Alamar Foods Co. · TADAWUL:6014
Alamar Foods — Q2 2024 Earnings Presentation
20 slides from Alamar Foods's earnings presentation, Aug 15, 2024
Slide 1: Earnings Presentation 2Q 2024
Earnings Presentation 2Q 2024
Slide 2: Agenda for today's Earnings Call
Agenda for today’s Earnings Call • Alamar at a Glance • Transformation Update • Financial Performance • Outlook and Guidance Alamar Foods - Earnings Presentation 15 August 2024 2
Slide 3: Alamar at a Glance
Earnings Presentation – 15 August 2024 Alamar at a Glance
Slide 4: QSR leader in GCC markets…
QSR leader in GCC markets… Restaurant Chain Expansion by Brand Revenue mix by brand (SAR mn) 1,076 657 692 433 976 601 629 406 56 63 17 82 21 6 FY 22 1H 24 FY 22 1H 24 Dunkin' restaurants Domino's restaurants Other Dunkin Donuts Domino's Pizza Revenue geographical mix (SAR mn) Alamar’s 1H 2024 top-l
Slide 5: …with strong digital capabilities, capex-light expansion model and solid cash generation
…with strong digital capabilities, capex-light expansion model and solid cash generation Revenue mix by service method (%) Digital revenue mix (%) 38% 36% 39% 50% 38% 32% 61% 50% 24% 32% FY 22 1H 24 FY 22 1H 24 Aggregators Own digital channels Walk-in Own channels Aggregators A combination of omnich
Slide 6: Alamar's omni-channel business model addresses latest consumer trends
Alamar’s omni-channel business model addresses latest consumer trends Omni-Channel ordering and multiple service methods address current consumer trends Revenue split by service method (%) Omni-Channel order method: Service method /customer exp. 46% 38% 35% In-Store In-Store 14% 24% 28% Call Centre
Slide 7: Transformation Update
Earnings Presentation – 15 August 2024 Transformation Update
Slide 8: Running up growth and margins through omnichannel excellence and enhanced marketing and service tools
Running up growth and margins through omnichannel excellence and enhanced marketing and service tools A new promo campaign was launched in KSA and UAE in May-June 2024 to improve in average basket composition. The preliminary New promo mechanism results are encouraging showing 53% higher number of i
Slide 9: Financial Performance
Earnings Presentation – 15 August 2024 Financial Performance
Slide 10: 2Q 2024 financial performance highlights
2Q 2024 financial performance highlights 226mn 27mn 13mn SAR SAR SAR Revenues Adj. EBITDA Net Profit -10% YOY -20% YOY -25% YOY 692 11.9% 34% Total Restaurants Adj. EBITDA Margin FCF Conversion +3% YOY -1.4 ppts YOY -60.2 ppts YOY Alamar Foods - Earnings Presentation 15 August 2024 10
Slide 11: Corporate stores represent 76% of the total system-wide footprint as of June 2024
Corporate stores represent 76% of the total system-wide footprint as of June 2024 Group Store Count by Region 2Q 2024 Group Store Count by Brand +11 +2 +7 +2 Brand 2Q 23 2Q 24 YoY Change 270 281 165 167 119 121 116 123 Domino’s 611 629 +18 Dunkin’ 59 63 +4 Corporate KSA Corporate GCC & Corporate NA
Slide 12: The pace of top-line decline YoY diminished in 2Q 2024 with a QoQ revenue increase
The pace of top-line decline YoY diminished in 2Q 2024 with a QoQ revenue increase Revenues (SAR mn) 2Q 2024 Revenue geographical mix 2Q 2024 8.6% -10% 252.7 226.4 KSA 25.6% Other GCC & Levant North Africa 65.8% 2Q 23 2Q 24 Revenues (SAR mn) 2Q 2024 2Q 2024 revenue performance was affected by: -10%
Slide 13: An increase in S&D expenses was offset by G&A cost savings
An increase in S&D expenses was offset by G&A cost savings Gross Profit (SAR mn) 2Q 2024 Selling and Distribution Expenses (SAR mn) 2Q 2024 +31.0% +30.4% +11.5% +14.4% -12% +12% 78.2 32.6 68.8 29.0 2Q 23 2Q 24 2Q 23 2Q 24 Gross margin % of Revenue Gross Profit Administrative Expenses (SAR mn) 2Q 202
Slide 14: Net profit performance was affected by operating leverage effect, advertising costs and one-off items
Net profit performance was affected by operating leverage effect, advertising costs and one-off items Net Profit (SAR mn) 2Q 2024 EBITDA reconciliation 6.8% 5.7% (SAR mn) 2Q 2024 -25% 17.2 Net Income 12.9 12.9 Finance cost, net 1.9 Zakat and income tax 2.8 2Q 23 2Q 24 Depreciation & amortization 26.
Slide 15: Alamar maintains a robust balance sheet and a healthy financial position
Alamar maintains a robust balance sheet and a healthy financial position Group Balance Sheet as of 2Q24 (SAR mn) 2Q 2024 Alamar maintains a robust balance sheet with net cash position of SAR 119.2mn as of end of June 2024. Allocation of 10% of net income was discontinued starting in 2023, according
Slide 16: Strong FCF generation supported increased quarterly dividends
Strong FCF generation supported increased quarterly dividends Operating cash flow decreased by 36% YoY to SAR 45.1mn in 1H 2024, broadly in line with the 38% YoY decline in EBITDA. Cash & Cash Equivalents Movement YTD (SAR mn) 1H 2024 Capital expenditures amounted to SAR 10.8mn in 1H 2024, down 65%
Slide 17: Monthly sales show tentative recovery in 2Q24 driven by decent performance in KSA and UAE
Monthly sales show tentative recovery in 2Q24 driven by decent performance in KSA and UAE Average daily sales - Group (January 2023 = 100%) Ramadan Summer break Ramadan Summer break 105 2023 108 2023 107 2024 2024 100 99 98 99 89 91 90 92 86 86 87 86 88 82 81 83 70 JAN FEB MAR APR MAY JUN JUL AUG SE
Slide 18: Outlook and Guidance
Earnings Presentation – 15 August 2024 Outlook and Guidance
Slide 19: We keep our FY24 guidance and medium-term targets intact
We keep our FY24 guidance and medium-term targets intact FY 2023 1H 2024 Forecast 2025 to 2027 Actual Actual FY 2024 Medium-term guidance Sales per store1 -12.6% -17.0% -4% 3-5% CAGR Growth % Corporate store count1 +5.5% +4.0% 4% 11-13% CAGR Growth % EBITDA margin2 12.6% 8.5% 13% 19-21% Organic cape
Slide 20: Questions & Answers
Questions & Answers ZA