Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — FY2023 Earnings Presentation
36 slides from Sligro Food's earnings presentation, Feb 8, 2024
Slide 1: 2023 annual figures
2023 annual figures 8 February 2024
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2023 annual figures Rob van der Sluijs • Developments in 2023 Koen Slippens • 2024 annual plans Koen Slippens • 2024 outlook Koen Slippens 2
Slide 3: Abridged statement of profit or loss
Abridged statement of profit or loss Revenue ▪ Revenue increased by 15.2%, of which 8.8% is organic growth - Netherlands: +8.6% (organic growth) - Belgium: +75.4% (of which 11.3% is organic). ▪ COVID-19 restrictions still in effect over the first six weeks of 2022. ▪ Inflation approx. 8% ▪ Sligro-M
Slide 4: EBIT from operations; EBITDA trend excl. book profits
EBIT from operations; EBITDA trend excl. book profits Opera ting res ult ( EBI T) Net her la nds Belgium Gr oup Operating result (EBIT) x € million 2023 2022 2023 2022 2023 2022 E BIT r epor t ed 45 59 -30 -16 15 43 ▪ €12 million rise in EBIT from -/- Book profits on asset sales 7 17 0 0 7 17 operat
Slide 5: Gross profit
Gross profit ▪ Gross profit margin is 26.7% (unchanged). ▪ Scope to pass on price increases is limited. ▪ Steady gross profit margin overall in NL: - Mix (cash-and-carry vs. delivery service) had dampening effect; growth in national accounts, not so much in regional delivery service and cash-and-car
Slide 6: Other operating income
Other operating income ▪ 2023: - €5 million income from sale of land in Amsterdam and €2 million book profit through the sale of real estate ▪ 2022: - €16 million one-off untaxed book profit on sale of stake in Smeding. 6
Slide 7: Operating costs
Operating costs ▪ Operating costs as a percentage of revenue fell to 22.2% (2022: 22.3%). ▪ Sharp rise in wages, logistics costs and other costs. ▪ Absorbed by cost-cutting and efficiency-increasing measures. ▪ Additional logistics costs in 2022 due to vehicle and driver shortages dropped to zero in
Slide 8: Depreciation, amortisation and impairment
Depreciation, amortisation and impairment ▪ Depreciation and amortisation charges up €39 million. ▪ Amortisation and depreciation charges at Sligro-M totalled €10 million: - €2 million on property, plant and equipment - €4 million on right-of-use assets (IFRS 16) - €4 million on places of business a
Slide 9: Financial income and expenses and income tax
Financial income and expenses and income tax ▪ Interest expenses up €9 million due to: - increased debt position following the acquisition of Metro sites - rising variable interest rates. 9
Slide 10: Abridged statement of cash flows
Abridged statement of cash flows ▪ Higher cash flow from business operations thanks to improvements in working capital position. ▪ Metro acquisition costs €44 million. ▪ Refinancing agreed, old loans repaid, €30 million repayment on USPP loan that was payable in April. • Investments up due to: - ref
Slide 11: Financing
Financing ▪ Net interest-bearing debts/EBITDA = 1.60. - As at 31 December, we were comfortably within our lending covenants; Refinancing process completed in April 2023. ▪ €30 million repayment made on USPP loan. ▪ Committed €260 million credit facility agreed with three major banks: - three-year co
Slide 12: Net profit and earnings per share
Net profit and earnings per share Dividend of €0.30 per share proposed for 2023 ▪ Non-cash impact of impairments was €19 million in 2023 (€14 million after tax) and is classed as a non-recurring expense ▪ EPS excluding impairments is €0.46 per share ▪ Interim dividend of €0.30 per share paid in Octo
Slide 13: Segment results
Sligro Food Group NV. Netherlands Belgium Group x€ million 2023 2022 2023 2022 2023 2022 Revenue 2.429 2.238 430 245 2.859 2.483 Organic revenue growth as % 86 29,3 11,3 46,3 88 30,8 Gross profit as % of revenue 2,1 27,1 24,1 23,0 26,7 26,7 Gross operating result (EBITDA) 145 134 (9) (8) 137 126 Ope
Slide 14: Developments in 2023
Developments in 2023
Slide 15: General economic developments
General economic developments ▪ Low consumer confidence, showing slight recovery. ▪ Restraint in spending; due to high inflation, consumers are more price-conscious and visit less often. ▪ High inflation has disruptive effect on market and the hospitality business model. ▪ Labour market still tight,
Slide 16: Food Service market development in the Netherlands
Food Service market development in the Netherlands ▪ FoodService Instituut Nederland (“FSIN”) estimate for the food service market in 2023: - Market is worth €22.0 billion in terms of consumer spending: ▪ an increase of 15.8% vs. 2022 - Market is worth €7.7 billion in terms of wholesale value: ▪ an
Slide 17: Food Service market development in Belgium
Food Service market development in Belgium ▪ Different definitions for the size of the food service market in Belgium and the Netherlands mean figures for the two countries are not comparable. ▪ FoodService Alliance’s estimate for the food service market in 2023: - in terms of consumer spending, a m
Slide 18: EBITDA development
7.5% EBITDA development EBITDA % High end Low end 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Normalised Logistics BE Centralised Sligro-M Upsell NL Organic growth Tobacco Target cost reduction Grossmargin EBITDA 2025 EBITDA 2023 operation 7.5% Above change programmes will bring EBITDA margin up to 7.5%
Slide 19: Operational and market developments
Operational and market developments ▪ Focus on improving basic service provision: ‐ Return to normal in supply chain has led to improvements in service level and timeliness of deliveries ‐ Further improvement in service provision planned for 2024 from good-on-average to good-in-every-case ‐ Substant
Slide 20: Developments – BeNe
Developments – BeNe ▪ From separate countries to a BeNe organisation; Dutch and Belgian activities managed from a single central International Board rather than separate boards in each country. ▪ Better use of group synergies through standardisation of processes, systems and product ranges: ‐ bundli
Slide 21: Developments – Sligro-M
Developments – Sligro-M Following the acquisition of the 9 Metro stores ▪ Nationwide network and synergy ‐ From 3 to 12 cash-and-carry outlets ‐ Nationwide coverage ‐ Basis to seize economies of scale ‐ Opportunities for further optimising our services. ▪ Development in first year: ‐ Rapid start-up
Slide 22: Developments – Sligro Food Group Transport / takeover of Simon Loos operations
Developments – Sligro Food Group Transport / takeover of Simon Loos operations ▪ Launch of Sligro Food Group Transport ‐ Reduce dependency on third-party haulage firms ‐ Increase insight into cost structure of logistics services ‐ Accelerate sustainability: first 25 electric trucks have entered serv
Slide 23: Developments – ERP, data & digital
Developments – ERP, data & digital ▪ After the SAP go-live in November 2022: ‐ Antwerp cash-and-carry operation runs on SAP ‐ Antwerp delivery service is operated from Evergem ‐ Programme evaluation completed; chosen solution is too complex for roll-out ‐ SAP Hybris online environment is working wel
Slide 24: Developments – Sustainability
Developments – Sustainability Progress on CSRD ▪ CSRD materiality analysis performed ▪ 14 topics identified with associated KPIs and targets ▪ Stakeholder engagement Q4 2023 – Q1 2024 ▪ Measurement of most KPIs started as from January 2024 ▪ We are dependent on developments in the industry and suppl
Slide 25: Developments – Sustainability
Developments – Sustainability 2023 2022 CO2-reductie sinds 2010 (%) -39,0% -33,4% Aandeel E&H assortiment Nederland (%) 14,3 11,8 Aandeel E&H assortiment België (%) 7,9 6,2 Zonne-energie Aantal zonnepanelen (stuks) 57.729 50.969 Opbrengst (mWh) 13.466 13.529 Oppervlakte gasloze panden (m2) 414.000 3
Slide 26: Investments in network of sites
Investments in network of sites Network of sites: ▪ Renovation and remodelling 2023: ‐ Alkmaar cash-and-carry outlet ‐ Emmen cash-and-carry outlet ‐ Leeuwarden cash-and-carry outlet ‐ Nieuwegein cash-and-carry outlet ‐ Liège cash-and-carry outlet ‐ Sligro-M Brussels cash-and-carry outlet ▪ Completed
Slide 27: 2024 annual plans
2024 annual plans
Slide 28: Annual plans
Annual plans Centralisation, cost reductions and BE base ▪ Operational excellence: improve customer-specific service level and timeliness of deliveries, and make customers aware of product range and alternatives ▪ Implementation of BeNe set-up throughout the organisation: convert entire organisation
Slide 29: Annual plans
Annual plans Investments in network and infrastructure ▪ Renovation of Ghent, Hague and Groningen cash-and-carry outlets ▪ Start of construction of new building at De Kweker (Amsterdam) ▪ Refurbishment of Sligro-M locations ▪ Expansion of Maastricht delivery service site Products and services ▪ Inte
Slide 30: Annual plans
Annual plans ERP and digital ambition ▪ New SAP approach: start setting technical and organisational baseline conditions and begin template approach ▪ Roll out the data platform implemented in 2023: increase data-driven work method/cooperation. People and organisation ▪ Focus on continuous improveme
Slide 31: Annual plans
Annual plans Just do it! ▪ Just Do It is the motto for 2024: total focus on what we can do and deliver ▪ Focus on daily operations with clear choices and priorities for change programmes, no bogging down in planning ▪ Keep the customer squarely in view; quality service and appropriate pricing ▪ Stro
Slide 32: Outlook
Outlook
Slide 33: Outlook
Outlook ▪ Market: - (Food) inflation levelling off but will remain high at 5-6% - Consumer confidence and (geo)political uncertainties will weigh on volumes in the ‘out of home’ channel - Limited market growth overall. ▪ At Sligro Food Group: - Manage inflation in our pricing - Good grip on costs; c
Slide 34: Appendix
Slide 35: Financial position
Sligro Food Group NV. x € million 2023 2022 x € million 2023 2022 Assets Liabilities Goodwill 130 125 Paid-up and called-up capital 3 3 Other intangible assets 143 144 Share premium 31 31 Property, plant and equipment 296 281 Other reserves (2) (4) Right-of-use assets 250 203 Retained earnings 429 4
Slide 36: Segment cash flows
Sligro Food Group NV. Netherlands Belgium Group x€ million 2023 2022 2023 2022 2023 2022 Net cash flow from business operations 170 108 (18) (8) 152 100 Interest received and paid (9) (3) 0) 0) (9) (3) Dividends received from participations 8 6 0 0 8 6 Income tax paid (6) (11) (3) (1) (9) (12) Net c