Hagar Hf. · OMXICE:HAGA
Hagar Hf — FY2022/23 Earnings Presentation
33 slides from Hagar Hf's earnings presentation, Apr 28, 2023
Slide 1: Presentation of Q4 and annual results 2022/23
Presentation of Q4 and annual results 2022/23 Finnur Oddsson, CEO Guðrún Eva Gunnarsdóttir, CFO April 28th 2023 *This presentation is translated from the Icelandic version which was published on April 28th, 2023. Should there be discrepancies between the two versions, the Icelandic version will take
Slide 2: Overview
Overview Highlights from operations Financial statements Status and prospects 2
Slide 3: Quarter in a nutshell: Key figures
Quarter in a nutshell: Key figures Q4 2022/23 (changes from Q4 2021/22) 40,2 b.ISK 2,4 b.ISK 0,7b.ISK sales EBITDA profit 13,8% 1,5% 1,5% 19,3% 13,7% 38,8% gross margin salaries- and cost ratio equity ratio 1,4%pt. 0,5%pt. 2,2%pt. 3
Slide 4: Year in a nutshell: Key figures
Year in a nutshell: Key figures 12M 2022/23 (changes from 12M 2021/22) 162,0 b.ISK 12,0 b.ISK 4,9b.ISK sales EBITDA* profit 19,3% 14,5% 23,7% 19,1% 12,9% 38,8% gross margin salaries- and cost ratio equity ratio 1,8%pt. 0,9%pt. 2,2%pt. * One-off items 1,4 b.ISK 4
Slide 5: This stands out in the quarter
This stands out in the quarter Hagar‘s operations proceeded well in the quarter, especially when one looks to how the demanding operational environment in retail has been - severe mixture of price escalations and increased operational costs Very massive supply price rises from wholesalers and ma
Slide 6: Stores and warehouses: Increased activity but profit like last years
Stores and warehouses: Increased activity but profit like last years Income statement Q4 2022/23 (m.ISK) Income from groceries, specialty articles and warehouses Q4 '22/23 Q4 '21/22 Δ %Δ increased just over 13% between the years and amounted to 28.7 b.ISK - EBITDA was just under 2.1 b.ISK Income 2
Slide 7: Bónus: Greatest year in history and innovations ahead
Bónus: Greatest year in history and innovations ahead Sales in Q4 amounted to just under 19.4 b.ISK and grew by 14% from previous year - greatest year in the history of Bónus with sales over 73 b.ISK A substantial tailwind with Bónus after positive changes - stores renovations, extended opening
Slide 8: Hagkaup: Improved online store, new services and business partners
Hagkaup: Improved online store, new services and business partners Sales in Q4 amounted just under 6.6 b.ISK and increased by 5% from previous year - sold units decreases between the years but customers visits increase Christmas sales proceeded excellently in spite of increasing travelling of na
Slide 9: Olís: Strong quarter and year - result of optimisation (1/2)
Olís: Strong quarter and year - result of optimisation (1/2) Income statement Q4 2022/23 (m.ISK) Income in Q4 amounted to 11.9 b.ISK and increased by Q4 '22/23 Q4 '21/22 Δ %Δ 13% between the years - EBITDA amounted to 303 m.ISK (2.5%), exceeding last year Income 11.929 10.568 1.361 +12,9% Expenses
Slide 10: Olís: Strong quarter and year - result of optimisation (2/2)
Olís: Strong quarter and year - result of optimisation (2/2) Income statement Q4 2022/23 (m.ISK) Simplification of the corporate branch network which was carried out earlier in the operating year continues to yield good results Stórkaup was founded on the basis of selected product categories of
Slide 11: The rear view mirror: The results of the changed emphasis can be seen during the year
The rear view mirror: The results of the changed emphasis can be seen during the year In the past operating year, we observed the results of the changed emphasis at Hagar materialise in the company's operations These changes had a positive impact on operations, with better customer service, new
Slide 12: The rear view mirror: Digital tour improves service and increases efficiency
The rear view mirror: Digital tour improves service and increases efficiency Particular emphasis on the digital tour at Hagar and subsidiaries - touches many and different aspects of the operations, among other things: - Implementation of updated and/or new IT systems and processes, e.g. warehouse
Slide 13: The rear view mirror: Eldum rétt one of the largest online store offering food
The rear view mirror: Eldum rétt one of the largest online store offering food Eldum rétt became a subsidary of Hagar in November 2022 The purchase was a part of Hagar's efforts to respond to the changing needs of customers with an increased emphasis on healthy, simple and time-saving solutions
Slide 14: The rear view mirror: Klasi a channel for development projects and new opportunities
The rear view mirror: Klasi a channel for development projects and new opportunities During the year, Hagar's development and property projects were successfully launched through Klasi, in which Hagar owns now a one third share The objective is to accelerate value creation based on the group's d
Slide 15: The rear view mirror: Other items
The rear view mirror: Other items Stórkaup: Launching of a new company with a focus on bulk users, and especially with a focus on operational, health and hygiene products - the development proceeded well and therefore food items have recently been added to the operation Aðföng and Bananar: Exten
Slide 16: The front windshield: The front windshield is bigger than the rear view mirror
The front windshield: The front windshield is bigger than the rear view mirror Although it is enjoyable to review the last year's achievements, it is equally important to look ahead, where there is plenty on the drawing board. The projects are scheduled for various lengths in time, but some will
Slide 17: The front windshield: Hagkaup's party dishes among many innovations
The front windshield: Hagkaup‘s party dishes among many innovations Hagkaup's party dishes will be officially introduced in the coming weeks, but this is an impressive addition for the customers Party dishes will be a.o. useful for customers in preparation of parties, meetings, or larger events,
Slide 18: The front windshield: New stores on strong locations
The front windshield: New stores on strong locations Two new Bónus stores will be opened in the coming summer months, one replacing an older store but the other in a new market zone The older Bónus store at Holtagarðar will be closed and a new and considerably larger will be opened at a better l
Slide 19: The front windshield: Gripið & Greitt will improve the shopping experience
The front windshield: „Gripið & Greitt“ will improve the shopping experience for nationals Bónus will introduce "Gripið & Greitt " to customers in the coming weeks when Hagar's " Gripið & Greitt " solution will be implemented in the first stores Development has been in preparation for some time
Slide 20: Overview
Overview Highlights from operations Financial statements Status and prospects 20
Slide 21: Excellent sales increase in Q4 and profit rises a little
Excellent sales increase in Q4 and profit rises a little Income Statement Q4 2022/23 (m.ISK) Q4 '22/23 Q4 '21/22 Δ %Δ Sales in Q4 increased by 13.8% between the years or by 4,9 b.ISK Sales 40.160 35.288 4.872 +13,8% Gross margin in ISK increased by 447 Gross profit 7.739 7.292 447 +6,1% m.ISK or
Slide 22: Strong operations in demanding environment
Strong operations in demanding environment Income Statement 12M 2022/23 (m.ISK) 12M '22/23 12M '21/22 Δ %Δ The number of sold units in grocery retail grew by some extent in the year and Sales 161.992 135.758 26.234 +19,3% customers visits grew as well Gross profit 30.987 28.441 2.546 +9,0% Sold
Slide 23: Cost ratios have improved with increased sales
Cost ratios have improved with increased sales Operational key factors (12M 2018/19 – 12M 2022/23) Sales (B.ISK.) Gross margin (%) Extensive sales increase in recent years but margin ratio has been falling Sales and 162,0 23,8 22,2 22,2 20,9 in the same time - Olís a part of the gross 116,4 119,6
Slide 24: Strong cash flow and cash from operations grows through the year
Strong cash flow and cash from operations grows through the year Cash flow statement 12M 2022/23 (m.ISK) 12M 2022/23 12M 2021/22 Change Cash from operation in the year amounted Profit for the period 4.949 4.001 948 to just over 9.1 b.ISK and increased compared to the previous year by 1.7 b.ISK Adj
Slide 25: Assets rise year-on-year - robust economy at year end
Assets rise year-on-year - robust economy at year end Balance sheet 28th February 2023 (m.ISK) Non-current assets increased by 5.4 b.ISK in the year - mostly due to Hagar's 28. 2. 28. 2. 28. 2. 28. 2. 2023 2022 %Δ 2023 2022 %Δ purchase of Eldum rétt and a 1/3 share in Property, plant and equipment
Slide 26: Return on equity increases to some extent between the years
Return on equity increases to some extent between the years Economic key factors (12M 2018/19 – 12M 2022/23) Return on equity 18.5% in the year compared to 15.9% in the previous year Return on equity (%) Equity ratio (%) Equity ratio at the year´s end was 38.8% Share- 18,5 47,7 compared to 41.0%
Slide 27: Overview
Overview Highlights from operations Financial statements Status and prospects 27
Slide 28: Market price and largest shareholders
Market price and largest shareholders Market price Closing price: 28.02.2023: 69,0 ISK/share 90 80 70 60 50 40 1.4.2020 1.7.2020 1.10.2020 1.1.2021 1.4.2021 1.7.2021 1.10.2021 1.1.2022 1.4.2022 1.7.2022 1.10.2022 1.1.2023 Date Largest shareholders, shares held at end of 28.02.2023 1. Gildi – Pension
Slide 29: Earning per share has grown in the last quarters
Earning per share has grown in the last quarters Accumulated earnings per share last 12 months (ISK per share) Earnings per share have been rising 84% (119% incl. Klasi transaction) in last quarters and the accumulated 4,28 4,37 4,40 profit now is 3.69 ISK per share for the last 12 months, 4.40 IS
Slide 30: Status and prospects
Status and prospects In spite of inflation the operation is moving to a more normal state subsequent to three unusual years where Covid and war have disrupted supply chains and caused spikes in commodity markets Still a considerable uncertainty, e.g. on price trends in the commodity markets, the
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Slide 32: Disclaimer
Disclaimer On behalf of Hagar, attention is drawn to that the statements and information in this presentation are based on, as appropriate, the plans and estimates of the company's directors, but not on facts that may be verified at the publication of the presentation or by any discussion by the com
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