Savola Group · TADAWUL:2050
Savola — Q2 2018 Earnings Presentation
24 slides from Savola's earnings presentation, 2018
Slide 1: Earnings Presentation Q2 2018
Earnings Presentation Q2 2018 www.savola.com
Slide 2: Disclaimer
DISCLAIMER This presentation contains 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 about
Slide 3: Group – Highlights
GROUP – HIGHLIGHTS • In Q2 2018, the Group reported a net income of SAR 140.7 m; compared to a net profit of SAR 229.3 m from Q2 2017 largely due to higher losses from our retail segment and lower profitability from the foods segment • Savola’s retail segment recorded a net loss of SAR 210.5 m in Q2
Slide 4: Q2 2018 - Snapshot
Q2 2018 - SNAPSHOT » Q2 2018 Revenue of SAR 6.2 B (Q2 2017: SAR 6.7 B) GROUP » Q2 2018 Net profit of SAR 140.7 m (Q2 2017: Net Profit of SAR 229.3 m) » Q2 2018 Revenue of SAR 3.2 B (Q2 2017: SAR 3.3 B) RETAIL » Q2 2018 Net loss of SAR 210.5 m (Q2 2017: Net loss of SAR 160.2 m) » Q2 2018 Revenue of S
Slide 5: Group – Consolidated Financial Snapshot
GROUP – CONSOLIDATED FINANCIAL SNAPSHOT Adjusted Net Income Revenue Gross Profit Net Income / (Loss) SAR m / (Loss) 6,160 1,067 141 111 Q2 2018 -44.8% vs. Q2 2017: -7.4% vs. Q2 2017 -6.4% vs. Q2 2017 -38.7% vs. Q2 2017 201 YTD 2018 11,268 1,975 56 53 -9.4% vs. YTD 2017 -9.4% vs. YTD 2017 -75.9% vs.
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -9% -12% -7% 12,440 11,268 5,787 5,108 6,653 6,160 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -9% -13% -6% 2,180 1,975 1,040 909 1,140 1,067 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD
Slide 7: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA -11% -26% -0.2% 770 683 331 438 437 246 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 5.7% 4.8% 6.6% 7.1% 6.2% 6.1% YoY Net Profit YTD Net Profit -76% -39% 5 234 (84) 229 141 56 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YT
Slide 8: Group – Consolidated Revenue Mix, Net Debt & Capex
GROUP – CONSOLIDATED REVENUE MIX, NET DEBT & CAPEX SAR B Revenue by Business Net Debt YTD 2017 YTD 2018 SAR 12.4 B SAR 11.3 B -13% 4.3% 5.0% Foods Retail 46.1% 7,456 48.2% 6,484 47.5% Food Services 48.9% June-17 June-18 Revenue by Geography CAPEX YTD 2017 YTD 2018 SAR 12.4 B SAR 11.3 B -31% 8.9% 8.7
Slide 9: Implications of Exceptional Items
IMPLICATIONS OF EXCEPTIONAL ITEMS SAR m Adjusted YTD 2017 Net Income Adjusted YTD 2018 Net Income 234 (25) -70.7% 181 (62) 34 56 53 (3) YTD 2017 Dilution Gain Capital Gain Share of YTD 2017 YTD 2018 Gain on YTD 2018 reported NI on USCE on sale of impairment Adjusted NI reported NI sale of Dar Adjust
Slide 10: Panda Retail Company
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Slide 11: Retail - Snapshot
RETAIL - SNAPSHOT Net Income Selling Revenue Gross Profit / (Loss) Space SAR m Q2 2018 3,229 603 (210) Reduced by -3.1% vs. Q2 2017 1.3% vs. Q2 2017 Q2 2017: (160) 13,732 m2 YTD 2018 5,606 1,103 (434) Total Space 729,888 m2 -6.6% vs. YTD 2017 -1.1% vs. YTD 2017 YTD 2017: (390) 11
Slide 12: Retail – Highlights
RETAIL – HIGHLIGHTS • The transformation plan is gaining momentum as new management is striving to implement turnaround initiatives to improve customer experience in product availability, freshness and offering attractive promotions • LFL sales were down YoY in Q2 2018 albeit in single digit; driven
Slide 13: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -7% -11% -3% 6,006 5,606 2,674 2,377 3,331 3,229 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -1% -4% +1% 1,115 1,103 520 500 596 603 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 19.5% 2
Slide 14: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA (62) (149) (84) (87) (86) (170) Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 - - - - - - YoY Net Profit YTD Net Profit (223) (160) (389) (229) (210) (434) Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 - - - - - - Note:
Slide 15: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER Super Hyper 162 67 67 (1) 154 (7) Dec Q1’18 Q2’18 Additions Q2 Dec Q1’18 Q2’18 Additions Q2 2017 ’18 2017 ’18 Pandati Total Total Selling Area Selling Area 746,167 m2 729,888 m2 138 130 367 (6) (2) 351 (7) (9) Dec Q1’18 Q2’18 Additions Q2 2017 ’18 Dec Q1’18 Q2’18
Slide 16: Savola Foods
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Slide 17: Foods – Highlights
FOODS – HIGHLIGHTS • YTD June 2018 volumes are 3% higher than the same period last year registering 1,824 KMT mainly due to stronger volumes in Egypt across most segments • YTD 2018 total revenue of SAR 5.3 billion is 13.5% below YTD 2017 revenue of SAR 6.1 billion largely attributed to: a. Oil reve
Slide 18: Foods - Snapshot
FOODS - SNAPSHOT Net Income / Revenue Gross Profit (Loss) SAR m Q2 2018 2,705 385 135 -14.0% vs. Q2 2017 -19.9% vs. Q2 2017 -29.7% vs. Q2 2017 YTD 2018 5,276 716 143 -13.5% vs. YTD 2017 -21.0% vs. YTD 2017 -52.7% vs. YTD 2017 18
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY Sales YTD Sales -14% -13% -14% 6,100 5,276 2,954 2,572 3,146 2,705 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 YoY Gross Profit YTD Gross Profit -21% -22% -20% 906 425 481 716 331 385 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 14.4% 1
Slide 20: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR m Growth Margin YoY EBITDA YTD EBITDA -31% -34% -30% 529 229 301 363 152 212 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YTD 2018 7.8% 5.9% 9.6% 7.8% 8.7% 6.9% YoY Net Profit YTD Net Profit -53% -93% -30% 302 111 191 135 143 8 Q1 2017 Q1 2018 Q2 2017 Q2 2018 YTD 2017 YT
Slide 21: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS Volume (MT 000) Revenues (SAR m) -0.7% -12.8% 818 812 4,084 5% 5% 4% 4% 4% 4% 3,561 8% 7% 9% 5% 10% 3% 9% 9% 8% Morocco Morocco YoY +7% 11% YoY +8% Sudan Sudan 31% 31% YoY -17% 33% YoY -31% Algeria 29% Algeria YoY +8% YoY +2% Turkey Turkey 14% YoY -4% 12% YoY -7% 16% Ira
Slide 22: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS Volume (MT 000)* Revenues (SAR m)* KSA KSA YoY -6% YoY -28% Egypt Egypt -1.4% YoY +37% -23.4% YoY +16% 751 741 1,771 1,356 90% 86% 89% 84% 14% 11% 16% 10% YTD 2017 YTD 2018 YTD 2017 YTD 2018 * Excluding USCE which is no longer consolidated; the above charts were adjust
Slide 23: Financial Summary
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Slide 24: Financials – Q2 2018
FINANCIALS – Q2 2018 (all figures are in SAR millions) Segment Wise Financials YTD - 2018 YTD - 2017 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Foods Oil-Mature Markets 3,039 460 164 105 207 3,492 611 286 223 318 Oil-Start-up Markets* 588 70 29 16 35 623