Savola Group · TADAWUL:2050
Savola — Q3 2022 Earnings Presentation
28 slides from Savola's earnings presentation, 2022
Slide 1: Savola Group Earnings Presentation YTD Q3 2022
Savola Group www.savola.com Earnings Presentation | YTD Q3 2022
Slide 2: Disclaimer
DISCLAIMER This presentation might contain forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: 1. Group Key Financial Highlights 2. Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 3
Slide 4: Group - Highlights
GROUP - HIGHLIGHTS • For YTD Sep 2022, Savola Group reported robust financial performance overall: • Foods segment continued to show robust growth YoY despite volatile commodity prices and macro challenges Business Highlights • Retail segment reported a slight decline, as expected, on the back of th
Slide 5: Group - Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 +26% +17% +17% +20% Sales 7,489 5,912 6,888 6,048 7,072 17,914 21,450 5,954 +12% +12% +10% +6% Gross Profit 1,212 1,285 1,116 1,248 1,024 1,149 3,351 3,682 20.4% 17.2% 18.9% 18.1% 16.9%
Slide 6: Group - Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 +22% +12% +22% +18% EBITDA 781 677 759 689 1,883 2,228 641 564 10.8% 10.4% 11.5% 11.0% 9.3% 9.7% 10.5% 3.4% 10.4% +76% +34% +36% +7% Net Income 271 200 214 164 648 122 476 154 2.6% 3.6%
Slide 7: Group - Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography YTD-21 YTD-22 YTD-21 YTD-22 5% 4% 11% 13% 3% 2% 5% 8% 47% 35% 13% 44% 58% 15% 63% 71% Foods Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +47% -6% -6% +4% +6% +35% +1
Slide 8: Group - Revenue & Net Income Bridge by Business
GROUP – REVENUE & NET INCOME BRIDGE BY BUSINESS Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions +20% +36% 4,051 20 21,450 122 1 648 (451) (55) (29) 125 (26) (42) 17,914 (8) 476 YTD Food Retail Food Frozen Others / YTD YTD 2021 Food Retail Food Frozen Share of
Slide 9: Selected Commodity Snapshots (FAO)
SELECTED COMMODITY SNAPSHOTS (FAO) FAO Food Price Index (rebased)(1) FAO Vegetable Oils Index (rebased)(2) FAO Sugar Index (rebased)(3) 250 150 135 130 125 140 200 125 133 120 130 115 150 140 110 120 105 110 100 100 95 100 90 50 85 90 80 75 80 0 70 Jan-20 Sep-20 May-21 Jan-22 Sep-22 Jan-20 Sep-20 Ma
Slide 10: 1. Group Key Financial Highlights 2. Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 10
Slide 11: Panda Retail Company
JgoLa SAVOLA Panda Retail Company 11
Slide 12: Retail - Highlights
RETAIL - HIGHLIGHTS • Retail segment witnessed slight decline as expected on the back of the continued CXR Key Highlights program and closure of 15 stores as compared to the same period last year Store Count • Store count declined to 190 stores in total which includes 4 stores in Egypt • Panda recor
Slide 13: Retail - Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions • Panda’s YTD revenue declined Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 due to the renovation under the CXR program disrupting the shopping experience, closure of +3% -15% -5% -6% 10 stores in the last year and, some forced c
Slide 14: Retail - Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions • As a result of lower revenue, Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 EBITDA in Panda declined by 7% and 17% for Q3 and YTD Q2 respectively compared to same -6% -36% -7% -17% period last year • As expected, net loss during
Slide 15: Retail - Number of Stores
RETAIL – NUMBER OF STORES Super Hyper 130 0 128 (2) 62 0 0 62 Jun Additions Closures Sep Jun Additions Closures Sep 2022 2022 2022 2022 Total Jun-22 Sep-22 Net Selling Area Net Selling Area 585.8k m2 575.8k m2 192 190 0 (2) Jun Additions Closures Sep 2022 2022 Note: By 30th September 2022 , total of
Slide 16: Savola Foods Company
JgoLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 16
Slide 17: Foods - Highlights
FOODS – HIGHLIGHTS • The performance of foods segment continued to show robust growth YoY despite volatile commodity prices and macro challenges. The growth was a function of higher Key Highlights selling prices and thus higher contribution margin per ton • Sales from new categories of nuts, spices
Slide 18: Foods - Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ Foods segment continued its Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 growth YoY ▪ The growth in sales for the +49% +53% +39% +47% food segment came from combination of volume growth in oil segment and Sales 4,328 4,069 4,300 12,697 incre
Slide 19: Foods - Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 +31% +58% +102% +58% EBITDA 343 377 313 1,033 261 239 655 155 9.0% 7.9% 9.0% 9.3% 5.0% 7.3% 7.6% 9.0% 8.1% +37% +56% +72% +52% Net Income 143 128 96 366 104 82 56 242 3.6% 3.3% 3.1% 3.1% 1.8% 2.2% 2
Slide 20: Foods - Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-21 YTD-22 YTD-21 YTD-22 +8% 1,390 YoY Growth 9,214 YoY Growth 1,292 5% Morocco -10% 4% 5% 6% +57% Morocco +12% 6% Sudan -31% 6% 10% Sudan +17% 5% Algeria +43% 8% 7% Algeria +41% 10% Turkey +6% 7% Turkey +58% Central Asia -15%
Slide 21: Foods - Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-21 YTD-22 YTD-21 YTD-22 YoY Growth -5% YoY Growth 1,135 +13% 2,541 1,076 Egypt -27% Egypt -3% 20% 2,251 18% KSA 0% 16% KSA +17% 21% 80% 84% 82% 79% Gross Profit / Ton (SAR) 175 241 Note: Sugar volumes and revenues include o
Slide 22: Al Kabeer Group of Companies
Al Kabeer Group of Companies 22
Slide 23: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food segment continued to have a stable performance this year despite Key Highlights high raw material costs, sourcing, and regulatory challenges • Revenues registered 4% growth YoY in YTD Sep 2022 Revenues • Al Kabeer reported revenue growth across channels and
Slide 24: Frozen Food - Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ Frozen food revenues have Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 shown steady growth over the last year +5% +4% +3% +4% ▪ Strong recovery continued in the HORECA channel which grew 19% compared to last Sales 175 184 159
Slide 25: Frozen Food - Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ 16% drop in EBITDA due to Q1-21 Q1-22 Q2-21 Q2-22 Q3-21 Q3-22 YTD-21 YTD-22 higher input prices as well as increase in marketing and advertisement expenses +11% -21% -43% -16% ▪ Net income also registered a drop due to reasons EBI
Slide 26: Financial Summary
JgoLa SAVOLA Financial Summary 26
Slide 27: Financials Summary - YTD Sep 2022
FINANCIALS SUMMARY – YTD Sep 2022 (All figures are in SAR millions) Segment Wise Financials YTD 2022 YTD 2021 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Processing* Oil-Mature Markets 7,410 1,019 584 265 674 4,486 724 329 167 405 Oil-Other Markets**
Slide 28: Thank you
Jgola SAVOLA Thank you vola.com 28