Gr. Sarantis S.a. · ATHEX:SAR
Gr. Sarantis — Sarantis Group — H1 2023 Earnings Presentation
25 slides from Gr. Sarantis's earnings presentation, Sep 12, 2023
Slide 1: Sarantis Group H1 2023 Financial Results
Sarantis Group H1 2023 Financial Results September 12th 2023
Slide 2: Disclaimer
2023 Half Year Results Disclaimer This document contains certain “forward-looking” statements. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances, which could affect materially the expected results, because current ex
Slide 3: With you today
With you today Giannis Bouras Christos Varsos Konstantinos Rozakeas Eleni Moustakidou Deputy CEO Group Chief Financial Officer Group Strategic Advisor IR Manager 3 Sarantis Group 2023 Half year Results
Slide 4: Agenda
Agenda 2023 Half year Results Strategic Priorities & Business Update 01 Giannis Bouras, Deputy CEO Financial Review 02 Updated FY 2023 outlook 03 Q&A 04
Slide 5: Our Story
Our Story We are a long-standing reputable company built on excellence, ownership, humbleness and trust, committed to bringing sustainable growth and achieving a positive impact on people’s everyday lives. We consist of a team of passionate and dedicated people we are proud of, who are committed to
Slide 6: We care for the future the same way we care about the present
We care for the future the same way we care about the present OUR COMPETITIVE ADVANTAGE OUR SCOPE ▪ We design for the CEE region with deep local ▪ CEE and selected international markets consumer understanding on beauty ▪ We are the revitalisers of local “jewel” brands ▪ Home Care solutions ▪ We inve
Slide 7: Pillars of our strategy
Pillars of our strategy Strong Growth Consistent base business growth with acquisitions coming on top Our Mission “We uplift the mood of Simplification and Efficiency consumers with beautiful simplicity that makes Unlock value and release energy everyday life better, being in the organisation always
Slide 8: Growth drivers
Growth drivers Sarantis Group Growth Drivers Beauty & Personal Home Care Strategic Skin Care Care Solutions Partnerships Acquisitions in key priority categories maximizing incremental value 8 Sarantis Group 2023 Half year Results
Slide 9: Strong growth
Strong growth Disproportionate growth ▪ High Gross Margin category improving portfolio mix Beauty & ▪ Selective geographic expansion of winning innovations Skin Care ▪ Superior consumer proposition: product and communication ▪ Increased consumer investment to build trial Core Profit Generator Person
Slide 10: Well-placed for future growth
Well-placed for future growth CONTRIBUTION VOLUME (units) NET SALES TO TOTAL SALES Beauty & +19.25% Skin Care +22.98% € 32.36m 13.93% Personal ▪ Strong growth ahead of market in high +20.13% Care +1.94% € 43.38m 18.67% margin Beauty & Skin Care category ▪ Personal Care – Strong momentum Home Care +6
Slide 11: Innovation led growth
Innovation led growth Launch of the first to market Meaningful innovation to recruit new sustainable clean refillable users, both young and older beauty brand in pharma channel Significant investment in brand in Greece communication Selective geographical expansion (e.g. successful entry in Philippi
Slide 12: Our geographies
Our geographies 8 geographical clusters Greece & International markets Each cluster with a unique role Tailor made solutions to play in our growth agenda but with regional scale Poland Romania Ukraine Czech & Slovakia West Balkans Speed to market – quick Cross fertilization of decision making, agili
Slide 13: Operational Review in our geographies
Operational Review in our geographies CONTRIBUTION NET SALES TO TOTAL SALES € 74.98m* Greece - 2.85% 32.27% € 55.52m Poland 23.89% + 5.73% € 37.20m Romania 16.01% + 16.67% Czech & € 19.55m Slovakia + 33.83% 8.41% € 17.66m West Balkans + 24.69% 7.60% € 12.00m Ukraine + 23.51% 5.16% € 9.05m Bulgaria 3
Slide 14: Simplification and efficiency
Simplification and efficiency Already in progress Release value and energy in the organisation ▪ Portfolio Optimisation (-40% of SKUs) ▪ Stock management – cash release ▪ New Polipak plan in full operation ▪ Innovation - Fewer and bigger initiatives ▪ More value through Revenue Growth Management and
Slide 15: Organizational Capability
Organizational Capability Embrace “Spiky” Capabilities of our People ▪ Enhance the Awareness of our Values ,Vision and Mission ▪ “Take the Pulse” of our People consistently via Continuous ETHOS Engagement Surveys Learning Limitless Horizon The way we ▪ Organizational Design which promotes agility do
Slide 16: Financial Review
Agenda 2023 Half year Results Strategic Priorities & Business Update 01 02 Financial Review Christos Varsos, Group Chief Financial Officer Updated FY 2023 outlook 03 Q&A 04
Slide 17: Strong Financial Performance
Strong Financial Performance Organic revenue growth EBITDA EBIT EBT € 232.35m € 28.73m € 21.58m € 23.47m + 9.23% + 27.26% + 34.55% + 59.70% Margins Healthy Balance Sheet GP 37.11% +190bps EBITDA 12.36% +175 bps Net Cash €5.17m EBIT 9.29% +175 bps Working Capital 11 days improvement EBT 10.10% +319 b
Slide 18: Margin improvement led by price and mix, offsetting cost pressures
Margin improvement led by price and mix, offsetting cost pressures Consolidated Statement of Comprehensive income Amounts In € m. (unless otherwise stated) H1 2023 H1 2022 Δ% Net Sales 232.35 212.72 9.23% Gross Profit 86.23 74.86 15.18% Gross Profit margin 37.11% 35.19% EBITDA 28.73 22.57 27.26% EBI
Slide 19: Balanced performance across our BUs
Balanced performance across our 8 BUs NET SALES EBIT EBIT% € 74.98m* € 7.04m* 9,39%* Greece - 205bps - 2.85% - 20.23% € 55.52m € 3.21m 5.79% Poland + 5.73% + 104.96% + 280bps € 37.20m € 5.53m 14.86% Romania + 336bps + 16.67% + 50.74% Czech & € 19.55m € 2.18m 11.16% Slovakia + 33.83% + 59.18% + 178bp
Slide 20: Solid performance across our categories
Solid performance across our categories NET SALES EBIT EBIT % y-o-y y-o-y y-o-y Beauty & € 32.36m € 4.06m* 12.56%* Skin Care + 19.25% - 15.92% - 525bps Personal € 43.38m € 5.82m 13.42% Care + 20.13% + 80.88% + 451bps Home Care € 78.39m € 9.26m 11.82% Solutions + 6.95% + 66.79% + 424bps € 15.93m € 0.
Slide 21: Healthy balance sheet
Healthy balance sheet ▪ Balance sheet provides firepower & ▪ Acquired 20% minority interest in Polipak flexibility to for €5.0m ▪ invest organically ▪ support the digital transformation of ▪ Repaid in full bank debt of €20.5m – the Group Polipak plan is now in full operation ▪ fuel M&A activity ▪ St
Slide 22: Enhancing shareholders value
Enhancing shareholders value EPS 0.2866 Dividend of €10.0m per share paid in May (+ 66.43%) (38% payout ratio) Share buy Cancellation of back program Treasury Stock* *As of 1st of August 2023 Sarantis 22 Group Sarantis 2023 Group HalfHalf 2023 yearyear Results Results
Slide 23: Agenda
Agenda 2023 Half year Results Strategic Priorities & Business Update 01 Financial Review 02 Updated FY 2023 outlook 03 Christos Varsos, Group Chief Financial Officer Q&A 04
Slide 24: Updated FY 2023 Outlook
Updated FY 2023 Outlook (vs prior guidance) Organic EBIT growth Net sales in line with guidance +7.5% vs guidance €43m for 2023 +33.37% vs 2022 Margins expansion EBIT% 8.9% for 2023 +60bps vs guidance +166bps vs 2022 24 Sarantis Group 2023 Half year Results
Slide 25: Q&A
Q&A For further information on Sarantis Group please visit our website at https://sarantisgroup.com/ or contact our Investor Relations team: Eleni Moustakidou Investor Relations Manager emoustakidou@sarantisgroup.com +30 210 6173065