Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — KRI KRI — H1 2020 Earnings Presentation
30 slides from Kri-kri Milk Industry's earnings presentation, October 2020
Slide 1: Investor Presentation - Half Year Results October 2020
Authentic products drive sustainable growth INVESTOR PRESENTATION HALF YEAR RESULTS - OCTOBER 2020
Slide 2: Legal disclaimer
INVESTOR PRESENTATION | OCTOBER 2020 Kri Kri Legal Legal disclaimer 02 This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information c
Slide 3: Agenda
INVESTOR PRESENTATION | OCTOBER 2020 Presentation Contents Agenda 03 Company Overview 04 Strategic Review 10 H1-2020 Results 20 Outlook 23 Share Information 24 Key takeaways 25 Appendix 26
Slide 4: At a glance 2019 highlights
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview At a glance 2019 highlights 04 Sales EBITDA PBT 14% GAGR 30.3% GAGR + 780bps EBITDA Margin 42.2% GAGR + 920bps Profit Margin +20% Y-O-Y +22% Y-O-Y +24% Y-O-Y 2019 €113m 2019 18.7% €21.1m 2019 €17.6m 2018 €94m 2018 €17.3m 2018 €14.2m 2017 €79m 201
Slide 5: At a glance 2019 highlights
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview At a glance 2019 highlights 05 Change in Sales EBITDA Margin 19,8% 18,7% Earnings Per Share €0.45 CAGR 42.2% Payout Ratio 39.6% Dividend Yield 3.1% |------Greek Peers------| |------Greek Peers------| ROCE Gearing Return On Equity 22,4% 22.7% Gear
Slide 6: History
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview History 06 1987 1954 A fully new and highly 2019 George Tsinavos established technological plant opened New three-year, € 27 million a small pastry shop in Serres in a new area signifying 2013 investment plan to expand the with a variety of ice-c
Slide 7: Our values: A Greek brand based on ethos
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview Our values A Greek brand based on ethos 07 Originality We believe in fresh, plain, yet original taste. Authenticity We create products that have superior taste, with the best ingredients from local Greek suppliers - the real thing. Ethics We do b
Slide 8: Product range: key product segments
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview Product range Key product segments 08 Yogurt Ice cream Greece Exports Greece Exports BRANDED (65 SKU’s) BRANDED (55 SKU’s) BRANDED (150 SKU’s) BRANDED (175 SKU’s) PRIVATE LABEL (75 SKU’s) PRIVATE LABEL (105 SKU’s) PRIVATE LABEL (15 SKU’s) PRIVATE
Slide 9: Geographic footprint
INVESTOR PRESENTATION | OCTOBER 2020 Company Overview Geographic footprint 09 Selling > 25 Countries > 21,000 Ice cream points of sale 49 Supermarket chains 42 Private label customers
Slide 10: Our business model: how we use our assets to create value
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Our business model How we use our assets to create value 10 We make We have invested in the technology and infrastructure to maintain quality control, and achieve faster and more We sell & distribute Our business model is fully integrated and we
Slide 11: Market review Yogurt Greece
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review 11 Market review Yogurt Greece Market size €185m Market share (value) per supplier (share >10%) Trend: +2.7% vs prior year 16,2 +0.7% yoy Volume +2.5% Leader 22,4 Competitor 1 15,2 Key Highlights Competitor 2 10,4 Highly fragmented market Strong
Slide 12: Market review Yogurt Greece
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Yogurt Greece 12 Kri Kri Sales €m. Branded Kri Kri Market share 44,3 16,6% 39,1 Increased value market share +4.9pp 36,1 16,2% 35,5 33 33,3 Improved average price per Kg 13,0% Volume 2014 2015 2016 2017 2018 2019 Value 11,3% Key Hig
Slide 13: Market review Yogurt Greece: Strategic Pillars
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Yogurt Greece 13 Strategic Pillars Focus on Strained Category Attention to profitable niches Innovative products For kids and infants Improving quality by constantly High Protein and super foods Leader in kids' yogurt category inves
Slide 14: Market review Yogurt exports
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Yogurt exports 14 Italy Geographical expansion 11.7% 10% Authentic Greek & Greek Capture style yogurt market €148m market trends Total market €1.5bn Adjust Adjust commercial products to tactics local needs Key Highlights Product Fra
Slide 15: Market review Yogurt exports: Germany and UK
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Yogurt exports 15 Central Europe / The case of Germany UK 14.4% Price per Kg Authentic Greek & Greek style yogurt market £305m Total market £1.5bn Key Highlights Key Highlights Large dynamic market. Trend setter Price sensitive cons
Slide 16: Market review Ice cream Greece
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Ice cream Greece 16 Market size €223m Market share (volume) per supplier (share >10%) 14,9 Trend: -2.1% vs prior year Leader 24,4 Key Highlights Competitor 1 21,4 96% brand awareness 20% increase in points of sale in last three year
Slide 17: Market review Ice cream exports
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Market review Ice cream exports 17 $18bn Key Highlights EUROPEAN MARKET Large dynamic market Trending towards healthier products $10bn Product innovation is leading the ice-cream market, in terms of ingredients added, texture, packaging and techn
Slide 18: Investment plan: facilities & capital expenditure
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review Investment plan Facilities & capital expenditure 18 Three - year investment plan: €27m Capex progress Key Points Modern production facilities in buildings E=30,000m2 €4m Capacity of further development in land €5.7m E=80,000m2 Government investme
Slide 19: What sets us apart?
INVESTOR PRESENTATION | OCTOBER 2020 Strategic Review What sets us apart? 19 Distinctive brand The brand evokes Experienced authenticity and originality management and is recognised by 96% of consumers in Greece. Our highly motivated team of people, let by our experienced Winning on authentic taste
Slide 20: H1 2020 Highlights
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Highlights 20 Interim results for 6 months ended June 2020 SALES EBITDA EBIT PBT €65.9m €13.8m €12.0m €11.9m €57.4m €11.7m €12.2m €10.1m €10.5m €10.3m €10.6m €50.9m 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Sales
Slide 21: H1 2020 Sales bridge
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Sales bridge 21 Interim results for 6 months ended June 2020 €m Top line highlights: • Strong sales growth in the Yogurt segment driven by Greece +16.3% and Exports +29.7% • Growth in Greece can be attributed to the 5.2% increase o
Slide 22: EBIT Bridge
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results EBIT Bridge 22 Interim results for 6 months ended June 2020 €m Profitability highlights: SALES MIX 0.9 • Gross margin affected by increased raw material prices, sales mix, and increased trade marketing activity EXTRA TRADE MRKT 0.5 -4.5pp
Slide 23: Mid-term objectives: progress against strategy YTD
INVESTOR PRESENTATION | OCTOBER 2020 Outlook Mid-term objectives Progress against strategy YTD 23 Our revenue increased by 14.8% driven both by sales in Greece and Sales Growth: double digit Exports. We expect our growth to continue as we are delivering on our strategy on product development, market
Slide 24: Share information
INVESTOR PRESENTATION | OCTOBER 2020 Share information 24 Share information Shareholders’ structure Contact information Market: Main market Tsinavos Family : 73% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Legal Entities : 19% Serres PC 62125 Individuals : 8% Greece Ticker
Slide 25: Key takeaways
INVESTOR PRESENTATION | OCTOBER 2020 Key takeaways 25 Strong set of results both in sales and profitability Despite the macroeconomic challenges we managed to increase our profitability Continued to invest in new products according to market trends Our capex plan continued as planned, investing in t
Slide 26: Appendix
INVESTOR PRESENTATION | OCTOBER 2020 Appendix 26 Appendix
Slide 27: H1 2020 Income statement
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Income statement 27 Interim results for 6 months ended June 2020 IFRS - €m H1 2020 H1 2019 % Change Sales 65.9 57.4 14.8% Gross Profit 22.8 22.4 1.6% Gross Profit Margin 34.5% 39.0% EBITDA 13.8 12.2 12.9% EBITDA Margin 20.9% 21.3%
Slide 28: H1 2020 Financial results per segment
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Financial results per segment 28 Interim results for 6 months ended June 2020 IFRS - €m Sales % Change Gross Profit % Change Gross Margin EBIT % Change EBIT Margin Yogurt 50.2 22.6% 15.3 7.8% 30.5% 8.4 19.2% 16.8% Greece 25.4 16.3%
Slide 29: H1 2020 Cash Flow key financial figures
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Cash Flow Key financial figures 29 Interim results for 6 months ended June 2020 €m H1 2020 H1 2019 Profit before tax for the period 11.9 10.5 Adjusted by: Depreciation 1.9 1.8 Other interest expense 0.2 0.2 Other non-cash expenses
Slide 30: H1 2020 Balance sheet key financial figures
INVESTOR PRESENTATION | OCTOBER 2020 First Half 2020 Results H1 2020 Balance sheet Key financial figures 30 Interim results for 6 months ended June 2020 €m H1 2020 31/12/2019 Non-current assets 62.4 58.5 Current assets 57.2 48.8 Total assets 119.6 107.3 Non-current liabilities 15.2 20.7 Current liab