Colruyt Group N.v. · EURONEXT:COLR
Colruyt — FY2022/23 Earnings Presentation
48 slides from Colruyt's earnings presentation, Jun 14, 2023
Slide 1: Full-Year Results 2022/23
Full-Year Results 2022/23 Financial Year ending 31 March 2023 Analyst meeting 14/06/2023
Slide 2: Disclaimer
Disclaimer Risks relating to forecasts Statements by Colruyt Group included in this presentation, along with references to this presentation in other written or verbal statements of the group which refer to future expectations with regard to activities, events and strategic developments of Colruyt G
Slide 3: Table of contents
Table of contents 1. Key figures 2. Business update & highlights 3. Cash flow & net financial debt 4. Outlook 5. Financial calendar Annex - Reconciliation key figures and consolidated income statement
Slide 4: 1. Key figures
1. Key figures The key figures are inclusive of DATS 24 NV. For a reconciliation between the key figures and the consolidated income statement (in which DATS 24 NV is presented as a discontinued operation), we refer to the annex 'Reconciliation of key figures and consolidated income statement’.
Slide 5: Key figures
Key figures (*) Combined market share in Belgium of Colruyt Lowest Prices, Okay and Spar. 5
Slide 6: Headlines
Headlines • Challenging macro-economic context with high inflation, substantial cost increases and a negative business and consumer confidence. ─ Revenue increase (price inflation partly offset by lower volumes). ─ Lower gross margin as cost price inflation is not fully passed on to the customers. ─
Slide 7: Macro-economic context in Belgium
Macro-economic context in Belgium • Belgium is one of the few European countries where: ─ Purchase price index is much higher than food inflation. ─ Food inflation was lower than consumer price index in general (up until the end of 2022). ─ The difference between energy inflation and food inflation
Slide 8: EBIT evolution (M€)
EBIT evolution (M€) 3,7% of revenue 375 EBIT FY 2021/22 Gross profit Services and miscellaneous goods -23 bp {+24 bp | [226] Employee benefit Other operating Depreciation expenses income and and expenses impairment 2,6% of revenue 279 EBIT FY 2022/23
Slide 9: EBIT evolution (M€)
EBIT evolution (M€) 3,7% of revenue EBIT FY 2021/22 Gross profit Services and miscellaneous goods -23 bp {+24 bp | [226] Employee benefit Other operating Depreciation expenses income and and expenses impairment 2,6% of revenue 279 EBIT FY 2022/23
Slide 10: Revenue evolution
Revenue evolution • Consolidated revenue (+7,7%) positively impacted by the DATS 24 revenue increase, the full consolidation of Roelandt Group and Newpharma and food inflation. Partly compensated by decreasing volumes. • Revenue evolution excl. petrol: +7,4% • Strategy consistency. • Expansion & sto
Slide 11: Gross margin
Gross margin • Including petrol: gross margin decreased by 29 basis points. • Excluding petrol: gross margin decreased by 40 basis points. • Lowest prices strategy consistently applied by Colruyt Lowest Prices. • Gross margin evolution impacted by: - Competitive market environment, mainly in terms o
Slide 12: Net operating expenses
• Increase in net operating expenses mainly impacted by: Net operating expenses ─ Rising inflation on all key financial statement items with a significant impact on energy expenses, transport expenses and employee benefit expenses. ─ The full consolidation of Roelandt Group and Newpharma. • Long-ter
Slide 13: Net operating expenses
Net operating expenses Services and miscellaneous goods % of revenue % of revenue Services and miscellaneous goods: M€ -134 or +19,4% • More than half of the increase is due to energy expenses (of which more or less half is for own use). ─ Revenue from the sale of energy is included in other operati
Slide 14: Net operating expenses
Net operating expenses Employee benefit expenses % of revenue Employee benefit expenses: M€ -139 or +9,4% • Automatic wage indexation in Belgium accounts for the majority of the increase. • FTE increase: -162 in H1 2022/23 and +488 in H2 2022/23. − Almost 300 FTE’s as a result of the acquisition of
Slide 15: EBIT evolution (M€)
• Increase in depreciations of M€ 15 (to M€ 373) due to continuous EBIT evolution (M€) investments in stores, production and distribution centres and transformation programmes. • Increase in impairment charges of M€ 27 (to M€ 33). Mainly as a result of the loss- making activities of Dreamland and Dr
Slide 16: Net result evolution (M€)
Net result evolution (M€) Effective tax rate from 25,2% to 25,8%. Increase in finance costs as a result of the increase in net financial debt and increasing interest rates. 16
Slide 17: 2. Business update & highlights
2. Business update & highlights
Slide 18: Retail
Fully consolidated for the period October-December 2022 Shareholdings Retail 80,9% of group revenue EUR 8.750 million Wholesale & Belgium Wholesale France Wholesale Belgium Foodservice foodservice 10,7% of group revenue EUR 1.161 million Other activities Shareholdings 8,4% of group revenue EUR 908 m
Slide 19: Food Retail (+6,6% = M€ 8.145)
Food Retail (+6,6% = M€ 8.145) Number of Revenue Highlights stores • Revenue increase resulting from food inflation, partly offset by volume declines. +6,9% +5 = 259 • Best Brands Award 2023 (Best Retail Food Brand) + winner of GfK in Summer and = M€ 6.436(*) Winter 2022. • Revenue increase resultin
Slide 20: Non-Food Retail (+15,5% = M€ 603)
Non-Food Retail (+15,5% = M€ 603) Number of Revenue Highlights stores • Leading market positions. +1 = 48 • Challenging markets, characterised by increasing competition, volumes that are under pressure, a shift from offline to online consumption and changing -7,5%(*) customer behaviour. → Decreasing
Slide 21: Non-Food Retail (+15,5% = M€ 603)
Non-Food Retail (+15,5% = M€ 603 ) (*) Number of Revenue Highlights stores • Major player in its respective market. +84,6% +6 = 27 • 1 new store and 5 acquisitions of existing stores. • Expansion plans in Belgium (Zeb and The +14,5% +5 = 129 Altogether profitable at Fashion Store) and France (PointC
Slide 22: E-commerce
E-commerce Online revenue Online revenue accounted for 6,8% of retail revenue, excluding petrol. Online revenue mainly realised by Collect&Go. Over 300 collection points: Belgium: 222 Luxembourg: 4 France: 95 • Online revenue is decreasing as a result of lower volumes. • Collect&Go is market leader
Slide 23: Segment – Retail
Segment — Retail In M€ FY 2022/23 FY 2021/22 Revenue 8.822 8.233 7,2% External 8.750 8.165 7,2% Internal 72 68 EBITDA 569 632 -10,0% % of revenue 6,4% 7,7% Depreciation & impairment -326 -280 16,4% % of revenue -3,7% -3,4% EBIT 243 352 -31,0% % of revenue 2,8% 43% FTE at period-end 26.467 26.251 Cap
Slide 24: Innovation
Innovation Smart Technics, Colruyt Group's innovation hub, focuses on automation and digitalisation throughout the supply chain; from the introduction of robotics in distribution centres to the integration of technologies in the stores. • Product Finder technology ─ Tested since November 2022 in a C
Slide 25: Sustainability
Sustainability Colruyt Group is a reference point for sustainable entrepreneurship and a source of inspiration for conscious consumption. Colruyt Group works towards this objective step by step, through a wide array of initiatives and partnerships. • Since early November 2022, customers can save poi
Slide 26: Retail
Shareholdings Retail 80,9% of group revenue EUR 8.750 million Wholesale & Belgium Wholesale France Wholesale Belgium Foodservice foodservice 10,7% of group revenue EUR 1.161 million Other activities Shareholdings 8,4% of group revenue EUR 908 million 26
Slide 27: Wholesale and Foodservice
Wholesale and Foodservice Revenue Highlights • Revenue rose as a result of food inflation, partly offset by lower volumes. • Close and long-term collaboration with independent entrepreneurs. • Intention to further expand the efficient independent store network in Belgium +3,7% and France. = M€ 944 •
Slide 28: Segment – Wholesale & Foodservice
Segment – Wholesale & Foodservice 28
Slide 29: Retail
Shareholdings Retail 80,9% of group revenue EUR 8.750 million Wholesale & Belgium Wholesale France Wholesale Belgium Foodservice foodservice 10,7% of group revenue EUR 1.161 million Other activities Shareholdings 8,4% of group revenue EUR 908 million 29
Slide 30: Other activities
Other activities Number of filling Revenue Highlights stations +11,0% +4 = 145 • Revenue positively impacted by price increases. = M€ 886 Hydrogen: • DATS 24 will be deconsolidated as of June 1st 2023. +3 = 4 ─ Agreement reached to fully integrate DATS 24 NV into Virya Energy. Charging posts: ─ Acqu
Slide 31: Virya Energy
Virya Energy • Colruyt Group has a 59,9% stake in Virya Energy as at 31 March 2023 (accounted for using the equity method). • Active in the development, financing, construction, operation and maintenance of renewable energy sources, with a particular focus on offshore and onshore wind energy. • Ambi
Slide 32: Segment – Other activities
Segment – Other activities 32
Slide 33: Segment – Corporate / unallocated
Segment – Corporate / unallocated 33
Slide 34: 3. Cash flow & net financial debt
3. Cash flow & net financial debt
Slide 35: Cash flow (M€)
Cash flow (M€) EBITDA Cash & cash equivalents: M€ +176 Cash & cash equivalents: M€ +361 Cash & cash equivalents evolution: M€ +178 Bank overdrafts: M€ 0 Bank overdrafts: M€ -8 35
Slide 36: Net financial debt (M€)
Net financial debt (M€) Interest-bearing liabilities Non-current (>1 year) Of which IFRS 16 Current (<1 year) Long-term financing due within 1 year Of which IFRS 16 Short-term financing” Less: Cash and cash equivalents Mar 2023 Mar 2022 Variance Variance % 619 259 41,9% 221 32 14,3% 350 130 37,3% 14
Slide 37: Capital expenditures, net of capital grants (M€)
Capital expenditures, net of capital grants (M€) Continuation of the CAPEX programme: • FY 2022/23 : M€ 463 (exclusive of right-of-use assets and business combinations) • Expectation FY 2023/24: M€ 440 to M€ 460 • 3-year period from 2023/24 to 2025/26: € 1,3 billion Ongoing investments in: • New sto
Slide 38: Share buybacks (M€)
Share buybacks (M€) Status as per 9/06/2023(*) Treasury shares purchased: • 7.085.901 treasury shares held by Colruyt Group. • In 2022/23: 3.169.029 shares (M€ 95). • 5,28% of the total number of shares issued (134.077.688). • After period-end: 397.921 shares (M€ 12). 38
Slide 39: 4. Outlook
4. Outlook G COLRUYTGROUP
Slide 40: Outlook
Outlook Expectations about the market environment • Colruyt Group expects the challenging macroeconomic context of high inflation, substantial cost increases and a negative business and consumer confidence to continue. Strategy consistency • Colruyt Group will maximise operational cost control and c
Slide 41: Outlook – one-off’s in 2023/24
Outlook – one-off’s in 2023/24 The financial year 2023/24 will include several one-off effects: • Upon completion, the sale of Parkwind to JERA by Virya Energy will result in a very significant one-off positive effect in the consolidated net result of Colruyt Group in the financial year 2023/24. Tha
Slide 42: 5. Financial calendar
5. Financial calendar G COLRUYTGROUP
Slide 43: Financial calendar
Financial calendar 31/07/2023 Publication annual report 2022/23 13/09/2023 Start black-out period 27/09/2023 General Meeting of Shareholders (16h00 CET) 13/11/2023 Start black-out period 12/12/2023 Publication half-year results 2023/24 (17h45 CET) 13/12/2023 Information to financial analysts (14h00
Slide 44: Thank you for your attention Questions?
Thank you for your attention Questions? 44
Slide 45: ANNEX
ANNEX Reconciliation key figures and consolidated income statement
Slide 46: Reconciliation of key figures and consolidated income statement 2022/23
Reconciliation of key figures and consolidated income statement 2022/23 46
Slide 47: Reconciliation of key figures and consolidated income statement 2021/22
Reconciliation of key figures and consolidated income statement 2021/22 47
Slide 48: Consolidated income statement with DATS 24 as discontinued operation
Consolidated income statement with DATS 24 presented as discontinued operation in the financial year 2022/23 and in the financial year 2021/22 48