Actualización de Trading
Ciencia en el deporte plc
("Ciencia en el Deporte", "la Empresa" o el "Grupo")
Actualización comercial
Fundamental Change in Operating Model and Restructuring of Cost Base
Science in Sport plc (OBJETIVO: SIS), la compañía de nutrición de alto rendimiento que atiende a atletas de élite, entusiastas del deporte y la comunidad de estilo de vida activo, announces an unaudited trading update in respect of the financial year ended 31 December 2023 ("FY23") and also the outlook for 2024.
Modelo operativo
A new leadership team has been in place from Q4 2023 and we have completed a full business and organisational review. Whilst the strength of our two core brands, SiS and PhD, is unquestionable the relentless pursuit of top line growth led to some poor strategic decisions and an inflated operating structure. The immediate challenge faced by the new team was to stem the cash outflow and stabilise the relationships with our various stakeholders. The prior strategy of aggressive growth across all channels and markets has been reset, with the revised operating model focused on controlled growth, while delivering sustainable cash generative profitability at improved margins from a reduced cost base.
To date, a number of actions have been taken, benefiting Q4 2023 while providing a stable platform in 2024 for the business to be reset. Key actions completed and ongoing are:
· Restructure of the executive and leadership team with several senior roles exiting the business.
· Marginal revenue channels have been reset and measures implemented to secure and grow the Company's profitable revenue streams. In particular, overseas distribution agreements were uncommercial and based on prioritisation of revenue growth over profitability. Whilst core channels are expected to return to growth during 2024 and beyond, we will ensure that our distribution arrangements are 2-way partnerships whereby the strength of the brand is supported by both parties with measurable deliverables.
· Supplier and operational review underway in conjunction with product inventory rationalisation.
· While brand health is robust and both brands remain leading in their respective categories, a significant number of uncommercial marketing contracts have been exited in 2023 and further savings will be made throughout 2024. Marketing spend will be aligned to identifiable commercial traction.
· Significant other operational cost savings have been extracted under the new leadership in Q4 2023 and progress in implementing operational efficiencies continues to be made. This is anticipated to generate improved contribution to cashflow and earnings through 2024.
· In aggregate this will deliver further annualised savings in excess of £2.5m, the majority of which will be delivered in 2024.
Plataforma de
FY23 delivered EBITDA in-line with market expectations despite lower revenues, with the focus in the final quarter in particular shifting to cash and profit as noted above.
The Group closed FY23 with revenue of £62.8m (FY22: £63.8m), a reduction of 1.6% from the prior year. The performance in FY23 was driven from growth in the Retail (UK and International) and Marketplace channels, offset by lower trading in China and in the Digital channel.
The SiS brand delivered annual revenue growth of 17%, with PhD closing FY23 with an annual revenue reduction of 18% compared to the prior year, predominantly on account of interrupted trade in the Chinese markets.
Whilst gross margin improved by 1 percentage point to 43% (FY22: 42%), the underlying improvement is better reflected by the significantly improved trading contribution of 21% (FY22: 16%). Whilst the gross margin is adversely impacted by the increase in international and wholesale revenue mix, the trading margin reflects the benefit of the distributor model, particularly in the US together with the operational efficiencies and cost savings at all levels. The FY23 trading contribution margin percentage achieved the highest levels during the Q4 2023 period, which gives confidence in further improvements in FY24.
EBITDA ajustado1 of £2.0m (FY22: £(2.7)m loss) consistent with market expectations despite the lower revenue forecast, this being driven from improved margins and ongoing cost efficiencies across all areas. Excluded from the adjusted EBITDA1 are one-off costs, principally relating to the organisational restructure, transition costs moving to the internally manufactured protein bars and moving to the distributor model in the US. In addition, an impairment review is being undertaken on historic digital and trading assets which will be completed prior to the signing of the FY23 annual accounts. No impact to adjusted EBITDA and cash for FY23 is anticipated as a result.
Cash of £2.1m (31/12/23: £0.9m) and net debt2 of £12.9m (31/12/22: £10.9m) with headroom in facilities of over £3.3m as at 31 December 2023. The increase in net debt at the year-end was driven by the timing of restructuring payments and working capital outflow associated with the early termination of a marketing partner, both of which will result in significant savings in 2024.
Outlook
Management is taking a balanced view on prospects for 2024. The strategic focus areas are embedding the new operating model post the recent restructuring; controlled growth over the medium term; continued margin improvements resulting in cash generation and deleveraging. With the focus on controlled growth and profitability, revenues are expected to be broadly flat in FY24, with a doubling of underlying EBITDA and reduction in net debt.
At the core of the business are two very strong brands operating in a growing marketplace. Management is confident with the revised operating model and new leadership, through re-engaging with core customers, shareholders and financing partners the business is building a more stable platform from which substantial shareholder value can be delivered.
ESTE ANUNCIO CONTIENE INFORMACIÓN PRIVILEGIADA SEGÚN LO ESTIPULADO BAJO EL REGLAMENTO DE ABUSO DE MERCADO (UE NÚM. 596/2014) YA QUE FORMA PARTE DE LA LEY DOMÉSTICA DEL REINO UNIDO EN VIRTUD DE LA LEY DE (RETIRADA) DE LA UNIÓN EUROPEA 2018 ("MAR").
Para mayor información:
Ciencia en el deporte plc | T: 020 7400 3700 |
Dan Wright, Yjecutiva Presidente Daniel Lampard, director financiero
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liberum (Asesor designado y Broker) | T: 020 3100 2000 |
ricardo lindley John más
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Notas a los editores
Acerca de Science in Sport plc
Con sede en Londres, Science in Sport plc es una empresa líder en nutrición deportiva que desarrolla, fabrica y comercializa productos de nutrición innovadores para atletas profesionales, entusiastas de los deportes y el fitness y la comunidad de estilos de vida activos. La compañía tiene dos marcas de gran prestigio, PhD Nutrition, una marca premium de nutrición activa dirigida a la comunidad de estilo de vida activo, y SiS, una marca líder en nutrición de resistencia entre atletas de élite y equipos deportivos profesionales.
The two brands sell through the Company's phd.com and scienceinsport.com digital platforms, third-party online sites, including Amazon and ebay, and extensive retail distribution in the UK and internationally, including major supermarkets, high street chains and specialist sports retailers. This omnichannel footprint enables the Company to address the full breadth of the sports nutrition market.
PhD is one of the UK's leading active nutrition brands with a reputation for high quality and product innovation. The brand has grown rapidly since its launch in 2005. The range now comprises powders, bars, and supplements, including the high protein, low sugar range, PhD Smart.
SiS, a leading endurance nutrition business founded in 1992, has a core range comprising gels, powders and bars focused on energy, hydration, and recovery. SiS is an official endurance nutrition supplier to over 320 professional teams, organisations, and national teams worldwide. SiS supplies more than 150 professional football clubs in the UK, Europe, and the USA.
SiS is Performance Solutions partner to Ineos Grenadiers cycling team, and Tottenham Hotspur and CGC Nice football clubs.
Para obtener más información, visite phd.com y scienceinsport.com
1 Earnings before interest, tax, depreciation, amortisation, share-based payments and foreign exchange variance on intercompany balances, restructuring costs, transition costs and material one-off items
2 La deuda neta se define como efectivo, menos líneas de capital de trabajo bancario y financiación de activos y excluye arrendamientos inmobiliarios.
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