Savola Group · TADAWUL:2050
Savola — Q2 2019 Earnings Presentation
20 slides from Savola's earnings presentation, 2019
Slide 1: Earnings Presentation Q2 2019
Earnings Presentation Q2 2019 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: Q2 2019 - Snapshot
Q2 2019 - SNAPSHOT Q2 2019 Revenue of SAR 6.0 bn (Q2 2018: SAR 6.1 bn) GROUP Q2 2019 Net Income of SAR 110.2 mn (Q2 2018: SAR 140.7 mn) Q2 2019 Revenue of SAR 3.3 bn (Q2 2018: SAR 3.2 bn) RETAIL Q2 2019 Net Loss of SAR 119.2 mn (Q2 2018: Net Loss of SAR 210.5 mn) Q2 2019 Revenue of SAR 2.4
Slide 4: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YTD Sales +1% +5% -2% 11,256 11,412 5,108 5,388 6,148 6,024 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 YoY Gross Profit YTD Gross Profit +13% +17% +9% 1,975 2,229 909 1,065 1,067 1,163 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY EBITDA YTD EBITDA +71% +105% +52% 1,169 505 664 683 246 437 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 4.8% 9.4% 7.1% 11.0% 6.1% 10.2% YoY Net Income YTD Net Income +107% -22% 6 117 (84) 141 110 56 Q1 2018 Q1 2019 Q2 2018 Q2 2
Slide 6: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR mn Growth Revenue by Business Net Debt YTD 2018 YTD 2019 SAR 11.3 bn SAR 11.4 bn -1% 5% 5% 3% Food Processing 41% 7,054 6,991 46% Retail 49% Food Services Frozen Food 51% Dec 2018 YTD 2019 Revenue by Geography CAPEX YTD 2018 YTD 2019 SAR 11.3 bn SAR 11.4 bn
Slide 7: Implications of Exceptional Items
YTD 2018 683 reported EBITDA SAR mn YTD 2018 YTD 2019 reported EBITDA 1,169 Note: Numbers are rounded Store Closure & 65 Project Write-off Adjusted EBITDA YTD 2019 IFRS16 Net Impact (342) YTD 2019 892 Adjusted EBITDA YTD 2018 56 reported NI IMPLICATIONS OF EXCEPTIONAL ITEMS Gain on Sale of Dar Al Ta
Slide 8: Panda Retail Company
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Slide 9: Retail – Highlights
RETAIL – HIGHLIGHTS • Management turnaround initiatives are starting to materialize resulting in improvements in key operating metrics • Despite store closures and decrease in selling space of 11.4% from 730k sqm in Q2 2018 to 647k sqm in Q2 2019, the retail segment recorded revenues of SAR 5.9 bn d
Slide 10: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YTD Sales +6% +12% +1% 5,606 5,924 2,377 2,671 3,229 3,253 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 YoY Gross Profit YTD Gross Profit +7% +11% +3% 1,103 1,181 500 557 603 624 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 21.0%
Slide 11: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS SAR m mn YoY EBITDA* YTD EBITDA* Includes adjustments for IFRS 16 and store closures 201 66 135 30 4 (26) (87) (62) (149) Q2 2018 Q2 2019 Q2 2019 Q1 2018 Q1 2019 Q1 2019 Adjusted Adjusted EBITDA YTD 2018 YTD 2019 YTD 2019 EBITDA Adjusted EBITDA YoY Net Loss* YTD Net Los
Slide 12: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER SAR mn Super Hyper 153 1 66 145 62 (9) (4) Dec Additions Closures YTD Dec Additions Closures YTD 2018 2019 2018 2019 Total Total Selling Area Selling Area 689,633 m2 646,581 m2 219 1 207 (13) Dec Additions Closures YTD 2018 2019 Note: 4 Hyper stores were closed d
Slide 13: Savola Foods
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Slide 14: Foods – Highlights
FOODS – HIGHLIGHTS • Total volume has declined by 4.7% to 1,646 MT by YTD 2019 compared to 1,728 MT in YTD 2018 mainly driven by a decline in oil volume • YTD June 2019 revenues are 9.6% lower than the same period last year decreasing from SAR 5,264 mn to SAR 4,758 mn primarily due to: • 15.5% decli
Slide 15: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY Sales YTD Sales -10% -6% -13% 5,264 4,758 2,572 2,408 2,692 2,350 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 YoY Gross Profit YTD Gross Profit +5% +11% -1% 716 749 331 367 385 382 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 12.9% 15.
Slide 16: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS SAR mn Growth Margin YoY EBITDA YTD EBITDA +16% +36% +2% 422 363 207 212 215 152 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019 5.9% 8.6% 7.9% 9.2% 6.9% 8.9% YoY Net Income YTD Net Income +24% -51% 178 112 135 143 65 8 Q1 2018 Q1 2019 Q2 2018 Q2 2019 YTD 2018 YTD 2019
Slide 17: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR mn Growth Volume (MT ‘000) Revenues -4.5% -15.5% 814 3,588 5% 777 5% 4% 6% 3% 9% 3% 8% 3,030 12% 6% 9% 11% 4% Morocco Morocco 11% 11% YoY +6% YoY -4% Sudan 13% Sudan 31% YoY -19% 29% YoY -10% 23% Algeria Algeria YoY +24% 17% YoY +24% Turkey Turkey YoY +17% 15% YoY 0%
Slide 18: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR mn Growth Volume (MT ‘000) (1) Revenues (1) Egypt Egypt YoY 0% YoY -2% KSA KSA YoY -6% -0.4% YoY 0% -5.4% 1,362 1,356 741 701 16% 16% 14% 15% 86% 84% 84% 85% YTD 2018 YTD 2019 YTD 2018 YTD 2019 (1) Sugar volumes and revenues include only the contribution from our c
Slide 19: Financial Summary
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Slide 20: Financials – YTD 2019
FINANCIALS – YTD 2019 (all figures are in SAR millions) Segment Wise Financials YTD 2019 YTD 2018 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 2,395 431 162 107 205 3,000 416 148 77 182 Oil-Start-up Markets** 635 73 40 24 46 588 70