Juhayna Food Industries · EGX:JUFO
Juhayna Food Industries — FY2013 Earnings Presentation
46 slides from Juhayna Food Industries's earnings presentation, 2014
Slide 1: Juhayna Food Industries 4Q & Full Year 2013 Investor Presentation
• Juhayna Food Industries • 4Q & Full Year 2013 Investor Presentation
Slide 2: Today's Agenda
Today’s Agenda Overview of Juhayna Strategy & Market Our Lines of Business Case Study: Delivering Quality Case Study: Backward Vertical Integration Appendices III: Key Organizational Information III: Key Shareholder Information III: Financials
Slide 3: Overview of Juhayna
OVERVIEW OF JUHAYNA Juhayna’s Pure-brand juice is a favourite in the highly-competitive Egyptian juice market.
Slide 4: Egypt's Leading Dairy, Yogurt and Juice Producer
Egypt’s Leading Dairy, Yogurt and Juice Producer WAREHOUSE 1983 45,000 25 Launched Operations at Assiut Established in 1983 Retail Outlets Distribution Centers Yogurt Facility in 1H13; 3 added in 2013 Commenced soft operations at 5 to open in 2014 Sixth October Plant 7 5,500 Feddans 1,000+ 200+ Manu
Slide 5: Five Independent Segments Working Towards a Common Goal (1)
Five Independent Segments Working Towards a Common Goal Dairy Yogurt Juice Egypt’s #1 packaged milk producer, Juhayna is among Egypt’s top Egypt’s #1 premium juice producer, Juhayna boasts a 68% share of the yogurt producers, with 34% of the Juhayna is a market leader in the plain milk market tradit
Slide 6: Five Independent Segments Working Towards a Common Goal (2)
Five Independent Segments Working Towards a Common Goal Concentrates Agriculture & Farming A market leader, Juhayna produces concentrates Juhayna’s agricultural activities focus primarily from fruits ranging from oranges to grapes to on livestock, land reclamation and milk mangoes production • Produ
Slide 7: Juhayna has been serving Egypt since 1983
Juhayna has been serving Egypt since 1983 1983: Safwan Thabet founds Juhayna with a state-of-the-art manufacturing 1Q13: Launches two new distribution facility in Sixth of October. Through its centers partnership with global packaging giant 1987: Launches production Tetra Pak (then called Alfa-Laval
Slide 8: Why Juhayna? Key Competitive Advantages
Why Juhayna? We Offer a Number of Key Competitive Advantages Juhayna has one of the largest distribution network in Egypt, with more than 45,000 retail outlets, Distribution 25 distribution facilities and a fleet of more than 1,000 vehicles including 413 refrigerated for transporting goods from the
Slide 9: State-of-the-Art Facilities
State-of-the-Art Facilities 25 distribution centers 7 facilities 25 distribution centers covering Egypt from Manufacturing at 7 facilities in Alexandria in the North to Egypt; All facilities use state- Aswan in the South of-the-art technology and adhere to the highest international standards retail
Slide 10: Juhayna's Financial Position
Juhayna’s Financial Position 11% 15% 11% 11% 1% increase in increase in increase in increase in increase in sales volumes sales value gross profit EBITDA net profit 450,072 3,500 700 350 500,000 403,732 3,294 450,000 3,000 600 300 323,550 400,000 2,855 2,500 500 250 286,274 350,000 2,244 2,000 300,0
Slide 11: Outlook 2014
Outlook 2014 Juhayna has outlined EGP 400 million in investments for 2014 • We look forward to continue our investments across all lines of business for 2014. • We remain focused on our plans to : – Continue progress at new dairy farm. – Full operation of our second EgyFood yogurt plant in Sixth of
Slide 12: Strategy & Market
STRATEGY & MARKET Juhayna has one of the largest distribution networks in Egypt
Slide 13: Long-Term Strategy Builds on Three Complementary Pillars
Juhayna’s Long-Term Strategy Builds on Three Complementary Pillars Vertical Integration Personnel Juhanya Investment in Agility Infrastructure Proactive Organic Growth Management Market Reach Management’s emphasis on the three key pillars of Quality, Responsiveness and Growth have seen Juhayna consi
Slide 14: Our Strategy Has Led Us to Success in a Challenging Period
Our Strategy Has Led Us to Success in a Very Challenging Post-Revolutionary Period Responsiveness Quality Growth Our agility and proactive management Juhayna’s reputation for quality is a key aspect Juhayna’s growth story is fueled by our approach enable Juhayna to predict and of our leading market
Slide 15: Room for Growth in Egyptian Dairy, Yogurt and Juice Markets
There is room for growth in the Egyptian Dairy, Yogurt and Juice Markets Consumption Per Capita (in kg) Consumption Growth (in ‘000 tons) Dairy Segment Dairy Segment In Egypt, the dairy, yogurt and CAGR 14% 150 108 89 78 juice markets are categorized by 400 291 100 69 67 300 253 50 41 38 32 30 22 lo
Slide 16: The Egyptian Milk Market Offers Significant Opportunities for Growth
The Egyptian Milk Market Offers Significant Opportunities for Growth Egyptian Milk Traditionally, Egypt’s milk market Consumption by Category has been characterized by: Consumer education programs 100% 18% 23% 29% 35% • Non-packaged unprocessed and health awareness 80% milk produced by small-scale c
Slide 17: The Egyptian Yogurt Market is Growing at a Steady Pace
The Egyptian Yogurt Market is Growing at a Steady Pace The entrance of international brands into the market; a Egyptian Yogurt Consumption by Category 100% narrowing of the price gap between loose and packaged 80% 54% 63% yogurt; changing lifestyles and increasing health 69% 74% 60% awareness all me
Slide 18: The Egyptian Juice Market witnessed strong growth
The Egyptian Juice Market witnessed strong growth Egyptian Juice Market ('000 tons) Carbonated drinks dominate this market 500 segment, although a slight conversion to Low barriers to entry have led to 400 juices is being seen, supported by increasing a market with more than 300 475 300 health aware
Slide 19: Segments Market Share
Segments Market Share PLAIN MILK MARKET SHARES FLAVORED MILK MARKET SHARES SPOONABLE YOGURT MARKET SHARES Others 3% Others 4% Others 4% Faragello 1% Beyti 1% Bashayer 1% Enjoy 2% Enjoy 2% Lamar 2% Beyti- Spiky 6% El Marai 4% Labanita 2% Nestle 12% Belhana 2% Faragello 7% Lactel 13% Enjoy 3% Sabaho D
Slide 20: Our Lines of Business
SECTION: OUR LINES OF BUSINESS Juhayna’s yogurt is prepared to the highest quality standards
Slide 21: Juhayna's Dairy Segment at a Glance
Juhayna’s Dairy Segment at a Glance 10% 14% 1% 27% increase in increase in decrease in gross profit sales volumes sales revenues gross profit y-o- margin in y-o-y in 2013 y-o-y in 2013 y in 2013 2013 68% Egypt’s #1 market share for plain milk packaged milk producer Production of plain and flavored m
Slide 22: Margins on Dairy segment impacted by higher milk prices
Margins on Dairy segment impacted by higher milk prices Dairy Segment Financial Highlights (EGP MM) 2013 2012 Change • Higher input costs pressure dairy margins. Sales (Ton) 227,368 206,791 10% Net Sales 1,639 1,440 14% Gross Profit 436 439 (1%) Gross Profit Margin 27% 30% (3pp) 22 4Q 2013 INVESTOR
Slide 23: Juhayna's Yogurt Segment at a Glance
Juhayna’s Yogurt Segment at a Glance 2% 11% 6% 35% increase in increase in increase in gross profit sales volumes sales revenues gross profit margin in y-o-y in 2013 y-o-y in 2013 y-o-y in 2013 2013 Recently launched 34% operations at Egyfood Asyut, with a second facility One of Egypt’s top yogurt m
Slide 24: Yogurt segment grows conservatively on back of weakened appetite
Yogurt segment grows conservatively on back of weakened appetite • The traditional high season of Ramadan was impacted by the Yogurt Segment Financial Highlights (EGP MM) developments which took place during 3Q2013. • Very early curfew curbed traditional shopping hours. 2013 2012 Change • Weakened a
Slide 25: Juhayna's Juice Segment at a Glance
Juhayna’s Juice Segment at a Glance 11% 16% 20% 32% increase in increase in increase in gross profit sales volumes sales revenues gross profit y-o- margin in y-o-y in 2013 y-o-y in 2013 y in 2013 2013 23% 3 Egypt’s #1 Fruit pulp and juice types: concentrates share of the total Nectar, Drink, premium
Slide 26: The Juice Segment maintains healthy growth levels
The Juice Segment maintains healthy growth levels Juice Segment Financial Highlights (EGP MM) • Growth in the Juice segment comes on the back of sustained emphasis by Juhayna in its marketing efforts. 2013 2012 Change Sales (Ton) 93,000 83,609 11% • Among other initiatives to support growth across t
Slide 27: Juhayna's Concentrates Segment at a Glance
Juhayna’s Concentrates Segment at a Glance 47% 75% 191% 34% increase in increase in increase in gross profit sales volumes sales revenues gross profit margin in y-o-y in 2013 y-o-y in 2013 y-o-y in 2013 2013 One of Egypt’s Producing at two manufacturing facilities in Sixth top concentrates of Octobe
Slide 28: Strong Demand Has Been Beneficial to the Concentrates Segment
Strong Demand Has Been Beneficial to the Concentrates Segment Concentrates Segment Financial Highlights (EGP MM) • The concentrate segment is a key link in Juhayna’s value 2013 2012 Change chain, with more than 50% of its production used in juice Sales (Ton) 8,532 5,815 47% manufacturing by the comp
Slide 29: Juhayna's Agriculture and Farming Segment at a Glance
Juhayna’s Agriculture and Farming Segment at a Glance 40% 88% 21% increase in increase in gross profit sales volumes sales revenues margin in y-o-y in 2013 y-o-y in 2013 2013 New 550 feddan dairy farm with Juhayna’s agricultural activities a herd size of 4,000 milking cows focus primarily on livesto
Slide 30: The Agriculture & Farming Segment Has Seen Strong Improvement
The Agriculture & Farming Segment Has Seen Strong Improvement Agricultural & Farming Segment Financial Highlights (EGP MM) • Improvements in this segment reflect better weather 2013 2012 Change conditions (which led to better crop yields and higher crop quality) as well as better pricing. Sales (Ton
Slide 31: Juhayna's Commercial Segment at a Glance
Juhayna’s Commercial Segment at a Glance 220 1000+ 3 Vans & Trucks new distribution new vehicles centers in 2013 Among the largest distribution Tiba for Trade & Distribution is Juhayna’s networks in Egypt commercial arm 31 4Q 2013 INVESTOR PRESENTATION
Slide 32: Juhayna's Distribution Footprint Spans Egypt
Juhayna’s Distribution Footprint Spans Egypt 32 4Q 2013 INVESTOR PRESENTATION
Slide 33: Case Study: Delivering Quality
CASE STUDY Delivering Quality In the second quarter, Juhayna launched our new EGP 120 million Egyfood yogurt plant in Assiut to produce both spoonable and drinkable yogurts – Cutting-Edge, Modern: Covering 30,000 square meters, this state-of-the art facility in Assiut features the most up-to-date te
Slide 34: Case Study: Backward Vertical Integration
CASE STUDY Backward Vertical Integration Juhayna is in the process of establishing our first fully- owned dairy farm, the latest development in our ongoing push for total vertical integration. – 550 feddans of land will be dedicated to the dairy farm to include a her size of 4,000 milking cows. – Th
Slide 35: Executive Management
Executive Management Safwan Thabet Seif El-Din Thabet Chairman of the BoD and CEO Deputy Chief Executive Officer Hugo Harbo Sameh El Hodaiby Hisham Zaki Projects Director Financial Affairs Director Administrative Affairs and Government Relations Director Claus Pedersen Amr Ghazaly Abdel Aziz Dafrawy
Slide 36: Board of Directors (1 of 3)
Board of Directors (1 of 3) Safwan Thabet Mr. Thabet has been Chairman of the Board of Directors and Chief Executive Officer of Juhayna Chairman of the BoD and CEO since founding the Group in 1983. He has played a central role in the development of the Egyptian food sector for more than 30 years thr
Slide 37: Board of Directors (2 of 3)
Board of Directors (2 of 3) Ahmed El Abin Mr. El Abin has been a Non-Executive Member of the Board since 1985. He has also been a Non-Executive Member Member of the Board of Directors of the Scientific Center of Documents and Information at Cairo University since 2009. Mr. El Abin is the founder of
Slide 38: Board of Directors (3 of 3)
Board of Directors (3 of 3) Ayman Ismail Mr. Ismail has been a Non-Executive Member of the Board since January 2010. Before joining Non-Executive Member the board, Mr. Ismail spent two years as partner, chairman and CEO of Dar Al Mimar Group (DMG), an engineering contracting company. He has 26 years
Slide 39: Appendix Two: Key Shareholder Information
APPENDIX TWO: KEY SHAREHOLDER INFORMATION Juhayna has worked to align shareholder interests with our business goals
Slide 40: Juhayna's Business Segments and Legal Structure
Juhayna’s Business Segments and Legal Structure DAIRY YOGURT JUICE CONCENTRATES AGRICULTURE COMMERCIAL SEGMENT SEGMENT SEGMENT SEGMENT & FARMING ARM Juhayna Food Egyptian Food International Co. for Modern Al Enmaa for Tiba for Trade Industries Industries (Egyfood) Modern Food Agricultural and Distri
Slide 41: Appendix Three: Financials
APPENDIX THREE: FINANCIALS Management expects Juhayna to successfully continue our growth story going forward
Slide 42: Income Statement
Income Statement (Million EGP) 4Q13 4Q12 2013 2012 Net Sales 807 747 3,294 2,855 Cost of Sales (589) (510) (2,305) (1,963) Gross Profit 219 237 989 892 Gross Profit Margin 27% 32% 30% 31% Sales & Distribution Expenses (122) (92) (406) (353) General & Administrative Expenses (35) (27) (133) (107) Oth
Slide 43: Balance Sheet
Balance Sheet (Million EGP) 2013 2012 Property, Plant and Equipment 1,699 1,480 Projects Under Construction 1,071 531 Agricultural Resources 48 30 Investment in Equity – Accounted Investees 48 43 Other Long Term Debit Balances 1 1 Goodwill 97 97 Non-current Assets 2,964 2,181 Assets Held for Sale 0
Slide 44: Cash Flow Statement
Cash Flow Statement The financial period The financial period from 1/1/2013 till 31/12/2013 (L.E) from 1/1/2012 till 31/12/2012 (L.E) Cash flows from operating activities Net profit for the period before income tax and minority interest in profits 391,647,516 382,700,102 Adjustments for: Fixed asset
Slide 45: Thank You
THANK YOU For more information Fadwa Hossam Issa Head of Investor Relations email: fadwa.issa@juhayna.com Shady Hassan Abdalla Assistant Head of Investor Relations email: shady.abdalla@juhayna.com Tel: +202-38286417 Fax: +202-38286567
Slide 46: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein
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