M. Dias Branco Sa Industria E Comercio De Alimentos · BMFBOVESPA:MDIA3
M. Dias Branco Sa Industria E Comercio De Alimentos — M. Dias Branco — Q3 2018 Earnings Presentation
25 slides from M. Dias Branco Sa Industria E Comercio De Alimentos's earnings presentation, November 2018
Slide 1: Results Presentation 3Q18 and 9M18
Results Presentation 3Q18 and 9M18 Food for the well-being of Society and the people’s happiness 1
Slide 2: Forward-looking statements disclaimer
The statements contained in this document related to the management's views on the business of M. Dias Branco are merely trends and, as such, are based exclusively on management's perspective on the continuity of past and present actions, based on facts that have already occurred. These trends do no
Slide 3: Piraquê acquisition and basis of presentation
On May 16, 2018, the Company concluded the acquisition of 100% of Indústria de Alimentos Piraquê S.A. (“Piraquê”). Piraquê’s results for the period between May 17 and September 30, 2018, can be found in the consolidated information of this document. This presentation includes some information exclud
Slide 4: Net Revenue +18.7% vs. 3Q17
Net Revenue of +18.7% compared to 3Q17, with increase in the average price in all product lines and high volumes in cookies and crackers and pasta Net Revenue + 18.7% vs. 3Q17 = Average Price + 20.1% vs. 3Q17 Volume -1.2% vs. 3Q17 4
Slide 5: Net Revenue (Without Piraquê) +7.5% vs. 3Q17
Without Piraquê, Net Revenue of +7.5% compared to 3Q18, also with increase in the average price in all product lines and growth volumes in cookies and crackers and pasta Net Revenue (Without Piraquê) Average Price Volume + 7.5% vs. 3Q17 = +13.7% vs. 3Q17 -5.3% vs. 3Q17 5
Slide 6: Average Price also increased in 3Q18 vs 2Q18
The Average Price also increased in 3Q18 compared to 2Q18 With Piraquê Without Piraquê 6
Slide 7: Regions outside Northeast becoming more relevant in total sales
Regions outside Northeast becoming more relevant in total sales Sales By Region (% of Gross Revenue Sales By Region (% of Gross Revenue excluding discounts and returns) excluding discounts and returns) 7
Slide 8: National leadership in pasta, cookies and crackers
National leadership in pasta, cookies and crackers with Market Share expansion Cookies and Crackers – 3Q18* Share Volume 34.6% ∆** Share Volume: +2.3 p.p. Share Value 30.0% ∆** Share Value: +5.6 p.p. Pasta 3Q18* Share Volume 38.2% ∆** Share Volume: +6.0 p.p. Share Value 33.7% ∆** Share Value: +5.1 p
Slide 9: Marketing campaigns to promote sell out
Marketing campaigns to promote sell out South and Southeast North and Northeast 9
Slide 10: Vertical integration index of shortening was 99.7%
In the 3Q18, Vertical integration index of shortening was 99.7% Wheat Flour | Company Consumption (%) Shortening | Company Consumption (%) 10
Slide 11: COGS impacted by wheat price and BRL devaluation
COGS (% Of Net Revenue) impacted by increase in the price of wheat and BRL devaluation 62.2% 63.6% 66.7% 11
Slide 12: Reduction of marketing, sales and logistics expenses
Reduction of marketing, sales and logistics expenses and non-recurring expenses impact ¹Note: Non-recurring expenses with integration of Piraquê (R$ 2.3 million), Independent Committee (R$ 4.5 million) and expenses incurred by Piraquê with consultancy and restructuring (R$ 3.4 million). ²Note: Other
Slide 13: Stability of operating expenses compared to 2Q18
Stability of operating expenses compared to 2Q18, even with the relevant impact of non-recurring expenses ¹Note: Non-recurring expenses with integration of Piraquê (R$ 2.3 million), Independent Committee (R$ 4.5 million) and expenses incurred by Piraquê with consultancy and restructuring (R$ 3.4 mil
Slide 14: EBITDA decrease due to non-recurring expenses
In 3Q18 vs 3Q17, decrease of EBITDA (R$ Million) due to non-recurring expenses -2.6% -3.8% 3Q18 vs. 3Q17 9M18 vs. 9M17 ¹Note: Non-recurring expenses of M Dias Branco with integration of Piraquê (R$ 2.3 million) and Independent Committee (R$ 4.5 million). ²Note: Expenses incurred by Piraquê with cons
Slide 15: EBITDA Margin 3Q18 vs 3Q17
EBITDA Margin (%Net Revenue) in 3Q18 vs 3Q17 impacted by lower gross margin and non-recurring expenses ¹Note:% Gross margin without considering the representativeness of COGS depreciation over net revenue. 2Note: Non-recurring expenses with integration of Piraquê (R$ 2.3 million), Independent Commit
Slide 16: EBITDA margin decrease vs. 2Q18
... Decrease of EBITDA margin vs. 2Q18, also affected by the gross margin and non-recurring expenses ¹Note:% Gross margin without considering the representativeness of COGS depreciation over net revenue. ²Note: Regarding administrative expenses, administration fees, tax expenses and other operating
Slide 17: Lower Net Profit and Net Margin
Lower Net Profit (R$ Million) and Net Margin (%Net Revenue) -7.6% 3Q18 vs. 3Q17 -9.1% 9M18 vs. 9M17 ¹Note: EBITDA variation without non-recurring expenses. ²Note: Non-recurring events refer to expenses with integration of Piraquê (R$ 2.3 million), Independent Committee (R$ 4.5 million) and expenses
Slide 18: We invested R$ 63.5 million in infrastructure
We invested R$ 63.5 million in infrastructure § Construction in progress of the Wheat Mill in Bento Gonçalves (RS) § Modernization of silos in the Tambaú unit (PB) § Expansion of storage capacity of the distribution center in the Maracanaú unit (CE) Capex (R$ Million and % Net Revenue) – Capex (R$ M
Slide 19: Cash and Cash Equivalent
Cash and Cash Equivalent Note: The variation of the cash and cash equivalents in the graphic above refers to 9M18. 19
Slide 20: Net debt/EBITDA decreased from 0.8 to 0.7
Net debt/EBITDA decreased from 0.8 in the 2Q18 to 0.7 in 3Q18 20
Slide 21: Capital Market
Capital Market Average Daily Volume: MDIA3 x IBOV x IGC MDIA3 (RS Millions) 40 35 30 25 20 15 10 — | 01/02/2017 a 11/13/2018 jan-17 mar-17 may-17 jul-17 sep-17 noy-17 jan-18 mar-18 may-18 jul-18 miVolume (Millions) —MDIA3 —IBOV —IGC Profitability% sep-18 nov-18 60% 50% 40% 30% 20% 10% 0% -10% 21
Slide 22: Germinar pilot project started
We started the Germinar’s pilot project 11 startups selected ü Packages, Ingredients ü New Business ü Trade Marketing and Midia 22
Slide 23: Evolution social-environmental practices
Evolution social-environmental practices § Improvement of the water reuse system (SDG 6 e 11) § The relative water consumption (m³/ton) decreased by 2.2% in 9M18 vs 9M17 (SDG 6) § Increased of 1.2% of energy intensity in 9M18 vs 9M17 (SDG 7) § We realize donation of products to 113 institutions who
Slide 24: Awards and honors
Awards and honors Awarded by “Empresas Mais” in the “Food and Winner of the Transparecy Trophy Drink” category conceded by ANEFAC 24
Slide 25: Investor relations contacts
Geraldo Luciano Mattos Júnior Vice-President of Investments and Controllership Phone: (85) 4005-5874 E-mail: geraldo@mdiasbranco.com.br Fabio Cefaly New Business and Investor Relations Director Phone: (85) 4005-5730 E-mail: fabio.cefaly@mdiasbranco.com.br www.mdiasbranco.com.br/ri ri@mdiasbranco.com