Boparan Holdings Limited 2 Sister ers Food od Gr Grou oup Q1 1 2019/ 2019/20 Upd pdate Bondholder Presentation 11 TH DECEMBER 2019 1
This presentation is for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither Boparan Holdings Limited (the “Company”), its subsidiaries (together, the “Group”) nor any of the Group’s directors, officers, employees, agents or advisers makes any representation or warranty in respect of the fairness, accuracy or completeness of the information or opinions contained in this presentation and no responsibility or liability will be accepted in connection with the same. The information contained herein is provided as at the date of this presentation and is subject to updating, completion, Disclaimer revision, verification and further amendment without notice. This presentation contains forward-looking statements in relation to the Group. By its very nature, forward-looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation should be construed as a profit forecast. Past performance cannot be relied on as a guide to future performance. 2
Agenda 1 | Executive S ummary 2 | Q1 Performance 3 | S trategy Update 4 | Outlook 3
Acceleration of like-for-like earnings growth 1 Key 2 Sustained improvement in working capital performance Headlines 3 Balance sheet strengthened by Matthew Walker sale 4
Turnaround continues; Acceleration in earnings growth, debt levels falling Q1 Performance overview Q1 Q1 YoY • Revenue decline due to disposals; Manton Wood, Green Isle 19/20 18/19 Change £m Brands & Matthew Walker. • 0.6% increase in LFL revenue in line with previous quarters, 1 , £m Revenue 662.7 708.3 (6.4)% driven by Gunstones +53%, EU Poultry business +11.4% & Fox’s +1.1%. UK Poultry volumes flat. 1,2 , £m EBITDA 22.7 24.0 (5.4)% • LFL earnings growth of 42.4% with EBITDA improvements across all segments, predominantly Bakery, as Gunstones integrates 2 , £m LTM EBITDA 88.3 109.5 (19.3)% with Fox’s Biscuits in the newly formed Bakery Division. 3 , £m Revenue LFL 662.7 658.6 +0.6% • £91.2m reduction in net debt driven by disposals and better control of working capital. 2,3 , £m EBITDA LFL 22.5 15.8 +42.4% EBITDA LFL Margin % 3.4% 2.4% +100bps 1. Revenue and EBITDA exclude performance of Matthew Walker from May 2019 following derestriction. 2. EBITDA is stated before depreciation, amortisation and pension scheme administration costs. 2,3, £m LFL LTM EBITDA 81.8 70.4 +16.2% 3. Like for like (LFL) sales and EBITDA are adjusted for the impact of exchange translation and including only those businesses that were owned by the Restricted Group throughout both periods. Therefore, Q1 FY19 excludes the results of the disposed Manton Wood, Green Isle Brands and Matthew Walker 4 , £m Net debt 581.9 673.1 +13.5% businesses. 4. Net debt is shown net of proceeds from the Matthew Walker disposal which completed at the end of Proforma Leverage 7.1x 6.8x (0.3)x Q1 FY20. At which point the third party loan in Bakery Foods Ltd (Matthew Walker) for £53m was repaid. 5
Agenda 1 | Executive S ummary 2 | Q1 Performance 3 | S trategy Update 4 | Outlook 6
Poultry Q1 2019/20 Results Poultry Performance overview • LFL sales grew +0.7%. Underlying LFL sales, excluding Fish, Q1 Q1 YoY £m increased +3.2%. European Poultry +11.4% growth, UK 19/20 18/19 Change Poultry flat. • EBITDA improvements driven by UK Poultry, following management changes. 1 , £m Revenue LFL 474.4 471.3 +0.7% • Witham site closed, with the benefit expected to land from Quarter 2 onwards. 1,2 , £m EBITDA LFL 11.2 9.7 +15.5% • Added Value factory in Poland being commissioned EBITDA LFL Margin % 2.4% 2.1% +30 bps 1. Like for like (LFL) sales and EBITDA are adjusted for the impact of exchange translation and including only those businesses that were owned throughout both periods. There were no disposals in the Poultry Segment in FY19 or FY20. Revenue, £m 474.4 470.7 +0.8% 2. EBITDA is stated before depreciation, amortisation and pension scheme administration costs. 2 , £m EBITDA 11.2 9.7 +15.5% 3. Protein segment renamed as Poultry. No other changes in definition. 7
Meals Q1 2019/20 Results Meals Performance overview Q1 Q1 YoY • LFL sales declined (2.0)%. Decline in Core Meals £m driven by focus behind core strategic customer. 19/20 18/19 Change • Previously stated commercial initiatives landed in Q4 positively impact EBITDA margin in Q1 19/20 and beyond. 1 , £m Revenue LFL 121.1 123.6 (2.0)% • Pennine consultation period ended. Closure to conclude in second half of financial year. 1,2, , £m EBITDA LFL 4.8 2.8 +140% EBITDA LFL Margin % 4.0% 2.3% +170 bps 1. Like for like (LFL) sales and EBITDA are adjusted for the impact of exchange translation and including only those businesses that were owned throughout both periods. Therefore, Q1 FY19 excludes the results of the disposed Green Isle Brands and Manton Wood Sandwich businesses. Revenue, £m 121.1 159.8 (24.2)% 2. EBITDA is stated before depreciation, amortisation and pension scheme administration costs. 2, , £m 3. Chilled segment renamed as Meals and redefined to include Hollands Pies and Green EBITDA 5.0 7.1 (29.6)% Isle Pastry, along with Core Meals and now excludes Gunstones and Matthew Walker 8
Bakery Q1 2019/20 Results Bakery Performance overview • LFL sales growth of +5.5% driven by Gunstones Q1 Q1 YoY Bakery +53%. Fox’s Biscuits sales also up +1.1%. £m 19/20 18/19 change • Gunstones EBITDA improvements driven by commercial initiatives and cost reduction. 1 , £m Revenue LFL 67.2 63.7 +5.5% • Fox’s EBITDA gains as previously announced restructure projects and cost out initiatives begin to land in the quarter. 1,2 , £m EBITDA LFL 6.5 3.3 +97.0% • Matthew Walker business disposed 26 th October but Quarter 1 19/20 results not included as EBITDA LFL Margin % 9.7% 5.2% +450 bps outside of Restricted Group. 1. Like for like (LFL) sales and EBITDA are adjusted for the impact of exchange translation and including only those businesses that were owned throughout both periods. Therefore, Q1 FY19 excludes the results of the disposed Matthew Walker Revenue, £m 67.2 77.8 (13.6)% business. 2. EBITDA is stated before depreciation, amortisation and pension scheme administration costs. 2, , £m EBITDA 6.5 7.2 (9.7)% 3. Branded segment renamed as Bakery and redefined to include Gunstones Bakery & Matthew Walker along wit Fox’s and now excludes Green Isle and Hollands Pies 9
Quarter 1 cash flow movements for the Restricted Group, which exclude Matthew Walker trading Q1 2019/20 Cashflow Cashflow, £m £m 100 120 140 160 20 40 60 80 0 97.8 Cash Q4 2018-19 EBITDA Q1 2019- 22.7 20 Working capital 5.3 movement (11.3) Capex (4.2) Cash Restructuring (6.7) Pensions (1.5) Tax (22.5) Interest 0.7 Leases Matthew Walker 67.0 disposal proceeds (53.0) Matthew Walker Bridging Loan (1.1) Matthew Walker Disposal Fees (1.5) Financing, FX, Other 91.7 Cash Q1 2019-20 10
Agenda 1 | Executive S ummary 2 | Q1 Performance 3 | S trategy Update 4 | Outlook 11
Our Poultry Plus Strategy is on track 1 Focus on our core poultry businesses 2 3 Add value to and realise Increase operational value from our non- effectiveness and poultry businesses efficiency 4 5 Build a high performance Improve cash generation organisation and culture and margin 12 Boparan Holdings Limited – Corporate Strategy 12
Good progress in Q1 and further upside to be delivered in H2 2019/20 Done in YTD 2019/20 Priorities for H2 2019/20 Poultry Poultry Close Witham Continue to deliver operational improvements in UKP Targeted (moderate capex) Value Added capability investments in UKP Stabilise operations and deliver operational improvements Reap rewards of new Value Added facility in Poland Complete Value Added investment in Poland Bakery Bakery Continue cost out program Implement commercial initiatives Relaunch Fox’s brand Launch cost out program – overhead and factory efficiencies Complete disposal of Matthew Walker business Deliver highest ever Easter sales in Gunstones Meals Meals Prepare for closure of Pennine factory in H2 Close Pennine and facilitate smooth transition of products to sites Implement commercial initiatives Increase efficiency and drive operational performance Prepare business for Ocado expansion Group Group Manage smoother working capital profile Continue to take cost out of the overall group Implement new cash management disciplines across group Continue to strengthen group in key Operations and Technical roles Source: Team analysis 13
Agenda 1 | Executive S ummary 2 | Q1 Performance 3 | Full Y ear Performance 4 | Outlook 14
Recommend
More recommend
