Alamar Foods Co. · TADAWUL:6014
Alamar Foods — Q3 2024 Earnings Presentation
21 slides from Alamar Foods's earnings presentation, Nov 7, 2024
Slide 1: Earnings Presentation 3Q 2024
Earnings Presentation 3Q 2024
Slide 2: Agenda for today's Earnings Call
Agenda for today’s Earnings Call • 3Q 2024 Performance Highlights • Alamar at a Glance • Transformation Update • Financial Performance • Outlook and Guidance 7 November 2024
Slide 3: 3Q 2024 Performance Highlights
Earnings Presentation – 7 November 2024 3Q 2024 Performance Highlights
Slide 4: 3Q 2024 performance highlights
3Q 2024 performance highlights 229mn 67mn 29mn 19mn SAR SAR SAR SAR Revenues Gross Profit Adj. EBITDA Net Profit +1% QoQ -3% QoQ +8% QoQ +49% QoQ 15mn 30mn 26mn 100mn SAR SAR SAR SAR Adj. Net Profit OCF FCF Net Cash +10% QoQ +2.2x QoQ +2.9x QoQ -16% QoQ 7 November 2024
Slide 5: Alamar at a Glance
Earnings Presentation – 7 November 2024 Alamar at a Glance
Slide 6: QSR leader in GCC markets…
QSR leader in GCC markets… Restaurant Chain Expansion by Brand Revenue mix by brand (SAR mn) 1,076 657 693 662 976 601 630 618 56 63 82 33 17 11 FY 22 9M 24 FY 22 9M 24 Dunkin' restaurants Domino's restaurants Other Dunkin' Domino's Revenue geographical mix (SAR mn) Alamar’s 9M 2024 top-line perform
Slide 7: …with strong digital capabilities, capex-light expansion model and solid cash generation
…with strong digital capabilities, capex-light expansion model and solid cash generation Revenue mix by service method (%) Digital revenue mix (%) 38% 35% 39% 49% 38% 33% 61% 51% 32% 24% FY 22 9M 24 FY 22 9M 24 Aggregators Own digital channels Walk-in Own channels Aggregators Omnichannel business mo
Slide 8: Digital channels drive ATP growth
Digital channels drive ATP growth Omni-Channel ordering and multiple service methods address current consumer trends Revenue split by service method (%) Omni-Channel order method: Service method /customer exp. 38% 35% 33% 46% In-Store In-Store 24% 28% 32% Call Centre 14% Takeaway Aggregators 41% 38%
Slide 9: Transformation Update
Earnings Presentation – 7 November 2024 Transformation Update
Slide 10: Progress with strategic initiatives to accelerate growth and bolster margins
Progress with strategic initiatives to accelerate growth and bolster margins The new promotional campaign launched in KSA and UAE in May-June 2024 continues to drive strong results, boosting ATP New promo mechanism (through the basket) and generating positive customer feedback. Customers have expres
Slide 11: Financial Performance
Earnings Presentation – 7 November 2024 Financial Performance
Slide 12: 3Q 2024 financial highlights
3Q 2024 financial highlights 229mn 29mn 19mn SAR SAR SAR Revenues Adj. EBITDA (pre-ifrs 16) Net Profit -13% YOY -17% YOY -6% YOY 693 12.7% 26mn SAR SAR Total Restaurants Adj. EBITDA Margin FCF +2% YOY -0.5 ppts YOY -61% YOY 7 November 2024
Slide 13: Total store count reached 693 restaurants as of September 2024, up 1.9% YoY
Total store count reached 693 restaurants as of September 2024, up 1.9% YoY Group Store Count by Region 3Q 2024 Group Store Count by Brand +9 +1 +3 0 Brand 3Q 23 3Q 24 YoY Change 273 282 167 167 120 121 120 123 Domino’s 620 630 +10 Dunkin’ 60 63 +3 Corporate KSA Corporate GCC & Corporate NA Non-corp
Slide 14: Revenue went up QoQ driven by targeted marketing despite geopolitical challenges
Revenue went up QoQ driven by targeted marketing despite geopolitical challenges Revenues (SAR mn) 3Q 2024 263.6 Share of 3Q 2024 225.7 226.4 229.0 revenue 206.9 in stable currency 88% -14% -8% +9% +1% 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 Total Revenue Movement by Geography YoY (SAR mn) 3Q 2024 Revenue per
Slide 15: Enhanced cost agility and efficiency gains drive margins recovery
Enhanced cost agility and efficiency gains drive margins recovery Adj. EBITDA Margin (%) 3Q 2024 -0.5pp 13.2% 12.7% 11.9% 10.6% Alamar started to execute Marketing initiatives A more agile cost Regional events its transformation plan as supported sales; cost base and efficiency altered the industry
Slide 16: Net profit performance was affected by operating leverage effect, ESOP and one-off items
Net profit performance was affected by operating leverage effect, ESOP and one-off items 3Q 2024 EBITDA reconciliation Net Profit (SAR mn) (SAR mn) 3Q 2024 -6% 20.4 19.2 Net Income 19.2 12.9 5.1 Finance cost, net 2.6 -75% n/m n/m +49% Zakat and income tax (0.2) Depreciation & amortization 26.5 (17.7
Slide 17: Strong FCF generation and robust balance sheet
Strong FCF generation and robust balance sheet Cash & Cash Equivalents Movement YTD (SAR mn) 9M 2024 Cash flow performance and balance sheet • Operating cash flow for the first nine months of the year was SAR 74.8 million, 74.8 including SAR 29.7 million generated in 3Q 2024, which was 2.2x higher t
Slide 18: Monthly sales performance shows a positive momentum
Monthly sales performance shows a positive momentum Average daily sales - Group (January 2023 = 100%) Ramadan Summer break Ramadan Summer break 2023 2023 2024 2024 105 108 107 100 99 98 99 91 92 94 89 86 86 90 87 82 83 86 84 81 70 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY J
Slide 19: Outlook and Guidance
Earnings Presentation – 7 November 2024 Outlook and Guidance
Slide 20: We keep our medium-term targets intact
We keep our medium-term targets intact 2025- 2027 Guidance Sales per store1 3-5% CAGR Growth % Corporate store count1 11-13% CAGR Growth % Adj. EBITDA margin2 19-21% Organic capex 5-6% % of sales Dividend payout ratio 70-80% Leverage3 No expected debt raising Notes: 1. Only Corporate Store Count 2.
Slide 21: Questions & Answers
Questions & Answers ZA