Savola Group · TADAWUL:2050
Savola — Q2 2020 Earnings Presentation
24 slides from Savola's earnings presentation, 2020
Slide 1: Savola Group Earnings Presentation Q2 2020
Savola Group www.savola.com Earnings Presentation | Q2 2020
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: Key Highlights - Q2 2020
Key Highlights - Q2 2020 • Q2 2020 Revenue of SAR 6.0 bn (Q2 2019: SAR 5.8 bn) GROUP • Q2 2020 Net Income of SAR 410 mn (Q2 2019: SAR 110 mn) • Q2 2020 Revenue of SAR 3.5 bn (Q2 2019: SAR 3.0 bn) RETAIL • Q2 2020 Net Income of SAR 147.3 mn (Q2 2019: Net Loss of SAR 119.2 mn) • Q2 2020 Revenue of SAR
Slide 4: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 +8% +3% +14% 11,027 11,930 5,923 5,813 6,007 Sales* 5,214 +12% +10% +15% 2,229 2,502 Gross Profit 1,223 1,163 1,279 1,065 20.4% 20.6% 20.0% 21.3% 20.2% 21.0% *Revenues from commercial and promotion
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 +34% +31% +37% 1,565 873 1,169 EBITDA 693 664 505 9.7% 11.7% 11.4% 14.5% 10.6% 13.1% +400% +272% 410 582 Net Income 173 110 117 6 0.1% 2.9% 1.9% 6.8% 1.1% 4.9% 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 YTD-19 YTD-20 YTD-19 YTD-20 6% 4% 3% 3% 5% 11% 4% 10% 42% 39% 10% 10% 49% 54% 75% 76% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Assets
Slide 7: Implications of Exceptional Items
SAR in millions YTD 2019 Note: Numbers are rounded 1,169 Reported EBITDA Store Closure & 65 Project Write-off YTD-19 IFRS16 Net Impact (342) YTD 2019 Adjusted EBITDA 892 YTD 2020 Adjusted EBITDA 1,565 Reported EBITDA IFRS16 Net Impact (352) YTD-20 YTD 2020 Adjusted EBITDA 1,213 IMPLICATIONS OF EXCEP
Slide 8: Panda Retail Company
gol SAVOLA Panda Retail Company
Slide 9: Retail - Highlights
RETAIL - HIGHLIGHTS • Our retail business continued to show strong performance in the first half of 2020, Key Highlights mainly driven by higher consumer demand for in-house food consumption • Store count increased to 206 stores by end of Q2, including 4 stores in Egypt Store Count • During Q2 2020,
Slide 10: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 +18% +14% +24% 6,562 3,463 5,539 Sales* 3,099 3,042 2,497 +29% +30% +27% 1,519 814 1,181 Gross Profit 705 624 557 22.3% 22.8% 20.5% 23.5% 21.3% 23.2% Note: numbers are rounded *Revenues from commercial and pro
Slide 11: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 EBITDA 240 378 618 66 117 238 356 135 201 (26) 30 4 2.6% NA 7.8% 3.8% 4.4% 1.0% 11% 6.9% 3.6% 0.1% 9.4% 5.4% Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 Adjusted* Adjusted* Adjusted* Adjusted* Adjusted* Adjusted* EB
Slide 12: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper 1 146 60 60 145 Mar Additions Closures Jun Mar Additions Closures Jun 2020 2020 2020 2020 Total Mar-20 Jun-20 Selling Area 1 206 Selling Area 628,578 m2 630,275 m2 205 Mar Additions Closures Jun 2020 2020 12
Slide 13: Savola Foods Company
gla SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 13
Slide 14: Foods - Highlights
FOODS - HIGHLIGHTS • The performance of our foods segment continued to be relatively stable, despite a Key Highlights challenging macroeconomic and operating environment • Volume has increased by ~3% to 1,692 KMT in YTD June 2020, driven primarily by a Volume ~6% growth in edible oils and ~3% growth
Slide 15: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 -1% +3% -5% 4,758 4,705 2,408 2,476 2,350 2,230 Sales -2% +2% -6% 749 734 Gross Profit 367 375 382 359 15.2% 15.2% 16.2% 16.1% 15.7% 15.6% Note: numbers are rounded 15
Slide 16: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19* YTD-20 +6% +6% +7% 422 448 EBITDA 215 228 207 221 8.6% 8.9% 9.2% 10.2% 8.9% 9.5% +81% +38% +5% Net Income* 112 106 178 180 70 73 66 59 130 4.7% 2.9% 3.0% 2.8% 2.5% 4.8% 3.7% 2.7% 3.8% Q1-19 Q2-19 YTD Jun-19 Adjusted*
Slide 17: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 +1% +6% 825 3,030 3,056 777 6% 6% 6% Morocco +8% 6% 5% 4% 5% Morocco +7% Sudan +57% 3% Sudan +39% 11% 11% 11% Algeria +3% 12% Algeria -6% Turkey -9% 9% 13% 12% Turkey -12% 11% Central Asia +12% Central
Slide 18: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-19 YTD-20 YTD-19 YTD-20 -1% -8% 696 690 1,356 Egypt -7% 1,250 Egypt -12% 14% 13% 16% KSA 0% KSA -7% 15% 86% 87% 84% 85% Note: Sugar volumes and revenues include only the contribution from our consolidated sugar operations (
Slide 19: Al Kabeer Group of Companies
Al Kabeer Group of Companies 19
Slide 20: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • Demand for frozen food continued to show a healthy trend in the first half of 2020, Key Highlights with consumers preferring in-house cooking and dining during curfews, as well as, a general preference for longer life products and pantry loading during the period • Revenue
Slide 21: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 +16% +30% +49% 192 211 403 182 311 Sales 129 +38% +38% +38% 96 162 Gross Profit 66 70 118 48 37.3% 34.5% 38.3% 45.3% 37.9% 40.1% Note: numbers are rounded 21
Slide 22: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-19 Q1-20 Q2-19 Q2-20 YTD-19 YTD-20 +96% +56% +12% 52 78 EBITDA 26 50 23 27 18.2% 13.6% 14.7% 24.8% 16.1% 19.5% +63% +108% +12% 63 42 38 Net Income 20 18 20 14.0% 10.5% 11.2% 20.0% 12.4% 15.5% Note: numbers are rounded 22
Slide 23: Financial Summary
gla SAVOLA Financial Summary 23
Slide 24: Financials – YTD June 2020
FINANCIALS – YTD June 2020 Note: Revenues from commercial and promotional income in the retail segment were reclassified. For more information, please refer to note (3) of the Group’s Q2 2020 financial statements. 24