Full Year 2024 McPherson's Ltd Earnings Call Transcript
Key Points
- McPherson's Ltd (ASX:MCP) reported strong operating cash flows, supported by improved inventory management.
- The company ended the year with a strengthened balance sheet and $14.1 million in net cash.
- Core brand sales outperformed other brands, showing notable improvement in the second half of FY24.
- The divestment of the Multix brand has strengthened McPherson's balance sheet and simplified its business model.
- The company is now a pure play health, wellness, and beauty company, focusing on its five core brands with significant growth potential.
- McPherson's Ltd (ASX:MCP) reported a significant statutory loss due to material nonrecurring items incurred as part of its strategy reset.
- The company will not be paying a dividend for the second half of FY24 due to the loss this year and previous years.
- Revenue declined by 6.8% to $144.6 million, largely reflecting the decision to exit nonstrategic and agency brands.
- Underlying EBITDA was negatively impacted by foreign exchange and portfolio brand performance, declining by $4.5 million to $7.7 million.
- The company retains a residual shared cost base following the divestment of Multix, which it needs to address through a new route-to-market strategy.
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Good morning, everyone. Thanks for joining us today for McPherson's FY24 results. I'm Brett Charlton, I'm the CEO of McPherson's, and I'm joined today by our CFO, Mark Sherwin, who started with us in May of this year.
Please note the disclaimer at the start of this presentation, and I'll now take you through the presentation itself. Starting with the results this has been a year of good progress on our transformation. We've taken the logical steps to reset the business with the goal of returning to sustainable profits and increased shareholder returns.
Before I go through the results though, I want to discuss where we started less than 12 months ago and why there was so much of an imperative to transform at McPherson's. When I came McPherson's, one of the most important things we identified as a new management team was that the business had become dependent on variables beyond its control.
Whether that the commodity price cycles foreign exchange rates are
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