Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — H1 2024 Earnings Presentation
34 slides from Sligro Food's earnings presentation, Jul 18, 2024
Slide 1: 2024 half-year figures
2024 half-year figures 18 July 2024
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2024 half-year figures Rob van der Sluijs • Developments Koen Slippens • Outlook Koen Slippens 2
Slide 3: Abridged statement of profit or loss: Revenue
Abridged statement of profit or loss 1 Revenue ▪ Organic sales drop of 0.7%: - Netherlands: +0.5% - Belgium: -6.9% ▪ Tobacco revenue up 25% to €130 million (9.4% of revenue) ▪ Regular volumes under pressure due to market conditions in the Netherlands and Belgium, and due to transitions in Belgium ▪
Slide 4: Gross profit
Gross profit 1 ▪ Gross profit margin is 26.3% (down 0.2%) ▪ Gross profit margin adversely impacted by increased tobacco sales; corrected for tobacco products’ share of revenue, margin would have been 26.7% (up 0.2%) Steady gross profit margin overall in the Netherlands: ▪ Mix (cash-and-carry vs deli
Slide 5: Other operating income
Other operating income 1 ▪ 2024: no material non-recurring results ▪ 2023: €1 million book profit on sale of vacant property. 5
Slide 6: Operating costs
Operating costs 1 ▪ Cost inflation averaged 5.5% ▪ Ratio of operating costs to revenue down 0.3% to 22.4% ▪ Shift from logistics costs (- €12m) to employee expenses (+ €10m) and depreciation (+ €2m) because of SFG Transport ▪ Cost inflation more than offset by targeted transport-related intervention
Slide 7: Depreciation, amortisation and impairment
Depreciation, amortisation and impairment 1 ▪ Depreciation and amortisation charges down €2 million ▪ Higher depreciation of other fixed operating assets following the acquisition of transport assets from Simon Loos and the addition of electric trucks to the fleet ▪ Higher depreciation on right-of-u
Slide 8: Financial income and expenses and income tax
Financial income and expenses and income tax 1 ▪ Interest expenses up €2 million due to: - increased average debt position - rising variable interest rates. 8
Slide 9: Abridged statement of cash flows
Abridged statement of cash flows 1 ▪ Lower cash flow from operations due to increase in working capital mainly by timing payments around the balance sheet date ▪ Lower cash flow from investing activities - Investments in the first half of 2024 relate to the Ghent cash-and-carry site, SFGT’s (electri
Slide 10: Financing
Financing 1 ▪ Net interest-bearing debts/EBITDA = 1.96. - As at the end of June, we were comfortably within our lending covenants ▪ €8m drawdown on new ING facility of SFGT for long term lease of trucks ▪ Final repayment of €40 million on USPP loan due in 2025. 10
Slide 11: Net profit (loss) and earnings (loss) per share
Net profit (loss) and earnings (loss) per share 1 ▪ Interim dividend of €0.30 per share paid in October. ▪ Interim dividend based on: - forecast for 2024; - strong financial position; - dividend policy. 11
Slide 12: Developments at Sligro Food Group
Developments at Sligro Food Group
Slide 13: General economic developments
General economic developments Netherlands Netherlands Consumer confidence Inflation Source for NL: Statistics Netherlands Source for BE: NBB Belgium Source for NL: Statistics Netherlands Source for BE: StatBel Belgium 10 135 0 130 -10 125 -20 120 -30 115 -40 110 -50 105 -60 100 2020 2021 2022 2023 J
Slide 14: EBITDA target for 2025
EBITDA target for 2025 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 2023 EBITDA BE Logistics Central operations Sligro-M Upsell NL Organic growth Tobacco products Cost cuts Gross margin 2025 EBITDA EBITDA target for 2025 of 7.5% 14
Slide 15: Logistics in Belgium
Logistics in Belgium Developments in the first half of the year ▪ Product range and supplier landscape harmonised between Belgium and the Netherlands ▪ System and process transition at Rotselaar delivery service site completed in June ▪ The whole of the Belgian operation is now running the same (leg
Slide 16: Central operation
Central operation Developments in the first half of the year ▪ BeNe organisational structure largely implemented ▪ Centralisation of back-office activities (Finance, IT, master data) ▪ BE – Sligro-M sales collaboration model implemented ▪ Phase-out of 150 overhead positions through synergies is on s
Slide 17: Sligro-M
Sligro-M Developments in the first half of the year ▪ Pricing and price image actions implemented positive feedback from customers in interviews ▪ Loyal Sligro-M customer base (approx. 7,500 customers per week) visits more often and spends more ▪ Focus on activation of new and reactivation of existi
Slide 18: Organic growth
Organic growth Developments in the first half of the year ▪ Food professionals in the Netherlands and Belgium are experiencing market-wide pressure on their revenue and buying less; downtrading is also pushing down revenue ▪ Sligro’s volumes were down slightly on last year ▪ Contracts with major acc
Slide 19: Cross-selling and upselling
Cross-selling and upselling Developments in the first half of the year ▪ Additional promotional and permanent low price activities to make cash-and-carry sites more attractive to regional food professionals ▪ Increase in share of premium brands Outlook for the second half of the year ▪ Reactivation
Slide 20: Tobacco products
Tobacco products Developments in the first half of the year ▪ Tobacco products share of revenue up 9% ▪ Cash-and-carry sites have stopped selling tobacco as of 1 July ▪ Delivery services sites have stopped selling tobacco as of 1 July, except for a few ongoing contracts (petrol stations segment) ▪ S
Slide 21: Cost savings
Cost savings Developments in the first half of the year ▪ Tight management of supply chain resources (people and transport) and operational improvement processes have reduced supply chain costs in an absolute sense - Increasing task length by extending delivery windows - Increasing the load volumes
Slide 22: Gross margin
Gross margin Developments in the first half of the year ▪ Margin improvement through procurement synergies across BeNe and Superunie ▪ Improving collaboration conditions for suppliers and monetising data ▪ Price increases on goods largely passed on to the market ▪ The overall underlying margin in th
Slide 23: General developments
Ts ‘Elektrisch bezorgen, i fer Qenieten’ wis ef J 1. General developments
Slide 24: Sligro Food Group Transport
Sligro Food Group Transport Developments in the first half of the year ▪ Takeover of Simon Loos’ transport operations in Amsterdam, Berkel en Rodenrijs and Drachten went well and without any disruptions ▪ Integrating the transport business into Sligro (drivers, planning system, etc.) ▪ 15 new electr
Slide 25: ERP/Digital development
ERP/Digital development Developments in the first half of the year ▪ New SAP roll-out approach adopted in collaboration with SAP ▪ Van Hoeckel and Sligro Food Group Belgium switched to the same digital platform (SAP Hybris) ▪ Roll-out of new data platform ▪ Throughout this phase, SAP showed itself t
Slide 26: SAP programme restart
SAP programme restart In 2023, the SAP programme was the subject of intensive talks with The aim is to, step by step, equip the Service Office, Cash-and-Carry Operation, Central Distribution Centre IB and SAP and Delivery Service with a future-proof, scalable and reusable ERP After the Service Offic
Slide 27: ESG
ESG Developments in the first half of the year ▪ Progress of preparations for entry into force of CSRD: - dummy annual report is in the making - manual for KPIs and measurement is ready - stakeholder management completed - baseline measurement and climate test in progress ▪ Revenue share of ‘Eerlijk
Slide 28: Outlook
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Slide 29: Outlook
Outlook Market: ▪ (Food) inflation levelling off but will remain high at 2-3% ▪ Consumer confidence, hyperinflation over the past years, and (geo)political uncertainties will weigh on volumes in the ‘out of home’ channel ▪ No broad market recovery yet in the second half of the year; marginal market
Slide 30: Slide 30
Slide 31: Statement of financial position
Statement of financial position 31
Slide 32: Segment figures
Sligro Food Group NV. Netherlands Belgium? Group x€ million H1-2024 _H1-2023 _-H1-2024 _H1-2023| _H1-2024 _H1-2023 Revenue 1.193 1.187 200 216 1.393 1.403 Organic revenue growth as % 0,5 15,7 (6,9) 36,8 (0,7) 17,6 Gross profit as % of revenue 26,5 27,0 24,7 23,7 26,3 26,5 Gross operating result (EBI
Slide 33: Segment cash flows
Sligro Food Group NV. Netherlands Belgium? Group x€million H1-2024 H1-2023? H1-2024 H1-2023 H1-2024 H1-20239 Net cash flow from business operations 34 84 (13) (3) 21 81 Interest received and paid (5) (4) 0 0 (5) (4) Dividends received from participations 3 4 0 0 3 4 Income tax paid (5) (4) 0 (1) (5)
Slide 34: EBITDA for ratio calculation
EBITDA for ratio calculation 1 €137 ▪ EBITDA reported from 2019 including IFRS 16. -€28 ▪ Financing based on net debt/EBITDA ratio not including -€8 €101 IFRS 16. ▪ Not including IFRS 16 paints a better picture of the cash position. EBITDA incl. IFRS 16 Depreciation Interest on EBITDA ex. IFRS 16 of