Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — H1 2020 Earnings Presentation
29 slides from Kri-kri Milk Industry's earnings presentation, September 2020
Slide 1: Investor Presentation - Half Year Results September 2020
Authentic products drive sustainable growth INVESTOR PRESENTATION HALF YEAR RESULTS - SEPTEMBER 2020
Slide 2: Legal disclaimer
INVESTOR PRESENTATION | SEPTEMBER 2020 Kri Kri Legal Legal disclaimer 02 This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information
Slide 3: Agenda
INVESTOR PRESENTATION | SEPTEMBER 2020 Presentation Contents Agenda 03 Company Overview 04 Strategic Review 08 COVID-19 Mitigation Actions 19 First Half 2020 Results 20 Outlook 28 Key Takeaways 29
Slide 4: At a glance 2019 highlights
INVESTOR PRESENTATION | SEPTEMBER 2020 Company Overview At a glance 2019 highlights 04 Revenue 2015-2019 EBITDA 2015-2019 PBT 2015-2019 14% GAGR 30.3% GAGR + 780bps EBITDA Margin 42.2% GAGR + 920bps Net Profit Margin +20% Y-O-Y +22% Y-O-Y +24% Y-O-Y 2019 €113m 2019 €21.1m 2019 €17.6m 2018 €94m 2018
Slide 5: Our values: A Greek brand based on ethos
INVESTOR PRESENTATION | SEPTEMBER 2020 Company Overview Our values A greek brand based on ethos 05 Originality We believe in fresh, plain, yet original taste. Authenticity We create products that have superior taste, with the best ingredients from local Greek suppliers - the real thing. Ethics We do
Slide 6: Product range: Key product segments
INVESTOR PRESENTATION | SEPTEMBER 2020 Company Overview Product range Key product segments 06 Innovative & authentic - Loved by our customers! Yogurt Greece Yogurt Exports Ice cream Greece Ice cream Exports BRANDED (65 SKU’s) BRANDED (55 SKU’s) BRANDED (150 SKU’s) BRANDED (175 SKU’s) • Premium strai
Slide 7: Geographic footprint and history
INVESTOR PRESENTATION | SEPTEMBER 2020 Company Overview Geographic footprint and history 07 Selling > 25 The business began in 1954 when George Tsinavos established a small pastry shop Countries in Serres, producing a variety of ice creams. In 1987 the first high technology production plant was estab
Slide 8: What sets us apart?
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review What sets us apart? 08 DISTINCTIVE PREMIUM PRODUCT EXPERIENCED WELL BRAND PRODUCTS INNOVATION MANAGEMENT POSITIONED The brand evokes Winning on authentic taste We innovate based on a Our highly motivated team of With a leading market share auth
Slide 9: Our business model: How we use our assets to create value
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Our business model How we use our assets to create value 09 We make We have invested in the technology and infrastructure We sell & distribute to maintain quality control, and achieve faster and more Our business model is fully integrated and w
Slide 10: Market review: Branded yogurt Greece
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Market review Branded yogurt Greece 10 Market size €185m Key Highlights Trend: +3.8% vs prior year 2nd largest producer in Greece 96% brand awareness Market share 16.7% High market penetration (vol.) Sold in 100% of Greek supermarkets Competiti
Slide 11: Market review: Private label yogurt Greece
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Market review Private label yogurt Greece 11 A leading supplier of private label yogurts in Greece Key Highlights A leading product supplier of private Market size €16.4m label yogurts in Greece Trend: +6.4% vs prior year 75 products produced i
Slide 12: Market review: Yogurt exports
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Market review Yogurt exports 12 UK Italy Germany 14.4% 14.4% 10% 11.7% Authentic Greek & Greek Authentic Greek & Greek Authentic Greek & Greek style yogurt market £305m style yogurt market €148m style yogurt market €253m Total market £1.5bn Tot
Slide 13: Market review: Ice cream Greece
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Market review Ice cream Greece 13 Market size €223m Key Highlights Trend: -1.5% vs prior year 96% brand awareness 20 % increase point of sales in last three years Market share 14.5% (vol.) The market is consolidated Strategy Increase points of
Slide 14: Market review: Ice cream exports
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Market review Ice cream exports 14 Key Highlights $58bn Ice cream is a large market GLOBAL MARKET Demand for niche products 15 SKU’s for ice cream companies and supermarkets $18bn Countries: Cyprus, Albania, North Macedonia EUROPEAN MARKET 5,00
Slide 15: Fast changing market trends
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Fast changing market trends 15 Shift towards healthy type of products Consumer loyalty towards quality brands Upward trend in home consumption Growing global markets in Greek style yogurts and authentic taste Ice cream market global trends are
Slide 16: Fast changing market trends
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Fast changing market trends 16 Focus Initiatives Actions High protein - Super spoon Capture market trends Product innovation Ageing population - Forever young Healthy kids diet - Kids’ and infants yogurts Develop products based on local needs I
Slide 17: Investment plan: Facilities & capital expenditure
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Investment plan Facilities & capital expenditure 17 Three year investment plan: €27m Capex progress Key Points Modern production facilities in buildings E=30,000m2 €4m Capacity of further development in land €5.7m E=80,000m2 Government investme
Slide 18: Setting the framework for sustainable growth
INVESTOR PRESENTATION | SEPTEMBER 2020 Strategic Review Setting the framework for sustainable growth 18 Continuous pursuit for operational excellence / IT projects Effective management team High employee engagement / stock option program Corporate governance Social responsibility
Slide 19: COVID-19 mitigation actions: Building business resilience
INVESTOR PRESENTATION | SEPTEMBER 2020 COVID-19 MITIGATION ACTIONS Reassessing recourses Building business resilience 19 Strengthen sales Product innovation continues Marketing campaigns increase Brand availability and preference Brand investment and support Focus on supply chain efficiency Resource
Slide 20: H1 2020 Highlights
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Highlights 20 Interim results for 6 months ended June 2020 REVENUE EBITDA EBIT PBT €65.9m €13.8m €12.0m €11.9 €10.5m €57.4m €11.7m €12.2m €10.1m €10.3m €10.6m €50.9m 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Rev
Slide 21: H1 2020 Operational highlights
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Operational highlights 21 Interim results for 6 months ended June 2020 YOGURT 77 POINTS OF SALE MAINTAINED HIGH SEGMENT SALES NEW PRODUCTS INCREASED EBIT MARGIN + 22.6% LAUNCHED BY 850 AT 18.3% Operational Highlights: Financial H
Slide 22: H1 2020 Sales bridge
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Sales bridge 22 Interim results for 6 months ended June 2020 €m 5.7 -0.6 -0.5 3.6 65.3 57.2 SALES 6M19 YOGURT GREECE YOGURT EXPORT ICE CREAM GREECE ICE CREAM EXPORT SALES 6M20 Increase Decrease Total
Slide 23: H1 2020 Income statement
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Income statement 23 Interim results for 6 months ended June 2020 IFRS - €m H1 2020 H1 2019 % Change Sales 65.9 57.4 14.8% Gross Profit 22.8 22.4 1.6% Gross Profit Margin 34.5% 39.0% EBITDA 13.8 12.2 12.9% EBITDA Margin 20.9% 21.3
Slide 24: EBIT Bridge
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results EBIT Bridge 24 Interim results for 6 months ended June 2020 €m SALES MIX 0.9 EXTRA TRADE MRKT 0.5 RAW MATERIALS 0.3 PRICES 1.5 0.8 COST CONTROL -1.5 0.4 12.1 10.6 EBIT 6M2019 GROSS PROFIT LESS LESS OPEX EBIT 6M2020 ADVERTISING
Slide 25: H1 2020 Financial results per segment
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Financial results per segment 25 Interim results for 6 months ended June 2020 IFRS - €m Sales % Change Gross Profit % Change Gross Margin EBIT % Change EBIT Margin Yogurt 50.2 22.6% 15.3 7.8% 30.5% 8.4 19.2% 16.8% Greece 25.4 16.
Slide 26: H1 2020 Cash flow: Key financial figures
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Cash flow Key financial figures 26 Interim results for 6 months ended June 2020 H1 2020 €m H1 2019 €m Profit before tax for the period 11.9 10.5 Adjusted by: Depreciation 1.9 1.8 Other interest expense 0.2 0.2 Other non-cash expe
Slide 27: H1 2020 Balance sheet: Key financial figures
INVESTOR PRESENTATION | SEPTEMBER 2020 First Half 2020 Results H1 2020 Balance sheet Key financial figures 27 Interim results for 6 months ended June 2020 H1 2020 €m 31/12/2019 €m Non-current assets 62.4 58.5 Current assets 57.2 48.8 Total assets 119.6 107.3 Non-current liabilities 15.2 20.7 Current
Slide 28: Mid-term objectives: Progress against strategy YTD
INVESTOR PRESENTATION | SEPTEMBER 2020 Outlook Mid-term objectives Progress against strategy YTD 28 Our revenue increased by 14.8% driven both by sales in Greece and Sales Growth: double digit Exports. We expect our growth to continue as we are delivering on our strategy on product development, mark
Slide 29: Key takeaways
INVESTOR PRESENTATION | SEPTEMBER 2020 Outlook Key takeaways 29 Strong set of results both in sales and profitability Despite the macroeconomic challenges we managed to increased our profitability Continued to invest in new products according to market trends Our capex plan continued as planned, inv
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