Agthia Group · ADX:AGTHIA
Agthia — Q1 2021 Earnings Presentation
16 slides from Agthia's earnings presentation, May 5, 2021
Slide 1: Analysts & Investors Call Q1'21 Results
Analysts & Investors Call Q1’21 Results 5 May 2021 1
Slide 2: Disclaimer – Forward Looking Statements
DISCLAIMER – FORWARD LOOKING STATEMENTS Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: Q1 2021 Operational Highlights
Q1 2021 | OPERATIONAL HIGHLIGHTS ❑ Delivering on our Growth Strategy: • Consolidated two companies in Q1: Al Foah dates business in UAE and Al Faysal Bakery in Kuwait • Announced two new acquisitions: Nabil Foods in Jordan and Ismailia Investments (Atyab) in Egypt, both are leading frozen processed
Slide 4: Q1 2021 Financial Highlights
Q1 2021 | FINANCIAL HIGHLIGHTS Revenues (AED MN) Q1 2021 666 Revenues 16.6% • Sustainable leadership position across key Q1 2020 571 categories • Growth largely driven by the consolidation of Al EBITDA (AED MN) Foah & Al Faysal Q1 2021 89 13.4% 311 bps Q1 2020 59 10.3% Profitability • Jump supported
Slide 5: Group Sales Performance
GROUP SALES PERFORMANCE Categories Geographies Channels + 5-gallons HOD + UAE: 5 gallons, TP/FV, Dairy + E-commerce + Food + Egypt + Int’l Bottled Water + Kuwait + KSA - Retail - UAE Bottled Water - CSD (Municipality) - Flour - UAE: Bottled Water & - Food Service (HORECA) - Beverages Beverages, Bake
Slide 6: Water & Beverage Growth by Category
WATER & BEVERAGE | GROWTH BY CATEGORY Volume1 by category (MN) UAE - WATER • HOD: higher demand from favourable mix and expanded market share • BW: lower volume vs strong pre-COVID Q1 2020 26 27 skewed by demand from food service in Jan-Feb 18 20 2020 and consumer stocking in Mar 2020 4 4 3 2 1 0 0
Slide 7: Water: Dive into UAE Bottled Water
WATER | DIVE INTO UAE BOTTLED WATER Retail channel analysis Volume share % Value share % Total Agthia Al Ain Comp 1 Comp 2 Comp 3 Bayan Alpin MAT'20 MAT'21 MAT'20 MAT'21 • Defensive market share- total Agthia, 28.8% volume and 25.8% value (MAT’21) • Al Ain Water leadership position sustains at 26.2%
Slide 8: Food Growth by Category
FOOD | GROWTH BY CATEGORY Volume1 by category (MN) In Q1 2021, we consolidated each of Al Foah & Al Faysal under the Food category. 45 Al Foah dates 34 • Consolidation of Al Foah in Q1 2021 contributed AED 137mn to total Food segment top-line 1 1 7 7 1 1 1 0 - 9 Trading items (Community Support Divi
Slide 9: Agri Growth by Category
AGRI | GROWTH BY CATEGORY Volume1 by category (MN) Flour • Lagging last year sales which was driven by a one- time World Food Program order • UAE domestic market sales in line with last year 224 182 110 114 115 Animal Feed 69 • Relatively flat sales Flour Animal Feed Total Agri -37% -1% -19% Sales b
Slide 10: Financial Performance
dan jis] bas ygojilo Committed to healthier living Finandal Performance
Slide 11: Segmental Divisions
SEGMENTAL DIVISIONS Q1 2021 Revenues1 – AED 665.5MN y/y growth by category 192% • +192% post Al Foah & Al Faysal • +3% organic growth Feed AED 123 MN 18% W&B AED 192 MN 29% Flour AED 112 MN 17% Food*1 17% AED 238 MN 3% 36% W&B Food* Flour Feed Group -11% -27% CBD1 +45% ABD -14% 1Include Al Foah and
Slide 12: Gross Profit Margin
GROSS PROFIT MARGIN Quarterly Gross Profit Margin % Year on Year GPM: • Enhanced overall group margins in Q1 2021 of 30.7% vs 29.9% in Q1 2020 despite unfavourable sales mix with higher contribution from the Food 32.7% segment (55% of total consumer sales vs 27% in Q1 31.4% 2020) 30.7% 30.6% Drivers
Slide 13: Group Net Profit
GROUP NET PROFIT Group net profits (AED M) Consolidated Standalone Group net profit in Q1 prevailed at ~AED 50 million, recording 86 percent y-o-y growth. The jump versus 27 +86% 50 29 -2% 28 last year was supported by the consolidation of Al Foah and Al Faysal Bakery, both adding AED 28 million to
Slide 14: Top Line Reconciliation
TOP LINE RECONCILIATION Group revenues (AED M) +154 666 571 (39) (19) (10) +9 512 Q1'20 WFP flour UAE Bottled Lower Organic Q1'21 Agthia Al Foah & Al Q1'21 Agthia order Water Sales Beverage sales Growth Standalone Faysal Consolidated COVID-19 Capri Sun impact discontinuation 14
Slide 15: Bottom Line Reconciliation
BOTTOM LINE RECONCILIATION Group net profits (AED M) +28 50 +2 (10) +15 (7) 28 27 (6) Q1'20 One-off in UAE Bottled Higher grain Cost Q1'21 Agthia Advisory fees Al Foah & Al Q1'21 Agthia 2020* Water cost, net of optimization Standalone Faysal Consolidated pricing initiatives Bad Debt Provision and WF
Slide 16: Q&A
Q&A 16