Savola Group · TADAWUL:2050
Savola — Q2 2017 Earnings Presentation
24 slides from Savola's earnings presentation, 2017
Slide 1: Earnings Presentation Q2 2017
Earnings Presentation Q2 2017 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 • In Q2 2017, the Group reported a net profit of SAR 229.3 million; with adjusted net profit of SAR 201.1 million after deducting the capital gain from lease rights of SAR 62.0 million and adding back share of impairment loss of SAR 33.8 million from an associate. • Savola’s retai
Slide 4: Q2 2017 - Snapshot
Q2 2017 - SNAPSHOT » Q2 2017 revenue of SAR 6.7 bn (Q2 2016: SAR 7.1 bn) » Q2 2017 net income SAR 229.3 mn (Q2 2016: SAR 253.5 mn) GROUP » Adjusted net income of SAR 201.1 mn after gain of sale of lease rights and share of impairment loss from an associate » Q2 2017 revenue of SAR 3.4 bn (Q2 2016: S
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income SAR Mn Income Q2 6,711 1,140 293 229 201 2017 -6.0% vs. LY -14.5% vs. LY -36.2% vs. LY -9.5% vs. LY Q2 2016: 319 YTD 12,544 2,180 431 234 181 2017 -7.5% vs. LY -16.3% vs. LY -45.9% vs. LY -37.2% vs. LY YTD 2016
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales -8% -6% -9% 13,563 12,544 7,141 6,711 6,422 5,833 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -18% -14% -16% 1,273 1,333 1,140 1,040 2,606 2,180 Q1 2016 Q1 2017 Q2 2016 Q2 2017
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA YTD EBITDA -35% -36% -35% 1,195 683 772 512 440 332 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 8.0% 5.7% 9.6% 6.6% 8.8% 6.1% YoY Net Profit YTD Net Profit -96% -10% -37% 119 254 229 373 234 5 Q1 2016 Q1 2017 Q2 2016 Q2
Slide 8: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn Revenue by Business Net Debt YTD 2016 YTD 2017 SAR 13.6 Bn SAR 12.5 Bn -3% 4.1% 4.3% Foods 7,689 7,456 43.9% 47.8% Retail 52.0% Food Services 47.9% Jun-16 Jun-17 Revenue by Geography CAPEX YTD 2016 YTD 2017 SAR 13.6 Bn SAR 12.5 Bn 9.3% 7.5% -
Slide 9: Implications of Exceptional Items
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn Adjusted YTD 2016 Net Income Adjusted YTD 2017 Net Income -69% 580 98 89 20 340 33 234 (25) 181 (62) 34 YTD 2016 IFRS Share of FX Fee USD YTD 2016 YTD 2017 Dilution Capital Share of YTD 2017 reported NI Adjustment associate’s Impact Sourcing Adjusted reported
Slide 10: Panda Retail Company
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Slide 11: Retail - Snapshot
RETAIL - SNAPSHOT Gross Adjusted Selling Revenue Net Loss Profit Net Loss Space SAR m Q2 3,389 586 (160) (228) Added 2017 6,310 m2 -12.5% vs. LY -20.3% vs. LY Q2 2016 : (94) Q2 2016 : (94) 0.8% vs. FY 2016 Total YTD 6,110 1,115 (390) (458) Space 2017 -14.5% vs. LY -24.5% vs. LY YTD 2016: (125) YTD 2
Slide 12: Retail – Highlights
RETAIL – HIGHLIGHTS • The transformation exercise initiated last year is ongoing with several initiatives running concurrently. • Q2 witnessed the sale of Hyper in UAE and the opening of a new Hyper in Egypt. One Pandati store opened and another closed in Q2 2017. Total retail selling space increase
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales -14% -13% -17% 7,145 6,110 3,874 3,389 3,271 2,721 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -29% -20% -24% 741 735 529 586 1,476 1,115 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 2
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Margin YoY EBITDA YTD EBITDA 139 99 40 (84) (106) (190) Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 3.0% -3.1% 1.0% -3.1% 1.9% -3.1% YoY Net Profit YTD Net Profit (32) (94) (126) (230) (160) (390) Q2 2016 Q2 2017 Q1 2016 Q1 2017 YTD 2016 YTD 2017 -1.0% -8.4
Slide 15: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper Hyper 4 in 1 KSA Egypt 1 Egypt KSA Egypt UAE 163 165 2 Hyper Hyper Hyper 66 67 1 1 (1) Dec Q1 Q2 Closures Q2 Dec Q1 Q2 Closures Q2 2016 ’17 ’17 ’17 2016 ’17 ’17 ’17 Pandati Total Total Selling Area Selling Area 752,784 m2 759,094 m2 (YTD Growth: 0.8%)
Slide 16: Savola Foods
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Slide 17: Foods – Highlights
FOODS – HIGHLIGHTS • Q2 2017 total revenue of SAR 3.15 billion is 1.4% above Q2 2016 revenue of SAR 3.10 billion while YTD June 2017 revenue was 6.1 billion vs. YTD June 2016 revenue of 6.0 billion (+1.2%) • Total volume of 1,771 k MT 1.9% below June YTD 2016 mainly due to: • overall volume decline
Slide 18: Foods - Snapshot
FOODS - SNAPSHOT Adjusted Gross Net Revenue EBIT Net Profit Income Income SAR m Q2 3,146 481 266 192 192 2017 +1.4% vs. LY -8.0% vs. LY -3.1% vs. LY +33.9% vs. LY -36.8% vs. LY YTD 6,100 906 454 303 278 2017 +1.2% vs. LY -6.5% vs. LY -9.2% vs. LY +21.5% vs. LY -32.2% vs. LY 18
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YTD Sales +1% +1% +1% 6,028 6,100 3,103 3,146 2,925 2,954 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 YoY Gross Profit YTD Gross Profit -5% -8% -7% 447 425 523 481 970 906 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 15.3% 14.4%
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY EBITDA YTD EBITDA -11% -11% 600 -12% 532 339 303 261 229 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 2016 YTD 2017 8.9% 7.8% 10.9% 9.6% 10.0% 8.7% YoY Net Profit YTD Net Profit +5% +34% +21% 106 111 192 144 303 250 Q1 2016 Q1 2017 Q2 2016 Q2 2017 YTD 201
Slide 21: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR Mn Volume (MT 000) Revenues -0.2% +0.2% 817 815 4,107 4,115 5% 5% 4% 4% 4% 4% 4% 6% 4% 7% 7% 8% 9% 11% 10% 9% Morocco Morocco YoY +3% YoY +10% Sudan Sudan 29% YoY +1% 30% 33% YoY 0% 31% Algeria Algeria YoY +14% YoY +20% Turkey Turkey 16% 14% YoY +5% 17% 12% YoY -9% I
Slide 22: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR Mn Volume (MT ‘000) (1) Revenues (1) KSA KSA YoY -2% YoY +16% Egypt Egypt YoY -38% +10.1% YoY -24% -7.7% 1,779 821 758 1,616 85% 89% 85% 90% 15% 10% 15% 11% YTD 2016 YTD 2017 YTD 2016 YTD 2017 (1) Sugar volumes and revenues include only the contribution from sugar
Slide 23: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 24: Financials – YTD June 2017
FINANCIALS – YTD JUNE 2017 (all figures are in SAR millions) Segment Wise Financials YTD - 2017 YTD - 2016 (Represented) Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Oil-Mature Markets 3,492 611 288 224 321 3,546 720 409 286 451 Oil-Start-up Markets* 6