Novabev Group · RUS:BELU
Novabev — Beluga Group — H1 2020 Earnings Presentation
29 slides from Novabev's earnings presentation, August 2020
Slide 1: Beluga Group 1H2020 Earnings Presentation
BELUGA GROUP 1H2020 EARNINGS PRESENTATION August 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Beluga Group, Co. (the “Company“, or “Beluga • changes in consumer preferences and tastes, demographic trends or perceptions about Group”) and together with its subsidiaries. By attending the meeting where the presentation is health related issues; m
Slide 3: Financial and Operational highlights
BELUGA GROUP 1H2020 financial highlights +15% total volume +12% volume of in-house Sales grew 20% and reached +42% volume of import 38 bln. Rubles* Net Revenue increased Operating profit by 23% to increased by 25% to 2,2 bln. Rubles 26,3 bln. Rubles EBITDA grew 23% and reached 3,3 bln. Rubles Financ
Slide 4: Operating performance
Operating performance 4
Slide 5: Beluga Group performance during COVID-19
Beluga Group performance during COVID-19 Volume growth in 1H 2020 Total shipment In-house brands shipment Import shipment 000, 9L cases 000, 9L cases 000, 9L cases +15% +12% +42% 7 173 6 283 890 6 250 5 620 630 1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 Double digit volume growth is reflected in even
Slide 6: The leading spirits company in Russia
The leading spirits company in Russia Unmatched leadership in home country and further advance worldwide Russia #1 Distilled spirits producer #2 Russia Independent importer #1 Russia #1 Russia Brandy producer Flavored spirits producer1 Russia #4 Globally #1 Whiskey producer Vodka producer Globally #
Slide 7: Unmatched leadership in Russia in major spirits categories
Unmatched leadership in Russia in major spirits categories Market share in 1H2020 by volume Top-5 vodka producers Top-5 flavored liquors producers Beluga Group 12,6% Beluga Group 16,7% Roust 12,0% OPVZ 11,2% Tatspirtprom 9,8% Sordis 7,5% ASG 8,7% Global Spirits 6,8% Global Spirits 6,4% Tatspirtprom
Slide 8: Nielsen Top Growing Brands, 1H 2020
Nielsen Top Growing Brands, 1H 2020 8
Slide 9: Development of own specialized retail chain Winelab
Development of own specialized retail chain to further increase level of controlled sales Winelab key facts Stores rollout dynamics Focus on 3 major regions: Moscow, 700 # of stores (end of 604 612 622 St. Petersburg and East Federal 570 600 period) 518 545 districts 468 Unique assortment with w
Slide 10: Fast growth of Winelab's e-commerce. Omnichannel model.
Fast growth of Winelab’s e-commerce. Omnichannel model. Launched in Aug’18, Omnichannel platform now: Share of e-commerce in total sales and in Moscow&SPB regions Winelab.ru web site Mobile App with > 600 off-line stores Presence in Social 5% with more than 340k more than 100k which support e- Media
Slide 11: New product development: own brands, launch in 2020
New product development: own brands, launch in 2020 New vodkas in premium and low-premium price segments Traditional Siberian Vodka. Vodka from the North. Made from highest quality spirits and purest natural water Made from Lux spirits. Deep on Mariinskiy production freezing purification. facility (
Slide 12: New product development: own brands, launch in 2020
New product development: own brands, launch in 2020 Premium Russian sparkling wine TÊTE DE CHEVAL Tête de Cheval – premium Russian sparkling wine produced according to traditional method of bottle champagnization. Made on own Golubitskoye estate vineyard. No less than 12 months aging in the bottle.
Slide 13: New product development: own brands, launch in 2020
New product development: own brands, launch in 2020 Caribbean rum Devil’s Island Spirits from Caribbean Islands. Aging in oak barrels. Bottling on Georgievskiy production facility. Mainstream price segment. Launch: June 2020. 13
Slide 14: New import contracts, 2020
New import contracts, 2020 Noy Armenian brandy - best selling imported brandy in Russia* #1 imported brandy in Russia. #1 Armenian brandy in Russia. Aging in oak barrels. From Middle to Premium price segment. Launch: March 2020. * Nielsen, 1Q2020 14
Slide 15: New import contracts, 2020
New import contracts, 2020 Mateus - best selling Portuguese wine in Russia*. Part of Portuguese producer Sogrape portfolio #1 Portugal wine in Russia. #1 Rose wine in the World. Launch: May 2020. * Russian Custom 2019 15
Slide 16: Financial overview
Financial overview 16
Slide 17: Consolidated Revenue and Gross Profit
Consolidated Revenue and Gross Profit Revenue breakdown by main Total Net Revenue Total Gross Profit segments RUB bn RUB bn RUB bn* +23% +9% Revenue growth by 23% in 1H2020 26,3 9,2 8,4 mainly due to 15% 21,5 +10% growth of Company’s shipments 16,9 15,4 Alcohol Gross Profit grew 9% mainly due to 1H2
Slide 18: Consolidated EBITDA and Net Profit
Consolidated EBITDA and Net Profit Consolidated EBITDA G&A and distribution expenses RUB bn RUB bn EBITDA grew 23% due to: double-digit growth of total +23% 3,4 G&A distribution sales; IFRS 16 Winelab’s profitability 2,7 effect improvement since major 0,7 IFRS 16 part of the stores matured 0,5 effec
Slide 19: Segment EBITDA
Segment EBITDA* EBITDA breakdown by main segments RUB bn Alcohol Retail +1% Since 2018 the 2,32 2,34 +152% 1,20 Company has reported 3 segments: Alcohol, 0,48 Retail, Food. EBITDA margin in Retail segment is higher than the 1H2019 1H2020 1H2019 1H2020 average in the retail sector in Russia EBITDA sp
Slide 20: Debt Profile overview
Debt Profile overview Debt statistics summary RUB mln 30 Jun’19 30 Jun’20 Decrease in cost of borrowing from 8.9% p.a. in 2019 to 8.5% p.a. in 1H2020 Financial debt (loans and bonds) 16,084 19,703 The debt structure was improved through issuance of two 5 Cash and cash equivalents 812 3,017 bln., 5 y
Slide 21: Income statement
Income statement Rub mln 2018 2019 1H2019 1H2020 YoY, % Net revenue 43,411 53,074 21,450 26,283 23% Cost of sales (26,521) (33,547) (13,055) (17,097) 31% Gross profit 16,890 19,527 8,394 9,186 9% margin 38.9% 36,8% 39,1% 35,0% -4.1 pp G&A expenses (3,102) (3,042) (1,605) (1,553) -3% Distribution exp
Slide 22: Balance sheet
Balance sheet Rub mln 31 Dec’19 30 Jun’20 Rub mln 31 Dec’19 30 Jun’20 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Property, plant and equipment 13,885 13,382 Share capital 1,940 1,580 Goodwill 3,511 3,511 Treasury shares (669) (338) Intangible assets 10,017 10,
Slide 23: Cash Flow
Cash Flow Rub mln 2018 2019 1H2019 1H2020 Operating profit 3,273 4,392 1,734 2,167 Depreciation and amortization 978 2,103 969 1,158 Other non-cash transactions 28 229 32 153 Changes in working capital 466 (2,218) (2,834) (2,999) CF from operating activities 4,745 4,506 (99) 479 Interest paid (1,927
Slide 24: Appendix
Appendix 24
Slide 25: Diversified business with high share of non-vodka products
Diversified business with high share of non-vodka products Key direction for business diversification BELUGA GROUP alcohol revenue evolution 2011 2019 Categories extension Acquisition of vineyards and winery in Russia, focus on premium Russian wines Expansion of imported brands portfolio Vodka (
Slide 26: Diversified product portfolio: own brands
Diversified product portfolio: own brands Other spirits Vodka Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 26 Notes: Price range for every segment could differ based on product category
Slide 27: Diversified product portfolio: imported brands
Diversified product portfolio: imported brands Other spirits Brandy / Cognac / liquor Whisky Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 27 Notes: Price range for every segment could differ based on product category. Whiskys Cigars Barre
Slide 28: High level of corporate governance with independent members on the Board
High level of corporate governance with independent members on the Board of directors In June 2019, ALEXANDER MECHETIN NIKOLAY BELOKOPYTOV BELUGA GROUP reinforced CEO Chairman of the BoD the Board of Directors: Founder of Beluga Group CFO New members 4 on the Board of Directors SERGEY MOLCHANOV MIKH
Slide 29: Company strategy for further development
Company strategy for further development Brand portfolio Retail and distribution Расположение текста Расположение текста Diversified brand на цветной portfolio, coverage of плашке Continued development of the на цветной плашке allРасположение Сноска segments или примечание текста distribut