McBride plc 2006-07 Interim Results Presentation February 2007 Overall best private label supplier in UK - Grocer Magazine BEHI ND THE LABEL “Senior buyers judged McBride the best, thanks to its excellent account management skills, reliability of deliveries, consistency of product quality, new product development and value for money”
Summary 2006-07 Half 1 » Results in line with expectations » Revenue and profit growth in both household and personal care » Operating margin improved to 5.9% » EPS up 9% » Major Italian Household cleaners acquisition » Small infill acquisition in Poland » Successful integration of recent UK acquisitions » Continuing focus on innovation, operational efficiency and management to support margin improvement 2006-07 Half Year Results Presentation 2
Business unit progress » Western Continental Europe - Revenue growth in Italy, Spain and personal care - French household market weak but not declining - Continuing focus on innovation, service and costs » Eastern Continental Europe - Revenue growth - In fill acquisition of Schneider household and personal care business (post year end) - Further strengthening of management and new capacity » UK - UK sales up 9% - Strong performance in household and personal care - Successful integration of recent acquisitions 2006-07 Half Year Results Presentation 3
Bob Beveridge Finance Director
Profit and loss account (1) P/ P Period ended Dec 05 Period ended Dec 06 £m Margin £m Margin Revenue 278.2 + 3% 270.4 Cost of sales (178.3) (185.0) + 4% Gross profit 92.1 34.1% 93.2 33.5% + 1% Distribution costs (17.7) (18.9) + 7% Contribution 74.3 26.7% -0% 74.4 27.5% Administrative costs (58.0) -2% (59.0) Operating profit 16.3 5.9% + 6% 15.4 5.7% 2006-07 Half Year Results Presentation 5
Profit and loss account (2) P/ P Period ended Dec 06 Period ended Dec 05 £m Margin £m Margin Operating profit 16.3 5.9% + 6% 15.4 5.7% I nterest (0.5) (0.7) + 40% Profit before tax + 5% 14.9 15.6 Taxation (4.4) -2% (4.5) Profit for the year 10.4 11.2 + 8% EPS 6.3p + 9% 5.8p EPS (Diluted) 5.7p 6.1p + 7% Dividend 1.7p + 6% 1.6p 2006-07 Half Year Results Presentation 6
Regional performance Revenue (1) Operating profit (1) p/ e Dec p/ e Dec p/e Dec p/e Dec P/ P P/ P 05 06 05 06 £m £m £m £m UK 134.6 + 9% 12.3 + 17% 123.5 10.5 Western Continental Europe 141.5 138.3 -2% 4.6 3.9 -15% Eastern Continental Europe 11.4 11.8 + 4% 1.1 0.8 -27% Total 284.7 + 3% 17.0 + 5% 276.4 16.2 I ntergroup/ corporate (6.5) + 8% (0.7) -13% (6.0) (0.8) Total 270.4 278.2 + 3% 15.4 16.3 + 6% (1) Revenue and operating profit by geographic origin 2006-07 Half Year Results Presentation 7
Product category performance Revenue Operating profit p/e Dec p/ e Dec p/e Dec p/ e Dec P/ P P/ P 2005 2006 2005 2006 £m £m £m £m Household 216.5 221.3 + 2% 11.5 12.1 + 5% Personal care 53.9 56.9 + 6% 4.7 4.9 + 4% Total 270.4 278.2 + 3% 16.2 17.0 + 5% Corporate (0.8) (0.7) -13% Total 270.4 278.2 + 3% 15.4 16.3 + 6% 2006-07 Half Year Results Presentation 8
Movement in net debt June - Dec 2006 30.0 2.3 2.2 20.0 7.9 £m 24.6 2.7 10.0 6.2 0.7 4.0 0.0 Movement Other Acquisitions Dividends H1 06/07 Working Tax/ Capital in Net operating Capital Expenditure Iinterest Debt cash flow (net) 2006-07 Half Year Results Presentation 9
Balance sheet Dec-06 Dec-05 £m £m Non-current assets 137.1 146.4 I nventories 48.9 46.1 Debtors 104.8 100.6 Creditors (144.7) (148.5) Net working capital 5.2 2.0 Employee benefits (14.4) (16.9) Deferred tax and non-current provisions (3.2) (1.3) Net debt (25.1) (22.5) Net assets 98.4 108.9 ROACE 24% 25% 2006-07 Half Year Results Presentation 10
Focus on cost management » Overhead reductions in UK and WCE » Purchasing strategies to alleviate some input price pressures - Buy long » Value engineering benefits achieved in WCE » Labour efficiency improvements in WCE » China sourcing project delivery 2006-07 Half Year Results Presentation 11
Miles Roberts Chief Executive
Strategy for growth » Preferred supplier to major European retailers of private label household and personal care products » Customer partnership - Product innovation - machine dishwashing, textile, cleaners personal care and discount - Category development - marketing of private label - Local customer service - Regional development - Italy, ECE, Germany » Operational scale and efficiency » Colleagues and culture 2006-07 Half Year Results Presentation 13
Acquisition of Dasty Italia SpA - background » Modern highly automated facilities » Strong position with key Italian discount retailers » Highly complementary customers and products » Italy becomes clear third largest geographic market for McBride » Good scope for cost synergies » Creates clear leader in Italian private label household products » Enterprise value of €29m (1) » €40.4m revenue in year to 31 December 2005 » €3.9m EBIT in same period » Expected to be earnings enhancing in first full year (2) (1) Subject to closing working capital adjustment (2) Before amortisation of acquired intangible assets 2006-07 Half Year Results Presentation 14
Complementary customers McBride Italy Dasty Other 17% Contract Private Label 17% Discount 10% McBride 7% Manufacture13% Private Label 83% Discount 53% 2006-07 Half Year Results Presentation 15
Private Labels now account for 1 in 5 purchases of Household products in Italy 35% 30% % Volume Share 25% 20% 15% 10% 5% 0% r r d r r r r r d g e e r g e e e n c s e e e e Y i i n u n r n o e d n n n n l u n n a L a q i a c v a i a a a w q A a e c h C r i b i e e e e e L s u e i h i t o T L t l l a i l C l l a o C t C C l s n d P C C F I p e w c e A d g L U l S e e m n w g n i n r A h A o F s e r n i s o i o T h T g u a o i h i r o d h s n D t O r i p c i A D s a i r n n r h t T h a W i u i K W r s t W P u a a F B W l l A 2005 2006 Source: IRI ( 52 weeks ending December 2006) 2006-07 Half Year Results Presentation 16
In France: household products market declined 5% in 2005, Private Label sales in 2006 up 0.9% in an overall flat market 3600 3550 3500 €'000 3450 3400 3350 3300 3250 2004 2005 2006 Total Household 700 690 680 670 €'000 660 650 640 630 620 610 600 2004 2005 2006 Source: IRI / TNS data Private Label 2006-07 Half Year Results Presentation 17
France performance » Sales in Household declined; grew where focused » Performance good in parts » Completed price increases during H1, benefit H2 » Increase Category Development and NPD - Premium sectors - Personal care - Ecological trends - Focus on certain retailers » Continued focus on reducing cost base 2006-07 Half Year Results Presentation 18
Private label continues to grow share across Europe Private label volume share of European household products markets 50.0 46.9 45.0 44.4 43.8 43.4 40.0 37.2 35.0 34.8 32.6 33.7 (%) 32.0 30.0 30.2 25.0 20.0 20.9 21.2 15.0 Italy Belgium France Germany Netherlands Spain 2005 2006 2006-07 Half Year Results Presentation 19
McBride UK Household sales up 10%, the overall market grew 3.5% with private label up 5.7% Launch of premium Private Launch of Fairy Active Burst Label air care ranges and other Brand promotions 20% 15% Year on Year value growt 10% 5% 0% s d h e s L r e y s e i P r r u r r a e a d n a q n w c l o c n a i L a i h u t t t r e -5% e o s a i p i A d l l T i C L U d i n o o T e g C n n i c i h h i c s r b a a M a W F Market Private Label Source: TNSofres 2006-07 Half Year Results Presentation 20
McBride personal care sales up 5.8% to £56.9m. European private label future growth potential Private Label Toiletries value share growth in core European markets 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% France Germany Italy Netherlands Spain 2003 2004 2005 Source: Euromonitor, Sectors inc Baby, Bath additives, Deodorants, hair care excl Colours, Men’s toiletries and Oral care 2006-07 Half Year Results Presentation 21
The Discount format is continuing to develop across Europe Country Discounter Trend Main Players share UK 5% Aldi, Lidl, Netto Belgium 14% Aldi, Lidl, France 13% Aldi, Lidl, Leaderprice, ED Germany 37% Aldi, Lidl, Penny, Plus, Norma Italy 7% Lidl, Eurospin. Penny, LD Holland 15% Aldi, Lidl Spain 10% Mercadona, Lidl, Aldi, Dia Poland 15% Biedronka, Lidl, Leaderprice, Plus , Aldi Czech 20% Lidl, Penny , Plus, Norma Hungary 10% Lidl, Penny , Plus Denmark N/A Netto, Aldi, Lidl Sweden 4% Lidl, Netto Finland 2% Lidl 2006-07 Half Year Results Presentation 22
Strategy for growth » Operational scale and efficiency » Focus, investment, China » Colleagues and culture » Competitive advantage through quality of people, attitudes and behaviours - genuine teamwork 2006-07 Half Year Results Presentation 23
Recommend
More recommend
