Savola Group · TADAWUL:2050
Savola — YTD Q2 2021 Earnings Presentation
31 slides from Savola's earnings presentation, 2021
Slide 1: Earnings Presentation | YTD Q2 2021
Savola Group www.savola.com Earnings Presentation | YTD Q2 2021
Slide 2: Disclaimer
DISCLAIMER This presentation might contain forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 3
Slide 4: Group - Highlights
GROUP - HIGHLIGHTS • Savola Group’s performance continued to show resilience on a consolidated basis, barring the exceptional nature and high-base of the comparative period. • In the foods segment, the strong performance continues largely driven by higher Business Highlights volumes and pricing acro
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +7% +1% +4% Revenue 5,214 5,923 5,954 5,813 6,007 5,901 11,027 11,930 11,855 +7% -2% +2% Gross Profit 1,065 1,223 1,212 1,163 1,279 1,118 2,229 2,502 2,329 20.4% 20.6% 20.4% 20.0
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +13% +1% +6% EBITDA 693 641 873 1,565 1,319 505 664 677 1,169 20.4% 9.7% 20.6% 11.7% 10.8% 11.4% 14.5% 11.5% 10.6% 13.1% 11.1% Excluding +35% +74% one-offs* Excluding 173 one-off
Slide 7: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography YTD-20 YTD-21 YTD-20 YTD-21 4% 5% 3% 3% 4% 10% 5% 11% 39% 10% 46% 15% 46% 54% 69% 76% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +18% -15% +35% -17% -9% +43%
Slide 8: Group – YTD Q2 Net Income Bridge
GROUP – YTD Q2 Net Income Bridge SAR in millions Net Income Bridge by Business -39% 582 20 354 63 6 (237) (60) (21) YTD 2020 Retail Share of Almarai Frozen Food Food Services Food Processing Others YTD 2021 Note: numbers are rounded 8
Slide 9: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 9
Slide 10: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 10
Slide 11: Retail - Highlights
RETAIL - HIGHLIGHTS • The retail segment’s performance experienced relative weakness, mainly attributed to Key Highlights the high base of last year, a weaker consumer base and lower purchasing power. Store Count • Store count maintained at 205 stores, including 4 stores in Egypt. • The segment reco
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +4% -3% 0.2% COVID-19 COVID-19 impact impact Revenue 3,099 2,720 3,042 3,463 5,539 6,562 5,563 2,497 2,843 0.4% +2% +4% Gross Profit 705 814 629 1,519 1,235 557 606 624 1,181 20.4% 22.3% 20.
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +14% +30% +57% Excluding one-offs* Excluding one-offs* Excluding EBITDA one-offs* 378 177 618 340 240 135 163 201 66 20.4% 2.6% 20.6% 7.8% 6.0% 4.4% 10.9% 6.2% 3.6% 9.4% 6.1% 11 158 147 (52)
Slide 14: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper Store converted to fulfillment center 1 145 145 145 60 60 60 (1) Dec Additions Closures Dec Additions Closures Jun Dec Additions Closures Dec Additions Closures Jun 2019 2020 2021 2019 2020 2021 Total Dec-19 Dec-20 Jun-21 Selling Area Selling Area Driven by resi
Slide 15: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 15
Slide 16: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment continued to fair well in the face of higher Key Highlights commodity prices, softer consumer environment, and overseas challenges. • Volumes increased by about 5% compared to last year, mainly driven by an increase of 9.5% in edible oils tha
Slide 17: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +10% +6% +8% 2,476 2,906 2,646 5,551 Revenue 2,408 2,350 2,230 4,758 4,705 -4% +4% +13% Gross Profit 466 382 359 351 749 734 817 367 375 20.4% 15.2% 20.6% 15.2% 16.0% 16.2% 16.1% 13.3% 15.7%
Slide 18: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +5% +9% +12% EBITDA 261 215 228 239 422 448 500 207 221 20.4% 8.6% 20.6% 8.9% 9.0% 9.2% 10.2% 9.0% 8.9% 9.5% 9.0% +12% +2% Excluding one-offs** Excluding Excluding one-offs** Excluding one-of
Slide 19: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-21 YTD-19 YTD-20 YTD-21 +8% 903 CAGR (’19-’21) CAGR (’19-’21) 6% 3,765 Morocco +27% Morocco +9% 825 +11% 6% 8% Sudan +63% Sudan +44% 777 6% 6% 5% 6% 8% Algeria -25% Algeria -22% 3,056 3% 7% 3,030 5% Turkey -14%
Slide 20: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-21 YTD-19 YTD-20 YTD-21 0% CAGR (’19-’21) -1% CAGR (’19-’21) Egypt +36% 696 690 YoY Growth 700 1,356 1,326 Egypt +31% (YTD ’21 vs. ’20) YoY Growth KSA -7% Egypt 1,250 (YTD ’21 vs. ’20) KSA -8% 14% 13% 16% Egyp
Slide 21: Recap of Savola Foods Strategy
Recap of Savola Foods Strategy • Health, convenience, and youth driven trends are the fastest-growing and future focus segments in our markets • Savola Foods has activated its strategy to enter large and established categories with attractive prospects via M&A 1) Anchor: 1) Anchor 2) Disrupt 3) Conq
Slide 22: Consumption Drivers and Addressable Market
Consumption Drivers and Addressable Market Consumer trends in the food categories Key consumption drivers Consumers are health conscious and 70% proactively try to eat ▪ Attractive market due to population dynamics and other factors healthy Food ▪ Increased demand for packaged and differentiated pro
Slide 23: Recent investment and M&A highlights
Recent investment and M&A highlights Company Brief Rational Conquer Entering large, established • Savola Foods signed an SPA to acquire 100% of Bayara Holding for $260 million; Fragmented & growing categories categories in the region the transaction was announced on Tadawul in July 2021 The acquisit
Slide 24: Al Kabeer Group of Companies
Al Kabeer Group of Companies 24
Slide 25: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food segment witnessed a decline in 2021 as a result of high base of last year due to pantry loading, and challenges in the supply chain due to change in Key Highlights regulations and approval processes in Saudi Arabia. • Frozen products were in high demand dur
Slide 26: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +17% -7% +4% Impact of IFRS15 Revenue 192 175 182 211 403 334 129 159 311 +13% -9% 0% Gross Profit 66 61 70 96 118 162 118 48 57 37.3% 34.5% 34.8% 38.3% 45.3% 36.0% 37.9% 40.1
Slide 27: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-21 Q2-19 Q2-20 Q2-21 YTD-19 YTD-20 YTD-21 +1% +6% +11% EBITDA 26 29 52 27 78 56 23 27 50 20.4% 18.2% 20.6% 13.6% 16.4% 14.7% 24.8% 17.3% 16.1% 19.5% 16.8% +11% -2% +4% Net Income 20 22 42 63 41 18 20 20 38 14.0% 10.5%
Slide 28: Financial Summary
JgbLa SAVOLA Financial Summary 28
Slide 29: Financials – YTD June 2021
FINANCIALS – YTD June 2021 (all figures are in SAR millions) Segment Wise Financials YTD June 2021 YTD June 2020 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 2,994 529 241 118 289 2,387 453 231 142 276 Oil-Other Markets** 772 65 25
Slide 30: Investor Relations Application
INVESTOR RELATIONS APPLICATION Views Savola Group share price, charts and performance on the go Savola Group Annual & Quarterly figures Savola Group News releases from Tadawul Annual/Quarterly Reports accessible offline http://www.myirapp.com/savola 30
Slide 31: Thank you
JQGoLA SAVOLA Thank you vola.com 1