Tanmiah Food Company · TADAWUL:2281
Tanmiah Food — H1 2023 Earnings Presentation
17 slides from Tanmiah Food's earnings presentation, 2023
Slide 1: Tanmiah Food Company 1H2023 Presentation
TANMIAH FOOD COMPANY 1H2023 Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for use as an investor presentation for Tanmiah Food Company (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purpo
Slide 3: Table of Contents
TABLE OF CONTENTS 1 1H2023 Highlights 2 1H2023 Financial Overview 3 Outlook and Key Takeaways 4 3
Slide 4: 1H2023 Highlights
01 1H2023 Highlights 4
Slide 5: 1H2023 highlights
1H2023 highlights Fresh poultry continues to drive top line performance, whilst food franchise operations sustain growth trajectory 27% 22% 32% YoY revenue growth, Fresh Poultry revenue Animal Feed and Veterinary to SAR 983 mn growth Services revenue growth 2% 335K 11 new stores opened in 1H, Number
Slide 6: Committed to sustainability through our Giving, Earning, Sustaining model
Committed to sustainability through our Giving, Earning, Sustaining model ESG initiatives ❖ Established ESG Board Committee in 2022 ❖ ESG framework under development – already conducted benchmarking and materiality assessment ❖ One million tree initiative – Up to 335K trees planted to date; trees pl
Slide 7: 1H2023 Financial Overview
02 1H2023 Financial Overview 7
Slide 8: 1H2023 financial performance – top line
1H2023 financial performance – top line Revenues continued to improve, due to growth across the board Revenue contribution by segments (%) 1H22 1H23 Revenues (SAR mn) 1 4 12 12 +27% ▪ 1H2023 revenues increased 27% YoY, as a result of: ▪ sustained growth of fresh poultry sales during the period 87 84
Slide 9: 1H2023 financial performance – bottom line
1H2023 financial performance – bottom line Tanmiah maintained healthy margins during the period Gross Profit and Gross Margin Net Profit* and Net Profit Margin EBITDA and EBITDA Margin 8.0% 80 7.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 6.0% 250 23.1% 23.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 60 6.0% 5.
Slide 10: Fresh poultry segment analysis
Fresh poultry segment analysis Expanding production capacity and increasing sales and marketing initiatives resulting in growth PPL Feed mills Hatcheries Farms 1H22 1H23 % Change Sales volume 53.5 million birds 65 million birds 21% Processing capacity 420,500 bpd 500,000 bpd 19% Distribution routes
Slide 11: Focus on strategic expansion agenda
Focus on strategic expansion agenda Execution of capex program remains a priority, enabling further enhancement of market positioning Capex Commitments (SAR mn) Capex Additions Lease Additions 180 (SAR mn) (SAR mn) 153 150 180 164 135 120 150 121 90 120 60 90 90 71 30 70 60 1H 22 1H 23 30 50 41 Fres
Slide 12: Prudent balance sheet management
Prudent balance sheet management Balance sheet (SAR mn) Non-current assets Current Assets Equity Non-current Liabilities Current Liabilities Dec 2022 June 2023 RoIC(1) (2) % 8% 10% Profitability RoE (1) % 11.3% 14.0% NWC-to-Sales (3) % 17% 17% Trade receivables(3) Days of Sales 34 33 887 Biological
Slide 13: Key Takeaways
03 Key Takeaways 13
Slide 14: Strong foundation to capture future growth
Strong foundation to capture future growth Robust underlying fundamentals enabling Tanmiah to become a leading food producer in the MENA region and beyond Our pathway to rapid expansion rests on solid ground Asset-light model allows us to lease farms and other facilities, which enables us to scale u
Slide 15: Reinforced by Government Initiatives
Reinforced by Government Initiatives Continued support for the food sector, both directly and indirectly, as part of Vision 2030 initiatives and programs 2020 2030 Private Sector GDP Contribution 50% 65% of GDP of GDP 2020 2025 Broiler Self Sufficiency Goals 60% 80% ✓ Achieved A range of measures to
Slide 16: 1H23 Key Takeaways
1H23 Key Takeaways Improvement in revenues achieved, supported primarily by fresh poultry sales Continued execution of strategic growth agenda, with 19% YoY increase in production capacity to 500,000 bpd Prestigious awards received, in recognition of Tanmiah’s endeavors in the fields of sustainabili
Slide 17: Thank You
THANK YOU Investor Relations & Media Queries Mr. Hussam Al Shareef, Investor Relations Manager ir@tanmiah.com www.tanmiah.com