Aquila Part Prod Com Sa · BVB:AQ
Aquila Part Prod Com Sa — FY2023 Earnings Presentation
27 slides from Aquila Part Prod Com Sa's earnings presentation, 2024
Slide 1: Presentation Preliminary Financial Results 2023
Presentation Preliminary Financial Results -2023 -
Slide 2: Investment proposition
1| Investment proposition 1. Macroeconomic context 2| and markets Market context 2. Strategy and focus 3| 3. Analysis of the results | Margin optimization and Own Strategic focus Brands growth 4| 4. Markets and ESG details Appendixes H1 2022 results 5| FY 2022 outlook
Slide 3: Macroeconomic Context, markets and trends
1. Macroeconomic Context, markets and trends Context Trends $25B • Annual inflation rate of 6.6% (Dec 2023 vs. Dec 2022) • Inflation and the increase of Traditional, Supermarkets and according to NIS, estimated by BNR to reach 4.8% at the Convenience from retail, respectively of the HoReCa channels
Slide 4: Strategy and Focus - AQUILA Strategy for Profitable Growth
2. Strategy and Focus - AQUILA Strategy for Profitable Growth Reduce carbon footprint by 10% by 2026 M&A approach Margin optimization • Cross-selling of our products across channels Key criteria • Targets: FMCG manufacturers. distributors and brand and clients. for Key • Potential synergy through pr
Slide 5: M&A Approach - Romtec Acquisition Status
M&A Approach - Romtec Acquisition Status Acquisition of 100% of the shares of Romtec Europa SRL (Romtec) Part of Romtec portfolio Price: Maximum EUR 3.2 m Status: • Transaction completed in February 2024. About the company: • A Romanian company with 30 years of experience in producing liquids and ae
Slide 6: M&A Approach - Parmafood Acquisition Status
M&A Approach - Parmafood Acquisition Status The acquisition of 100% of the shares of Parmafood Trading SRL and Parmafood Group Distribution SRL. Part of the Parmafood portfolio Price: Maximum EUR 16.5 m. cumulated Status: • Approval of the General Shareholders' Meeting - completed. • Competition Cou
Slide 7: Margin optimization
Margin optimization 01 Product portfolio Optimizing the current portfolio, focusing on higher margin products, 03 Digitization including own brands. The implementation of the new ERP, in the process of implementation, it will provide Increasing the number of SKUs, mainly on existing customers (160 s
Slide 8: 2022 - 2026 Sustainability Strategy
2022 - 2026 Sustainability Strategy Priorities Trends and Actions Human Resources Priorities Trend - labor force deficit in Romania is caused by the • Employee recruitment and retention with an demographic decline, the negative balance of international emphasis on equal opportunities and increasing
Slide 9: Investment proposition
1| Investment proposition 1. Macroeconomic context and 2| markets Market context 2. Strategy and focus 3| 3. Analysis of the results | Margin optimization and Strategic focus Own Brands growth 4| 4. Markets and ESG details H1 2022 results Appendixes 5| FY 2022 outlook
Slide 10: Analysis of results - Key performance indicators in 2023
3. Analysis of results - Key performance indicators in 2023 Sales EBITDA Net Profit RON 2,510 m. RON 155 m. RON 97 m. Sales increase EBITDA increase Net Profit increase ( y/y) (y/y) (y/y) +14% +5% +14% Gross Margin EBITDA Margin Net Profit Margin 20.8% 6.2% 3.9% Distribution Sales Logistics Sales Tr
Slide 11: 2023 Preliminary Financial Results Analysis
2023 Preliminary Financial Results Analysis Variatio 2023 2022 RON m. n 2023 vs. 2022 Revenues 2,510 14% 2,210 Cost of goods sold (1,866) 15% • Revenues increased by 14% driven mainly by the (1,624) distribution segment, especially by sales through the 491 12% traditional channel, the HoReCa channel
Slide 12: Sales by segments in 2023
Sales by segments in 2023 Sales revenue, RON m. DISTRIBUTION Distribution revenues growth of 14% in 2023 2,210 compared to 2022, mainly attributed to the organic Total 2,510 14% growth of this business line across the three sales channels: traditional by 24%; HoReCa by 15%, and gas stations and co
Slide 13: Sales by channel in 2023
Sales by channel in 2023 Revenues by channel 2022 vs. 2023, RON m., Revenues by channel in 2023, RON m. % 99 Moldova 112 112 +13% Gas stations and Travel 363 +16% 421 Retail 421 998 246 +15% HoReCa 283 283 544 (1)% Organized sales channel 540 540 Total: 2,354 808 +24% Traditional sales channel Organ
Slide 14: Opex and D&A expense in 2023
Opex and D&A expense in 2023 Operating and D&A expenses, RON m. 2023 vs. 2022 1,866 Operating expenses before 1,624 259 depreciation increased by RON 52 m. 225 mainly due to: • The increase of employee benefits related expenses by RON 33 m. (the 118 101 increase is mainly due to the 77 73 average em
Slide 15: Evolution of Liquidity Indicators
Evolution of Liquidity Indicators (6)% 2% 3% • Days of Inventory (DIO) decreased 44 45 41 42 mainly due to the reduction in year-end inventory levels of frozen products and 36 confectionery. 33 • Days Sales Outstanding (DSO) registered an increase due to the higher proportion of receivables in HoReC
Slide 16: Main elements of the Balance Sheet
Main elements of the Balance Sheet Variatio 2023 2022 RON n 2023 vs. 2022 234,879,109 Non-current assets 20% 281,650,266 Tangible and intangible assets 239,479,633 178,112,582 34% • Non-current assets increased by 20% (by approx. RON 47 m.) based on the renewal of operational Current assets 17% leas
Slide 17: Evolution of Own Brands – significant growth
Evolution of Own Brands – significant growth (+31%) Own Brands, by volume 2022 vs. 2023 ('000 KG) 4,000 18% 3,468 3,500 2,939 3,000 12% 2,500 2,181 • The revenues related to the own brands, Gradena, La Masă and 1,953 2,000 Yachtis, had an advance of 31% in 2023, up to RON 88 m. 1,500 1,000 500 4
Slide 18: Investment proposition
1| Investment proposition 1. Macroeconomic context and 2| markets Market context 2. Strategy and focus 3| 3. Analysis of the results | Margin optimization and Own Strategic focus Brands growth 4| 4. Markets and ESG details Appendixes H1 2022 results 5| FY 2022 outlook
Slide 19: FMCG and HoReCA distribution market grew 61.2% in the last 5Y
FMCG and HoReCA distribution market grew 61.2% in the last 5Y reaching EUR 5b/RON 25b in 2022 Romania: FMCG & HoReCA distribution Romania: FMCG & HoReCA distribution market concentration1 market1 30.0 30% 27% 25.3 25.0 25% 21.4 20.0 20% Top 10 COs, 16.5 16.8 18% 15.7 52% 13.6 14.6 15.0 15% 10.0 9% 1
Slide 20: FMCG and HoReCa distribution market | Top players
FMCG and HoReCa distribution market I Top players Top players by turnover1, in RON m. (2022) 5,600 12 The second 4,800 Thelargest second 10 The turnover of the players from 4,000 largest player FMCG and HoReCa from Romania 8 3,200 player increased by 17% in 2022 vs 2021, 5,200 6 to the record level
Slide 21: Exposure to a large addressable market
Exposure to a large addressable market | FMCG & HoReCa markets expected to expand at 5Y GAGR of 5% (cumulated) Modern and Traditional Trade to advance at 5Y CAGR of +5.5% and -0.2% respectively, by 20261 139 144 5Y CAGR 126 130 134 114 122 103 47 +3.4% 47 47 47 47 47 46 45 98 +5.5% 75 79 83 88 92 58
Slide 22: Convenience stores, Discounters and Supermarkets expected to outperform within Modern Trade
Convenience stores, Discounters and Supermarkets expected to outperfom within Modern Trade Modern Trade by segments 1 150 150 5Y CAGR 130 130 +5.5% 110 98 110 88 92 90 79 83 90 75 31 +1.7% 68 30 31 70 58 30 70 29 29 28 29 +7.5% 50 25 27 50 23 25 20 22 30 13 16 21 30 +6.6% 17 18 19 20 13 15 16 10 11
Slide 23: 2022 - 2026 Sustainability Strategy
2022 - 2026 Sustainability Strategy The 2022-2026 Decarbonization Plan, which includes scenarios and projects to reduce the impact on the environment, the analysis of associated risks and opportunities. We believe in the sustainable development of our business, Actions taken: and we want to be an ex
Slide 24: ESG Strategy - Environment
ESG Strategy - Environment ESG Targets Our main target: -10% greenhouse gas emissions in the strategic period, with 2021 as the reference year. ESG Focus Along with the actions included in the Decarbonization Plan, we will also continue the projects started in the last two years: Greenhouse gas emis
Slide 25: ESG Strategy - Social
ESG Strategy - Social ESG Focus ESG Targets Occupational health and safety In the following 5 years we will focus our efforts on: • We kept approx. 3000 jobs, respecting the specific legislation, paying the related taxes and fees. Occupational safety and health • Safe and fairly remunerated jobs, sp
Slide 26: ESG Strategy - Governance
ESG Strategy - Governance ESG Focus ESG Targets AQUILA’s corporate culture promotes: • Integrity; • Good corporate governance; • The highest ethical standards based on transparency, fairness and AQUILA's efforts for the next 5 years will focus on equity; 1 strengthening internal corporate governance
Slide 27: AQUILA Investor Relations
AQUILA Investor Relations: Jean Dumitrescu – Investor Relations Director Phone: +40 723 331 942 E-mail: investor.relations@aquila.ro Website: www.aquila.ro