Colruyt Group N.v. · EURONEXT:COLR
Colruyt — FY2023/24 Earnings Presentation
54 slides from Colruyt's earnings presentation, Jun 12, 2024
Slide 1: Full-Year Results 2023/24
Full-Year Results 2023/24 Financial Year ending 31 March 2024 Analyst meeting 12/06/2024 1
Slide 2: Disclaimer
Disclaimer Risks relating to forecasts Statements by Colruyt Group included in this presentation, along with references to this presentation in other written or verbal statements of the group which refer to future expectations with regard to activities, events and strategic developments of Colruyt G
Slide 3: Table of contents
Table of contents 1. Key figures 2. Business update & highlights 3. Cash flow & net financial debt 4. Outlook 5. Financial calendar Annex – Consolidated income per half-year
Slide 4: 1. Key figures
1. Key figures The key figures are based on the consolidated income statement, in which DATS 24 NV, Dreamland NV and Dreambaby NV are presented as discontinued operations.
Slide 5: Headlines
Headlines • Challenging and uncertain macro-economic context and competitive Belgian retail market. • Revenue increase of 11,9% mainly due to: ‒ food inflation; ‒ increased combined market share of Colruyt Lowest Prices, Okay and Spar in Belgium; ‒ full consolidation of Newpharma and Degrenne Distri
Slide 6: One-off effects
One-off effects • Net positive one-off effect of EUR 704 million as a result of the sale of Parkwind to JERA by Virya Energy and the sale of part of Colruyt Group’s participation in Virya Energy to Korys. Presented in the ‘share in the result of investments accounted for using the equity method’. •
Slide 7: Key figures
Key figures Consolidated In ME ines nt income ment in coneetet nt b% 4% " vy 2008 me FY 2023/24 oy 2022 a excl. one-off effects /24 excl. one-off effects if Revenue 10.845 10.845 9.691 11,9% 11,9% Gross profit 3.230 3.230 2.779 16,3% 16,3% % of revenue 29,8% 29,8% 28,7% EBITDA 893 893 677 31,9% 31,9
Slide 8: Other key figures
Other key figures (*) ROIC = NOPAT / Invested Capital. In FY 2023/24 excluding DATS 24, Dreamland and Dreambaby. In FY 2022/23 including DATS 24, Dreamland and Dreambaby but excluding Newpharma and IFRS 16. (**) Combined market share in Belgium of Colruyt Lowest Prices, Okay and Spar. The market sha
Slide 9: Macro-economic context in Belgium
Macro-economic context in Belgium • Food inflation: ‒ Approximately 14% in H1 and 6% in H2. ‒ Less than 1% in April and May 2024. • Difference between food CPI and food PPI narrowing and negative again. • Negative business and consumer confidence. Source: Statbel 9
Slide 10: EBIT evolution (M€)
EBIT evolution (M€) 2,9 % of 4,3 % of revenue revenue -71 +12 bp -141 -24 +452 +41 bp -27 -40 bp +19 bp +111 bp +470 +281 EBIT Gross profit Services and Employee Other operating Depreciation EBIT FY 2022/23 miscellaneous goods benefit expenses income and impairment FY 2023/24 and expenses 10
Slide 11: EBIT evolution (M€)
EBIT evolution (M€) 2,9 % of 4,3 % of revenue revenue -71 +12 bp -141 -24 +452 +41 bp -27 -40 bp +19 bp +111 bp +470 +281 EBIT Gross profit Services and Employee Other operating Depreciation EBIT FY 2022/23 miscellaneous goods benefit expenses income and impairment FY 2023/24 and expenses 11
Slide 12: Revenue evolution
Revenue evolution • Consolidated revenue (+11,9%) positively impacted by food inflation, M€ 10.845 the increase of the market share in Belgium and the full consolidation M€ 9.691 of Newpharma and Degrenne Distribution. +11,9% • Excluding Newpharma and Degrenne Distribution: consolidated revenue incr
Slide 13: Gross margin
Gross margin 29,8% 28,7% • Gross profit increases mainly due to higher revenue and due to an +111 bp increase in gross margin. • Increase in gross margin mainly due to the normalisation of the balance between sales price inflation and cost price inflation after cost price inflation has been higher t
Slide 14: Net operating expenses
Net operating expenses • Increased focus on processes, cost control and efficiency. • Long-term strategy continued: pursuing investments in sustainability and efficiency, digital transition and innovation, employees and high-quality and affordable house-brand products. -71 2,9 % of 4,3 % of revenue
Slide 15: Net operating expenses
Net operating expenses Services and miscellaneous goods % of revenue 21,7% 21,6% Services and miscellaneous goods: M€ -71 or +10,1% 0,3% 0,5% • Full consolidation of Newpharma, Degrenne Distribution and Match- and Smatch-stores. • Impacted by inflation on various operating expenses (e.g. transport e
Slide 16: Net operating expenses
Net operating expenses Employee benefit expenses % of revenue 21,7% 21,6% 0,3% 0,5% Employee benefit expenses: M€ -141 or +9,0% -41 bp • Automatic wage indexation in Belgium. 16,1% 15,7% • FTE’s increased with 1.195 from 30.909 to 32.103 ‒ +862 FTE due to acquisition Degrenne Distribution 7,2% 7,1%
Slide 17: EBIT evolution (M€)
EBIT evolution (M€) • Increase in depreciations of M€ -24 (to M€ -388) mainly due to the full consolidation of Newpharma and Degrenne Distribution and the continuous investments in stores, production and distribution centres and transformation programmes. • Increase in impairment charges of M€ -3 (t
Slide 18: Net result evolution (M€)
Net result evolution (M€) 2,1 % of 9,7 % of revenue revenue -42 +707 +8 -32 bp +8 bp +652 bp +189 -11 +1.051 +201 -10 bp +143 bp Net result Result from EBIT Net financial result Share in result of Income tax expense Net result FY 2022/23 discontinued associates & FY 2023/24 18 operations joint ventu
Slide 19: Net result evolution (M€)
Net result evolution (M€) 2,1 % of 9,7 % of revenue revenue -42 +707 +8 -32 bp +8 bp +652 bp +189 -11 +1.051 +201 -10 bp +143 bp Net result Result from EBIT Net financial result Share in result of Income tax expense Net result FY 2022/23 discontinued associates & FY 2023/24 19 operations joint ventu
Slide 20: Result from discontinued operations
Result from discontinued operations DATS 24 (2 months in 2023/24 and 12 months in 2022/23) • Fully consolidated by Virya Energy since June 2023. FY 2023/24 FY 2022/23 • Capital gain of EUR 9 million realised by Colruyt Group Net result DATS 24 7 21 on the sale of DATS 24 to Virya Energy. Net result
Slide 21: Net result evolution (M€)
Net result evolution (M€) Effective tax rate amounts to 23,8% including discontinued operations. For continued operations, it amounts to 22,3%. Increase in finance income partly compensated by an increase in finance costs. 2,1 % of 9,7 % of revenue revenue -42 +707 +8 -32 bp +8 bp +652 bp +189 -11 +
Slide 22: Net result evolution (M€)
Net result evolution (M€) 2,1 % of 9,7 % of revenue revenue -42 +707 +8 -32 bp +8 bp +652 bp +189 -11 +1.051 +201 -10 bp +143 bp Net result Result from EBIT Net financial result Share in result of Income tax expense Net result FY 2022/23 discontinued associates & FY 2023/24 22 operations joint ventu
Slide 23: Share in result of associates and joint ventures (M€)
Share in result of associates and joint ventures (M€) +3 +704 +709 +2 FY 2022/23 One-off effects Other FY 2023/24 23
Slide 24: 2. Business update & highlights
2. Business update & highlights
Slide 25: Revenue by segment: EUR 9.435 million, EUR 1.385 million, EUR 25 million
87,0% of group revenue EUR 9.435 million Accounted for as discontinued operations in 2023/24 (2022/23 also restated). Sale of Dreambaby has been finalised end of May 2024. As of June 2024 Dreambaby will be fully deconsolidated. 12,8% of group revenue EUR 1.385 million 0,2% of group revenue EUR 25 mi
Slide 26: Revenue by segment: EUR 9.435 million, EUR 1.385 million, EUR 25 million
Accounted for as discontinued operations in 2023/24 for 6 months (2022/23 (12 months) also restated). As of October 2023 Dreamland 87,0% is accounted for through the of group revenue equity method. EUR 9.435 million Accounted for as discontinued operations in 2023/24 (2022/23 also restated). Sale of
Slide 27: Food Retail (+9,1% = M€ 8.886)
Food Retail (+9,1% = M€ 8.886) Number of Revenue Highlights stores • Revenue increase mainly due to food inflation. +2 = 261 • Winner of GfK in Summer and Winter 2023. +9,1% • 50th birthday of Colruyt Lowest Prices. = M€ 7.023 +37 = 37 • Including Match- and Smatch-stores converted to Comarkt (howev
Slide 28: Non-Food Retail (+51,5% = M€ 548)
All major players in their respective markets. Non-Food Retail (+51,5% = M€ 548) Number of Revenue Highlights stores • Potential to further expand. +6,1% +2 = 29 • Challenging market. • Expansion plans in Belgium (Zeb, PointCarré +10,5% +1 = 130 and The Fashion Store) and France (ZEB). Altogether pr
Slide 29: E-commerce
E-commerce Online revenue Online revenue accounted for 8% of retail revenue. Online revenue mainly realised by Collect&Go and Newpharma. Over 330 collection points: Belgium: 231 Luxembourg: 4 France: 101 • Online revenue increased due to the full consolidation of Newpharma. • Collect&Go is market le
Slide 30: Segment – Retail
Segment – Retail(*) (*) In the disclosure of operating segments in the notes to the condensed consolidated financial statements, Dreamland NV and Dreambaby NV are still included in the segment ‘Retail’ before being reclassified to discontinued operations. As the Dreamland- and Deambaby-transaction h
Slide 31: Innovation
Innovation • Smart Technics, Colruyt Group's innovation hub, focuses on introducing robotics in distribution centres and integrating technologies in the stores. • Colruyt Group is taking steps towards creating the store of the future, aimed at achieving better service for customers and more efficien
Slide 32: Sustainability
Sustainability Colruyt Group is a reference point for sustainable entrepreneurship and a source of inspiration for conscious consumption. Colruyt Group works towards this objective step by step, through a wide array of initiatives and partnerships. • Colruyt Group has long been committed to offering
Slide 33: Revenue by segment: EUR 9.435 million, EUR 1.385 million, EUR 25 million
87,0% of group revenue EUR 9.435 million 12,8% of group revenue EUR 1.385 million 0,2% of group revenue EUR 25 million In the disclosure of operating segments in the notes to the condensed consolidated financial statements; Dreamland NV, Dreambaby NV and DATS 24 NV are still included (Dreamland NV a
Slide 34: Wholesale and Foodservice
Wholesale and Foodservice Revenue Highlights • Revenue rose as a result of food inflation and the full consolidation of Degrenne Distribution in France (9 months). +17,8% • Close and long-term collaboration with independent entrepreneurs. = M€ 1.112 • Intention to further expand the efficient indepe
Slide 35: Segment – Wholesale & Foodservice
Segment – Wholesale & Foodservice 35
Slide 36: Revenue by segment: EUR 9.435 million, EUR 1.385 million, EUR 25 million
87,0% of group revenue EUR 9.435 million 12,8% of group revenue Including DATS 24 since June 2023. DATS 24 has been accounted for as discontinued operations in EUR 1.385 million 2023/24 for 2 months (2022/23 (12 months) also restated). 0,2% of group revenue EUR 25 million In the disclosure of operat
Slide 37: Segment – Other activities
Segment – Other activities(*) (*) In the disclosure of operating segments in the notes to the condensed consolidated financial statements, DATS 24 NV is still included in the segment ‘Other activities’ before being reclassified to discontinued operations. As the DATS 24-transaction has been closed i
Slide 38: Virya Energy
Virya Energy • Colruyt Group has a 30% stake in Virya Energy as at 31 March 2024 (accounted for using the equity method). • Value creation in sustainable energy from capture and transformation to consumption. Through its subsidiaries, Virya Energy is present across the full energy value chain and de
Slide 39: Virya Energy
Virya Energy • Sale of Parkwind to JERA ‒ On 26 July 2023, the sale of Parkwind by Virya Energy to JERA was successfully completed for the final price of approximately EUR 1,6 billion (net of debt and transaction costs) at the level of Virya Energy. ‒ The completion of the sale has led to: ▪ a final
Slide 40: Segment – Corporate / unallocated
Segment – Corporate / unallocated 40
Slide 41: 3. Cash flow and net financial debt
3. Cash flow and net financial debt
Slide 42: Cash flow (M€)
Cash flow (M€) +423 Net cash evolution -343 Investing activities -434 +577 -227 -91 +91 -93 -748 +1.516 +153 -69 Financing Operating activities activities -359 -2 +877 +777 +775 +353 Cash & EBITDA Change Income tax Operating CAPEX Investing Dividend paid Purchase Payment of Financing Cash & Effect o
Slide 43: Net financial debt (M€)
Net financial debt (M€) (*) Inlcuding readily redeemable funds for a total of EUR 151 million. 43
Slide 44: Capital expenditures, net of capital grants (M€)
Capital expenditures, net of capital grants (M€) Continuation of the CAPEX programme: • FY 2023/24: M€ 433 or 4,0% of revenue (exclusive of right-of-use assets and business combinations) • Expectation FY 2024/25: 4,0 to 4,5% of revenue Investments in: • New stores and store modernisation (including
Slide 45: Share buybacks (M€)
Share buybacks (M€) Treasury shares purchased: Status as per 7/06/2024(*) • In 2023/24: 2.533.995 shares (M€ 93). • 2.560.092 treasury shares held by Colruyt Group. • After period-end: 356.724 shares (M€ 15). • 2,01% of the total number of shares issued Treasury shares cancelled: 7.000.000 in Decemb
Slide 46: 4. Outlook
4. Outlook G COLRUYTGROUP
Slide 47: Outlook
Outlook Trends and expectations about the market environment • The group expects the macroeconomic context to remain challenging and uncertain and the fierce competitiveness in the Belgian retail market to continue. We also see that an increasing number of independent retailers open on Sundays. Pric
Slide 48: Outlook
Outlook Strategy consistency • The group continues to focus on driving growth across all activities (inter alia through the integration of earlier acquisitions, through expansion and through targeted opportunities), to invest in processes and to maximise the management of its operating costs. • In a
Slide 49: 5. Financial calendar
5. Financial calendar G COLRUYTGROUP
Slide 50: Financial calendar
Financial calendar 31/07/2024 at the latest Publication annual report 2023/24 11/09/2024 Start black-out period 25/09/2024 General Meeting of Shareholders (16h00 CET) 11/11/2024 Start black-out period 10/12/2024 Publication half-year results 2024/25 (17h45 CET) 11/12/2024 Information to financial an
Slide 51: Thank you for your attention – Questions?
Thank you for your attention Questions? 51
Slide 52: ANNEX
ANNEX Consolidated income per half-year
Slide 53: First semester
First semester Consolidated | | Consolidated Consolidated Ine i statement | | come statement | | tatement A% a% " on 2028, " H1 2023/24 rin 2022 os excl. one-off effects /2 excl. one-off effects f Revenue 5.452 5.452 4,693 16,2% 16,2% Gross profit 1.607 1.607 1.312 224% 22,4% % of revenue 29,5% 29,5
Slide 54: Second semester
Second semester Consolidated Consolidated Consolidated Ine income statement | | "ome statement | | some statement A% a% H2 2023/24 H2 2023/24 H2 2022/23 excl, one * excl. one-off effects Revenue 5.393 5.393 4,998 7,9% 7,9% Gross profit 1.623 1.623 1.466 10,7% 10,7% % of revenue 30,1% 30,1% 29,3% EBI