Savola Group · TADAWUL:2050
Savola — Q1 2018 Earnings Presentation
21 slides from Savola's earnings presentation, 2018
Slide 1: Earnings Presentation Q1 2018
Earnings Presentation Q1 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 • In Q1 2018, the Group reported a net loss of SAR 84.3 mn; compared to a net profit of SAR 4.8 mn from Q1 2017 largely due to lower profitability from foods and continued losses in retail, which came in slightly better than last year. • Savola’s retail segment recorded a net loss
Slide 4: Q1 2018 - Snapshot
Q1 2018 - SNAPSHOT » Q1 2018 revenue of SAR 5.1 bn (Q1 2017: SAR 5.8 bn) GROUP » Q1 2018 net loss of SAR 84.3 mn (Q1 2017: Profit of SAR 4.8 mn) » Adjusted net loss of SAR 57.0 mn after adjusting for one-off items and charges » Q1 2018 revenue of SAR 2.4 bn (Q1 2017: SAR 2.7 bn) RETAIL » Q1 2018 net
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Net Gross Net SAR Mn Revenue EBITDA Income / Profit Income / (Loss) (Loss) Q1 5,145 946 243 (84) (57) 2018 -11.1% vs. Q1 2017 -9.1% vs. Q1 2017 -26.7% vs. Q1 2017 Q1 2017: 4.8 Q1 2017: (20) 5
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit -11% -9% 5,787 5,145 1,040 946 Q1 2017 Q1 2018 Q1 2017 Q1 2018 18.0% 18.4% YoY EBITDA YoY Net Income -27% 332 243 5 (84) Q1 2017 Q1 2018 Q1 2017 Q1 2018 5.7% 4.7% - - 6
Slide 7: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR Bn Revenue by Business Q1 2017 Q1 2018 SAR 5.8 Bn SAR 5.1 Bn 4.7% 5.4% Foods Retail 48.8% 50.0% 45.3% Food Services 45.8% Net Debt CAPEX -13% -32% 7,707 6,685 160 109 Q1 2017 Q1 2018 Q1 2017 Q1 2018 7
Slide 8: Implications of Exceptional Items
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR Mn Adjusted Q1 2017 Net Income Adjusted Q1 2018 Net Income 5 (25) (20) 31 (57) (84) (3) Q1 2017 Dilution Gain Q1 2017 Q1 2018 Gain on sale of Currency Q1 2018 reported NI on USCE Adjusted NI reported NI Dar Al Tamleek translation Adjusted NI 8
Slide 9: Panda Retail Company
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Slide 10: Retail - Snapshot
RETAIL - SNAPSHOT Gross Net Income Selling SAR Mn Revenue Profit / (Loss) Space Q1 2,415 537 (223) 743,620 m2 2018 -9.7% vs. Q1 2017 3.3% vs. Q1 2017 Q1 2017 : (229) -2.5% vs. Q1 2017 10
Slide 11: Retail – Highlights
RETAIL – HIGHLIGHTS • Since joining, the new Panda CEO has continued the transformation exercise with several ongoing initiatives including improvement of product availability (especially of grocery items), working towards a differentiated value proposition to become the destination for fresh produc
Slide 12: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit -10% +3% 2,674 2,415 520 537 Q1 2017 Q1 2018 Q1 2017 Q1 2018 19.4% 22.2% YoY EBITDA YoY Net Income (84) (87) (229) (223) Q1 2017 Q1 2018 Q1 2017 Q1 2018 - - - - 12
Slide 13: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper 162 67 67 161 (1) Dec Additions Closures Q1 Dec Additions Closures Q1 2017 ’18 2017 ’18 Pandati Total Total Selling Area Selling Area 746,167 m2 743,620 m2 138 367 132 360 (6) (7) Dec Additions Closures Q1 Dec Additions Closures Q1 2017 ’18 2017 ’18 1
Slide 14: Savola Foods
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Slide 15: Foods – Highlights
FOODS – HIGHLIGHTS • Total volume of 880 KMT, 4.4% more than Q1 2017 attributed to the following: 1. Oil volumes increased by 2.5%, driven by Egypt and start-up markets 2. Sugar volumes increased by 4.4%, driven by higher sales in Egypt 3. Pasta volumes increased by 48.5% • Q1 2018 total revenue of
Slide 16: Foods - Snapshot
FOODS - SNAPSHOT Adjusted Net Gross Net Revenue EBITDA Income / Profit Income / (Loss) (Loss) SAR m Q1 2,572 331 149 8 39 2018 -12.9% vs. Q1 2017 -22.2% vs. Q1 2017 -34.9% vs. Q1 2017 -92.5% vs. Q1 2017 Q1 2017: 95 16
Slide 17: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR Mn Growth Margin YoY Sales YoY Gross Profit -13% -22% 2,954 2,572 425 331 Q1 2017 Q1 2018 Q1 2017 Q1 2018 14.4% 12.9% YoY EBITDA YoY Net Income -35% -93% 229 111 149 8 Q1 2017 Q1 2018 Q1 2017 Q1 2018 7.8% 5.8% 3.7% 0.3% 17
Slide 18: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS Volume (MT 000) Revenues (SAR Mn) +2.5% -12.3% 403 1,963 393 5% 4% 4% 3% 4% 4% 1,722 9% 6% 8% 5% 10% 3% 9% 8% 10% Morocco Morocco YoY +22% 12% YoY +24% Sudan Sudan 33% YoY -27% 36% YoY -37% 33% Algeria 30% Algeria YoY +10% YoY +5% Turkey Turkey YoY -3% YoY +3% 12% 15% 11
Slide 19: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS Volume (MT 000)* Revenues (SAR Mn)* KSA KSA YoY 0% YoY -26% Egypt Egypt +4.4% YoY +56% -21.9% YoY +16% 374 883 359 689 87% 91% 92% 87% 13% 9% 13% 8% Q1 2017 Q1 2018 Q1 2017 Q1 2018 * Excluding USCE which is no longer consolidated; the above charts were adjusted for inc
Slide 20: Financial Summary
JgoLA FINANCIAL SUMMARY SAVOLA
Slide 21: Financials – Q1 2018
FINANCIALS – Q1 2018 Note: the above table includes contribution from emerging categories in the foods segment 21