Interim Results. Half year to 30 November 2012

Transcription

1 Interim Results Half year to 30 November 2012

2 Introduction Richard Harvey Chairman 2

3 Highlights Operating profit growth of 13% driven by Australia improvement and robust UK performance, and despite challenges in Nigeria Supply chain optimisation project on track with margin benefits now being seen Construction of the palm oil refinery with Wilmar in Nigeria now complete with commissioning underway Challenging markets being addressed in H2 by new product launches in all portfolios and geographies Balance sheet remains strong New Executive Committee structure being created Remain confident of return to profitable growth for full year 3

4 Financials Brandon Leigh Group Finance Director 4

5 Financial Highlights Half Year to 30 November 2012 Half year to Half year to 30 Nov Nov 2011 Revenue 414.8m 414.0m +0.2% 425.2m +2.7% Operating profit m 40.1m +13.0% 46.1m +15.0% Profit before tax m 40.2m +9.7% 44.9m +11.7% Effective tax rate % 27.1% Earnings per share p 6.54p +7.5% 7.15p +9.3% Dividend per share 2.35p 2.23p +5.4% Net (debt)/funds ( 55.2m) 2.4m Excluding exchange impact Notes 1 Before exceptional items 5

6 Net sales bridge + 0.2% 3.2% (0.3)% (2.7)% H1 Net Sales 2012 Price/Mix Volume Exchange H1 Net Sales

7 Regional Summary NET REVENUE m m H H Reported Growth % Constant Currency % AFRICA % -3% ASIA % 10% EUROPE % 5% TOTAL % 3% OPERATING PROFIT AFRICA % -5% ASIA % 304% EUROPE % 2% TOTAL % 15% 7

8 Operating Profit % H H Variance AFRICA 8.3% 8.4% (0.1pp) ASIA 9.8% 2.7% 7.1pp EUROPE 13.8% 13.9% (0.1pp) TOTAL 10.9% 9.7% 1.2pp 8

9 Key Commodity Index Tracker May 07 Nov 07 May 08 Nov 08 May 09 Nov 09 May 10 Nov 10 May 11 Nov 11 May 12 Nov 12 Note: Based on prices paid by PZC Group 9

10 Regional Summary Africa Nigeria revenue and profits lower due to external factors Revenue and profit in Ghana and Kenya ahead of the same period last year Group s holding in listed Nigerian subsidiary increased further from 68.8% to 69.3% Asia Return to profitability in Australia Continued positive momentum in Indonesia Europe Robust performance in the UK Washing and Bathing division Significant investment in Cussons Mum & Me Beauty division revenue and profitability ahead of the prior period Strong trading in Poland, lower profitability in Greece 10

11 Net (Debt)/Funds Statement 'm Half year to Half year to 30 Nov Nov 2011 Cash from operations Defined benefit pension scheme contributions (2.8) (7.1) Returns on investments & servicing of finance* (7.8) (5.6) Taxation (5.7) (9.0) Capital expenditure (12.0) (7.5) Investment in joint ventures (3.7) (5.1) Acquisition of minority interest (2.3) (2.8) Equity dividends paid (19.2) (19.2) Net decrease in funds (36.1) (50.2) Opening net funds (17.9) 51.8 Exchange difference (1.2) 0.8 Closing net (debt)/funds (55.2) 2.4 * Consists of (2012/2011): Net finance expense/income ( 1.2m/ 0.1m), MI dividend ( 2.1m/ 3.6m), ESOT share purchase ( 4.5m/ 2.1m) 11

12 Net Working Capital as % of Sales 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Nov % May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 Nov % Africa Asia Europe Group 12

13 Financial Summary 2.7% revenue growth at constant currency (sterling flat) - Growth in UK, Poland, Indonesia and smaller markets - Decline in Australia due to restructuring and Nigeria due to trading challenges Profit before tax and exceptional items 15% higher at constant currency (13% sterling) Strong balance sheet with small net debt position Increase in operating cash-flow in period despite outflow due to supply chain optimisation costs Adjusted EPS growth of 7.5% Dividend growth of 5.4% 13

14 Highlights Alex Kanellis Group Chief Executive 14

15 Africa

16 Africa Nigeria Macro Overview The economic outlook for the country remains optimistic due to: -Stable naira to US dollar exchange rate -Continued government investment into the power sector -Oil production currently at million barrels per day -No further fuel duty related impact is currently being seen Brent crude $ per barrel Naira vs. USD May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 0 Brent Crude $ per barrel Naira vs USD 16

17 Africa - Overview Net Sales 156.9m vs m (4% decline) Nigeria s result impacted in period by three external factors: -Social unrest in the north -Flooding in a large number of states -Fuel duty subsidy reduction earlier in the year impacted consumer disposable income Despite challenges revenue and profits only slightly lower than prior period due to: -Continued focus on brand innovation -Development of new distribution points -Benefit of margin improvement projects 17

18 Africa PZ Wilmar JV Update Refinery completed on time and to budget commissioning underway First sales of refined oil will be B2B New consumer brand to be launched by end of financial year 18

19 Asia

20 Asia Overview Net Sales 81.0m vs. 76.8m (5% growth) Australia Revenue lower due to focus on fewer main brands: Radiant (Fabric Care) and Morning Fresh (Dish Care) Return to profitability driven by business improvement initiative Focus on growing personal care and beauty portfolios Trading environment remains competitive Production facility closed. All products now sourced from PZC Indonesia/Thailand or third parties 20

21 Asia Overview Indonesia Continued positive momentum with another period of growth in revenue and profitability Profits slightly ahead despite Rupiah weakening 10% in period and government mandated wage increases (further increase in 2013) Further new product launches in addition to margin improvement initiatives planned for H2 21

22 Europe

23 Europe Overview Net Sales 176.9m vs m (1% growth) UK Washing & Bathing UK Washing and Bathing division has been robust despite continued high levels of promotional activity within the trade Imperial Leather, Carex and Original Source all performed well with further product launches due in H2 Distribution points for all three brands being expanded 23

24 Europe Overview Cussons Mum & Me product range launched June 2012 Internally developed Personal Care range specifically designed to take mums on journey from Bump to Baby Investment being made across all forms of media Further new product launches planned in addition to new distribution points for H2 Early sales rates are encouraging 24

25 Europe Overview (cont.) Beauty Division Revenue and profitability ahead of prior period St Tropez adversely affected by poor UK summer, however continued growth in US and Australia Sanctuary continued growth boosted by new Active Reverse Skin Care range with Darcey Bussell as brand ambassador Fudge performed well post acquisition; e-commerce platform launched Charles Worthington portfolio redesign will launch in H2 25

26 Summary & Outlook Focus remains on driving profitable growth via: -Brand innovation and renovation -Cost optimisation in all areas of the business -New sources of growth Nigerian market remains fragile although no further fuel duty related impact is currently being seen Supply chain optimisation benefits now flowing through Strong balance sheet, well placed to pursue growth opportunities Confident of return to profitable growth in current year 26