Savola Group · TADAWUL:2050
Savola — Q1 2020 Earnings Presentation
21 slides from Savola's earnings presentation, 2020
Slide 1: Earnings Presentation Q1 2020
Earnings Presentation Q1 2020 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation might contain forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: COVID-19 Update
COVID-19 Update The Group and its subsidiaries have navigated this crisis well with a commitment to ensure safety to all of its stakeholders and to minimize product disruptions in the markets we operate in • Savola Group is largely in the food processing and grocery retail space, hence most of our b
Slide 4: Snapshot Q1 2020
SNAPSHOT Q1 2020 • Q1 2020 Revenue of SAR 6.1 bn (Q1 2019: SAR 5.4 bn) GROUP • Q1 2020 Net Income of SAR 172.8 mn (Q1 2019: SAR 6.3 mn) • Q1 2020 Revenue of SAR 3.3 bn (Q1 2019: SAR 2.7 bn) RETAIL • Q1 2020 Net Income of SAR 10.8 mn (Q1 2019: Net Loss of SAR 192.7 mn) • Q1 2020 Revenue of SAR 2.5 bn
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-19 Q1-20 14% -2% 15% -2% Sales 5,388 6,120 Gross Profit 1,065 1,223 19.8% 20.0% 37% -2% EBITDA 693 Net Income 505 173 6 9.4% 11.3% 0.1% 2.8% Note: numbers are rounded 5
Slide 6: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography Q1-19 Q1-20 Q1-19 Q1-20 6% 5% 2% 2% 5% 10% 5% 10% 44% 40% 9% 10% 48% 53% 75% 75% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Assets (%)* C
Slide 7: Implications of Exceptional Items
SAR in millions Q1 2019 Note: Numbers are rounded 505 Reported EBITDA Store Closure & 35 Project Write-off Q1-19 IFRS16 Net Impact (168) Q1 2019 Adjusted EBITDA 372 Q1 2020 693 Adjusted EBITDA Reported EBITDA IFRS16 Net Impact (173) Q1-20 Q1 2020 Adjusted EBITDA 520 IMPLICATIONS OF EXCEPTIONAL ITEMS
Slide 8: Panda Retail Company
PANDA RETAIL COMPANY Q1 2020 8
Slide 9: Retail - Highlights
RETAIL - HIGHLIGHTS • The performance of our retail business has significantly improved during the quarter,, with strong top-line growth driven by higher customer demand for groceries Key Highlights • Panda launched its online channel, Pandaclick, through rebranding an existing platform and scaled i
Slide 10: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-19 Q1-20 23% -2% 27% -2% Sales 3,296 Gross Profit 2,671 705 557 20.8% 21.4% 265% +265% 11 36 EBITDA 240 Net Income (193) (132) 66 117 (26) 2.5% NA 7.3% 3.6% NA NA 0.3% 1.1% Q1-19 Q1-20 Q1-19 Q1-20 Adjusted* Adjusted* Adjusted* Adjus
Slide 11: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper 145 145 60 60 Dec Additions Closures Mar Dec Additions Closures Mar 2019 2020 2019 2020 Total Dec-19 Mar-20 Selling Area 205 205 Selling Area 634,399 m2 628,578 m2 Dec Additions Closures Mar 2019 2020 Note: Decline in selling space during the period i
Slide 12: Savola Foods Company
SAVOLA FOODS COMPANY Q1 2020 12
Slide 13: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment, improved over last year, following increased Key Highlights demand for food staples including edible oils and pasta • Volume has increased by 9.8% to 888 KMT in Q1 2020, driven primarily by a >15% Volume growth in edible oils and ~12% growth
Slide 14: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q1-19 Q1-20 3% -2% 2% -2% Sales 2,408 2,476 Gross Profit 367 375 15.2% 15.2% 7% -2% -35% -2% EBITDA 207 221 Net Income 112 70 73 8.6% 8.9% 4.7% 2.9% 3.0% Q1-19 Adjusted* Net Income Note: numbers are rounded 14 *2019 Adjusted numbers inc
Slide 15: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 15% +15% 10% +9.6% Morocco 448 1,654 Morocco YoY +7% 5% 6% YoY +9% 1,509 Sudan 5% 4% Sudan 388 6% YoY +60% YoY +39% 6% 12% 3% 11% Algeria 3% Algeria 11% YoY +21% YoY +13% 11% 10% 12% Turkey Turkey 13%
Slide 16: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 2% +2% -14% -13.6% 346 712 338 Egypt 9% Egypt 11% YoY -20% 12% YoY -23% 615 KSA KSA YoY +6% 10% YoY -12% 91% 89% 88% 90% Note: Sugar volumes and revenues include only the contribution from our consol
Slide 17: Al Kabeer
(welgaew) UQOLA SAVOLA Al Kabeer Q1 2020 17
Slide 18: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • Consumers increased demand for longer life products and food stocking behavior due to lock down measures has positively contributed to our frozen food segment Key Highlights • Al Kabeer started the year with strong growth driven by management efforts and growth in the cate
Slide 19: Frozen Food – Al Kabeer
FROZEN FOOD – AL KABEER Margin SAR in millions Q1-19 Q1-20 Q1-19 Q1-20 49% -2% 38% -2% 192 Sales 129 Gross Profit 66 48 37.3% 34.5% 12% -2% 12% -2% EBITDA 23 26 Net Income 18 20 18.0% 13.6% 14.0% 10.5% Note: numbers are rounded 19
Slide 20: Financial Summary
FINANCIAL SUMMARY 20
Slide 21: Financials – Q1 2020
FINANCIALS – Q1 2020 (all figures are in SAR millions) Segment Wise Financials YTD March 2020 YTD March 2019 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 1,305 242 126 78 146 1,209 226 96 95 118 Oil-Start-up Markets** 349 34 15 8 18