Savola Group · TADAWUL:2050
Savola — Q3 2023 Earnings Presentation
33 slides from Savola's earnings presentation, 2023
Slide 1: Savola Group Earnings Presentation Q3 2023
Savola Group www.savola.com Earnings Presentation | Q3 2023
Slide 2: Disclaimer
DISCLAIMER This presentation might contain forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections
Slide 3: Savola Group Key Highlights
Savola Group Key Highlights 3
Slide 4: Savola Group – YTD Sep 2023 Highlights
Savola Group – YTD Sep 2023 Highlights Resilient Group Performance Continues ▪ For YTD 2023, Savola Group continued its resilient performance backed by improvement in Panda’s results despite challenges in some of Savola Foods’ territories and segments ▪ Panda showed a positive like-for-like (LFL) gr
Slide 5: Group Financial Highlights
Group Financial Highlights 5
Slide 6: Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions ▪ During Q3 2023, Group sales Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 declined primarily due to lower revenues in Savola Foods, +4% partially offset by the increase -10% -6% -12% in Panda sales ▪ For YTD Sep 2023, Grou
Slide 7: Group – Consolidated Financial Highlights
Savola Group – Consolidated Financial Highlights Margin SAR in millions ▪ During Q3 2023, net income Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 witnessed YoY drop mainly due to reduced profits at Savola +29% +11% Foods and share of profit from +10% associates, higher financial and -5% zakat c
Slide 8: Group – YTD Sep 2023 Revenue & Net Income Bridge By Business
Savola Group – YTD Sep 2023 Revenue & Net Income Bridge By Business Revenue Bridge by Business Net Income Bridge by Business SAR in millions SAR in millions -6% +4% 21,450 (5) (1,385) 20,259 (67) 19 -6% 251 34 (53) (39) 150 (87) 648 672 14 (41) 631 YTD Sep SFC Panda Herfy Others / YTD Sep Reported S
Slide 9: Group – Revenue Mix, Net Debt & Capex
Group – Revenue Mix, Net Debt & Capex SAR in millions Revenue by Business1 Revenue by Geography YTD-22 YTD-23 YTD-22 YTD-23 4% 4% 11% 7% 2% 3% 9% 8% 35% 38% 16% 55% 15% 58% 65% 68% Savola Foods Panda Herfy Al Kabeer Arabia Egypt Central Asia Others 3 YoY Growth -11% 3% -6% 7% -1% -1% -4% -41% Loans
Slide 10: Savola Foods Company
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Slide 11: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ During Q3 2023, Savola Foods Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 sales declined primarily due to -11% lower edible oil pricing ▪ In YTD 2023, Savola Foods sales +2% -18% -17% dropped due to : o Lower edible oil p
Slide 12: Savola Foods – Consolidated Financial Highlights
Savola Foods – Consolidated Financial Highlights Margin SAR in millions ▪ Q3 2023 EBITDA has remained Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 flat due to increase in loss from associate (USC Egypt) +9% ▪ Drop in Savola Food’s net +55% -23% income in Q3 2023 was mainly due to higher financi
Slide 13: Savola Foods – Oil Segment Analysis
Savola Foods – Oil Segment Analysis SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income -11% 8,777 7,779 +16% 1,316 +1% 2,967 1,320 1,332 1,132 2,640 -11% +18% 511 +44% 877 381 397 +4% 355 +31% 744 331 +69% 359 195 274 5,810 233 +93% 5,140 -12% 121 939 935 0% 777 805 +4% 549 547
Slide 14: Savola Foods – Sugar Segment Analysis
Savola Foods – Sugar Segment Analysis SAR in millions Volume (MT ‘000) Revenues Gross Profit EBITDA Net Income -1% 2,541 2,503 -14% 1,076 925 -5% 2,090 2,106 +1% 259 247 222 -27% 908 141 69 812 126 -11% 162 -11% 106 19 94 -12% 49 -78% 11 119 122 +2% 116 -27 NM 451 397 -12% 68 -42% 169 113 -33% -16 Y
Slide 15: Savola Foods – Nuts, Spices And Pulses Segment Analysis
Savola Foods – Nuts, Spices And Pulses Segment Analysis SAR in millions Revenues Gross Profit EBITDA Net Income +9% 331 303 +39% ▪ Bayara UAE continued to 110 +64% perform well and registered 80 53 +109% 40 solid growth YoY. Net UAE 32 Income doubled during the 19 period mainly due to the better pri
Slide 16: Savola Foods – YTD Sep 2023 Key Takeaways
Savola Foods – YTD Sep 2023 Key Takeaways Highlights ▪ Strong performance in the edible oil segment with volume growth in core Arabia (esp. B2B) and Egypt markets (both B2B and B2C) ▪ Increased profitability in the oil segment backed by higher contribution margin with lower commodity prices and bett
Slide 17: Panda Retail Company
Panda Retail Company JgOLA SAVOLA — 7
Slide 18: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions ▪ For Q3 period, revenue growth Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 was driven by the completed CXR stores. Panda’s LFL for Q3 is 6% +3% ▪ YTD 2023 revenue growth was +11% +3% -5% also driven by the growth from completed
Slide 19: Panda – Consolidated Financial Highlights
Panda – Consolidated Financial Highlights Margin SAR in millions Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 ▪ EBITDA has grown YTD on the +88% +58% back of higher gross margins +28% and cost optimization +65% ▪ During Q3 2023, Panda posted 233 591 net income of SAR 15 million, EBITDA 185 173
Slide 20: Panda CXR and Digital Platform Performance
Panda CXR and Digital Platform Performance Panda CXR Panda Click SAR in millions 7.4% 5.1% 7,636 360 Digital Revenue 7% Avg Daily Orders 12% 2.3% 168 7,108 Delivery Avg Basket Size 6% -33% Cost Fulfillment Rate 99% YTD 2022 Non CXR CXR YTD 2023 Store Count 108 74 . Note: Numbers exclude Egypt, digit
Slide 21: Panda – Number of Stores
Panda – Number of Stores Super Hyper 126 0 0 126 61 0 0 61 Jun-23 Additions Closures Sep-23 Jun-23 Additions Closures Sep-23 Total June-23 Sep-23 Net Selling Area Net Selling Area 561.5k m2 561.5k m2 187 0 0 187 Jun-23 Additions Closures Sep-23 . Note: 182 Stores KSA and 5 in Egypt 21
Slide 22: Panda – CXR Revamp Store
Panda — CXR Revamp Store Stu Panda gOLa SAVOLA 22
Slide 23: Panda – YTD Sep 2023 Key Takeaways
Panda – YTD Sep 2023 Key Takeaways Highlights ▪ Positive results from the completed CXR stores with noticeable contribution to revenue and gross profits ▪ Cost optimization across the organization during 2023 with plans of further improvements ▪ Panda turned profitable from core operations in Q3 wit
Slide 24: Al Kabeer
Al Kabeer =—Yy (ues Al Kabeer
Slide 25: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions ▪ During Q3 2023 and YTD 2023, Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 Al Kabeer sales increased, and gross profit grew mainly due to +15% +7% lower input costs and a better +5% sales mix 0% ▪ Both its core markets of KSA
Slide 26: Al Kabeer – Consolidated Financial Highlights
Al Kabeer – Consolidated Financial Highlights Margin SAR in millions ▪ EBITDA dropped by 6% in Q3 Q1-22 Q1-23 Q2-22 Q2-23 Q3-22 Q3-23 YTD-22 YTD-23 2023 YoY, mainly due to higher operating costs ▪ Al Kabeer continues to invest in +1% -23% -6% -8% brand building and marketing efforts ▪ The segment is
Slide 27: Al Kabeer Rebranding and Repackaging Activities
Al Kabeer Rebranding and Repackaging Activities New Logo And Branding Launch Consumer Engagement Activities Riyadh Boulevard Launch on 10.11.2023 New New Product Packaging Launch Stuffed Felafel Zing Chicken Fillets Non-Spicy 27
Slide 28: Al Kabeer – YTD Sep 2023 Key Takeaways
Al Kabeer – YTD Sep 2023 Key Takeaways Highlights ▪ Working successfully towards KSA self-sufficiency consistent with the Kingdom’s effort to be self sufficient in the protein space ▪ Decline in input prices benefiting gross margin ▪ Rebranding under new logo with new packaging generating renewed co
Slide 29: vole
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Slide 30: Financial Summary
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Slide 31: Financials – YTD 2023
Financials – YTD 2023 1 Segment Wise Financials YTD 2023 YTD 2022 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil 2 Arabia 2,640 511 288 233 331 2,967 355 151 121 195 Other Markets3 5,258 826 501 135 562 6,272 783 473 147 546 Total 7,898 1,336
Slide 32: Financials – Q3 2023
Financials – Q3 2023 1 Segment Wise Financials Q3 2023 Q3 2022 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Savola Foods Oil Arabia2 746 118 36 22 50 954 88 31 21 46 3 Other Markets 1,509 270 162 48 185 2,237 255 155 54 187 Total 2,255 388 198 70 235 3,190
Slide 33: Thank you
Jgola SAVOLA Thank you www.savola.com 33