H1 2015 Results - stock-spa.it · Modern Trade Stores . Discounter Stores Traditional . Market...
Transcript of H1 2015 Results - stock-spa.it · Modern Trade Stores . Discounter Stores Traditional . Market...
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Stock Spirits Group PLC H1 2015 Results 20 August 2015
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Disclaimer
This presentation has been prepared by Stock Spirits Group PLC (“Stock Spirits Group” or the “Group”). By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to be bound by the following conditions.
This presentation contains forward looking statements, which are based on the Stock Spirits Group Board's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These statement typically contain words such as [“anticipate”, “assume”, “believe”, “expect”, “plan”, “intend”] and words of similar substance. The forward looking statements contained in this presentation are based on past trends or activities and should not be taken as a representation that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the companies comprising the Stock Spirits Group, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Group's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of raw material and other input costs; and operating and financial restrictions as a result of financing arrangements. Accordingly, readers should not place undue reliance on forward looking statements due to the inherent uncertainty herein.
No statement in this presentation is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Group. Each forward looking statement relates only as of the date of the particular statement. Except as required by the Listing Rules, the Disclosure and Transparency Rules, the Prospectus Rules, the London Stock Exchange or otherwise by law, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Other than the financial results shown in the presentation, the information contained in this presentation has not been independently verified and no reliance should be placed on such information. No representation, warranty or undertaking, expressed or implied, is made by the Group or its advisors, representatives, affiliates, offices, employees or agents as to, and no reliance should be placed on, the Company nor any of its advisors, representatives, affiliates, offices employees of agents shall have any liability whatsoever (in negligence or otherwise) for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with the presentation.
The information in this presentation does not constitute an offer to sell or an invitation to buy shares in Stock Spirits Group PLC or an invitation or inducement to engage in any other investment activity.
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Agenda
SECTION PRESENTER
Business Review & Outlook
Chris Heath (CEO)
Financial Results Lesley Jackson (CFO)
Concluding Remarks Chris Heath (CEO)
Q&A
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Chris Heath Chief Executive Officer
Business Review
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Summary
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• Weak H1 results due to difficult Q1 - Caused by continued disruption resulting from the 2014 duty increase in Poland
• Stock Polska is fighting back
• Much better Q2 in Poland, and therefore for the Group
• GDP growth and most other economic indicators improving in all core markets
• Other markets performing well and overall in line with expectations
• Despite issues in Poland, we have continued to invest in our core brands and NPD across the group
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Poland Operational Highlights Summary Recap on 2014
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• Market disruption
• 15% Excise duty increase on January 1st 2014 • Adversely affected consumer demand and disrupted customer buying patterns • Customers pre duty increase buy-in at the end of 2013 resulted in high
customer inventories at the start of 2014 • High customer inventories were maintained in H1 as customers continued to
buy product at pre duty increase prices • As expected, discounts and rebates to customers increased to encourage the
sell through of excess inventories • Competitors became more aggressive on price and launched some successful
NPD • Market disruption continued through the whole of 2014 and into 2015
• Lessons have been learnt…
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Poland Operational Highlights Summary We are fighting back!
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• Actions taken
• Stock Polska MD left the business in January 2015 and Group management were moved in to run Stock Polska until a new MD is recruited
• Ian Croxford, Group COO as acting Managing Director • Richard Hayes, Group Sales & Marketing Director as acting Marketing
Director • Paula Cardwell, Group Finance as acting Polish Finance Director
• Sales force has been restructured, refocused and re-motivated • Relationships are being rebuilt with key customers • Core brand packaging has been upgraded and exciting new marketing
activities introduced • The NPD programme for 2015 and beyond has been expanded and
accelerated
• Results are coming through • Market share is stabilising / growing • Profitability is improving • Excellent results from Beam Suntory distribution agreements
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Spirits Route to Market in Poland
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Wholesalers Customers
Modern Trade Stores
Discounter Stores
Market Highlights Traditional Stores
Horeca (On Trade Bars etc)
• c.85
• c.3,100
• c.3,100
• c.64,000
• c.20,000
• >30 million consumers
• Vodka and vodka based liqueurs represent c.87% of the total spirits market
• Polish GDP growth and other economic indicators getting stronger
• Poland remains a very large and attractive spirits market
Typically 2-4 months Stock sales Consumer purchase
Source: Management estimates, Nielsen and OECD
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Vodka Market Trends by Channel Discounters gaining at the expense of Traditional and Modern Trade channels
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Discounters Traditional Modern Trade
% M
AT T
rend
Total market
1.7%
-4.4%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20% ValueVolume
-0.3%
-5.9%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20% ValueVolume
0.1%
-5.8%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20% ValueVolume
10.5%
1.7%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20% ValueVolume
Source: Nielsen, Total Poland, Total Vodka YTD Value % Change x.x%
YTD Volume % Change x.x%
-2.7%
+0.8%
10.2%
+15.9%
-6.0%
-2.4%
-4.8%
-1.4%
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Market Share Trends - Discounters Roust aggressively growing share in Discounters
• We have broadly maintained our
volumes in this channel whilst others have been aggressively growing their volumes through heavy discounting
• We are happy to work with Discounters on a basis that benefits both parties, whilst competitors appear to be using this channel to achieve fast volume gains
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Volume shares in discounters Key highlights
16% 11%
51% 28% 22%
7% 29% 20%
60% 30% 19%
2%
Soplica R Zubrowka R Bols R Krupnik R CDL StockPrestige R
June 2013 June 2015
(Roust) (Roust) (Marie Brizard) (Stock)
Proportion of key brand volumes through discounters
Source : Nielsen, Total Poland, Total Vodka Volume
16.8%
40.0%
20.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
JUN2013
SEP2013
DEC2013
MAR2014
JUN2014
SEP2014
DEC2014
MAR2015
JUN2015
Stock Polska Roust Marie Brizard
(Roust) (Stock)
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Average vodka retail price index since June 2013
• Stock’s vodka price trends fully
reflect the 2014 excise duty increase and our ongoing premiumisation strategy
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Key highlights
Vodka Pricing Trends
Source : Nielsen, Total Poland, Total Vodka
13.8%
7.7%
10.2%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
JUL
2013
AUG
201
3SE
P 20
13O
CT 2
013
NO
V 20
13DE
C 20
13JA
N 2
014
FEB
2014
MAR
201
4AP
R 20
14M
AY 2
014
JUN
201
4JU
L 20
14AU
G 2
014
SEP
2014
OCT
201
4N
OV
2014
DEC
2014
JAN
201
5FE
B 20
15M
AR 2
015
APR
2015
MAY
201
5JU
N 2
015
Stock Polska Roust Marie Brizard
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Mainstream Vodka Pricing Trends
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• Both directly competitive brands (Zubrowka R and Krupnik R) have significantly reduced price in relation to CdL
• Zubrowka repositioned shelf price from a 3% premium to CdL to a 6% discount
Key highlights Competitor brand prices relative to CdL
-5.7%
-4.7%
-8%
-6%
-4%
-2%
0%
2%
4%
JUN2013
SEP2013
DEC2013
MAR2014
JUN2014
SEP2014
DEC2014
MAR2015
JUN2015
Zubrowka R (Roust)
Krupnik R (Marie Brizard)
Average market price - % difference to CdL
June'13 June'14 June'15
Zubrowka R (Roust) 2,6% -2,7% -5,7%
Krupnik R (Marie Brizard) -1,3% -0,6% -4,7%
Pre
miu
m
Dis
coun
t
Source : Nielsen, Total Poland, Total Vodka
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New more premium packaging for ŻOŁĄDKOWA GORZKA
Communications focus • “Inspired by a recipe from 1822”
New more premium packaging for ŻOŁĄDKOWA DE LUXE
Communications focus • “This is how vodka should taste” 13
OLD NEW OLD NEW
Unique slimmer, taller, more elegant bottle
Enhanced embossing for more premium feel
6 x distilled and awards highlighted to emphasise quality
Unique slimmer, taller, more elegant bottle
Awards highlighted and fuller description of unique ingredients and taste to emphasise quality
1822 date and prominent emboss to emphasise heritage
Stock is Fighting Back Brand ‘refreshment’ initiative
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Innovative and impactful off shelf displays to
generate trial
Added value on pack driving repeat purchase rather than
price reduction
Improved fridge utilisation Store specific planograms and reallocation of fridges
to higher value stores
Stock is Fighting Back Active brand support by channel
Illustrative example
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New Premium Clear Vodka
New ZG Flavour Variant
New Packaging Innovation
The Spirit of Adventure
Pot Shots Affordable Fun
Heritage with a Modern Twist
Stock is Fighting Back New Products Launched in H1 2015
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Market Share Trends - Summary Stock market shares stabilising / growing
• Roust core brands show aggressive pricing and focus on growth in Discounters
• Stock has maintained it’s focus on value creation rather than chasing uneconomic market share
• Stock’s share is now stabilising / growing as a result of improved packaging, better marketing activities, innovative & successful NPD
• Traditional Trade returning to normal
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Monthly market shares – total market Key highlights
Source : Nielsen, Total Poland, Total Vodka, % shares by month (1) As of end of June 2015
10%
15%
20%
25%
30%
35%
40%
45%
JUN2013
SEP2013
DEC2013
MAR2014
JUN2014
SEP2014
DEC2014
MAR2015
JUN2015
Stock Polska (Value) Stock Polska (Volume)
Roust (Value) Roust (Volume)
Marie Brizard (Value) Marie Brizard (Volume)
34.9% 31.6%
31.4% 34.6%
14.0% 13.8%
Monthly value
market share(1)
MAT value
market share(1)
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17 Innovative New Product Concepts
Premium Sparkling
Vodka
New Creamy Style Lubelska Flavours
New Range of Mainstream RTDs
Stock is Fighting Back More New Products for Q3 2015
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Expansion into growing new categories – Premium Vermouth Aperitivo Prosecco RTD ‘spritzers’.
Leveraging the ‘Stock’ Brand Equity
Stock is Fighting Back More New Products for Q3 2015
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Other Markets Operational Highlights Summary
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• Profitable market share growth in Czech Republic, Slovakia, Croatia & Bosnia
• Successful New Product Launches in line with growth strategies
• New Beam Suntory distribution agreements started well in Croatia and Bosnia
• New MD for Italy & International (former Drambuie CEO) joined in April 2015
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Czech Republic Operational Highlights Summary
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• Profitable market share growth • Spirits leadership position extended
• Successful rejuvenation of Herbal Bitters Category
• Successful launch of new Fernet Stock Flavours
• Successful launch of new Bozkov flavours
31.0%
33.4%
YTD June 2014 YTD June 2015
Value share of total spirits (%)
41.6% 42.3%
YTD June 2014 YTD June 2015
Value share of HBL category (%)
45.4%
53.0%
YTD June 2014 YTD June 2015
Value share of domestic category (%)
Source : Nielsen, Total Czech Republic, Total Off Trade
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Current New
• 2014 - Inspirational Nevymeknem marketing campaign making the highly profitable herbal bitters category relevant again
• Distinctive new serving ritual to promote consumption growth
NPD • 2015 - Two new flavours in a highly
profitable category that has seen little innovation for many years
• Building on the very successful Nevymeknem marketing campaigns
Enhanced Marketing Support & Portfolio Expansion in Czech Republic
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Current
New
• Taking economy advertising to a
new level • Building awareness and
frequency amongst lapsed and new users on the Czech Republic’s number one spirits brand by volume
• Communications include core flavour variants and NPD
NPD • Two new flavours in a very large
category that has seen little innovation for many years
Enhanced Marketing Support & Portfolio Expansion in Czech Republic
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Current
New in 2014/15
• Two new flavours in a highly profitable category that has seen little innovation for many years
• Building on the very successful Nevymaknem marketing campaigns
• Innovative new ‘Iced’
concept in the long established & highly profitable Fruit Distillate category
• Leverage existing core
brands to enter growing flavoured vodka category
Further Portfolio Expansion in Slovakia
36.9% 39.1%
YTD June 2014 YTD June 2015
Value share of HBL category (%)
19.7% 19.8%
YTD June 2014 YTD June 2015
Value share of Fruit Distillates (%)
6.8% 7.8%
YTD June 2014 YTD June 2015
Value share of Vodka (%)
Source : Nielsen, Total Slovakia, Total Off Trade 24
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• A key driver of Stock’s market share and EBITDA growth since 2007
• Will continue to be our focus going forward
• Stepped up a gear in 2015 • 10 new product launches in H1 • 14 new products to be launched in Q3 • More to come in Q4
• Significant launch costs in H1 to support current and
future growth
• Delights consumers, helps to improve relationships with customers
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Innovation and NPD is at the heart of our strategy
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Operational Highlights Summary The building blocks are in place for a stronger H2
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Poland • Normalised trading/purchasing conditions since Easter have continued
• Shipments more inline with depletions
• No significant destock expected in H2 • New terms have been agreed with almost all wholesalers
• Reduced levels of aggressive pricing are emerging – competitor prices rising in wholesale
channel
• Reinvigorated sales force – changes having a positive effect on performance
• Strong NPD pipeline - will help drive additional sales
• Market share has started to recover
Other Markets
• Continued positive momentum in Czech and Slovakia
• Other markets in line with expectations
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Lesley Jackson Chief Financial Officer
Financial Results
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Consolidated Statutory P&L
Consolidated statutory P&L Key highlights
• Net sales revenue and COGS impacted by poor Q1 in Poland
• Revenue per case up 8.9%, increase in gross margin to 53.9%, driven by: • Market mix • Product mix • Reductions in discounts & rebates
• COGS per case unchanged from 2014. Market and product mix have impacted movement
• Increase in selling expenses driven by NPD investment
• Other operating expenses impacted by 2nd year of performance share plan and negative FX
• EBITDA margin declined in Q1, improvement in Q2
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(€k) H1 2014 H1 2015 % Change
Revenue 137,726 108,049 -21.5% Cost of goods sold (64,618) (49,758)
Gross profit 73,108 58,291 -20.3% Gross profit margin % 53.1% 53.9% Selling expenses (31,932) (33,399) Other operating expenses (17,964) (19,680)
Operating profit before exceptional items 23,212 5,212 -77.5% Exceptional items (479) 0
Operating profit 22,733 5,212 Net finance costs (3,227) (3,248)
(Loss) / profit before tax 19,506 1,964 Income tax credit / (expense) (2,673) (1,733)
Profit for the year 16,833 231
EBITDA before exceptional 28,610 10,759 -62.4% EBITDA Margin % 20.8% 10.0%
Earnings per share (basic) €0.08 €0.0012
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3.5
2.0
3.3
2.9
6.8
4.9
Clear Vodka Other Net Sales Revenue (€m)
137.7
108.0
Volume & Net sales revenue overview
Volume (m 9L cases) and Net sales revenue (€m)
Key highlights
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-17.2% -21.5%
H1 2014 H1 2015
% change y-o-y • Improving mix of underlying product
sales volumes • In H1 2014, 51% of volume was
represented by clear vodka • In H1 2015, clear vodka had fallen to
41%
• Typically, the “Other” category has higher margins vs. clear vodka
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25.3
9.2
H1 14 H1 15
EBITDA (€m)
Key financials
81.8
52.5
H1 14 H1 15
Poland H1 performance
Key highlights
• Extremely weak Q1, but with major improvement in Q2 on the re-emergence of more normal trading conditions
• Reported results • Net Sales revenue down to €52.5m • EBITDA before exceptionals down to
€9.2m • Margin impaired by poor Q1 performance
30
31.0%
Net sales revenue (€m)
EBITDA margin (%)
17.4%
xx.x%
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Poland Quarterly EBITDA Re-emergence of more normal trading conditions since Easter
Q1 Polish EBITDA Trends(1)
100
Average 2012-14 2015
Q2 Polish EBITDA Trends(1)
31
100
78.2
Average 2012-14 2015
(1) Indexed to the average quarterly Polish EBITDA, where the average is benchmarked to 100
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Polish shipments vs. depletions Comparison of retail sales out vs. Stock Polska sales in
Stock sales to customers indexed to retail sales out(1)
Comments
• Depletions in Q1 were much higher than shipments into customers
• In Q2 Depletions more closely matched shipments
32
Source : Nielsen with coverage factor of 1.18 applied, management information
(1) Indexed to retail sales out, where retail sales out is benchmarked to 100
100 100 100
49
92
69
Total Q1 2015 Total Q2 2015 Total H1 2015
Retail sales out Stock sales in to customers
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Sales Patterns Customer ordering trends can disrupt reported earnings
Order volumes in June vs. July(1)
75.1
111.1 100 100
Average 2012-14 2015
June July
33
Comments
• Typically there is a higher volume of orders in June vs. July
• However, orders in July 2015 were 11% higher than in June 2015 as a result of customer ordering trends
• Strong start to Q3
(1) Indexed to the June volume, where the June volume is benchmarked to 100
Source : management information
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Poland Key operational drivers of H1 EBITDA performance
Re-emergence of more normal trading conditions since Easter
34
Q1 2015 factors Q2 2015 factors
↓ Erratic customer ordering
↓ 2015 customer terms not all agreed
↓ Supply chain destocking
↓ Competitive pricing environment
↓ Market volume decline of 3.8%
↓ NPD investment
↓ Loss of market share
↑ Normalised purchasing
↑ New commercial terms with customers
↑ Sales force restructuring
↑ Stabilisation of market share
↓ Competitive pricing environment
↓ Market volume decline of 2.6%
↓ NPD investment
↓ Period end sales timing
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Key Financials
6.6 6.7
H1 14 H1 15
26.1 27.7
H1 14 H1 15
Czech Republic Company performance
Comments
• Reported results for H1 2015 vs. H1 2014 • Net sales revenue up by 6.3% to
€27.7m • EBITDA up 0.5% to €6.7m
• NPD investment in: • Fernet herbal bitters • Bozkov
• Leading to growth in both categories
35
24.0% 25.3%
Net sales revenue (€m)
EBITDA margin (%) x.x%
EBITDA (€m)
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Key financials
16.2 14.6
H1 14 H1 15
Net sales revenue (€m)
3.4 2.8
H1 14 H1 15
Italy Company performance
Comments
• Net sales declined by 9.8% to €14.6m due to:
• Raw material price increases and recent duty increases, resulting in a significant increase in selling prices have impacted brandy category
• As brandy category leader we have been impacted more than competitors
• Three core categories performing better than recent trends
36
18.9% 20.8%
EBITDA margin (%) x.x%
EBITDA (€m)
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Other Segment Slovakia, Croatia, Bosnia, Baltic Distillery & Exports
Key financials Comments
• Financial results in line with expectations and driven by: • Full year impact of portfolio
restructuring of the Slovakian business • Business as usual in other markets
• Slovakian performance reflects on-going: • Revenue decline as a result of the
elimination of uneconomic SKUs • The initial cost of launching new
products • Two new flavours of Fernet herbal
bitters, leading to category and margin growth
• New distribution agreements with Beam Suntory for Croatia and Bosnia started well
37
1.1 0.9
H1 14 H1 15
13.6 13.1
H1 14 H1 15
Net sales revenue (€m)
EBITDA (€m)
6.8% 8.1%
EBITDA margin (%) x.x%
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3.4
2.0
H1 2014 H1 2015
Free Cash Flow
Adjusted free cash flow H1 2014 vs. H1 2015
Comments
38 % Adjusted cash flow conversion x.x%
11.8%
18.2%
• Cash flow in H1 2015 impacted relative to H1 2014 by:
• Decline in EBITDA
• Inventory build for new Polish warehouse
• Final dividend paid in H1 2015 (no dividend payment in H1 2014)
• Company will pay an interim dividend of €0.0125 per share in September
• Inventory build expected to reverse in H2
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(82.4)
(92.0)
3.4
(3.9) (1.4)
(3.7)
(4.9)
0.9
-95
-90
-85
-80
-75
-70
Net debt Dec-14 Net cash inflowfrom op.activities
Income tax paid Net capital exp. &sale proceeds for
PPE
Net interest paid Final Dividend Exchange rate Net debt Jun-15
Net debt
Net debt H1 2014-15 development (€m)
39
• H1 closing net debt impacted by: • Decline in EBITDA, driven by poor Q1 in Poland • Inventory build for new warehouse in Poland
• Significant liquidity available to the business
Net debt to EBITDA ratio y.yyx
1.24x 1.90x
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Net Finance Costs
Net finance costs H1 2015 (€m)
H1 2014 H1 2015
Interest payable on bank loans 4.9 2.8
Bank commissions and guarantees 1.5 1.0
Interest rate swap instruments (0.3) 0.0
Other net interest (income) / expense 0.0 0.3
Foreign currency exchange loss / (gain) (2.9) (0.9)
Total 3.2 3.2
Comments
• Significant reduction in interest payable on bank loans following reduction in margins in the second half of 2014
• Interest rate swap derivative has now ceased, so no impact during 2015
• Foreign exchange translation gain has had a lower impact on net finance costs in H1, largely due to movements in the GBP/EUR rate. This is a non-cash movement
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Taxes
Comments
41
H1 2014 H1 2015
Current tax expense 5.7 1.1
Prior year tax expense (0.1) 0.5
Deferred tax charge / (Credit) (2.9) 0.1
Total tax expense 2.7 1.7
• Current tax expense reflects decline in taxable profit
• Prior year expense associated with routine corporate tax adjustments
• Deferred tax credit in 2014, created as a result of continued post IPO corporate restructuring, now complete
(€m)
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Impact of FX Movements
Net sales revenue bridge H1 2014-15
Comments
42
EBITDA bridge H1 2014-15
• Overall impact upon net sales revenue and adjusted EBITDA have not been material during 2015
• €12m increase in the carrying value of intangible assets; driven by FX translation
137.7
108.0
(30.3) 0.6
Net sales revenueH1 2014
Operatingactivities
Impact of FX Net sales revenueH1 2015
28.6
10.8 (16.7) (1.1)
EBITDA H1 2014 Operatingactivities
Impact of FX EBITDA H1 2015
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Outlook for H2 vs H1 2015 Building blocks in place for a stronger H2
43
Poland Other Markets
• Continuation of positive market and category trends
• Planned price increases achieved
• Expected returns from NPD achieved
• No duty increases expected
• More normal trading since Easter
• Discounts and promotions expected to continue at ‘normal’ levels
• No further customer destocking expected
• Continued stabilisation of market share
• No significant change in market trends
• Expected returns from NPD achieved
• Strong start to Q3
Historically H2 is stronger than H1
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Outlook for Full Year Cautious optimism – a weak H1 but we are fighting back
2015 Full Year EBITDA forecast and prior years’ results
Key assumptions
• The assumptions supporting our forecast are:
• No significant change in market trends
• No change in market shares
• Normal customer ordering patterns
• Further NPD in H2
• No significant change in the cost of raw materials
• Main risks: • More aggressive competitor behaviour
• Irregular customer buying patterns
44
68.4
83.7
66.4
60
68
40
45
50
55
60
65
70
75
80
85
90
FY 2012 act. FY 2013 act. FY 2014 act. FY 2015 est.
€m
• Expected EBITDA range for FY 2015 is €60m-€68m
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Chris Heath Chief Executive Officer
Concluding Remarks
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Concluding Remarks
• H1 2015 was a very challenging period in Poland
• Q1 was very weak, Q2 much better and Q3 has started well
• Poland remains an attractive market, with strong fundamentals
• Sticking to our strategy is starting to deliver results
• Other markets performing as expected
• Near term focus is Poland and growth through NPD and innovation
• Company will pay an interim dividend of €0.0125 per share in September
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Q&A
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Appendix
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To create the leading spirits business in CEE
Bringing global operational excellence to the region
Our Mission Statement
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Key Contact
50
Lesley Jackson (CFO)
• Tel: +44 1628 648503 • Mob: +44 759 5085745 • Email: [email protected] • Solar House, Mercury Park, Wooburn Green, Buckinghamshire, HP10
0HH
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Page Source Notes
7 Nielsen “Market share is stabilising” – source Nielsen total Poland, total off trade, total vodka Stock % market share May and June 2015
8 Management Estimates, IWSR,Nielsen and OECD
IWSR 2014 for vodka share of total spirits in Poland. Number of stores Nielsen total Poland, total off trade and management estimates for on trade. Poland economic forecast summary (June 2015) http://www.oecd.org/economy/Poland-economic-forecast-summary.htm
9,10,11,12,16
Nielsen Nielsen, total Poland, total off trade, total vodka to June 2015 and Nielsen, total Poland, total discounters to June 2015.
16 Nielsen
(1) As of end of June 2015
20 Nielsen “market share growth” source Nielsen total Czech republic, total off trade, total spirits to June 2015 and total Slovakia, total off trade, total spirits to June 2015
21 Nielsen Czech volume and value share performance – Total Czech Republic, total off trade, total spirits to June 2015.
24 Nielsen Slovakian volume and share performance – Total Slovakia, total off trade, total spirits to June 2015
Sources and footnotes
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Page Source Notes
26 CMR data and Nielsen
“competitor shelf prices rising in wholesale” source CMR data. “market share recovery” source Nielsen total Poland, total off trade, total vodka to June 2015
31 Management information
(1) Indexed to the average quarterly Polish EBITDA where the average is benchmarked to 100
32 Nielsen, Management information
Nielsen with coverage factor of 1.18 applied, management information (1) Indexed to retail sales out, where retail sales out is benchmarked to 100
33 Management information
(1)Indexed to the June volume where the June volume is benchmarked to 100
34 Nielsen Market volume and share performance source Nielsen, total Poland, total off trade, total vodka to June 2015
35 Nielsen “growth in both categories” source Nielsen, total Czech Republic, total off trade, total HBL and total rum & domestic categories
37 Nielsen “HBL category and margin growth” source Nielsen, total Slovakia, total off trade, total HBL category to June 2015.
43 Management estimates
“Poland share stabilised” and “other markets continuation of positive trends”
Sources and footnotes Continued