Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Q3 2023 Earnings Presentation
30 slides from Anora Group Oyj's earnings presentation, Nov 9, 2023
Slide 1: Q3 23 Results presentation
Q3 23 Results presentation CEO Jacek Pastuszka CFO Sigmund Toth 9 November 2023
Slide 2: Today's agenda and speakers
Today’s agenda and speakers • Business review • Financial review • Q&A • Closing remarks CEO Jacek Pastuszka CFO Sigmund Toth Q3 23 Results presentation | 9 November 2023 | 2
Slide 3: Jacek Pastuszka appointed as Anora's new CEO
Jacek Pastuszka appointed as Anora’s new CEO • Jacek Pastuszka was appointed as Anora’s new CEO on 25 October 2023. • Track record of driving profitable growth and contributing to strategic turn-around initiatives in blue chip multi- national food and beverage companies throughout his career at Carl
Slide 4: In Q3, price increases and cost cuts partly offset the decline in comparable EBITDA
Business Review In Q3, price increases and cost cuts partly offset the decline in comparable EBITDA Net sales, Other operating Comparable EBITDA, EBITDA, EUR million income, EUR million EUR million EUR million 173.0 14.3 20.2 28.9 (181.9) (3.5) (23.4) (21.8) Price increases and cost cuts Guidance fo
Slide 5: Wine
Business Review Wine New own and partner wines and tender wins Q3 Highlights NET SALES (TOTAL), MEUR -8.3% • Net sales decreased to EUR 78.1 million, due to weak currency exchange 85.1 78.1 rates for the SEK and NOK and previously lost partners in Sweden. • Anora own wines performed well in the loca
Slide 6: Spirits
Business Review Spirits Successful product launches Sweden – Kron Vodka Rhubarb Finland – Leijona Capri Lemonello, Leijona Namu and Q3 Highlights NET SALES (TOTAL), MEUR Koskenkorva Winterapple as well as new no and low - 0% alcohol products in groceries • Net sales remained at the previous 57.2 57.
Slide 7: Industrial
Business Review Industrial Q3 Highlights NET SALES (TOTAL), MEUR -9.5% • External net sales decreased by 9.2%. 78.5 71.0 • In industrial products, net sales were negatively impacted by the decreased Internal 36.9 33.2 starch sales volumes and lower demand from pulp and paper industry. Feed volumes w
Slide 8: Financial review
Financial review Q3 23 Results presentation | 9 November 2023 | 8
Slide 9: Market development
Business Review Market development Sales in monopolies continued to decline slightly when returning to pre-pandemic levels • Overall sales volume in the Nordics declined by 2.7% in Q3, with DEVELOPMENT OF WINE AND SPIRITS SALES VOLUMES IN THE NORDICS spirits decreasing by 3.6% and wine by 2.6% compa
Slide 10: Net sales development
Q3 Financial Review Net sales development YTD net sales increased by 7.1% Group net sales, EUR million 2022: 702.7 1-9/2023: 515.3 (481.1) • Q3/23 net sales: 173.0 (181.9) MEUR, down by 4.9% 221.6 165.7 181.9 182.7 173.0 159.5 133.4 • 1-9/23 net sales: 515.3 (481.1) MEUR, up by 7.1% Q1 Q2 Q3 Q4 Q1 Q
Slide 11: In Q3 2023, net sales decreased by 4.9%
Q3 Financial Review In Q3 2023, net sales decreased by 4.9% Price increases were initiated as of September Net sales (external), EUR million Net sales (external), EUR million and change per segment • Net sales declined mainly due to weaker currencies and lost partners in Wine, partly -5% offset by p
Slide 12: Comparable EBITDA declined, partly offset by price increases and cost cuts
Q3 Financial Review Comparable EBITDA declined, partly offset by price increases and cost cuts Q3/2023 Comparable EBITDA, EUR million and % of net sales • Comparable EBITDA declined to EUR 20.2 (23.4) 2022: 76.1 (10.8%) 1-9/2023: 41.1 (8.0%) million, or 11.7% (12.8%) of net sales, down by 13.5% 23.4
Slide 13: Group comparable EBITDA weakened during Q3 due to weaker currencies and poor performance in the Wine segment
Q3 Financial Review Group comparable EBITDA weakened during Q3 due to weaker currencies and poor performance in the Wine segment Spirits and Industrial increased their comparable EBITDA due to price increases, margin management and lower barley price Comparable EBITDA, EUR million and % of net sales
Slide 14: Barley sourcing
Financial review Barley sourcing In Q3 23 Anora used 43.5 (45.2) million kilos of grain Barley price development (EUR/tn)* 400 350 300 250 200 215 150 e/tn* 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ANORA’S MONTHLY SOURCING VOLUMES (TN) Key princip
Slide 15: Net working capital
Q3 Financial Review Net working capital Net working capital was at a level of 0 % of net sales at the end of September (LTM) • The Group’s net working capital improved to Net working capital, 2 EUR million and % of net sales, (LTM) EUR 2.0 (84.0) million at the end of September. • Inventories decrea
Slide 16: Cash flow
Q3 Financial Review Cash flow Operating cash flow improved in 1-9/2023 Net cash flow from operations, EUR million 2022: -0.4 1-9/2023: 35.2 (-36.4) • Net cash flow from operations improved to EUR 35.2(-36.4) million in 1-9/2023 45.3 36.1 • Overall cash flow developed positively due to the Larsen div
Slide 17: Leverage
Q3 Financial Review Leverage Net debt impacted by Larsen divestment, M&A and dividend payment Net debt incl. lease liabilities, MEUR and • Interest-bearing net debt incl. lease liabilities Net Debt / Comparable EBITDA (LTM) decreased to EUR 219.5 (315.7) million, excl. lease -30% liabilities: EUR 91
Slide 18: Our long-term financial targets for 2030
Financials | Targets Our long-term financial targets for 2030 Actual Actual Long-term financial targets for 2030 9/2023 (LTM) 2022 Annual net sales growth 3–5% 4.9% 5.7% including M&A, majority being organic Comparable EBITDA margin 16% 8.4% 10.8% Through focus on margin accretive business and scale
Slide 19: Summary of Q3 2023
Summary of Q3 2023 Sales decline mainly Net debt and cash due to lost partners in Price increases and flow developed Wine and weaker cost cuts partly offset positively due to the currencies, partly offset the decline in Larsen divestment and by price increases in comparable EBITDA continued sales of
Slide 20: Anora plans to develop its operating model to better meet its strategic goals and improve profitability
Press release on 9 November 2023 at 8.35 a.m. EET Anora plans to develop its operating model to better meet its strategic goals and improve profitability The goal of the planned changes is to strengthen the commercial focus on growth categories, reduce complexity, and find further synergies in line
Slide 21: Outlook 2023
Financial review Outlook 2023 In 2023, Anora’s comparable EBITDA is expected to be EUR 70–78 million. (Guidance updated on 15 August) • In 2023, the volumes in the monopolies are expected to be significantly lower than during the COVID-19 restrictions. • Input costs are expected to remain at a high
Slide 22: Q&A
Q&A Q3 23 Results presentation | 9 November 2023 | 22
Slide 23: Thank you
Our next scheduled event 14 February 2024 | Q4/FY Financial Statement Release Feb THANK YOU!
Slide 24: Appendix
Appendix Q3 23 Results presentation | 9 November 2023 | 24
Slide 25: Q3 income statement
Financial Review Q3 income statement EUR million Q3 23 Q3 22 Q1-Q3 23 Q1-Q3 22 2022 Net sales 173.0 181.9 515.3 481.1 702.7 Other operating income 14.3 3.5 18.4 8.6 10.9 Materials and services -104.3 -108.7 -315.0 -279.5 -414.3 Employee benefit expenses -24.0 -22.9 -76.0 -69.3 -93.8 Other operating
Slide 26: Q3 balance sheet
Financial Review Q3 balance sheet EUR million 30 Jun 30 Jun 31 Dec EUR million 30 Jun 30 Jun 31 Dec 2023 2022 2022 2023 2022 2022 EQUITY AND LIABILITIES ASSETS Equity attributable to owners of the parent Non-current assets Share capital 61.5 61.5 61.5 Invested unrestricted equity fund 336.8 336.8 33
Slide 27: Anora's top shareholders September 2023
Ownership structure Anora's top 10 shareholders 30 September 2023 Shareholder Shares % of shares ILLUSTRATION OF ANORA’S OWNERSHIP Solidium Oy 13,097,481 19.4 Varma Mutual Pension Insurance Company 2,031,240 3.0 Ilmarinen Mutual Pension Insurance Company 1,290,000 1.9 Rest of the world WestStar Oy 1
Slide 28: Anora's Executive Management Team
Governance Anora’s Executive Management Team Jacek Pastuszka Janne Halttunen Hannu Tuominen Kirsi Lehtola CEO SVP, Wine SVP, Industrial CHRO Sigmund Toth Kirsi Puntila Mikkel Pilemand CFO SVP, International CGO Joined Anora in October International career Previously served as Strong HR expertise 202
Slide 29: Anora's Board of Directors
Governance Anora’s Board of Directors Michael Holm Johansen Jyrki Mäki-Kala Kirsten Ægidius Christer Kjos Florence Rollet Chairperson Vice Chairperson Member Member Member Shareholdings: 80,000 Shareholdings: 3,517 Shareholdings: 2,440 Shareholdings: - Shareholdings: - Chair of the Human Resources C
Slide 30: More information
More information: www.anora.com investor.relations@anora.com Follow us: