2020 Half Year Results
Sid Takla
CEO & Managing Director
Campbell Richards
Chief Financial Officer
18 August 2020
Important Notice and Disclaimer
This presentation has been prepared by Asaleo Care Limited ACN 154 461 300 (Company). This presentation contains summary information about the Company, its subsidiaries and the entities, businesses and assets they own and operate (Group) and their activities current as at 18 August 2020 unless otherwise stated and the information remains subject to change without notice. This presentation contains general background information and does not purport to be complete. It has been prepared by the Company with due care but no representation or warranty, express or implied, is provided in relation to the accuracy, reliability, fairness or completeness of the information, opinions or conclusions in this presentation.
Not an offer or financial product advice: The Company is not licensed to provide financial product advice. This presentation is not and should not be considered, and does not contain or purport to contain, an offer or an invitation to sell, or a solicitation of an offer to buy, directly or indirectly, in any member of the Group or any other financial products (Securities). This presentation is for information purposes only.
Financial data: All dollar values are in Australian dollars ($ or A$). Any financial data in this presentation is unaudited.
Effect of rounding: A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.
Underlying financial information: As a result of non-recurring income and expenditure in 1H20 and 1H19, underlying financial information is included in this presentation. A reconciliation between the Underlying financial information and Asaleo Care Group's statutory financial information is included within the Interim Financial Report. The statutory results in this Report are based on the Interim Final Financial Report reviewed by PwC.
Past performance: The operating and historical financial information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company's views on its future performance or condition. Actual results could differ materially from those referred to in this presentation. You should note that past performance of the Group is not and cannot be relied upon as an indicator of (and provides no guidance as to) future Group performance.
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Forward-looking statements, including projections, guidance on future operations, earnings and estimates (if any), are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No representation is given that the assumptions upon which forward looking statements may be based are reasonable. This presentation contains statements that are subject to risk factors associated with the Group's industry. These forward-looking statements may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to earnings, capital expenditure, cash flow and capital structure risks and general business risks. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including the Company). In particular, but without limitation, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. Actual operations, results, performance or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Any forward-looking statements in this presentation speak only as of the date of this presentation. Subject to any continuing obligations under applicable law, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this presentation to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation will under any circumstances create an implication that there has been no change in the affairs of the Group since the date of this presentation.
Non-IFRSterms: This presentation contains certain financial data that has not been prepared in accordance with a definition prescribed by Australian Accounting Standards or International Financial Reporting Standards, including the following measures: EBITDA, EBITDA margin, EBIT, maintenance capital expenditure and growth capital expenditure or performance improvement capital expenditure. Because these measures lack a prescribed definition, they may not be comparable to similarly titled measures presented by other companies, and nor should they be considered as an alternative to financial measures calculated in accordance with Australian Accounting Standards and International Financial Reporting Standards. Although the Company believes that these non-IFRS terms provide useful information to recipients in measuring the financial performance and the condition of the business, recipients are cautioned not to place undue reliance on such measures.
No liability: The Company has prepared this presentation based on information available to it at the time of preparation, from sources believed to be reliable and subject to the qualifications in this document. To the maximum extent permitted by law, the Company and its affiliates, related bodies corporate (as that term is defined in the Corporations Act), shareholders, directors, employees, officers, representatives, agents, partners, consultants and advisers accept no responsibility or liability for the contents of this presentation and make no recommendations or warranties. No representation or warranty, express or implied, is made as to the fairness, accuracy, adequacy, validity, correctness or completeness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, the Group does not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss whatever arising from the use of the information in this presentation or its
contents or otherwise arising in connection with it. | 2 |
Key Highlights
Focus on customer, delivering profitable market share growth
- Revenue growth of 10%
- Continued investment in our brands delivering market share growth
- COVID-19panic buying boosted sales in March/April, eased back in May/June
- Successful NPD ranging & activation
- EBITDA growth of 24%
- Incremental margin from sales growth
- Pulp price benefits, partly offset by unfavourable FX and significant insurance cost increases
- Proactive portfolio management - decision made to exit loss-making Baby Diaper business in NZ
- Strong cashflow - debt reduced a further 14% this half (55% reduction in the last 18 months)
Financial Performance | Capital Efficiency |
*
*
*
On track to deliver full year Underlying EBITDA guidance at upper end of $84-$87m range
3
* Continuing operations excludes the Baby division
Asaleo Care Business by Segment
B2B | Retail | ||||
Australia & New Zealand | Australia & New Zealand | New Zealand | Pacific Islands | ||
Professional | Incontinence | Feminine | Incontinence | Consumer Tissue | Tissue and |
Hygiene | Healthcare | Hygiene | Retail | Personal Care | |
Revenue* | EBITDA* | |||||||||
52% | 48% | 49% | 51% | |||||||
B2B | RETAIL | |||||||||
* Continuing operations: excludes the Baby division
4
Business to Business (B2B) Segment Performance
Strong growth in Incontinence Healthcare, resilience in Professional Hygiene
- Professional Hygiene revenue up 2.5%:
- COVID-19panic buying in March/April across all categories. Heightened hygiene awareness driving increased demand on soaps, sanitisers, hand towel and wiping products
- Lockdown measures have heavily impacted sales into HORECA, Office Cleaning & Education sectors partly offset by strong performance in Healthcare and Food-processing sectors due to increased hygiene requirements
- Incontinence Healthcare revenue up 11%:
- Increased focus on quality of patient care driving strong TENA sales
- Share growth supported by our ability to supply incremental COVID driven demand
- Some customers holding extra inventory to assure supply of an essential product during COVID-19, we anticipate this will correct in H2
- B2B margin favourable 2.4pp - favourable pulp prices plus cost savings delivered from our new manufacturing investment in NZ last year, partly offset with unfavourable FX and insurance cost increases
B2B | Continuing | Continuing | % | ||||||||||||||||||
$M | 1H20 | 1H19 | |||||||||||||||||||
Revenue | 111.3 | 106.4 | 4.6% | ||||||||||||||||||
EBITDA | 24.4 | 20.8 | 17.3% | ||||||||||||||||||
EBITDA % | 21.9% | 19.5% | 2.4pp | ||||||||||||||||||
B2B NSV History ($M) | Hero Systems - % of Professional Hygiene sales | ||||||||||||||||||||
34% | 36% | 37% | |||||||||||||||||||
115.2 | 32% | ||||||||||||||||||||
108.4 | 111.5 | 112.0 | 29% | 30% | |||||||||||||||||
102.8 | 105.8 | 27% | |||||||||||||||||||
93.4 | 96.0 | 97.4 | 104.0 | 106.2 | 106.4 | 111.3 | |||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 1H20 | ||||||||
H1 | H2 | 5 | |||||||||||||||||||
COVID-19 Implications on the B2B segment
Resilience in B2B earnings driven by industry sector and regional diversification
• Lower away-from-home activity has impacted |
sales in the HORECA, Education & Office cleaning |
sectors. This has partly been offset by increased |
hygiene requirements in Healthcare, Food |
Processing and general Facility Cleaning Services |
• Second COVID-19 wave in Victoria temporarily |
Professional Hygiene Sales by Region*
NT
Professional Hygiene Sales by Industry sector*
ManufacturingGovernment/
dampening away-from-home activity, further |
impacting Professional Hygiene performance in |
that state. Victoria represents less than 20% of |
total Professional Hygiene sales |
• Sales activity in other Australian states has |
improved post the first COVID wave but overall |
away-from-home activity is expected to remain |
down on last year |
• Removal of COVID-19 domestic lockdown |
restrictions in New Zealand has seen a strong |
WA
SA
NZ
QLD
TAS
VICNSW
Food Service
Facility
Cleaning
Services
Healthcare
Education
Other
bounce back in June/July sales. |
• COVID-19 is not a direct driver of an increase in |
consumption in Incontinence Healthcare, but it |
has heightened focus on "quality of care" |
ACT
Food
Processing HORECA
underpinning strong growth for TENA |
*2019 full year data for Professional Hygiene | 6 |
COVID-19 Implications on the B2B division
The increased focus on hygiene bodes well for Asaleo Care growth
Opportunities
- Change in personal and workplace hygiene habits and requirements leading to increased usage of sanitisers, soap, hand towel and wiping products
- Increased awareness of effectiveness of drying hands driving shift from air dryers to paper towels
- Greater acceptance of single use disposable products that are more hygienic
- Increase in requests for no-touch sensor dispensers
- Strong customer and consumer sentiment towards locally manufactured product providing a competitive advantage for Asaleo Care
Challenges
- Away-From-Homeactivity impacted heavily in certain industry sectors. Ongoing lockdown measures will continue to impact Professional Hygiene sales
- Victorian Government Schools initiative to provide free feminine care products - revenue from replenishment service impacted by school lockdowns
Accelerated New Product Development | Emphasising our expertise in hygiene | |
New sanitisers + mounting
solutions
Portable wiping caddies
Disinfecting wipers
7
Retail Segment Performance
Profitable market share growth achieved in all key categories
- Both Australian and New Zealand businesses were favourably impacted in 1H20 by unprecedented demand in March and April from COVID-19 panic buying
- Market share growth achieved in all key categories driven by:
- Continued investment in the Brands
- Local manufacturing capabilities provided ability to respond quickly to COVID-19 demand spikes
- Extended range and distribution
- NPD including new Libra packaging, Tena Men and Tena Discreet
- Consumer Tissue New Zealand Revenue up 12.4%
- Feminine Care Revenue up 24.4%
- Incontinence Care Revenue up 18.7%
- Margin improvement of 2.9pp driven by retailer cancellation of promotional activities during COVID panic-buying, favourable pulp costs, slightly offset with unfavourable foreign exchange and insurance cost increases. Some A&P spend was deferred to 2H20 to reduce pressure on supply network
Retail | Continuing | Continuing | % | |||||||||
$M | 1H20 | 1H19 | ||||||||||
Revenue | 103.6 | 89.6 | 15.6% | |||||||||
EBITDA | 25.0 | 19.0 | 31.6% | |||||||||
EBITDA % | 24.1% | 21.2% | 2.9pp | |||||||||
Continuing Retail NSV History ($M) | ||||||||||||
3 year 1H CAGR of 7% | ||||||||||||
105.9 | 98.1 | 99.3 | 98.4 | |||||||||
88.0 | 91.6 | |||||||||||
100.7 | 101.6 | 91.7 | 90.1 | 84.7 | 89.6 | 103.7 | ||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||
H1 | H2 | |||||||||||
8
COVID-19 Implications on the Retail division
Our focus remains on underlying share growth activity
Opportunities
-
Customer & Consumer support of locally produced products has increased markedly as a result of COVID-19. Communications to emphasise
that Asaleo Care is the only local manufacturer of Feminine and Incontinence Care products - More in-home activity will drive higher
consumption of consumer tissue products in NZ | Extra Wide & Long | Night Pants | Black Pants |
- Focus will remain on activity to drive share growth including extension of ranging and distribution of NPD e.g. Libra Extra Wide & Long, Libra Night pants, TENA Discreet black pants
Challenges
- Some range reviews postponed due to COVID-19, delaying further opportunities of ranging of NPD
- Victorian Government Schools initiative to provide free feminine care products - consumption impacted by school lockdowns
9
COVID-19 Impact on Company Operations
Keeping our team safe & ensuring supply of our essential products
- Our priority has been to ensure all our staff remain safe and healthy - No employees or contractors have contracted COVID
- Measures have been put in place to ensure all manufacturing operations and distribution centres remain in operation - no closures or down-time experienced
- Management have conducted business continuity planning exercises centered around potential COVID-19 scenarios - contingency plans have been put in place as a result
- Rigorous cleaning regimens implemented in all work-places
- All office-based staff in Australia have been and still are remote-working since early March (note, NZ office staff returned to work upon removal of lockdown measures)
- Although additional costs incurred to maintain social distancing and lift hygiene requirements, these have been offset by savings in travel costs
- Asaleo Care has not claimed any Government assistance either in Australia or New Zealand (e.g. Job Keeper)
10
Safety - always a key priority
- Sale and closure of higher-risk manufacturing sites coupled with continued investment in state-of-the-art converting assets built to higher safety standards is creating a safer working environment for our people
- Ongoing investment in our OH&S management systems and a focus on building a culture of individual accountability have been key pillars in the improvement of our safety metrics
- During the period, we successfully set up two new Distribution Centers in Queensland and Victoria with no major incidents
- Our Pacific Islands facility has recently achieved 6 years of no lost time injuries
Key Safety Metrics | |||||||||||
16.6 | |||||||||||
13.6 | |||||||||||
11.4 | 11.9 | 11.6 | |||||||||
10.7 | 11.1 | ||||||||||
8.6 | 8.0 | ||||||||||
6.2 | 6.5 | 5.9 | |||||||||
4.9 | 5.3 | ||||||||||
3.0 | |||||||||||
2016 | 2017 | 2018 | 2019 | 1H20 | |||||||
LTIFR | TIFR | Severity Rate | |||||||||
LTIFR: Lost Time Injury Frequency Rate (no. of lost time injuries per million hours worked)
TIFR: Lost Time and Medical Treatment injuries per million hours worked
Severity Rate: Days lost per lost time injury (Includes employees and contractors)
11
Environment, Sustainability and Governance
Key initiatives underpinning our focus on social responsibility
- We launched our first Reconciliation Action Plan to support the national reconciliation movement in Australia for Aboriginal and Torres Strait Islander peoples, communities and organisations
- We advanced our commitment to addressing risks associated with Modern Slavery by conducting independent ethical audits across the supply chain of our key sites
- We strengthened our partnership with Ronald McDonald House Charities for supply of toilet rolls, hand towel and dispensers to Chapter Houses across Australia
- Libra partnered with Share the Dignity to support supply of feminine hygiene products to women and girls in difficult socio- economic circumstances
As a member of Sedex (Supplier Ethical Data Exchange), successfully completed three independent SMETA ethical audits at our manufacturing sites to ensure responsible business practices across Sedex's four pillars of Labour, Health& Safety and Environment & Business Ethics.
12
Half 1 Summary
Earnings Resilience
- Financial performance during the half was strong despite challenging operating conditions resulting from COVID-19
- Investment in the brands delivered profitable market share growth
- No interim dividend as we focus on debt reduction and a strong Balance Sheet
- Proactive portfolio management improving focus and diverting investment to higher margin, higher growth categories
Financials
Half Year Results 2020
Campbell Richards
Chief Financial Officer
18 August 2020
Asaleo Care Financial Performance
• Year on year revenue growth across both Retail |
(+15.6%) and B2B (+4.6%) through |
unprecedented demand driven by COVID-19 |
panic buying and richer mix of product being |
sold |
• Improved Gross Margins through lower pulp |
Asaleo Care | 1H20 | 1H19 | % |
$M | |||
Revenue from continuing operations | 215.0 | 196.1 | 9.6% |
Cost of sales | (116.5) | (112.4) | 3.6% |
Gross profit | 98.5 | 83.7 | 17.7% |
costs, benefits from new converting machine |
installed in 2H19, partly offset with higher |
insurance costs and unfavourable FX |
• SM&A costs higher due to full year impact of |
investment last year in sales resources to drive |
topline growth and increased advertising and |
promotion investment. Also includes a quarter |
of a year of stranded costs post divestment of |
Consumer Tissue Australia
2019)
- A portion of the A&P spend has been deferred to the second half due to the COVID-19 situation
Distribution expenses | (20.8) | (18.3) |
Sales, Marketing & Admin | (28.4) | (25.6) |
Other income | 0.1 | 0.0 |
EBITDA | 49.4 | 39.8 |
Depreciation and amortisation | (12.8) | (11.5) |
EBIT | 36.6 | 28.3 |
Net finance costs | (4.1) | (7.3) |
NPBT | 32.5 | 20.9 |
Income tax expense | (9.8) | (5.8) |
NPAT from continuing operations | 22.8 | 15.2 |
Non-recurring expenses | (0.1) | (2.6) |
Discontinued operations | (3.9) | (5.2) |
Statutory NPAT | 18.8 | 7.3 |
13.7%
10.9%
24.1%
11.3%
29.3%
-43.8%
55.5%
69.0%
50.0%
-96.2%
-25.0%
157.5% 15
Underlying to Continuing Operations Reconciliation
Exit of NZ Baby Diaper Business
- Announced withdrawal from the NZ Baby Diaper category on 25th June 2020, including closure of the Te Rapa manufacturing facility
- Decision is consistent with the company's focus on exiting businesses that generate poor returns
- Closure expected to complete during 2H20 i.e. sell remaining inventory and manufacturing assets
-
Baby Division is now disclosed as a
"Discontinued Operation" for both the current year and prior year - The Baby division generated an EBITDA loss YTD FY20 of $3.2m and $0.4m in the prior corresponding period
Half 1 2020 | Half 1 2019 | |||||||
Underlying | Underlying | Baby Disc | ||||||
A$m | inc Baby | Baby Disc Ops | Continuing | inc Baby | Ops | Continuing | ||
Revenue | 219.6 | 4.6 | 215.0 | 202.0 | 5.9 | 196.1 | ||
EBITDA | 46.2 | (3.2) | 49.4 | 39.4 | (0.4) | 39.8 | ||
Variance A$m | Variance % | |||||||
Underlying | Underlying | Baby Disc | ||||||
inc Baby | Baby Disc Ops | Continuing | inc Baby | Ops | Continuing | |||
Revenue | 17.6 | (1.3) | 18.9 | 9% | -22% | 10% | ||
EBITDA | 6.8 | (2.8) | 9.6 | 17% | 700% | 24% |
16
Reconciliation of Continuing to Statutory NPAT
Baby Diaper Trading Loss
- YTD Baby Diaper division loss reclassified to Discontinued Operations which includes additional trade spend to sell through excess inventory
Baby Diaper Closure Costs
- Costs associated with redundancies, property make good, onerous lease and fixed asset write- off at the Te Rapa manufacturing facility
- Asset sales to be undertaken in H2
Australian Consumer Tissue Business
- Costs relating to the transition to new distribution facilities post sale of the Australian Consumer Tissue business
- Redundancy costs related to right-sizing the organization post sale of Consumer Tissue Australia
A$m | 1H20 |
NPAT from continuing operations | 22.8 |
Non-recurring expenses | (0.1) |
Baby loss before tax 1H20 | (3.6) |
Baby closure costs | (6.0) |
Australian Consumer Tissue Business | (2.2) |
Tax | 7.9 |
Statutory NPAT | 18.8 |
17
Pulp - Global supply and demand dynamics keep prices low, depreciation in local currencies partly offsetting cost benefit
Market | ||||||||||||||||||||||||||||||||||||||
• | Pulp prices at low point in cycle driven by over | Hardwood - RISI China Delivered Price | ||||||||||||||||||||||||||||||||||||
capacity and falling demand | ||||||||||||||||||||||||||||||||||||||
• | Prices have stabilized at this lower level | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||
• | Hardwood prices have been impacted by a | |||||||||||||||||||||||||||||||||||||
global oversupply which has been further | 850 | |||||||||||||||||||||||||||||||||||||
elevated due to postponement of paper mill | 800 | |||||||||||||||||||||||||||||||||||||
maintenance programs | Tonne | |||||||||||||||||||||||||||||||||||||
• | Softwood prices have been stagnant with lower | 750 | ||||||||||||||||||||||||||||||||||||
demand being slightly offset with lower | Per | |||||||||||||||||||||||||||||||||||||
Price | 700 | |||||||||||||||||||||||||||||||||||||
capacity due to supply constraints | ||||||||||||||||||||||||||||||||||||||
Pulp | ||||||||||||||||||||||||||||||||||||||
• | Depreciation of local currencies partly | 650 | ||||||||||||||||||||||||||||||||||||
offsetting benefit of lower pulp prices | USD | 600 | ||||||||||||||||||||||||||||||||||||
Asaleo Care | ||||||||||||||||||||||||||||||||||||||
• | Continue to source and use high quality FSC | 550 | ||||||||||||||||||||||||||||||||||||
certified pulp in all paper products | 500 | |||||||||||||||||||||||||||||||||||||
manufactured | ||||||||||||||||||||||||||||||||||||||
• | 6-month lag of pulp pricing into COGS still | 450 | 2015 | 2015 | 2015 | 2016 | 2016 | 2016 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | ||||||||||||||||||
2015 | 2015 | 2015 | 2016 | 2016 | 2016 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | |||||||||||||||||||||
applies | ||||||||||||||||||||||||||||||||||||||
Jan | Mar | May | Jul | Sep | Nov | Jan | Mar | May | Jul | Sep | Nov | Jan | Mar | May | Jul | Sep | Nov | Jan | Mar | May | Jul | Sep | Nov | Jan | Mar | May | Jul | Sep | Nov | Jan | Mar | May | Jul | Sep | Nov | |||
Indicative impact of US$ pulp price changes - a ~6 month lag from pulp purchase price | ||||||||||||||||||||||||||||||||||||||
being set to pricing reflected in Cost of Sales has been taken into consideration | ||||||||||||||||||||||||||||||||||||||
* Source: Risi,Inc. The price Asaleo Care pays is subject to commercial arrangements | 18 | |||||||||||||||||||||||||||||||||||||
that impact price. Asaleo Care primarily sources Softwood from Canada and New | ||||||||||||||||||||||||||||||||||||||
Zealand and Hardwood from South America. |
Strong free cash flow generation
Free Cash Flow (FCF)
- FCF of $34.1m
- Strong EBITDA (continuing operations) growth delivered by both Retail and B2B
- Favourable Working Capital movement due to timing of sales and customer payments. Increased inventory offset with increased payables
Cash Flow Applied to Capital Allocation:
- Two cent unfranked FY19 final dividend paid in April
- Strategic capital investment includes progress payments for NZ converting asset and cost of dispensers for Victorian Government schools feminine care program
Free Cash Flow (FCF) ($m) | FCF Applied to Capital | |
Allocation ($m) | ||
19
Net Debt
Continued focus on debt reduction driving a strong Balance Sheet
Leverage Ratio
- Leverage ratio at 30 June 2020 is 1.4x, down from 1.95x at 31 December 2019
- Reduced internal leverage ratio target from a range of 1.5x - 2.5x EBITDA to 1.0x - 2.0x EBITDA to ensure a strong balance sheet and improve credit metrics
Net Debt Movement
- Decrease of $20.4m to $118.9m at 30 June 2020 (Dec-19: $139.3m)
Debt Facilities
- Negotiations currently underway to extend tenor of Facility A
Debt maturity Profile ($m)
$70.0
$65.0 | |||||||
$27.5 | |||||||
$40.0 | |||||||
$22.5 | $25.0 | ||||||
Facility A | Facility B | Facility C | Series A | Series B | |||
31 July 21 | 31 July 23 | 31 July 22 | Guaranteed | Guaranteed | |||
Series Notes | Series Notes | ||||||
26 June 25 | 26 June 28 | ||||||
Drawn | Available | ||||||
Total Facilities | $250m | |
Undrawn Debt | $67.5m | |
Drawn Debt | $182.5m | |
Cash and Cash Equivalents | $63.6m | |
Net Debt | $118.9m | 20 |
Capital Expenditure
Growth Capital Expenditure
- Progress payments for the new converting equipment in NZ Tissue plant. Final payment of $1.6m to be paid in H2
- Investment in dispensers for the Victorian Government Schools feminine care program
Maintenance CAPEX to remain in-line with historical average
Depreciation:
- Depreciation for continuing operations will be higher than prior years, due to commencing depreciation of the investment made in the new B2B Tissue converting asset in NZ
- AASB 16: Lease amortisation is included in overall depreciation since 2019
Continuing Capital Expenditure ($m) | Depreciation ($m) | |
$8.5 | $21.8 | $10.0 | |||||||||||||||
$3.7 | $4.7 | $4.2 | |||||||||||||||
$4.8 | |||||||||||||||||
$15.0 | $2.9 | $15.3 | $14.9 | $15.4 | $15.7 | $15.5 | |||||||||||
$11.3 | $13.0 | $10.9 | $11.0 | ||||||||||||||
$8.0 | |||||||||||||||||
$6.4 | |||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 1H20 | 2015 | 2016 | 2017 | 2018 | 2019 | 1H20 | ||||||
Maintenance | Growth | Depreciation | Lease Amortisation | ||||||||||||||
21
Outlook
Full-Year Profit guidance remains unchanged
Sales Revenue | • | Brand investment will continue to drive underlying sales growth |
• Continued lockdown measures in H2 will negatively impact Professional | ||
Hygiene sales, although partly offset by increased demand in hygiene-critical | ||
sectors (i.e. healthcare, food processing) | ||
• Expect panic buying from March and April to continue to unwind in the second | ||
half of the year | ||
EBITDA | • | Full year Underlying EBITDA guidance expected to be at the upper end of the |
$84m to $87m range. | ||
• | H2 impacted by: | |
- unwind of H1 panic buying in H2 | ||
- less favourable foreign exchange levels in hedged positions | ||
- deferral of H1 planned brand investment to H2 | ||
Capital Management | • | No interim dividend declared - conservative cash management in these |
uncertain times | ||
• Strong H2 cashflow will be applied to reduce debt and further strengthen the | ||
balance sheet | ||
• No major Growth Capex activity planned for H2 | ||
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Asaleo Care Limited published this content on 18 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2020 22:42:06 UTC