Savola Group · TADAWUL:2050
Savola — Q1 2019 Earnings Presentation
21 slides from Savola's earnings presentation, 2019
Slide 1: Earnings Presentation Q1 2019
Earnings Presentation Q1 2019 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation contains 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 about
Slide 3: Group – Highlights for Q1
GROUP – HIGHLIGHTS FOR Q1 • The reported net income for the quarter was SAR 6.3 mn compared to a net loss of SAR 84.3 mn in Q1 2018 • Savola’s retail segment recorded a net loss of SAR 192.7 mn in Q1 2019 compared to a net loss of SAR 223.2 mn in Q1 2018 • Savola Foods recorded a net income of SAR 1
Slide 4: Q1 2019 - Snapshot
Q1 2019 - SNAPSHOT Q1 2019 Revenue of SAR 5.4 bn (Q1 2018: SAR 5.1 bn) GROUP Q1 2019 Net Income of SAR 6.3 mn (Q1 2018 Net Loss: SAR 84.3 mn) Q1 2019 Adjusted Net Income is SAR 29.0 mn Q1 2019 Revenue of SAR 2.7 bn (Q1 2018: SAR 2.4 bn) RETAIL Q1 2019 Net Loss of SAR 192.7 mn (Q1 2018: Net
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Gross Net Income SAR mn Revenue Net Income Profit / (Loss) / (Loss) Q1 2018 5,108 909 (84) (57) Q1 2019 5,388 1,065 6 29 +5.5% vs. Q1 2018 +17.3% vs. Q1 2018 5
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YoY Gross Profit +5% +17% 5,108 5,388 1,065 909 Q1 2018 Q1 2019 Q1 2018 Q1 2019 17.8% 19.8% YoY EBITDA YoY Net Income 505 6 246 (84) Q1 2018 Q1 2019 Q1 2018 Q1 2019 4.8% 9.4% - 0.1% 6
Slide 7: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR bn Revenue by Business Net Debt Q1 2018 Q1 2019 +9% SAR 5.1 bn SAR 5.4 bn 5% 6% 2% Foods 44% 6,685 7,309 49% Retail 45% Food Services 48% Frozen Food Q1 2018 Q1 2019 Revenue by Geography CAPEX Q1 2018 Q1 2019 SAR 5.1 bn SAR 5.4 bn -36% 10% KSA 1
Slide 8: Implications of Exceptional Items
Q1 2018 SAR mn (84) reported NI Gain on Sale of (3) Dar Al Tamleek 31 FX Impact Adjusted Q1 2018 Net Income Q1 2018 (57) Adjusted NI Q1 2019 6 reported NI IMPLICATIONS OF EXCEPTIONAL ITEMS Store Closure & 34 Project Write-off 29 Net impact of IFRS16 Afia Reversal of Accrual (41) Adjusted Q1 2019 Net
Slide 9: Panda Retail Company
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Slide 10: Retail – Highlights for Q1
RETAIL – HIGHLIGHTS FOR Q1 • Implementation of turnaround initiatives and overall improvement in consumer confidence improved retail business performance significantly in Q1 2019 • Q1 2019 revenues clocked in at SAR 2.7 bn, witnessing YoY growth of 12.3% driven primarily by: • Double digit growth in
Slide 11: Retail - Snapshot
RETAIL - SNAPSHOT Gross Net Income Selling SAR mn Revenue Profit / (Loss) Space Q1 2018 2,377 500 (223) 743,620 m2 Q1 2019 2,671 557 (193) 669,419 m2 +12.3% vs. Q1 2018 +11.4% vs. Q1 2018 11
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YoY Gross Profit +12% +11% 2,671 2,377 500 557 Q1 2018 Q1 2019 Q1 2018 Q1 2019 21.0% 20.8% YoY EBITDA YoY Net Income 66 (87) (61) (223) (193) (168) Q1 2018 Q1 2019* Q1 2019 Q1 2018 Q1 2019* Q1 2019 before IFRS 16 before IFRS 16 impact impa
Slide 13: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER SAR mn Super Hyper 153 1 66 66 145 (9) Dec Additions Closures Q1 Dec Additions Closures Q1 2018 2019 2018 2019 Total Total Selling Area Selling Area 689,633 m2 669,419 m2 219 1 211 (9) Dec Additions Closures Q1 2018 2019 13
Slide 14: Savola Foods
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Slide 15: Foods – Highlights for Q1
FOODS – HIGHLIGHTS FOR Q1 • Q1 2019 revenue was 6.3% lower than the same quarter last year primarily driven by decline in oil revenues by 12.1% driven by shortage of crude oil in Central Asia, as well as higher promotions and increased competition in other core markets • In addition to oil performan
Slide 16: Foods - Snapshot
FOODS - SNAPSHOT Gross Net Income Volume SAR mn Revenue Profit / (Loss) (MT ‘000) Q1 2018 2,572 331 8 865 Q1 2019 2,408 367 112 808 -6.3% vs. Q1 2018 +11.1% vs. Q1 2018 16
Slide 17: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YoY Gross Profit -6% +11% 2,572 2,408 331 367 Q1 2018 Q1 2019 Q1 2018 Q1 2019 12.9% 15.2% YoY EBITDA YoY Net Income +36% 207 152 112 8 Q1 2018 Q1 2019 Q1 2018 Q1 2019 5.9% 8.6% 0.3% 4.7% 17
Slide 18: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR mn Volume (MT ‘000) Revenues -3.0% -12.1% 407 1,744 395 5% 5% 3% 6% 3% 3% 1,533 8% 8% 6% 11% 3% 9% 13% Morocco 11% Morocco 10% YoY +9% YoY -5% 12% Sudan Sudan 33% 23% YoY +5% 29% YoY -3% Algeria 18% Algeria YoY +24% YoY +23% Turkey Turkey 18% YoY +5% 14% 17% YoY -17%
Slide 19: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR mn Volume (MT ‘000) (1) Revenues (1) KSA KSA YoY -9% YoY +7% Egypt Egypt YoY -14% +3.6% YoY -15% -9.8% 712 374 687 338 87% 87% 89% 88% 13% 12% 13% 11% Q1 2018 Q1 2019 Q1 2018 Q1 2019 (1) Sugar volumes and revenues include only the contribution from our consolidated
Slide 20: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 21: Financials – Q1 2019
FINANCIALS – Q1 2019 (all figures are in SAR millions) Segment Wise Financials Q1 2019 Q1 2018 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 1,127 184 87 87 106 1,417 174 78 16 94 Oil-Start-up Markets** 300 33 19 11 22 275 34 13 6 16