Slide 1: Savola Group Earnings Presentation Q1 2023
Savola Group www.savola.com Earnings Presentation | Q1 2023
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: Savola Group Key Highlights
Savola Group Key Highlights 3
Slide 4: Savola Group - Highlights
Savola Group - Highlights Resilient performance in our Core Operations ▪ Savola Foods continued its growth momentum in Q1 2023, mainly driven by its ability to successfully deploy pricing and product mix strategies to grow margins while maintaining market share ▪ Panda reported a smaller loss compar
Slide 5: Savola Foods portfolio transformation into a power-house brand
Savola Foods portfolio transformation Into a Power-House Brand From Destination Oil Category “GOOD FOR YOU” FOODS 5
Slide 6: Good for you portfolio activation momentum building up
Good for you portfolio activation momentum building up Bayara building up nicely while expanding in Saudi Arabia. Munchbox continues to innovate ▪ UAE business achieved a 53.8% increase in bottom line (Q1 2023 AED 19.7m vs Q1 2022 AED 12.8m) on the back of volume growth and pricing ▪ KSA business ac
Slide 7: Panda showing early successes in our CXR investment program
Panda showing early successes in our CXR investment program Wave 1 CXR Program continues to perform above benchmark Monthly Sales Variance % (Act vs. LY) 40 35 36 Wave 1 fully 30 operational 21 20 17 16 11 13 12 8 9 10 4 -1 2 5 0 -3 -18 -9 -7 -12 -11 -10 Wave 1 Non-CXR Performance -20 -23 -7 -16 -16
Slide 8: Online e-grocery platform is being optimized with profitability in mind
Online e-grocery platform is being optimized with profitability in mind Q1 2023 vs. Q4 2022 Avg Daily Orders 100% Delivery Cost 29% Operational Avg Basket Size 14% 50% Expense Fulfillment Rate 14% Pickers Utilization 50% 8
Slide 9: Panda Plus is gearing up nicely since launch
Panda Plus* is gearing up nicely since launch and lots of upside opportunity *Panda Plus is the Panda loyalty program 9
Slide 10: Al Kabeer is showing resilience and investing in brand and product development
Al Kabeer is showing resilience and investing in brand and product development Key Focus Areas in 2023 Active Branding consumer Revamp engagement Activities throughHacks through Yummy initiatives such Recap: Key Focus Areas 2023 as Yummy Hacks activities introduction and activities ▪ Continue buildi
Slide 11: Group Financial Highlights
Group Financial Highlights 11
Slide 12: Savola Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions Q1-22 Q1-23 Q1-22 Q1-23 ▪ Group reported sales growth backed by Q1-19 - Higher YoY growth in Panda driven by improved +4% +17% performance from the CXR program completed stores and a successful promotion campaign Sales 7,489 7,8
Slide 13: Savola Group – Revenue & Net Income Bridge By Business
Savola Group – Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions +4% 27 (53) 7,814 3 (11) 393 (31) 20 (41) 36 (23) 312 (18) 352 7,489 70 115 271 Q1 2022 SFC Panda Al Kabeer Herfy Others / Q1 2023 Reported SFC Panda Al Kab
Slide 14: Savola Group – Revenue Mix, Net Debt & Capex
Savola Group – Revenue Mix, Net Debt & Capex Revenue by Business Revenue by Geography Q1-22 Q1-23 Q1-22 Q1-23 2% 3% 8% 4% 3% 5% 11% 9% 37% 39% 17% 14% 57% 55% 68% 68% Savola Foods Panda Al Kabeer Herfy Arabia Egypt Central Asia Others YoY Growth +1.6% +11.1% +14.7% -16.2% +5.7% -12.9% +103.8% -18.6%
Slide 15: Savola Foods Company
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Slide 16: Savola Foods – Financial Highlights
Savola Foods – Financial Highlights Margin SAR in millions Q1-22 Q1-23 Q1-22 Q1-23 ▪ Savola Foods demonstrated strong performance in Q1’23 exhibiting its ability to sustain performance Q1-19 despite macro challenges in certain markets +2% +36% ▪ Revenues grew by 2% on the back of 4,398 better pricin
Slide 17: Stability in Vegetable oils, Sugar continues to face increasing price index
Stability in Vegetable oils, Sugar continues to face increasing price index FAO Food Price Index (rebased)(1) FAO Vegetable Oils Index (rebased)(2) FAO Sugar Index (rebased)(3) 250 170 171 150 160 140 200 150 140 130 124 150 130 120 120 120 110 100 110 100 100 50 90 90 80 80 0 70 Jan-20 Sep-20 May-2
Slide 18: Savola Foods – Oil Segment Analysis
Savola Foods – Oil Segment ANALYSIS SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income +9% 3,201 2,933 +40% 573 -5% 538 1,498 +10% 512 1,360 +71% 446 408 233 +54% 148 155 +5% 183 +86% +102% 244 152 260 99 145 +99% 390 1,574 1,704 +8% 340 +33% 121 357 -8% 256 263 +63% 73 161 99
Slide 19: Savola Foods – Sugar Segment Analysis
Savola Foods – Sugar Segment Analysis SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income +3% -12% 826 53 55 367 -21% 724 291 42 46 +10% 752 335 713 -5% -44% 38 290 -14% -3 -1 21 -15 28 -4 26 -6% -11 12 9 -20% 11 31 -96% 73 -84% -5 1 11 NA -25 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23
Slide 20: Savola Foods – Nuts, Spices And Pulses Segment Analysis
Savola Foods – Nuts, Spices And Pulses Segment Analysis SAR in millions Revenues Gross Profit EBITDA Net Income +24% 165 55 23 14 +71% +70% +53% 133 8 13 36 131 +16% 44 +29% 18 +50% 25 +52% 114 12 17 34 34 +75% 11 +451% -2 -4 -4 NA 19 -3 NA 2 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 KSA UAE N
Slide 21: Panda Retail Company
Panda Retail Company JgOLA SAVOLA — 21
Slide 22: Panda – Financial Highlights
Panda – Financial Highlights Margin SAR in millions Q1-22 Q1-23 Q1-22 Q1-23 ▪ Growth in topline is driven by higher contribution from Panda’s CXR Program and less disruption from CXR works in some of the stores +11% +6% ▪ While gross profit in absolute terms 3,118 629 grew, margin has slightly decli
Slide 23: Panda – Number Of Stores
Panda – Number Of Stores Super Hyper 126 0 0 126 61 0 0 61 Dec Additions Closures Mar Dec Additions Closures Mar 2022 2023 2022 2023 Total Dec-22 Mar-23 Net Selling Area Net Selling Area 561.5k m2 561.5k m2 187 0 0 187 Dec Additions Closures Mar 2022 2023 . Note: 182 Stores KSA and 5 in Egypt 23
Slide 24: Al Kabeer
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Slide 25: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions Q1-22 Q1-23 Q1-22 Q1-23 ▪ Al Kabeer reported healthy performance in Q1’23 with revenues growth and improved profitability Q1-19 margin +15% +19% ▪ Al Kabeer revenues grew in both its core UAE and KSA markets Sales 184 211 Gross Pro
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Slide 27: Financial Summary
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Slide 28: Financials – Q1 2023
Financials – Q1 2023 (All figures are in SAR millions) Segment Wise Financials* Q1 - 23 Q1 - 22 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil Arabia** 1,498 233 169 145 183 1,360 152 84 73 99 Other Markets*** 1,822 360 260 109 278 1,756 259
Slide 29: Thank you
Jgola SAVOLA Thank you www.savola.com 29