BONDHOLDER UPDATE Boparan Holdings Q1 Results for the 13 weeks ended 28 October 2017 6 th December 2017 Charles Allen, Chairman Ranjit Singh, CEO Richard Pike, CFO
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, 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.
Headlines Maintaining strong sales growth; further commodity inflation challenges Overall sales up 3.8% to £849.0m; LFL sales up 3.1% Operating Profit £8.4m Continued commodity inflation Site D production suspension impacting Q1 results
Building a Better Business Laying strong foundations for organic growth • Good sales growth Q1 – THE FACTS • EBITDA decline FACTORS AFFECTING • Timing of inflation recovery PERFORMANCE • Site D production suspension hits quarter results • Driving core business WHAT WE ARE DOING • Cultural change journey
Financial overview Y-o-Y Q1 2017-18 Q1 2016-17 Variance Revenue: Like-for-like (£m) 1 849.0 823.3 3.1% Revenue (£m) 849.0 818.3 3.8% EBITDA: Like-for-like (£m) 1,2 32.9 43.2 (23.8)% EBITDA margin: Like-for-like (%) 1,2 3.9% 5.2% (130)bps EBITDA (£m) 2 32.9 42.8 (23.1)% Cash flow from operations (£m) 7.1 16.0 (8.9) Net Debt (£m) 823.6 777.6 46.0 LTM EBITDA (£m) 2 151.3 183.4 (32.1) Net debt to EBITDA ratio 2 5.44 x 4.24 x 1.20 x Q1 results: • Good revenue growth • EBITDA impacted by commodity inflation and Site D suspension • Cashflow impacted by lower EBITDA • Net Debt increased 1. LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. 2. EBITDA excludes pension scheme admin expenses of £0.7m (Q1 2016-17: £0.7m).
Cashflow Q1 2017/18 Cashflow • Seasonal working capital outflow • Normal quarterly pension contribution • Minimal exceptionals • Bi-annual interest instalment • Tightly controlled capex
Protein performance Protein – UK and European Poultry & Red Meat Y-o-Y Year on year Q1 2017-18 Q1 2016-17 Variance Revenue: Like-for-like (£m) 1 578.8 558.4 3.7% • Like-for-like sales up 3.7% driven by Revenue (£m) 578.8 554.1 4.5% volume EBITDA: Like-for-like (£m) 1 12.6 16.3 (22.7)% EBITDA margin: Like-for-like (%) 1 2.2% 2.9% (70)bps • EBITDA down by £3.5m versus last EBITDA (£m) 12.6 16.1 (21.7)% year • £5m impact of Site D suspension 1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. .
Chilled performance Chilled – Meal Solutions Y-o-Y Year on year Q1 2017-18 Q1 2016-17 Variance • LFL Revenue reflecting contract losses Revenue: Like-for-like (£m) 1 151.7 156.8 (3.3)% Revenue (£m) 151.7 156.7 (3.2)% • Commodity inflation EBITDA: Like-for-like (£m) 1,2 9.2 10.4 (11.5)% EBITDA margin: Like-for-like (%) 1,2 6.1% 6.6% (50)bps EBITDA (£m) 2 9.2 10.4 (11.5)% • Tight cost management 1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. . 2 EBITDA excludes pension scheme admin expenses £0.3m (Q1 2016-17: £0.3m).
Branded performance Branded – Frozen & Biscuits Y-o-Y Year on year Q1 2017-18 Q1 2016-17 Variance • Early Christmas sales driving top line Revenue: Like-for-like (£m) 1 118.5 108.1 9.6% Revenue (£m) 118.5 107.5 10.2% • Increased cost of key commodities EBITDA: Like-for-like (£m) 1,2 11.1 16.5 (32.7)% EBITDA margin: Like-for-like (%) 1,2 9.4% 15.3% (590)bps EBITDA (£m) 2 11.1 16.3 (31.9)% 1 LFL Revenue & EBITDA comparatives adjusted for the impact of exchange rate movements year on year. 2 EBITDA excludes pension scheme admin expenses £0.4m (Q1 2016-17: £0.4m).
Summary Strong sales performance As predicted, headwinds affected business Solid business at our foundations Commitment to quality and safety Gradual turnaround; progress expected throughout the financial year
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