Alamar Foods Co. · TADAWUL:6014
Alamar Foods — Q1 2024 Earnings Presentation
22 slides from Alamar Foods's earnings presentation, May 23, 2024
Slide 1: Earnings Presentation 1Q 2024
Earnings Presentation 1Q 2024
Slide 2: Agenda for today's Earnings Call
Agenda for today’s Earnings Call • Strategic Highlights • Near-Term Challenges, Impact and Response • Financial Performance • Outlook and Guidance Alamar Foods - Earnings Presentation 23 May 2024 2
Slide 3: Strategic Highlights
Earnings Presentation – 23 May 2024 Strategic Highlights
Slide 4: QSR leader in GCC with capex-light expansion model
QSR Leader in GCC with capex-light expansion model, solid FCF generation and strong digital capabilities Restaurant Chain Expansion by Brand Capex as a Share of Revenue (%) Superior OCF Conversion1 (%) 657 691 6.4% 309.3% 2.9% 115.3% 601 628 56 63 FY 22 1Q 24 FY 22 1Q 24 FY 22 1Q 24 Dunkin' restaura
Slide 5: Strategy focused on scalable growth, margins and returns, and technology
Alamar’s strategy continues to focus on scalable growth, margins and returns, and technology and innovation Implement an array of business initiatives such as menu development, customer loyalty programs, and optimized channel mix, LfL sales growth supported by favorable demographic and consumer tren
Slide 6: Omni-channel business model addresses latest consumer trends
Alamar’s omni-channel business model addresses latest consumer trends Omni-Channel ordering and multiple service methods address current consumer trends Revenue split by service method (%) Omni-Channel order method: Service method /customer exp. 46% 38% 35% In-Store In-Store 14% 24% 28% Call Centre
Slide 7: Near-Term Challenges, Impact and Response
Earnings Presentation – 23 May 2024 Near-Term Challenges, Impact and Response
Slide 8: Robust action plan tailored for current challenges
Alamar advances its medium-term ambitions with a robust action plan tailored for current challenges Geopolitical Prioritize key markets (KSA and UAE) due to their significant impact at Group level, while preparing for expansion across other markets and /or Situation with other brands, balancing the
Slide 9: Financial Performance
Earnings Presentation – 23 May 2024 Financial Performance
Slide 10: 1Q24 financial performance highlights
1Q24 financial performance highlights 207mn 10mn 31mn SAR SAR SAR Revenues Adj. EBITDA OCF -17% YOY -69% YOY +34% YoY 691 4.9% 2.9% Group Store Count Adj. EBITDA Margin Capex / Revenue +4% YOY -8 ppts YOY -3 ppts YoY Alamar Foods - Earnings Presentation 23 May 2024 10
Slide 11: Corporate stores represent 76% of system-wide footprint
Corporate stores represent 76% of the total system-wide footprint in 1Q24 Group Store Count by Region 1Q 2024 Group Store Count by Brand +13 +2 +9 +4 Brand 1Q 23 1Q 24 YoY Change 268 281 163 167 118 120 114 123 Domino’s 605 628 23 Dunkin’ 58 63 5 Corporate KSA Corporate GCC & Corporate NA Non-corpor
Slide 12: 1Q24 revenue impacted by geopolitical situation and Ramadan seasonality
1Q24 revenue was impacted by geopolitical situation and Ramadan seasonality Revenues (SAR mn) 1Q 2024 Revenue geographical mix 1Q 2024 10.3% -17% 249.7 206.9 KSA 21.1% Other GCC & Levant North Africa 68.6% 1Q 23 1Q 24 Revenues (SAR mn) 1Q 2024 1Q 2024 revenue was affected by: Continued geopolitical
Slide 13: Impact of negative sales contained by remedial cost measures
The impact of negative sales was contained by the company’s remedial cost measures Gross Profit (SAR mn) 1Q 2024 Selling and Distribution Expenses (SAR mn) 1Q 2024 S&D expenses declined 2.4% YoY and amounted to 14.2% of revenue when adjusted for a one-off advertising expense in KSA 28.0% 24.5% -28%
Slide 14: Net profit affected by operating leverage and non-recurring costs
Net profit performance was affected by operating leverage effect and non-recurring costs Net Profit (SAR mn) 1Q 2024 EBITDA reconciliation 5.5% -8.6% (SAR mn) 1Q 24 13.9 Net Income (17.7) Finance cost, net 2.2 Zakat and income tax 1.8 Depreciation & amortization 29.7 (17.7) Rent (18.6) 1Q 23 1Q 24 N
Slide 15: Stable balance sheet and healthy financial position
Alamar maintains a stable balance sheet and a healthy financial position Alamar is debt-free, except for a loan balance in Morocco Group Balance Sheet as of 1Q24 (SAR mn) 4Q 2023 amounting to SAR 8.6mn, representing 1.3% of assets. Allocation of 10% of net income was discontinued starting in 2023, a
Slide 16: Net cash generation from operating activities of SAR 31mn
Net cash generation from operating activities was SAR 31mn, with an adj. EBITDA conversion ratio of 310% Investing cash flow is mainly comprised of capex Cash & Cash Equivalents Movement YoY (SAR mn) 1Q 2024 related to property and equipment that accounted for 2.9% of sales. Financing cash flow incl
Slide 17: Monthly sales in 2023-24: KSA and UAE exceed January 2024 level
Monthly sales in 2023-24: KSA (+9.5% ) and UAE (+19%) exceed January 2024 level Average daily sales (January 2023 = 100%) Ramadan Ramadan 2023 2024 108.0 106.6 104.8 100.0 99.3 98.0 98.5 89.9 89.3 91.0 89.6 86.2 86.1 83.5 82.2 81.1 70.2 Group average daily sales in May 24 outperformed January 24 sal
Slide 18: Outlook and Guidance
Earnings Presentation – 23 May 2024 Outlook and Guidance
Slide 19: Maintaining medium-term guidance through market fluctuations
We are maintaining Alamar's medium-term guidance through recent market fluctuations FY 2023 Forecast Forecast 2025 to 2027 Actual 2Q to 4Q 2024 FY 2024 Medium-term guidance Sales per store1 -12.6% 1% -4% 3-5% CAGR Growth % Corporate store count1 +5.5% 4% 4% 11-13% CAGR Growth % EBITDA margin2 12.5%
Slide 20: Appendix
Earnings Presentation – 23 May 2024 Appendix
Slide 21: Alamar at a Glance
Alamar at a Glance Store Count by Country and Market Entry Year 1Q 2024 MFA with Domino’s and Exclusivity with Dunkin’ Domino’s Dunkin’ Master Franchisee: 16 MFA with Domino’s assumes non-compete agreement only in pizza segment of Master Franchisee: 2 QSR market, which provides Alamar with flexibili
Slide 22: Questions & Answers
Questions & Answers SA