (1) 179 Tenanted Inns 173 - (5) 22 190 - 190 Number of bedrooms 1,046 6 - (37) 1,015 (6) 1,009 The disposal of 37 pubs to Adm
Slide 31: Appendix: IFRS16 reconciliation
Appendix: IFRS16 reconciliation Pre IFRS16 IFRS16 Post IFRS16 £m £m £m Revenue and other income 359.1 - 359.1 Operating costs (327.1) 2.5 (324.6) Adjusted operating profit 32.0 2.5 34.5 Finance costs (10.9) (3.1) (14.0) Adjusted profit before tax 21.1 (0.6) 20.5 Separately disclosed items (4.8) (1.3
Slide 32: Appendix: A geographically balanced business
Appendix: A geographically balanced business
Fuller, Smith & Turner P.l.c. — FY2024 Earnings Presentation on 6ix