Tat Gida Sanayi A.s. · BIST:TATGD
Tat Gida Sanayi A.s — Tat Gıda Sanayi A.Ş. — Investor Presentation (January 2024)
32 slides from Tat Gida Sanayi A.s's investor presentation, January 2024
Slide 1: TAT Gıda Corporate Presentation
TAT Gıda Corporate Presentation Jan 2024 1
Slide 2: Agenda
1 Tat Gıda Business Overview 2 9M2023 Financial Results Agenda
Slide 3: About Tat Gıda
1 About Tat Gıda 3
Slide 4: About Tat Gıda
About Tat Gıda Plant-Based Market Leader Sustainable Strong Position in Portfolio Agriculture Core Business FOCUS AREA #1 LEADER #5 Reshaped portfolio in Tomato Products, tomato Only company in its sector Based on annual recent years and focus paste, ketchup, pickles and with own digital farming pro
Slide 5: Shareholding Structure
Shareholding Structure Tat’s Shareholders • Koç Holding, the major shareholder of Tat Gıda, has initiated a process to sell its Tat Gıda shares in May 2023. Koç Holding Free-float; disclosed on Jan 8, 20241 that; 41,4% • In the context of the sale of shares of our subsidiary Tat Gıda Sanayi A.Ş. ("T
Slide 6: Change and Reshape for Future
Change and Reshape for Future Between 2019-2023, Tat has reshaped its portfolio and increased its investments in its core area and “Tat” brand. Reshaped Portfolio for Revitalized Business Development Growth core operation Areas • Sale of PASTAVILLA brand (pasta • With a total investments worth €13
Slide 7: Advantageous location for supply
Advantageous location for supply Based on preliminary figures; Turkey, with 2.7 million tons of tomato processing in 20231, ranks 4th after the USA, China, and Italy; and represents 6% of the 44 mn tons of global tomato processing amount. Global Tomato Processing (mn tons)1 Breakdown of Global Tom
Slide 8: Tat's Production Performance
Tat’s Production Performance Tat Gıda achieved a significant milestone by processing 503K tons of tomatoes in FY2021 —an impressive increase from the previous benchmark of 381K tons. This momentum continued into FY2022, with the figure rising to 543K tons; and Tat secured a 23% share in Turkey's t
Slide 9: Sales continue to grow
Sales continue to grow Net sales continue to grow and reached TL2.8 bn (US$168 mn) in FY22, up by 155% in TL terms. In 9M2023, net sales was up by 34% in US$ terms. In the domestic market; Tat ranks #1 in almost all its categories in local market; and focused on increasing and maintaining its ma
Slide 10: Record level Exports
Record level Exports Aiming to become a global brand, Tat continuously invests in marketing in foreign countries. In line with its marketing strategies, exports increased by 52% to US$58 mn in FY2022. Exports in 9M23 increased by 22% in US$ terms and reached US$45 mn. Main export products includ
Slide 11: Strong supply chain and distribution network
Strong supply chain and distribution network Highest daily tomato Products distributed via Koç Raw materials obtained via: processing capacity in Group’s : • Contracted Farmers Turkey and 5th in Europe • Local market • Spot Market purchases • Düzey Pazarlama • Tat Digital farming (c.5%) • Mustafakem
Slide 12: Seasonality in Production
Seasonality in Production Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Vegetable Gherkin Tomato Pepper Quarterly Sales and Production figures (000 tons) 102 97 43 Sales 33 29 32 31 29 Production 23 24 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 # Personnel 533 845 2.162 653 691 1.213
Slide 13: TAT Digital Farming
TAT Digital Farming With a shift to digital agriculture, Tat raised tomato field yield to around 11 tons/decare with its own digital agricultural practices on an area of 2,500 decares; compared to an average yield of 7-8 tons in Turkey, and also similar to benchmark values. Remote sensing Digital
Slide 14: Ongoing Sustainable Performance
Ongoing Sustainable Performance CAGR 15% avg. 30% avg. 16% Strong Net Sales Growth Consistent Gross Margin EBITDA Margin US$ mn US$ mn US$ mn 168 29% 31% 32% 29% 29% 17% 17% 18% +15.1% 16% 15% 123 49 115 96 98 36 36 30 28 30 17 19 18 15 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 202
Slide 15: 9M2023 Financial Results
3 9M2023 Financial Results Net Sales (US$ mn)1 EBITDA (US$ mn) 1, 2 Net Income (US$ mn) 1 +28% +47% 149 30 111 20 15 14 91 14 9 9M2021 9M2022 9M2023 9M2021 9M2022 9M2023 9M2021 9M2022 9M2023 1 Ongoing operations * From ongoing operations 2 EBITDA : Operating Profit (including Other income/Expense fr
Slide 16: Key Messages & Financial Highlights
Key Messages & Financial Highlights Better operating margins but higher financial expenses 9M2023 Highlights ▪ Production volumes in 9M23 was 118K tons vs. 127K tons in 9M22. 422K tons of Net Sales tomatoes processed in this first nine months vs. 498K tons in 9M22. TL 3,302 mn ▪ Net sales for 9M23 i
Slide 17: Agricultural input price index on a declining pattern
Agricultural input price index on a declining pattern ▪ Agricultural input price index (Agriculture-IPI) annual growth rate peaked in September 2022, reaching 138.15%: fertilizer and soil improvers with 227% and energy (diesel) with 237% were the subgroups that had the highest annual increase. ▪ The
Slide 18: Turkish tomato paste market relatively stable in 9M2023
Turkish tomato paste market relatively stable in 9M2023 Based on Nielsen report (total Turkey), Turkish total tomato paste market contracted slightly by 2% yoy in 9M2023; whereas there was a yearly growth of 18% in 9M2022. Despite the slight contraction in the market, Tat was able to increase it
Slide 19: Market Leader: Ranks #1 in almost all its categories in local market
Market Leader: Ranks #1 in almost all its categories in local market Tat’s market share based on Nielsen 9M2023 report – including Hard Discounters and based on share of sales Tat #1 #1 47% Tat Tomato Tomato 20% Products Paste Others Others #1 #1 Tat Tat 17% Mayonnaise 15% Ketchup Others Others Tat
Slide 20: Revenues TL3.3 bn, up by 87% yoy
▪ Net sales was TL3.3 bn in 9M23; up by 87% yoy. Net Sales (TL Mn) ▪ Total sales volume in 9M23 decreased by +87% Revenues 5% yoy, mainly due to lower exports, especially in 1Q23. Sales volume in 3Q23 3.302 TL3.3 bn, up by was up by 9% yoy, owing to strong local +57% 87% yoy sales. ▪ Domestic sales
Slide 21: Growth in Exports was 21% yoy in US$
Quarterly Exports (US$ mn)* ▪ Exports in 9M23 were at US$45 mn, Growth in displaying 21% growth yoy in US$ 21 18 Exports was terms, while growth in 3Q23 was 16% 17 16 13 21% yoy in US$ yoy. 9 11 terms ▪ In 9M23, exports share in total sales was 30% vs. 33% in 9M22, whereas in 3Q23 exports share in t
Slide 22: Focused growth in condiments
Tomato Processed (000 Tons) ▪ Tat processed 422K tons of tomatoes in -15% 9M2023, vs. 498K tons in 9M2022. Focused 498 ▪ Total production volume reached 118K 422 growth in tons in 9M2023, down by 7%, due to lower condiments tomato paste production this season. ▪ With new sauce filling line investmen
Slide 23: New season cost increases much lower vs. a year ago
▪ Elevated harvesting season costs in 2022 COGS (TL Mn) New season led to a pressure on margins in 2H22 and +100% 1H23 results. cost increases 2,443 ▪ COGS in 3Q23 was up by 54% yoy, vs. much lower vs. 100% in 9M23. Gross profit increased by +54% 1,221 a year ago 57% yoy to TL860 mn in 9M23. 848 550
Slide 24: OPEX/Net Sales: 15% in 9M23, vs. 17% in 9M22
▪ Operating expenses in 9M23 increased by OPEX-to-Net Sales (Quarterly) % 69% yoy, mainly due to higher personnel OPEX/Net Sales: expenses. Inflationary trend had a 15% in 9M23, negative impact on all expenses. 19 19 16 17 vs.17% in 9M22 ▪ As the effect of elevated personnel 13 14 12 expenses were p
Slide 25: EBITDA at TL667 mn, up by 107%
▪ EBITDA at TL667 mn in 9M23, displayed a EBITDA (TL Mn) yoy increase of 107%; while EBITDA +107% margin was 20% in 9M23 vs. 18% in EBITDA1 at 9M22. 667 TL667 mn, ▪ Income/Exp from operating activities was 84% higher in 9M23 due to income from 322 up by 107% maturity and fx differences. 217 ▪ Compar
Slide 26: Net Financial debt at TL2.2 bn
▪ Net Financial Debt was TL2.2 bn at TL mn 9M2022 FY2022 9M2023 Net Financial 9M23-end, close to the levels attained at FY2022-end. Cash and cash equivalents ST Financial Debt 85 1,510 288 256 2,322 1,424 debt at ▪ Diversified funding sources, via EBRD LT Financial Debt 0 150 1,056 TL2.2 bn loan and
Slide 27: Net Profit came in at TL195 mn
Net Profit (TL mn) ▪ Net Profit at TL195 mn in Net Profit 9M23, vs. TL228 mn in 9M22 -14% 228 came in at due to higher financial expenses. 195 TL195 mn -57% 49 21 9M2022 9M2023 3Q2022 3Q2023 Net Profit Bridge (TL mn) Net Profit (TL mn) & Net Profit Margin (%) 0.3 8.7 6.6 6.6 7.6 210.0 1.8 -332.6 111
Slide 28: Income Statement - Summary
Income Statement - Summary (TL mn) 9M2022 9M2023 D YoY 3Q2022 3Q2023 D YoY Net Sales 1.768 3.302 87% 749 1.175 57% Cost of Sales (-) 1221 2443 100% 550 848 54% Gross Profit 547 860 57% 198 327 65% Operating Expenses (-) 293 494 69% 100 197 98% Operating Profit 254 366 44% 98 130 32% Net Income(Exp)
Slide 29: Balance Sheet - Summary
Balance Sheet -Summary (TL mn) 9M2022 FY2022 1Q2023 1H203 9M23 Current Assets 3.669 3.915 3.978 3.278 4.819 Cash 85 288 565 91 256 Trade receivables 748 844 1.079 1.319 1.237 Inventories 2.456 2.392 1.876 1.453 2.964 Non-current Assets 458 522 612 695 831 Total Assets 4.127 4.437 4.590 3.973 5.651 C
Slide 30: Disclaimer
This presentation does contain information and analysis on financial statements that reflect the Company management’s current views. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by a variety
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Slide 32: Thank you
Thank you For further questions please contact: yatirimciiliskileri@tat.com.tr Tat Gıda A.Ş. Taşdelen Mahallesi Sırrı Çelik Bulvarı No: 7 Çekmeköy - İstanbul Tel: +90 216 430 00 00 32
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