Analyst Presentation Annual Results 2016/17 Year Ended 31 March 2017 Disclaimer
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Analyst presentation annual results 2016/17 Year ended 31 March 2017 Disclaimer DISCLAIMER THIS PRESENTATION may contain forward looking statements. These statements are based on current expectations, estimates and projections of Lucas Bols’ management and information currently available to the company. Lucas Bols cautions that such statements contain elements of risk and uncertainties that are difficult to predict and that could cause actual performance and position to differ materially from these statements. Lucas Bols disclaims any obligation to update or revise any statements made in this presentation to reflect subsequent events or circumstances, except as required by law. Certain figures in this presentation, including financial data, have been rounded. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an exact arithmetic aggregation of the figures which precede them. 2 1. Lucas Bols at a glance 2. Highlights 2016/17 3. Operational review 4. Financials 2016/17 5. Outlook 3 Lucas Bols at a glance Over 110 countries, margin Great cocktail Amsterdam 53% revenue outside 80.5 e experiences around 1575 Western Europe the world Emerging Western Markets Europe Strategic framework: 13.4% 23% Build the brand equity North America 20.0%18.5% 46.7% 45.9% 18.2 Lead the development of the cocktail market 22.7% 19.9% Accelerate global brand growth >25 brands Asia-Pacific Revenue EBIT* €m €m 46 Bols liqueur Leverage operational flavours % of total FY 2016/17 revenue FY 2016/17 excellence Note *: EBIT is defined as ‘operating profit’ including ‘share of profit of joint ventures, net of tax’ 4 Strong offering of global brands and regional brands Global brands Revenue structure Regional brands Bols Liqueurs Range White Spirits FY 2016/17 Liqueurs Regional brands 29,8% 28.2% Dutch Jenever portfolio Italian Liqueurs Passoã 70,2%71.8% Global brands Value brands 5 1. Lucas Bols at a glance 2. Highlights 2016/17 3. Business review 4. Financials 2016/17 5. Outlook 6 Highlights 2016/17 Strong revenue growth of 10.8% to € 80.5 million as a result of both 3.4% organic growth and consolidation Revenue of the first four months of Passoã Brand Revenue of the global brands increased by 14.8% (+4.2% organically), while regional brands delivered performance 1.8% revenue growth (+1.6% organically) Regional All regions performed well, with good revenue growth in Emerging Markets (+20.1% organically) and North performance America (+4.7% organically) Gross profit was up 13.4% (4.3% organically) and gross margin increased by 130 bps to 60.1% (+50 bps Gross margin organically) EBIT Substantially increased investments in the commercial organisation and A&P compared to a year ago (+ € 2.3 million) resulted in a slight decline in organic EBIT Net Profit Net profit increased 28.6% to € 15.1 million (2015/16: € 11.7 million), including one-off tax benefit. Normalized net profit was € 12.3 million. Dividend Proposed final dividend of € 0.26 per share, bringing total full-year dividend to € 0.57 per share, up 5.6% compared to 2015/16 7 1. Lucas Bols at a glance 2. Highlights 2016/17 3. Business review 4. Financials 2016/17 5. Outlook 8 Lucas Bols: Four strategic pillars Build the brand equity Lead the development of the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Accelerate growth global Leverage operational brands excellence Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 9 Strengthening of the positioning of the Lucas Bols brands Optimisation of Bols Liqueurs range portfolio, increase in market share US • Continued introduction of new flavours in various markets worldwide. Bols • New listings, expansion of flavours in various states and the first good Liqueurs results in retail in the US. • Entering new markets, with focus on Africa and Eastern Europe. Continued good growth rates • Bols Genever launched in Scandinavia, South-Korea, Italy and Poland. • BATW contest accelerated Bols Genever knowledge and experience White among global bartending community. spirits • Damrak Gin gained market share in the Netherlands, achieved growth in the US and was successfully launched in Italy. • Introduction of Bols Vodka in China, Thailand and Vietnam, good performance in Scandinavia and the Netherlands. 10 Strengthening of the positioning of the Lucas Bols brands Double digit revenue growth on the back of a recovery in Australia Italian • Full Galliano range introduced in a number of markets, including Italy, Poland and Australia. Liqueurs • Galliano L’Aperitivo was introduced in the Netherlands, Israel, Canada and the US. • Vaccari performed well in the Mexican market and The Netherlands. The brand is performing well and in line with expectations • Successful establishment and operation of Passoã SAS in France. Passoã • First focus on understanding the Passoã brand, now ready to fully integrate Passoã into brand plans. • Strong performance in UK, Australia and Japan. • Integration of Passoã into Lucas Bols USA. 11 Regional brands performed well, especially outside NL Increase in market share in still declining market Dutch domestic • Floryn and Legner further strengthened the market position in the Dutch domestic portfolio spirits market. • Market share increase to over 30% of the genever/vieux category. Other regions are becoming increasingly important • Regional brands are performing increasingly well outside the Netherlands, Outside the contributing to the stabilization of the regional brands. Netherlands • Africa is one of the most promising regions for future growth for spirits. • Leveraging the strong brand equity of the Henkes brand, Henkes Gin and Henkes Whiskey were introduced in various African markets. 12 Full revamp House of Bols Cocktail & Genever Experience Full revamp • After 10 years with nearly 500,000 visitors, The House of Bols was fully revamped in 2016/17 Redesign focused on: • Craftsmanship: spectacular new extraction and ingredients room • Flavour: new ‘art of flavour’ experience • Do-It-Yourself: new bar for visitors to make their own cocktail 13 Lucas Bols: Four strategic pillars Build the brand equity Lead the development of the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Accelerate growth global Leverage operational brands excellence Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 14 Bols around the world – the Genever edition 2016/17 • BATW is a global competition that aims to grow bartenders careers, as well as their passion for bartending. • > 2.000 participants from over 75 countries. • Grand final in Amsterdam on 10 May 2017 in ‘The Bols Genever Street’, attended by industry experts and endorsers from around the world. • Jessica Mili from Canada is the proud winner. • Great online exposure and wide international press coverage. 15 Bols Business Class and Bols Bartending seminars • Bols Business Class aimed at bartenders and bar owners in more sophisticated markets. • Four editions were hosted in 2016/17 in Copenhagen, St. Petersburg, Bristol and Warsaw • Bols Bartending Academy seminars are typically held in countries where the cocktail market is still developing • This year events were organized in amongst others Indonesia, Vietnam, Malta, Spain and South Korea 16 Lucas Bols: Four strategic pillars Build the brand equity Lead the development of the cocktail market Increase market position of the global brands Use marketing techniques and strategic and maintain the competitiveness innovation to optimise the product of regional brands offering and positioning Accelerate growth global Leverage operational brands excellence Tailor growth strategies for the brands to Maintain and optimise current business model the markets within our four geographic segments with a mix of in-house and outsourced activities 17 Growth trend continues, each region at a different stage Growth drivers Regional Cocktail development North America Western Europe • Sophisticated cocktail culture • Cocktail culture becoming more sophisticated • Demand for more flavored spirits to • Key cities are getting more use in cocktails international Growing Urbanisation, population of disposable > 21 years income is • Cocktail culture in the home has • UK is the trendsetter in cocktail increasing taken off making innovation Trend Trend • Authenticity and heritage • Classic cocktails with a modern Cocktail culture is expanding, both in Expenditure on • Classic cocktail with a modern twist twist on-trade and at spirits is increasing home.. Emerging markets Asia-Pacific Premiumsation, • Cocktail scene is emerging and • Developing cocktail culture & Bartenders set from domestic to bartender scene the quality international growing, particularly in big cities standard brands. • Urbanisation and per capita • Rapid expansion of modern bars Cocktail scene is disposable income is increasing growing. • Large group of female consumers • Growing population of > 21 years . Trend Trend •