Tat Gida Sanayi A.s. · BIST:TATGD
Tat Gida Sanayi A.s — Tat Gıda — H1 2023 Earnings Presentation
23 slides from Tat Gida Sanayi A.s's earnings presentation, Jul 28, 2023
Slide 1: 1H2023 Financial Results Review
Tat Gıda 1H2023 Financial Results Review July 28, 2023
Slide 2: Agenda
1 Key messages and Highlights 2 1H2023 Financial Results 3Q&A Agenda
Slide 3: Key messages and Highlights
1 Key messages and Highlights Tat’s Purpose: We exist to lead the change that will deliver good and healthy food for all
Slide 4: Key Messages & Financial Highlights
Key Messages & Financial Highlights Solid top-line growth; while financial expenses limited bottom-line growth 1H2023 Highlights ▪ Net sales for 1H23 increased 109%, to TL 2.1 bn, reflecting inflation-driven higher Net Sales prices partially offsetting the negative impact of elevated 2022 seasonal c
Slide 5: Global average field-gate prices for tomatoes expected to be higher in 2023
Global average field-gate prices for tomatoes expected to be higher in 2023 In 2023, global tomato processing amount is expected to increase by 12% to 42.6 million tons. The biggest increase is expected in California and China, while Turkey’s processing amount is expected to reach 2.6 mn tons with
Slide 6: Turkey's tomato paste exports came down in 2023
Turkey’s tomato paste exports came down in 2023 Despite elevated input prices in 2H2022 in TL terms, the pressure on FX rates led to a drop in Turkey’s tomato paste exports in volume terms in the first five months of 2023 (down by 72% to 32.6K tons). Producer Price Index of Agricultural Products
Slide 7: Agricultural input price index on a declining pattern
Agricultural input price index on a declining pattern ▪ Agricultural input price index (Agriculture-IPI) annual growth rate peaked in September 2022, reaching 138.15%: fertilizer and soil improvers with 227% and energy (diesel) with 237% were the subgroups that had the highest annual increase. ▪ The
Slide 8: Turkish tomato paste market has contracted in 1H2023
Turkish tomato paste market has contracted in 1H2023 Based on Nielsen report (total Turkey), Turkish total tomato paste market contracted by 3% yoy in 1H2023; whereas there was a yearly growth of 14% in 1H2022.. Despite the contraction in the market, Tat was able to increase its market share in
Slide 9: Market Leader: Ranks #1 in almost all its categories in local market
Market Leader: Ranks #1 in almost all its categories in local market Tat’s market share based on Nielsen 1H2023 report - excluding Hard Discounters and based on share of sales Tat #1 Tat #1 48% Tomato Tomato 33% Products Paste Others Others Tat #1 #3 Tat 24% Mayonnaise 18% Ketchup Others Others Tat
Slide 10: 1H2023 Financial Results
2 1H2023 Financial Results Net Sales (US$ mn)* EBITDA (US$ mn)* Net Income (US$ mn)* +36% +27% 108 13 11 12 69 11 9 58 8 1H2021 1H2022 1H2023 1H2021 1H2022 1H2023 1H2021 1H2022 1H2023 * From ongoing operations
Slide 11: Revenues TL2.1 bn, up by 109% yoy
▪ Net sales was TL2.1 bn in 1H23; up by 109% Net Sales (TL Mn) yoy. +109% Revenues ▪ Total sales volume in 1H23 decreased by 11% yoy, mainly due to lower exports, 2.127 TL2.1 bn, up by especially in 1Q23. Sales volume in 2Q23 +108% 109% yoy was almost in line with 2Q2022. ▪ Domestic sales increased
Slide 12: Export growth was 25% in 1H2023 yoy
Quarterly Exports (US$ mn)* ▪ Exports in 1H23 were at US$33 mn, Export growth displaying 25% growth yoy in US$ terms, 21 while growth in 2Q23 was 77% yoy. 18 17 was 25% in 13 16 ▪ Exports share in total sales was 32% in 11 1H2023 yoy 2Q23, vs. 28% in 1Q23 and 29% in 2Q22. 7 7 10 9 1Q21 2Q21 3Q21 4Q2
Slide 13: Last harvesting season costs kept COGS higher
COGS (TL Mn) Last harvesting ▪ Elevated last harvesting season costs led to a +138% season costs pressure on margins in 2H22 and 1H23 results. 1.595 ▪ Gross profit increased by 53% yoy to TL532 kept COGS mn in 1H23; while gross margin came in at +141% higher 25% in 1H23, vs. 26.5% in 4Q22 and 34% in
Slide 14: OPEX/Net Sales: 14% in 1H23, vs. 19% in 1H22
▪ Operating expenses in 2Q23 increased by OPEX-to-Net Sales % 76% yoy, as a result of higher personnel OPEX/Net Sales: expenses due to inflationary impact. 14% in 1H23, ▪ As the effect of increasing personnel 19 19 19 16 vs.19% in 1H22 expenses were partially off-set with 14 13 14 12 operational eff
Slide 15: EBITDA at TL253 mn, up by 54%
▪ EBITDA at TL253 mn in 1H23, EBITDA (TL Mn) displayed a yoy increase of 54%; +54% EBITDA at while EBITDA margin was 12% in 253 1H23 and 9% in 2Q23, vs. 16% in TL253 mn, both 1H22 and 2Q22. 164 12% up by 54% ▪ Comparing 2Q23 vs 1Q23: TL75 79 89 mn decline in EBITDA, TL51 mn is led by lower gross pro
Slide 16: Net Financial debt at TL2.0 bn
▪ Due to seasonality and elevated TL mn 1Q2022 FY2022 1H2023 Net Financial harvesting season costs, Net Financial Debt reached TL2.2 bn at FY2022-end, Cash and cash equivalents ST Financial Debt 252 294 288 2,322 91 1,039 debt at and came down to TL2 bn1H23-end. LT Financial Debt 90 150 1,043 TL2.0
Slide 17: Net Profit came in at TL174 mn
Net Profit (TL mn) ▪ Net Profit at TL174 mn in 1H23, Net Profit remained intact at the levels -3% 179 came in at attained in 1H22 due to higher financial expenses. 174 TL174 mn 84 -9% 76 1H2022 1H2023 2Q2022 2Q2023 Net Profit (TL mn) Net Profit (TL mn) & Net Profit Margin (%) Net Profit Margin Net P
Slide 18: Getting ready for a more favorable harvesting season
Getting ready for a more favorable harvesting season Agricultural Inflation indices growing at a lower pace coupled with expected higher tomato output in the new season may limit increases in tomato price. Global tomato purchasing prices expected to be higher in the new season as reported, which
Slide 19: Income Statement - Summary (TL mn)
Income Statement - Summary (TL mn) 1H2022 1H2023 D YoY 2Q2022 2Q2023 D YoY Net Sales 1.019 2.127 109% 483 1.004 108% Cost of Sales (-) 670 1595 138% 317 763 141% Gross Profit 349 532 53% 166 240 45% Operating Expenses (-) 193 297 54% 91 161 76% Operating Profit 156 236 51% 75 80 7% EBITDA 164 253 54
Slide 20: Balance Sheet - Summary (TL mn)
Balance Sheet -Summary (TL mn) 1H2022 9M2022 FY2022 1Q2023 1H203 Current Assets 1.788 3.669 3.915 3.978 3.278 Cash 301 85 288 565 91 Trade receivables 597 748 844 1.079 1.319 Inventories 596 2.456 2.392 1.876 1.453 Non-current Assets 369 458 522 612 695 Total Assets 2.157 4.127 4.437 4.590 3.973 Cur
Slide 21: Degree Campaign
TV & Radio In Sauces 360 Degree Campaign “The taste that will Mass Transportation screens New Slogan and Packaging not stay on the plate” Intensive Display & Insert Sponsorships University Stands & Events Social Media and Influencer Marketing
Slide 22: This presentation does contain information and analysis on financial statements that reflect the Company
This presentation does contain information and analysis on financial statements that reflect the Company management’s current views. Although it is believed that the information and analysis are correct and expectations reflected in these statements are reasonable, they may be affected by a variety
Slide 23: Thank you
Thank you For further questions please contact: Banu Çamlıtepe - head of IR banu.camlitepe@tat.com.tr Tat Gıda A.Ş. investorrelations@tat.com.tr Taşdelen Mahallesi Sırrı Çelik Bulvarı No: 7 Çekmeköy - İstanbul 23