Barry Callebaut Ag · SIX:BARN
Barry Callebaut — HY 2019/20 Earnings Presentation
31 slides from Barry Callebaut's earnings presentation, Apr 16, 2020
Slide 1: Half-Year Results 2019/20
Half-Year Results 2019/20 Analyst & Media Conference April 16, 2020
Slide 2: Cautionary note
Cautionary note Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘bel
Slide 3: Agenda
AGENDA COVID-19 update Antoine de Saint-Affrique, CEO Highlights Half-Year Results 2019/20 Antoine de Saint-Affrique, CEO Financial Review Half-Year Results 2019/20 Remco Steenbergen, CFO Strategy & Outlook Antoine de Saint-Affrique, CEO Questions & Answers CEO and CFO 3 Half-Year Results 2019/20 An
Slide 4: COVID-19 update
COVID-19 update • As a leader and trusted partner in the global food supply chain, we play a critical role in contributing to the availability of food products. • Early on, we put in place precautionary measures to provide safe working environments and maintain business continuity. • To date, we hav
Slide 5: Highlights
HIGHLIGHTS Half-Year Results 2019/20 Antoine de Saint-Affrique, CEO 5 Half-Year Results 2019/20 Analyst and Media Conference
Slide 6: Strong volume growth and profitability
Highlights Half-Year Results 2019/20 Strong volume growth and profitability • Sales volume up +5.4% in a flat chocolate confectionery market1. • Sales revenue of CHF 3.8 billion, up +5.8% in local currencies (+2.4% in CHF). • Operating profit (EBIT) recurring2, up +6.7% in local currencies (+3.1% in
Slide 7: Chocolate continues to outperform underlying market
Highlights Half-Year Results 2019/20 Chocolate continues to outperform underlying market Cocoa FY 2017/18 FY 2018/19 HY 2019/20 Chocolate +6.3% +5.1% +5.4% +10.6% +10.7% +8.2% +8.0% +8.1% +10.2% +7.4% +4.8% +5.3% +6.5% +4.8% +4.7% +3.0% +1.1% +2.3% +10.6% +3.1% +8.1% +9.0% +1.7% +7.7% +2.5% +5.2% +5
Slide 8: All key growth drivers contribute positively
Highlights Half-Year Results 2019/20 All Key growth drivers contribute positively % of total % volume growth Group volume vs. prior year 36% +10.6% Emerging excl. Cocoa: Markets +11.2% Key growth drivers 32% Outsourcing crucial to +1.8% Long-term continuously Partnerships outperform the market 12% +
Slide 9: Strong innovation pipeline and continued expansion
Highlights Half-Year Results 2019/20 Strong innovation pipeline and continued expansion Change in Barry Introduction ‘Cacaofruit Callebaut’s Ruby receives Opening revamped New leadership Experience’ shareholder TMP as ‘4th Type 3rd Forever Chocolate CHOCOLATE in Region EMEA including ‘Wholefruit str
Slide 10: The power of Innovation
The power of Innovation Mona Lisa 3D Studio – the world's first 3D Printing Studio to craft unseen chocolate experiences 10 Half-Year Results 2019/20 Analyst and Media Conference
Slide 11: Strong Innovation
Highlights Half-Year Results 2019/20 Strong Innovation Riding the trends • Ruby enters the product category of ice cream with launches of ‘Magnum Ruby’ and ‘Häagen-Dazs Ruby’. • Introduction 100% dairy-free ‘M_lk Chocolate’ as part of the growing indulgent ‘Plant Craft’ range. Innovation on the core
Slide 12: Valentine's Day was dressed in Ruby
Highlights Half-Year Results 2019/20 Valentine’s Day was dressed in Ruby 12
Slide 13: Financial Review
FINANCIAL REVIEW Half-Year Results 2019/20 Remco Steenbergen, CFO 13 Half-Year Results 2019/20 Analyst and Media Conference
Slide 14: Strong volume growth and profitability
Financial review – Key figures Strong volume growth and profitability Change % Pro-forma 1 Group performance (in CHF million) HY 2019/20 in local in CHF currencies Sales volume (in tonnes) 1,103,728 +5.4% n/a Sales revenue 3,761.8 +2.4% +5.8% Gross profit 607.4 +3.2% +6.1% EBIT reported 303.5 +0.5%
Slide 15: Growth supported by all Regions
Financial review – Key performance indicators by Region Growth supported by all Regions EMEA Group Sales volume: Americas 507,177 1,103,728 287,482 46% tonnes 26% Global Cocoa APAC 242,315 66,754 22% 6% EMEA Americas Asia Pacific Global Cocoa FY volume +5.5% +2.2% +16.7% +6.5% growth EBIT growth in
Slide 16: Gross profit up +6.1% in local currencies
Gross profit bridge Gross profit up +6.1% in local currencies, mainly supported by good volume growth and positive mix In CHF millions +6.1% 12 -8 625 -17 607 32 589 Gross profit Volume Mix Cocoa Gross profit FX impact Gross profit HY 2018/19 HY 2019/20 HY 2019/20 Pro-forma in LC IFRS 16 16 Half-Yea
Slide 17: Cocoa processing profitability
Cocoa processing profitability Cocoa Combined Ratio development European combined ratio – 6-month forward ratio Directionally right… 4.0 Shows general high level Combined industry direction, assuming 3.5 Ratio 3.4 many variables are fixed. 3.0 Butter However… 2.5 Ratio Many variables are not fixed e
Slide 18: Operating profit (EBIT) recurring up by +6.7% in local currencies
EBIT bridge Operating profit (EBIT) recurring up by +6.7% in local currencies In CHF million +6.7% -16 322 36 -8 302 -11 304 EBIT Additional Additional EBIT Factory FX EBIT HY 2018/19 Gross profit SG&A, scope HY 2019/20 closure costs HY 2019/20 Pro-forma recurring, in LC IFRS 16 18 Half-Year Results
Slide 19: Net profit recurring up +11.6% in local currencies
EBITDA to Net profit bridge Net profit recurring up +11.6% in local currencies, as a result of improved profitability and lower financial items In CHF million 413 Tax rate: 19.6% vs (PY 4061) PY 19.3% +11.6% 304 +3.1% (PY 3021) (in CHF) -110 (PY -85) 9 220 -50 204 8 198 (PY -55) -50 (PY -48) EBITDA
Slide 20: Raw material price development
Raw material Raw material price development 250% 200% Increase HY 2019/20 (average) 150% Milk powder +43.0% Cocoa beans +13.6% 100% Sugar World +3.0% Sugar EU +18.4% 50% 0% Aug-09 Feb-10 Feb-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-11 Feb-20 Aug-10 Aug-12 Aug-16 A
Slide 21: Adjusted Free cash flow similar as prior-year
Free cash flow Adjusted Free cash flow similar as prior-year on the back of improved working capital management In CHF million +1.7% 406 413 -174 (PY -218) -73 -18 -341 -359 (PY -68) (PY -10) (PY -109) (PY -119) -148 -36 (PY -127) (PY -3) EBITDA Change in Interest Capex Others FCF Adjustment FCF 6m
Slide 22: Net debt flat versus prior year excluding IFRS 16 adoption
Financial Review – Net debt Net debt flat versus prior year excluding IFRS 16 adoption. Adjusted for RMI, Net debt decreased In CHF million +211 +6 71 -65 1,975 1,981 1,770 205 -1,099 -161 1,043 882 161 Net Debt IFRS 16 Adj. Net Free Cash FX Impact Net Debt Adjustment Adjusted Adjusted Feb’19 Leases
Slide 23: Balance sheet
Financial Key Figures Balance sheet (in CHF million) Feb 20 Aug 19 Feb 19 Pro-forma1 Pro-forma1 Total assets 7,550 6,712 7,024 Net working capital 1,838 1,363 1,762 Non-current assets 2,854 2,857 2,846 Net debt 1,981 1,510 1,975 Adj. Net debt2 882 817 1,043 Shareholders’ equity 2,403 2,399 2,384 Deb
Slide 24: Strategy & Outlook
STRATEGY & OUTLOOK Half-Year Results 2019/20 Antoine de Saint-Affrique, CEO 24 Half-Year Results 2019/20 Analyst and Media Conference
Slide 25: Consistent long-term strategy – strong execution
Strategy & Outlook Consistent long-term strategy – strong execution “Heart and engine of the Vision chocolate and cocoa industry” Sustainable growth Expansion management Margin accretive growth COVID-19 4 strategic Innovation ‘smart Accelerated growth in pillars growth’ Gourmet, Specialties and Emer
Slide 26: COVID-19 – Care and serve
Strategy & Outlook COVID-19 – Care and serve Put in place precautionary measures to provide safe working environment and maintain business continuity: • Set up of dedicated teams at global and regional levels. • Initial team segregation in offices and factories. • Early strong sanitary measures on:
Slide 27: COVID-19 – how we are impacted
Strategy & Outlook COVID-19 – how we are impacted Impact on our network Impact on our businesses To date, we have not experienced any major disruption As the COVID-19 pandemic progresses, it’s too early to to our operations. establish the full business impact. • APAC: No major disruptions, despite s
Slide 28: Post COVID-19 learnings from China
Strategy & Outlook Post COVID-19 learnings from China China: Production / Delivery recovery 99% 88% • China was the first country to be impacted by the 60% Tonnes COVID-19 pandemic. % • Sharp slowdown in the Gourmet business in February 45% 2020, particularly in the high-end segment. 0% • Factory in
Slide 29: Outlook – adapt to and overcome the pandemic
Strategy & Outlook Outlook – adapt to and overcome the pandemic COVID-19 is a major unforeseen event. While we have put in place precautionary measures to support the continuation of our operations, its impact on business growth and profitability cannot be quantified at this stage as it depends on t
Slide 30: Thank you
CALLEBAUT 2 CHOCOLATE -— ACADEMY centre 7
Slide 31: Q&A session
Q&A session Antoine de Saint-Affrique, CEO Remco Steenbergen, CFO