Agthia Group · ADX:AGTHIA
Agthia — FY2020 Earnings Presentation
19 slides from Agthia's earnings presentation, Mar 9, 2021
Slide 1: Analysts & Investors Call 2020 Results
Analysts & Investors Call 2020 Results 9 March 2021 1
Slide 2: Disclaimer – Forward Looking Statements
DISCLAIMER – FORWARD LOOKING STATEMENTS Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: FY 2020 Operational Highlights
FY 2020 | OPERATIONAL HIGHLIGHTS ❑ COVID-19: Agthia’s Resilience and Agility • Protect topline • Ensure product availability • Preserve safety of our employees ❑ BoD / Managerial changes: Diverse, Proficient and in support of our growth agenda • Election of Khalifa Al Suwaidi as Chairman of Board of
Slide 4: FY 2020 Operational Highlights (Con't)
FY 2020 | OPERATIONAL HIGHLIGHTS (CON’T) ❑ Delivering on our Growth Strategy: Expanding into new categories & markets • Acquiring Al Foah Company LLC, the world’s largest date processing and packaging company, to (i) diversify the breadth of our product offerings, (ii) enhance our competitive access
Slide 5: FY 2020 Financial Highlights
FY 2020 | FINANCIAL HIGHLIGHTS Revenues (AED MN) FY 2020 2,061 Revenues 1.1% • Sustainable leadership position across key FY 2019 2,039 categories • Growth driven by continuous increase in 5- EBITDA (AED MN) gallon, food categories and flour FY 2020 169 8% (467)bps FY 2019 13% Profitability 262 • Un
Slide 6: Agthia Market Shares
AGTHIA MARKET SHARES1 Sustainable leadership across key categories Volume market share MAT 2020 Agthia’s Current Rank UAE- BW 29.4% 1 KSA – Jeddah - BW 9.0% 4 Kuwait - BW 5.1% 7 Flour (B2C) 30.2% 2 Feed 41.0% 1 Capri Sun 6.7% 4 Yoplait- Kids 70.9% 1 Yoplait- Fruit 13.5% 2 UAE-Tomato Paste 29.1% 1 UA
Slide 7: Group Sales Performance
GROUP SALES PERFORMANCE Categories Geographies Channels + 5-gallons HOD + UAE: 5 gallons, TP/FV, Trading + Retail (Modern & + Food items, Bakery & Flour Traditional Trade) + Agri + Egypt + E-commerce (+5x y/y) + Kuwait + CSD (Municipality) - Bottled Water - Beverages - UAE: Bottled Water & Beverages
Slide 8: Water & Beverage | Growth by Category
WATER & BEVERAGE | GROWTH BY CATEGORY Volume1 by category (MN) UAE - WATER • HOD: higher demand from homes overcompensating drop in corporates channel • BW: lower volume on restrained tourism and reduced demand from the food service channel 104 110 76 80 KSA • Significant hit amidst lockdown restric
Slide 9: Water | Dive into UAE Bottled Water
WATER | DIVE INTO UAE BOTTLED WATER Retail channel analysis Volume share % Value share % YTD share % Total Agthia Volume share YTD’19 YTD’20 Al Ain Total Agthia 28.9% 29.4% Comp 1 Comp 1 17.4% 14.5% Comp 2 Comp 2 14.2% 17.9% Comp 3 Bayan Comp 3 9.5% 8.6% Alpin YTD'19 YTD'20 YTD'19 YTD'20 • Defensive
Slide 10: Food | Growth by Category
FOOD | GROWTH BY CATEGORY Volume1 by category (MN) Trading items (Community Support Division) • Key driver of category sales on increased at-home consumption and e-commerce orders Tomato Paste / Frozen Vegetables 36 29 • Egypt: boosted demand for consumer products 27 20 • UAE: increased at-home cons
Slide 11: Agri | Growth by Category
AGRI | GROWTH BY CATEGORY Volume1 by category (MN) Flour • Strong domestic volumes with expanded retail penetration • Expansion in exports (including an order to World Food Program) 764 734 453 443 311 291 Animal Feed • Flat sales despite drop in local demand amid new Flour Animal Feed Total Agri co
Slide 12: Financial Performance
dan jis] bas ygojilo Committed to healthier living Finandal Performance
Slide 13: Segmental Divisions
SEGMENTAL DIVISIONS Group Revenues – AED 2.06 BN y/y growth by category 32% Feed AED 474 MN W&B 11% 23% AED 799 MN 39% Flour AED 461 MN 1% 22% Food AED 327 MN W&B Food Flour Feed Group 16% -1% -11% CBD -2% ABD +5% 13
Slide 14: Gross Profit Margin
GROSS PROFIT MARGIN Quarterly Gross Profit Margin % Group GPM • Enhanced overall group margins in Q4 2020 of 32.7% vs 29.9% in Q1 2020 • Q4 2020 margins consistent with last year Q4 2019 32.8% 33.0% 32.7% 31.8% 31.4% Drivers 31.4% 30.6% • Operational efficiencies and cost optimization 29.9% initiati
Slide 15: Group Net Profit
GROUP NET PROFIT Group net profits (AED M) 137 -75% 34 155 -25% 117 Excluding the one-offs, normalized group net profit would come in at AED 117 million, down 25% y/y in parallel with lower bottled water volume sales in UAE (food service) & KSA and beverages sales 205 224 205 which were countered by
Slide 16: Top Line Reconciliation
TOP LINE RECONCILIATION Group revenues (AED M) +109 +39 -70 2,061 -36 2,039 -20 2019 WFP flour Organic UAE Bottled Lower KSA Lower 2020 order growth* Water Sales volume Beverage volume COVID-19 Excise tax impact impact 16
Slide 17: Bottom Line Reconciliation
BOTTOM LINE RECONCILIATION Group net profits (AED M) 137 -36 -16 -20 -5 -82 40 -5 34 22 2019 UAE Bottled Lower KSA Beverage Turkey Tax One-off Enhanced Cost Others 2020 Water Sales sales (post incentive adjustments operations optimization excise tax) initiatives 17
Slide 18: Bottom Line Normalization
BOTTOM LINE NORMALIZATION Normalized Group net profits (AED M) 117 7.7 9.5 7.2 58.1 34 Reported 2020 Bad Debt Net inventory Capri Sun CSD Normalized provisions Provisions impairment accounting 2020 adjustment 18
Slide 19: Q&A
Q&A 19