Almarai Company · TADAWUL:2280
Almarai — Q2 2011 Earnings Presentation
17 slides from Almarai's earnings presentation, June 2011
Slide 1: Almarai Company 2011 Q2 Earnings Presentation
Almarai Company 2011 Q2 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or lia
Slide 3: Highlights: A challenging start to the new year
Highlights A challenging start to the new year Q2 2011 1st Half of 2011 Revenue growth 15.8 % from SAR 1,738.9 13.9 % from SAR 3,298.4 (versus prior year) million to SAR 2,012.9 million million to SAR 3,756.4 million Net Income growth 1.8 % from SAR 343.1 million 1.3 % from SAR 577.2 million (versus
Slide 4: Income Statement
Income Statement 2nd Quarter 1st Half SAR million 2011 2010 Change 2011 2010 Change Net Sales 2,012.9 100.0% 1,738.9 100.0% 15.8% 3,756.4 100.0% 3,298.4 100.0% 13.9% Cost of sales (1,245.6) (61.9%) (1,037.7) (59.7%) 20.0% (2,355.0) (62.7%) (2,027.2) (61.5%) 16.2% Gross Profit 767.2 38.1% 701.1 40.3%
Slide 5: Sales Analysis by Product & Region
Sales Analysis by Product & Region Sales by Product 1st Half Sa les by Product 1st Ha lf G roup SAR M illion Sales by Region 1st Half 2011 2 011 2 010 % cha nge Fresh Dairy 1,615.4 1,467.7 10.1% Long-Life Dairy 332.0 12.0% Oman 371.9 Bahrain 5.1% UAE Fruit Juice 406.5 348.0 16.8% 2.1% Export 10.7% Q
Slide 6: Quarterly Performance – Net Income
SAR Million 200 350 0 100 150 250 300 400 450 50 78.0 90.6 Almarai Company 122.8 162.2 197.4 234.1 235.2 100.3 121.8 165.3 235.2 287.1 343.1 349.3 100.9 2011 Q2 Earnings Presentation 122.6 186.1 293.7 363.4 424.5 106.9 Quarterly Performance – Net Income 130.2 193.1 219.2 248.8 283.5 6
Slide 7: Revenue and EBIT Margin Evolution
Despite the challenging trading environment, Almarai continues to realise robust revenue growth Revenue and EBIT Margin1 Evolution 24.9% 22.7% 23.2% 22.6% 21.0% 20.7% 21.0% 21.8% 21.1% 20.2% 24.4% 20.1% 19.4% 7,389 6,931 SA R i n Million CAGR 1999 – 2010: 17.4% (w/o impact of acquisitions 15.6%) 5,8
Slide 8: Cash Flow Statement
Cash Flow Statement Cash Flow Statement First 6 months SAR Million 2011 2010 From Operating Activities 902.1 858.6 Used in Investing Activities (1,402.7) (1,060.1) From Financing Activities 503.1 (97.0) Increase/(Decrease) in Cash 2.5 (298.5) Cash at beginning of period 240.8 507.7 Cash at end of pe
Slide 9: Balance Sheet
Balance Sheet Bal an ce S h eet 3 0 .0 6.11 3 1.12.10 S AR M i l l i on Net operating working capital 702 660 Biological Assets 795 770 Property, Plant and Equipment 8,997 7,867 Net operating assets 10,494 9,296 Intangible Assets - Goodwill 793 793 Investment and Financial Assets & deferred charges
Slide 10: Segment Reporting
Segment Reporting D ai ry & Arabl e an d O th er Al marai S AR M i l l i on Bak ery P ou l try Ju i ce H orti cu l tu re Acti vi ti es C on sol i dated 1st H al f 20 11 Sales 3,135.6 498.8 145.1 101.3 0.0 3,880.9 Third Party Sales 3,126.8 460.5 145.1 24.0 0.0 3,756.4 Net Depreciation (145.6) (43.1)
Slide 11: Q2 2011 Product Innovation
Q2 2011 Product Innovation Almarai Company 2011 Q2 Earnings Presentation 11
Slide 12: Update on Joint Ventures/Associates
Update on Joint Ventures/Associates • International Dairy and Juice (IDJ) – Regional unrest has had a negative impact on IDJ performance – Management are committed to achieving breakeven in 2011 • International Pediatric Nutrition Company (IPNC) – June saw the launch of Almarai EnfaGrow Stage 3 in b
Slide 13: Poultry Expansion
Poultry Expansion • The Almarai Board of Directors recently signed off on the poultry expansion plan as part of the overall Almarai Strategic Plan. This investment will total SAR 4 billion. In summary, – Today we know more about the poultry business than in October 2009 when we acquired HADCO – Ther
Slide 14: Almarai Key Challenges 2011
Almarai Key Challenges 2011 1. Commodity inflation Squeezed between continuous increase in input costs and difficulty to increase selling prices loss of ~200 bp EBIT Margin 2. Assets not yet performing As at the end of June, ~ SAR 3.5 billion (or 29%) of Almarai’s net asset base was not yet contrib
Slide 15: Looking forward
Looking forward • Notwithstanding the challenges that I have just outlined, Almarai remains committed to : – maintaining focus on our core categories – continued product innovation - products are regularly being introduced to the market which have come through Almarai’s innovation pipeline – continu
Slide 16: Q&A
Q&A Almarai Company 2011 Q2 Earnings Presentation 16
Slide 17: Thank you
Almarai Company Thank you Exit 7, North Circle Road Al Izdihar District P.O. Box 8524 Riyadh, 11492 Saudi Arabia Contact for investor relations matters: Khalid M. Al Nasser +966 1 470 00 05 ext 1280 investor.relations@almarai.com