Abdullah Al Othaim Markets Co. · TADAWUL:4001
Abdullah Al Othaim Markets — Q3 2020 Earnings Presentation
20 slides from Abdullah Al Othaim Markets's earnings presentation, 2020
Slide 1: Investors' Presentation Q3/2020
Abdullah Al-Othaim Markets Company (OMC) Investors’ Presentation Q3/2020 1
Slide 2: Profile Summary
Abdullah Al-Othaim Markets Company (OMC) Profile Summary Abdullah Al-Othaim Markets Company is a Saudi joint stock company listed on Tadawul security exchange market. Currently is operating in Saudi Arabia and Egypt. It is considered one of the leading retail companies in the Kingdom and has ranked
Slide 3: Key information
Key information Legal Structure Saudi Joint Stock Company Paid up Capital SAR 900 million Number of Shares 90 million Market Capitalization SAR 11.66 billion - USD 3.10 billion Board size 8 members Board Committees Audit, Compensation and Nominations Trading on Tadawul Since 2008 Headquarters Riyadh
Slide 4: Abdullah Al-Othaim Markets Company (OMC) - Snapshot
Abdullah Al-Othaim Markets Company (OMC) - Snapshot Retail Division: • 277 stores with a total of sales area 475.78 thousands Sq. m, located across KSA and Egypt. • 234 stores with a total of 452.84 thousands Sq. m , located across KSA. • 43 stores with a total sales area of 22.94 thousands Sq. m, l
Slide 5: Our Presence
Our Presence Northern Province Eastern Province Makka Province Province Province Province Province Province Province Province Province Province Madina Gassim Riyadh Najran EGYPT Tabuk Aseer Total Jizan Aljof Hael Format % Hypermarket 3 - - 2 - - 1 - - 1 - - 7 2.9% Supermarket 90 18 3 24 19 5 3 7 3 1
Slide 6: Quick glance
Quick glance OMC reported 3Q 2020 results with revenues of SAR 6,767 Mn (11.53% YoY) , 3Q 2020 Net income was SAR 285 Mn (41.02% YoY). Sales growth of (11.53%) was driven by high demand to buy food and grocery supplies during the closure periods imposed by the government to mitigate Corona virus out
Slide 7: Financial Performance
Financial Performance • Strong Revenue Acceleration. • Sustained Profit Growth. • Strong Balance Sheet with Healthy Financial Ratios. • Highly liquid. • Low Leverage. • Highly ROE and ROCE. • Steadily Growing EPS and Dividends. 7
Slide 8: Income Highlights
Income Highlights In SAR Million Q3/2016 Q3/2017 Q3/2018 Q3/2019 Q3/2020 Sales 5,152 5,260 5,565 6,067 6,767 Gross profit 849 995 1,056 1,181 1,383 EBIT 143 195 209 220 298 Interest (10) (13) (3) (2) (1) Zakat (3) (6) (5) (6) (9) Net income from continuing 133 175 196 208 287 operations * Performanc
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights In SAR Million 31-12-2016 31-12-2017 31-12-2018 31-12-2019 30/09/2020 Non-current assets 1,953 2,182 2,332 3,478 3,523 Current Assets 1,398 1,165 1,316 1,288 1,411 TOTAL ASSETS 3,351 3,347 3,648 4,766 4,934 Shareholders Equity 1,232 1,495 1,660 1,487 1,361 Non-controlling in
Slide 10: Cash Flow Highlights
Cash Flow Highlights In SAR Million Q3/2016 Q3/2017 Q3/2018 Q3/2019 Q3/2020 Cash provided from or (used) in 287 301 296 375 665 operation activity Cash provided from or (used) in (371) 111 (291) (121) (87) investment activities Free Cash Flow (84) 412 5 254 578 Cash provided from or (used) in (3) (3
Slide 11: Consolidation Financial Snapshot
Consolidation Financial Snapshot Net Income SAR Mn Sales Gross Profit EBITDA from continuing operations 3Q 2020 6,767 1,383 547 287 +12% Vs. Q3 2019 +17% Vs. Q3 2019 +20% Vs. Q3 2019 +38% Vs. Q3 2019 * Normalized EBITDA & Net income 11
Slide 12: Quarterly Net Income CY Vs. LY
Quarterly Net Income CY Vs. LY SAR Mn 300 285 250 202 200 150 125 100 100 75 68 59 61 50 0 Q1 Q2 Q3 Total 2019 68 59 75 202 2020 100 125 61 285 12
Slide 13: Consolidation Financial Highlights - YoY
Consolidation Financial Highlights - YoY SAR Mn 8,000 2019 2020 7,000 6,767 6,067 6,000 5,000 4,000 3,000 2,000 1,383 1,181 1,000 547 454 285 202 - Sales Gross Profit EBITDA Net Income 13
Slide 14: Quarterly Consolidation Financial Highlights – past 5 years (Q3)
Quarterly Consolidation Financial Highlights – past 5 years (Q3) SAR Mn 2,500 Sales Gross Profit EBITDA * Net Income 2,000 1,937 1,813 1,745 1,628 1,570 1,500 1,000 500 340 400 412 319 272 151 163 147 77 99 104 75 61 36 54 - 2016 2017 2018 2019 2020 * Normalized EBITDA & net income 14
Slide 15: Consolidation Financial Highlights – past 5 years (YoY)
Consolidation Financial Highlights – past 5 years (YoY) SAR Mn 8,000 Sales Gross Profit EBITDA * Net Income 7,000 6,767 6,067 6,000 5,565 5,152 5,260 5,000 4,000 3,000 2,000 1,383 1,056 1,181 849 995 1,000 454 547 248 133 320 282 344 196 202 285 - 2016 2017 2018 2019 2020 * Normalized EBITDA & net i
Slide 16: Trends in Margins
Trends in Margins Margins 2016 2017 2018 2019 2020 Gross Profit Margin 16.49% 18.91% 18.98% 19.46% 20.44% EBITDA Margin 4.81% 6.08% 6.18% 7.48% 8.08% EBIT Margin 2.78% 3.71% 3.76% 3.62% 4.41% Net profit Margin 2.57% 5.36% 3.52% 3.34% 4.22% Gross Profit Margin EBITDA Margin EBIT Margin Net profit Mar
Slide 17: Dividends Vs. Net Income – 5 years
Dividends Vs. Net Income – 5 years SAR Mn 500 Dividends Net Income P/O ratio 94.6% 100% 449 89.2% 450 90% 78.3% 400 80% 345 350 70% 303 300 285 60% 270 270 270 50.1% 250 228 225 50% 39.5% 200 40% 150 30% 90 100 20% 50 10% - 0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 17
Slide 18: Loyalty program (IKTISSAB)
Loyalty program (IKTISSAB) Sales by Nationality Number of customers Sales value - SAR Sauida 9% Egypt 4% 4% India 3% 1,932,569 1,995,122,321 Yemen 6% 2,734,716,197 1,989,606 Pakistan Syria 6% 58% Sudan 10% Other Saudi non-Saudi Saudi non-Saudi Iktisab customers growth 2,500,000 4,000,000 3,922,175 1
Slide 19: Highlights on Othaim Markets KSA Q3/2020
Highlights on Othaim Markets KSA Q3/2020 Statics % YoY SAR Sales growth % 11.53% LFL sales growth % 4.99% No. of IKTISSAB customers growth % 10% No. of transaction growth 0.35% Basket size growth % 11.12% Basket size (SAR) 110.15 Sales / Sqm (SAR) 13,693 19
Slide 20: Key Financial Indicators Q3/2020
Key Financial Indicators Q3/2020 Return on Equity 19.6% Return on Assets 5.92% ROCE 10.90% Fixed Assets Turnover 4.74X Debt : Equity 2.5 : 1.0 Assets Growth 3.5% Shareholders Equity Growth (8.1%) EPS (SAR) 3.17 20
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