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Investor Presentaiton

STRIX TECHNOLOGY Investor Presentation | FY2021 Final Results Gross Margin Analysis ☐ Margin in Kettle Controls has reduced through the year given the headwinds but it remains a strong and highly profitable business line, providing cash flow security for the Group and ensuring dividend sustainability 1 Kettle Controls -1.8% ☐ Margin growth driven by regulated market sales growth and price increases ☐ Margin offset by increases in commodity prices and a reduction in the less regulated market segment 2 Water category -0.2% 3 Appliances 4 Operations 5 Currency effects 1.4% 0.0% Impact of consolidating LAICA into Strix's financial statements has already been significantly reduced as a result of strong revenue growth and integration Some headwinds have remained for Water ex LAICA but these headwinds further enhance the strategy to bring the Water sourcing in-house to be more vertically integrated, helping to secure profit and ensure the security of the supply chain Increase in Appliances driven by strong sales growth at an increasing margin Growth realised from new products launched in this category and selling well on Amazon, with more sales expected in FY 2022 in anticipation of increased demand and further planned new product listings Margin increases from automation and insourcing and a continued focus on cost control Direct labour wages have increased as the Group continued to scale its headcount in line with management expectations and medium-term targets Continuous automation on NPD is a key to reduce wage pressure in the longer term -1.0% Weakening of foreign currencies against Pound Sterling which decreased the Pound value revenues of products priced in forex. This was offset partially by FX gains on costs in forex. The group has entered into forward exchange contracts in FY 2022 to protect against adverse exchange rate movements Total change in adjusted 6 -1.6% margin Strix TECHNOLOGY 9
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