Savola Group · TADAWUL:2050
Savola — Q2 2022 Earnings Presentation
28 slides from Savola's earnings presentation, 2022
Slide 1: Savola Group Earnings Presentation YTD Q2 2022
Savola Group www.savola.com Earnings Presentation | YTD Q2 2022
Slide 2: Disclaimer
DISCLAIMER This presentation might contain 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
Slide 3: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 3
Slide 4: Group - Highlights
GROUP - HIGHLIGHTS • For YTD June 2022, Savola Group reported strong financial performance overall: • Foods segment growth momentum continued with higher volume growth despite volatile commodity prices Business Highlights • Retail segment witnessed slight decline as expected on the back of our conti
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 +26% +17% +21% Sales 7,489 5,901 6,888 14,378 5,954 11,855 +6% +12% +9% Gross Profit 1,212 1,285 1,118 1,248 2,329 2,533 20.4% 17.2% 18.9% 18.1% 19.6% 17.6% Note: numbers are rounded 5
Slide 6: Group – Consolidated Financial Highlights
GROUP – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 Q1-21 +22% +12% +17% EBITDA 781 677 759 1,319 1,540 641 10.8% 10.4% 11.5% 11.0% 11.1% 10.7% +76% +7% +37% Net Income 271 200 214 485 154 354 2.6% 3.6% 3.4% 3.1% 3.0% 3.4% Note: numbers are rounded
Slide 7: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography YTD-21 YTD-22 YTD-21 YTD-22 5% 4% 11% 14% 3% 2% 5% 6% 46% 36% 15% 58% 16% 46% 64% 69% Foods Retail Food Services Frozen Food KSA Egypt Central Asia Others YoY Growth +51% -6% -2% +5% +12% +28% +56% +57% Lo
Slide 8: Group – Revenue & Net Income Bridge by Business
GROUP – REVENUE & NET INCOME BRIDGE BY BUSINESS Revenue Bridge by Business Net Income Bridge by Business* SAR in millions SAR in millions +21% +37% 2,845 (326) (12) 16 1 14,378 89 485 85 (28) (9) (3) (3) 11,855 354 YTD Food Retail Food Frozen Others / YTD YTD 2021 Food Retail Food Frozen Share of Ot
Slide 9: Selected Commodity Snapshots (FAO)
SELECTED COMMODITY SNAPSHOTS (FAO) FAO Food Price Index (rebased)(1) FAO Vegetable Oils Index (rebased)(2) FAO Sugar Index (rebased)(3) 155 151 135 150 220 135 130 145 195 125 200 140 120 135 180 115 130 160 110 125 105 120 140 100 115 110 120 95 105 90 100 100 85 95 80 80 90 75 85 60 70 Jan-20 Jun-
Slide 10: Group Key Financial Highlights; Performance by Segment
1. Group Key Financial Highlights 2. Performance by Segment 10
Slide 11: Panda Retail Company
JgbLa SAVOLA Panda Retail Company 11
Slide 12: Retail - Highlights
RETAIL - HIGHLIGHTS • Retail segment witnessed slight decline as expected on the back of our continued CXR Key Highlights program and closure of some stores as compared to the same period last year Store Count • Store count declined to 192 stores in total which includes 4 stores in Egypt • Panda rec
Slide 13: Retail – Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions • Panda’s revenue declined in Q2 due Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 to the renovation under the CXR program disrupting the shopping experience, closure of 10 stores last -15% year, closures of 3 stores towards the +3% -6% end o
Slide 14: Retail – Consolidated Financial Highlights
RETAIL – CONSOLIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions • As a result of lower revenue, EBITDA Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 in Panda declined by 36% and 22% for Q2 and YTD Q2 respectively compared to same period last year -36% -22% -6% • As expected, net loss during the YTD period
Slide 15: Retail – Number of Stores
RETAIL – NUMBER OF STORES Super Hyper 132 130 (2) 63 (1) 62 Mar Additions Closures Jun Mar Additions Closures Jun 2022 2022 2022 2022 Total Jan-22 Jun-22 Selling Area Selling Area 594,357 m2 585,800 m2 195 192 0 (3) Mar Additions Closures Jun 2022 2022 Note: By 30th June 2022 , total of 13 stores ha
Slide 16: Savola Foods Company
JgbLa SAVOLA Savola Foods Company ayac il Foods Jgbls SAVOLA 16
Slide 17: Foods – Highlights
FOODS – HIGHLIGHTS • The performance of our foods segment continued to show robust growth despite challenges in commodity prices and markets Key Highlights • Sales from new categories of nuts, spices and pulses (NSP) contributed SAR 233 million in YTD period; the category saw successful relaunch of
Slide 18: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ Foods segment continued its Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 impressive growth YoY ▪ The growth in sales for the food +49% +54% +51% segment came from combination of growth in volume as well as the price increases Sales 4,328 4,069 8,397 2,9
Slide 19: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 +31% +58% +44% EBITDA 343 377 720 261 239 500 9.0% 7.9% 9.0% 9.3% 9.0% 8.6% +37% +56% +46% Net Income 143 128 271 104 82 186 3.6% 3.3% 3.1% 3.2% 3.4% 3.2% Note: numbers are rounded 19
Slide 20: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-21 YTD-22 YTD-21 YTD-22 +8% 952 YoY Growth 5,829 YoY Growth 878 6% Morocco -5% 4% 6% Morocco +19% 6% +55% Sudan -30% 6% 6% 10% Sudan +20% 6% Algeria +76% 6% Algeria +72% 8% 11% Turkey +12% 7% Turkey +58% Central Asia -11% 3,7
Slide 21: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-21 YTD-22 YTD-21 YTD-22 YoY Growth +2% YoY Growth 743 1,708 726 +29% Egypt -38% Egypt -24% 15% 16% KSA +16% KSA +50% 25% 1,325 28% 85% 84% 75% 72% Gross Profit / Ton (SAR) 230 228 Note: Sugar volumes and revenues include on
Slide 22: Al Kabeer Group of Companies
Al Kabeer Group of Companies 22
Slide 23: Frozen Food - Highlights
FROZEN FOOD - HIGHLIGHTS • The frozen food segment demonstrated resilience despite sourcing challenges and Key Highlights other continued impact of regulatory changes • Revenues registered 5% growth YoY in YTD 2022 Revenues • Al Kabeer reported revenue growth across sales channels with continued gro
Slide 24: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ Frozen food revenues continued to Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 grow led by recovery in the B2B/HORECA channel +5% +4% +5% ▪ UAE also witnessed a good momentum backed by the Expo 2020 Sales 175 184 159 165 334 350 ▪ The se
Slide 25: Frozen Food – Al Kabeer Financial Highlights
FROZEN FOOD – AL KABEER FINANCIAL HIGHLIGHTS Margin SAR in millions ▪ 4% drop in EBITDA due to higher Q1-21 Q1-22 Q2-21 Q2-22 YTD-21 YTD-22 input prices as well as increase in marketing and advertisement expense +11% -21% -4% ▪ Net income registered a drop of 8% due to reasons aforementioned EBITDA
Slide 26: Financial Summary
JgbLa SAVOLA Financial Summary 26
Slide 27: Financials Summary – YTD June 2022
FINANCIALS SUMMARY – YTD June 2022 (All figures are in SAR millions) Segment Wise Financials YTD 2022 YTD 2021 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food Processing* Oil-Mature Markets 4,806 700 397 187 448 2,994 529 241 118 289 Oil-Other Markets** 1
Slide 28: Thank you
JQGoLA SAVOLA Thank you vola.com 28