Agthia Group · ADX:AGTHIA
Agthia — Agthia Group PJSC — 9M 2018 Earnings Presentation
13 slides from Agthia's earnings presentation, Oct 29, 2018
Slide 1: Agthia Group PJSC 9M18 Analyst & Investor Earnings Conference Call
Agthia Group PJSC 9M18 Analyst & Investor Earnings Conference Call Abu Dhabi, 29 October 2018 1
Slide 2: Highlights of the Quarter
HIGHLIGHTS OF THE QUARTER • Strong profit in the last quarter, AED 50 million • Record-high group gross profit margin at 34.7 percent • Kuwait factory inaugurated – commercially we started strong • Market share growth of our Water products continued 2
Slide 3: Bottled Water Market Shares
BOTTLED WATER MARKET SHARES1 Al Ain Water’s strong leadership continues Volume Share Value Share % Change VYA % Change VYA Al Ain Water 28.1 +119bps 26.3 +82bps Al Bayan 1.1 flat 1.0 flat Alpin 0.8 +25bps 0.8 +16bps Agthia Total 30.0 +134bps 28.1 +98bps • Strong share growth both in volume and value
Slide 4: Bottled Water Category in UAE
BOTTLED WATER CATEGORY IN UAE1 Growth YTD 18 V 17 1 2 1. Category volume growth accelerated BW Category Agthia BW against a backdrop of heavy Volume & Net Revenue promotions eroding value +6.4% +5.4% 2. Agthia BW P&L volume and value mirror category movement -0.8% -2.3% VOLUME VALUE 4 1 1 ACNielsen
Slide 5: Volume Shipments
VOLUME SHIPMENTS Water • Strong volume growth • UAE 82% of our volume CHANGE • Kuwait started to contribute YTD 18 YTD vs SHIPPED VOLUME SEP'18 YTD 17 BOTTLED WATER Million Cases UAE 43.2 +5% TURKEY 1.5 +10% SAUDI (L4L) 7.2 +5% KUWAIT 0.2 na TOTAL 52.1 +5% 5
Slide 6: Food Business
FOOD BUSINESS AED M – YTD SEP 2018 2017 Segment Revenue 148 130 Revenues – AED M YTD Sep Segment Profit 3.5 ‐2.7 Dairy Bakery TP / FV 4.7 19.4 TP/FV UAE • Segment growth: +13% • Trading Items: ~ 40% of segment 34.3 • Revenue growing by 40% • Net profit growth 99%, NPM at 18% 66.9 TP/FV EGTPT • TP/FV
Slide 7: Agri Business
AGRI BUSINESS ANIMAL FEED Sales: AED 407M, +2% L4L • Stabilized Profit: AED 49M, +99% L4L FLOUR Higher volume and better mix performance Emerging issue: Potential volume loss due to dairy farm • Strong growth in • Strong scale‐downs – up to 1K/ton retail segment profitability – 22% (+22%) GP
Slide 8: Financial Performance
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Slide 9: Group Revenue & Profit
GROUP REVENUE & PROFIT Both metrics posted growth on like-for-like basis Reported Like‐for‐Like AED M YTD September 2018 2017 2017 Net Revenues 1,485 1,567 1,485 ‐5.2% FLAT Net Profit 158.6 164.7 145.8 ‐3.7% +8.8% 9
Slide 10: Group P&L
GROUP P&L • Flat top line amid challenging headwinds • Higher efficiency and lower expense • Profit growth 2018 2017 2017 Actual Reported Variance L4L Variance Revenue 1,485 1,567 -5% 1,485 0% Gross profit 515 525 -2% 514 0% Gross profit margin 34.7% 33.5% 34.6% Operating expenses 358 362 -1% 370 -3
Slide 11: Gross Profit Margin
GROSS PROFIT MARGIN Group Gross Profit Margin, % 35.0 34.5 Segment Gross Profit Margins1, % 33.1 34.7 32.0 Lower (market) 30.0 prices 28.0 27.1 Gross Profit Margin1, % 25.0 2013 2014 2015 2016 2017 9M18 Subsidy withdrawal Better mix, cost Scale, better Division Gross Profit Margins1, % optimization
Slide 12: 2018 Estimate
2018 ESTIMATE Protecting top and bottom lines despite significant pressure 2018 Full Year Net Profit (M) AED 200 – 205 (L4L growth + 5-8%) Net Revenue (B) AED 1.99 – 2.01 (L4L growth + 2-3%) 12
Slide 13: Disclaimer – Forward-looking Statements
Disclaimer – Forward‐looking Statements: Agthia Group PJSC and its management may make certain statements that constitute “forward‐looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do