Specialist
Former senior executive at Schoeller Allibert Services BV
Agenda
- Schoeller Allibert’s sales performance across bulk and handheld products
- Key end markets including pooling services, industrial manufacturing, beverage and retail
- Rent vs buy, including client preferences
- Commercial and operational outlook
Questions
1.
Handheld products accounted for 60% of Schoeller Allbiert’s Q2 2022 sales vs 64% in Q2 2021. What is causing a reduction in volume sales in the pooling and beverage end markets?
2.
Can we expect a recovery in pooling and beverage end-market demand as we head into 2023?
3.
Could you elaborate on the market dynamics within the pooling and beverage end markets? How are customers looking to acquire goods from packaging services such as Schoeller?
4.
What knock-on effect on volume demand might there be from customers within end markets should Schoeller be able to extend its products’ life cycles?
5.
Might higher sales from system integrators offset losses in pooling and beverage end markets for the foreseeable future?
6.
How would you assess the bulk category’s sales performance in volume vs handheld products?
7.
Within the bulk segment, foldable large containers has performed particularly well. Can this strong performance in be sustained through H2 2022 and into Q1 2023?
8.
We discussed the impact of the rental business on handheld and customer preferences there. What impact has the growth of the rental business had on the bulk segment's revenue?
9.
How does the rental business’s growth rate compare to pre-coronavirus historical standards?
10.
What impact are higher freight charges having on customer demand in the bulk segment?
11.
What would be your rough, best estimate for the percentage amount that is added on to an invoice from the collection service offered?
12.
What is your 2023 freight cost outlook?
13.
How might higher fuel prices impact the bulk segment’s growth margin?
14.
How would you assess the competitive landscape for the European handheld segment?
15.
Could you elaborate on the competitive landscape for the handheld segment within the UK market?
16.
How would you assess the competitive landscape in the UK bulk segment?
17.
What opportunities are available within the fragrance or plastic bottle caps end markets?
18.
Do you believe the demand from the fragrance end market is sufficient to justify the return on capital?
19.
What impact are raw material price increases having on handheld and bulk segment product offerings?
20.
Does Schoeller utilise a more variable strategy towards price increases rather than including a standard price index in the initial contract?
21.
Is there a percentage limit for the price increases?
22.
Resin and energy prices have increased due to the Russia-Ukraine conflict and a spike in oil prices. What impact is this having on Schoeller’s order book?
23.
Do you expect resin prices to normalise in the foreseeable future?
24.
Between handheld and bulk, which product category is most affected by the delay in customer orders?
25.
Do you think Schoeller can maintain its 20% market share in Europe given the challenges faced by the company and the wider industry?
26.
How would you assess Schoeller’s innovation and technological advancement as it relates to the company’s core product offering?
27.
Schoeller’s EBITDA increased by 9.7% in Q2 2022, driven by price increases and an improved share of rental deliveries. How do the company’s rental deliveries compare to competitors?
28.
Would you say Schoeller’s warehouse management is essentially its competitive advantage?
29.
Does the hoarding strategy deployed by customers have a knock-on effect on players such as Schoeller’s inventory stocks?
30.
What are your thoughts on Brookfield contributing EUR 10m to support further growth of Schoeller’s rental service?
31.
What is your short-to-medium-term CAPEX rental growth outlook?
32.
How would you assess Schoeller’s rental model as it relates to sustainability initiatives on the customer end?
33.
What benefits are on offer to large clients buying or owning a bulk container?
34.
Where is the added value to customers’ or clients’ supply chains from buying and owning bulk containers?
35.
Is there particularly strong demand from clients for the purchase of bulk containers from a specific end market?
36.
Is the buying service essentially driven by aesthetics and the need to have more aesthetically pleasing equipment?
37.
How would you summarise the commercial and operational outlook for Schoeller as we look to 2023?
38.
Should we not expect an increase in profit margins in 2023?
39.
Why do you think Schoeller needs to prioritise investment?
40.
Where do you see the biggest risks for Schoeller in 2023, focusing specifically on Europe?
