Savola Group · TADAWUL:2050
Savola — Q3 2018 Earnings Presentation
24 slides from Savola's earnings presentation, 2018
Slide 1: Earnings Presentation Q3 2018
Earnings Presentation Q3 2018 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
GROUP – HIGHLIGHTS • The reported net loss for the quarter was SAR 50.7 m compared to a net profit of 829.0 m from Q3 2017, note that Q3 2017 included gain of SAR 694 million as a result of selling 2% of Almarai shares • Savola’s retail segment recorded a net loss of SAR 198.3 m in Q3 2018 compared
Slide 4: Q3 2018 - Snapshot
Q3 2018 - SNAPSHOT » Q3 2018 Revenue of SAR 5.2 B (Q3 2017: SAR 5.6 B) GROUP » Q3 2018 Net loss of SAR 50.7 m (Q3 2017: Net Profit of SAR 829.0 m) » Q3 2018 Revenue of SAR 2.6 B (Q3 2017: SAR 2.7 B) RETAIL » Q3 2018 Net loss of SAR 198.3 m (Q3 2017: Net loss of SAR 218.9 m) » Q3 2018 Revenue of SAR
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Net Income SAR m Revenue Gross Profit Net Income / (Loss) / (Loss) Q3 2018 5,212 932 (51) 22 -6.9% vs. Q3 2017 -11.6% vs. Q3 2017 vs. 829 in Q3 2017 vs. 135 in Q3 2017 YTD 2018 16,468 2,907 6 76 -8.7% vs. YTD 2017 -10.1% vs. YTD 2017 vs. 1,063 YTD 201
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -9% -8% -12% -7% 18,036 16,468 5,787 6,653 6,148 5,596 5,108 5,212 Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -10% -13% -6% -12% 3,234 2,907 1,040 909 1,140 1,06
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA -19% -26% -0.2% -32% 1,282 331 438 437 512 1,034 246 351 Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 5.7% 4.8% 6.6% 7.1% 9.2% 6.7% 7.1% 6.3% YoY Net Profit YTD Net Profit -99% 5 -38% 829 1,063 (
Slide 8: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR B Revenue by Business Net Debt YTD 2017 YTD 2018 SAR 18.0 B SAR 16.5 B +4% 5.0% 5.4% Foods Retail 45.3% 6,603 6,869 48.0% 47.0% Food Services 49.3% Sep-17 Sep-18 Revenue by Geography CAPEX YTD 2017 YTD 2018 SAR 18.0 B SAR 16.5 B -30% 8.9% KSA 8.
Slide 9: Implications of Exceptional Items
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR m Adjusted YTD 2017 Net Income Adjusted YTD 2018 Net Income 1,063 (25) (62) 34 (694) -76.0% 316 76 6 73 (3) YTD 2017 Dilution Capital Gain Share of Gain on YTD 2017 YTD 2018 Gain on Direct FX YTD 2018 reported NI Gain on on sale of impairment sale of 2% Adjusted
Slide 10: Panda Retail Company
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Slide 11: Retail - Snapshot
RETAIL - SNAPSHOT Net Income Selling SAR m Revenue Gross Profit / (Loss) Space Reduced by Q3 2018 2,645 542 (198) 12,603 m2 -0.3% vs. Q3 2017 -2.8% vs. Q3 2017 Q3 2017: (219) Compared to Q2 2018 YTD 2018 8,251 1,645 (632) Total Space 717,285 m2 -4.7% vs. YTD 2017 -1.7% vs. YTD 2017 YTD 2017: (608) 1
Slide 12: Retail – Highlights
RETAIL – HIGHLIGHTS • After rigorous store by store analysis and piloting, turnaround initiatives are being implemented nationwide • Sales were slightly lower than the same quarter last year due to the decline in customer count that was offset by an increase in basket size • 1 Hyper and 7 Pandati st
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -5% -11% -3% -0.3% 8,659 8,251 2,674 2,377 3,331 3,229 2,653 2,645 Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -2% -4% +1% -3% 1,673 1,645 520 500 596 603 558 542 Q1 2017 Q1
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA (62) (84) (87) (86) (75) (74) (245) (224) Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 -3.1% -3.7% -2.6% -1.9% -2.8% -2.8% -2.8% -2.7% YoY Net Profit YTD Net Profit (160) (198) (229) (223) (210) (219) (608)
Slide 15: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper 162 67 (1) 154 66 (7) (1) Dec Q1’18 Q2’18 Q3’18 Additions Q3 Dec Q1’18 Q2’18 Q3’18 Additions Q3 2017 ’18 2017 ’18 Pandati Total Total Selling Area Selling Area 746,167 m2 717,285 m2 138 123 367 (6) (2) (7) (7) 343 (9) (8) Dec Q1’18 Q2’18 Q3’18 Additio
Slide 16: Savola Foods
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Slide 17: Foods – Highlights
FOODS – HIGHLIGHTS • Volumes were relatively stable in Q3 2018 at 819 KMT • Q3 2018 total revenue of SAR 2.3 billion is 14.4% below Q3 2017 revenue largely attributed to: a. Oil revenues decreased by 14.8% mainly due to currency devaluation and end product price controls in overseas markets, combine
Slide 18: Foods - Snapshot
FOODS - SNAPSHOT Net Income Volume SAR m Revenue Gross Profit / (Loss) (MT ‘000) Q3 2018 2,311 295 (44) 819 -14.4% vs. Q3 2017 -28.0% vs. Q3 2017 vs. 106 in Q3 2017 -0.1% vs. Q3 2017 YTD 2018 7,575 1,010 99 2,547 -13.9% vs. YTD 2017 -23.2% vs. YTD 2017 vs. 408 YTD 2017 -1.6% vs. YTD 2017 18
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -14% -13% -14% -14% 8,799 7,575 2,954 2,572 3,146 2,699 2,692 2,311 Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -23% -22% -20% -28% 1,315 425 481 409 1,010 331 385 295 Q1 2017
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA -34% -34% -30% -39% 756 229 301 227 152 212 503 140 Q1 2017 Q1 2018 Q2 2017 Q2 2018 Q3 2017 Q3 2018 YTD 2017 YTD 2018 7.8% 5.9% 9.6% 7.8% 8.4% 6.0% 8.6% 6.6% YoY Net Profit YTD Net Profit -76% -93% -30% 106 408 111 191 135 (44) 9
Slide 21: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS Volume (MT 000) Revenues (SAR m) 1.8% -12.9% 1,194 1,215 5,950 5% 5% 4% 4% 5% 5% 5,180 9% 7% 9% 5% 4% 9% 10% 9% 8% Morocco Morocco YoY +5% 11% YoY +6% Sudan Sudan 30% 30% YoY -14% 34% YoY -28% Algeria 28% Algeria YoY +10% YoY +5% Turkey Turkey 13% 15% YoY 0% YoY -8% 11%
Slide 22: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS Volume (MT 000) Revenues (SAR m) KSA KSA YoY -5% YoY -25% Egypt Egypt -2.7% YoY +14% -21.7% YoY +2% 1,122 2,508 1,092 1,964 88% 86% 88% 84% 12% 14% 12% 16% YTD 2017 YTD 2018 YTD 2017 YTD 2018 Note: Excluding USCE which is no longer consolidated; the above charts were a
Slide 23: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 24: Financials – Q3 2018
FINANCIALS – Q3 2018 Note: the above table includes contribution from emerging categories in the foods segment 24