Agthia Group · ADX:AGTHIA
Agthia — Agthia Group PJSC — EFG-Hermes One on One 2019
14 slides from Agthia's conference presentation, Mar 5, 2019
Slide 1: Agthia Group PJSC Fiscal Year 2018
Agthia Group PJSC Fiscal Year 2018 EFG-Hermes One on One 2019 1 Dubai, 5-6 March 2019
Slide 2: Disclaimer – Forward Looking Statements
DISCLAIMER – FORWARD LOOKING STATEMENTS Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: 2018 in Rear-View Mirror
2018 IN REAR-VIEW MIRROR MARKET PANORAMA AGTHIA • Declining consumer • Successful defense of market share, spend volume, revenue, profit • Changing purchasing • Record-high gross profit margin habits • Remarkable growth of Food segment • Aggressive competitive activity • Turnaround of international
Slide 4: Strong performance in all major business metrics
2018 IN REAR-VIEW MIRROR Strong performance in all major business metrics Successful defense of Market share 30% volume and 26% value in UAE Water, market leader in Water, Flour, Feed, and Tomato Paste in the UAE Volume 70 million cases of bottled water, 30 million bottles of 5-gallon water, 760 tho
Slide 5: Differentiation via Innovation
DIFFERENTIATION VIA INNOVATION In 2018 • Al Ain Vitamin D Water • Al Ain Bambini Baby Water Gulfood, February 2019 • Al Ain Zero Bromate Water • Al Ain Water Box • Grand Mills Vitamin D Flour • Yoplait Lactose-free In 2018, Agthia has launched 2 new products and developed 4 that were launched during
Slide 6: Al Ain Water's strong leadership continues
BOTTLED WATER MARKET SHARES1 Al Ain Water’s strong leadership continues Volume share Value share 30.0 30.0 27.9 27.3 25.6 25.8 26.0 25.0 Al Ain Water 25.0 23.0 30% 20.0 20.0 15.0 Comp. B 15.0 10.0 Comp. C 10.0 Comp. D 5.0 5.0 Includes VAT. Value Al Bayan de-grows by 2.1 0.0 Alpin 0.0 approx. 2% 2016
Slide 7: Food segment revenue and profit
FOOD AED M 2018 2017 Segment Revenue 201 174 Revenues – AED M Full Year 2018 Segment Profit 6 -2 Dairy Bakery 26.0 TP / FV 6.6 TP/FV UAE • Segment revenue growth: +16% • Trading Items: 40% of segment 45.2 • Revenue +47% • Net profit +88% 89.1 TP/FV EGTPT • TP/FV incl. Egypt ops.: 44% of segment 79.3
Slide 8: Agri segment: Feed and Flour
AGRI FEED FLOUR • Better mix (higher volume in subsidized • Strong performance in Northern channel) Emirates • Price increases (offsetting higher grain • Extended subsidy in Bakery prices) (offsetting higher grain prices) • Exports • Steady growth in retail across UAE • Higher grain prices • Higher
Slide 9: Financial Review
FINANCIAL REVIEW 9
Slide 10: Group Revenue & Profit
GROUP REVENUE & PROFIT Both metrics posted growth on like-for-like basis Reported Like-for-Like AED M Full Year 2018 2017 2017 Net Revenues 2,001 2,048 1,965 -2.3% +1.9% Net Profit 210.5 206.1 188.7 +2.1% +11.5% 10
Slide 11: Net Revenues and Net Profit: Reported versus Like-for-Like
REPORTED VERSUS LIKE-FOR-LIKE NET REVENUES | AED MILLIONS NET PROFIT | AED MILLIONS 2,048 -51 206 -5 +22 211 -16 +36 2,001 -6 -16 -6 1,965 Back to Exports 1½ Like-for- 189 Export/ Gain for Food Like-for- Back months Like B2B land security Like Grain KSA Growth Grains sold contract Growth Trading /KS
Slide 12: Group Consolidated P&L
GROUP CONSOLIDATED P&L Agthia Group PJSC AED'000 Consolidated statement of profit and loss 12 months ended for the year ended 31 December 2018 31-Dec-18 31-Dec-17 Revenue 2,001,316 2,047,957 Cost of sales (1,315,227) (1,369,456) Gross profit 686,089 678,501 Gross profit margin 34.3% 33.1% OPEX reduc
Slide 13: Gross Profit Margin
GROSS PROFIT MARGIN Group Gross Profit Margin, % 35.0 34.5 Segment Gross Profit Margins1, % 33.1 32.0 34.3 30.0 Lower (market) 28.0 prices 27.1 25.0 Gross Profit Margin1, % 2013 2014 2015 2016 2017 2018 Subsidy withdrawal Better mix, cost Scale, better Division Gross Profit Margins1, % optimization
Slide 14: Q&A
Agthia Group PJSC Q&A Fiscal Year 2018 EFG-Hermes One on One 2019 14 Dubai, 5-6 March 2019