Kal Group Limited · JSE:KAL
Kal — Shareholder Meeting (February 2023)
16 slides from Kal's shareholder meeting presentation, Feb 9, 2023
Slide 1: Annual General Meeting – 9 February 2023: F23 Q1 Trading Update
ANNUAL GENERAL MEETING – 9 FEBRUARY 2023 F23 Q1 TRADING UPDATE Presented by: Sean Walsh Chief Executive Officer
Slide 2: Index
INDEX •1 Highlights for F22 •2 F22 - Recurring Headline Earnings •3 F22 - Cash Flow 4• F23 Q1 ▪ Highlights ▪ Group Trading Update ▪ Recurring Headline Earnings • 5 ESG & Operational statistics •6 Outlook 2
Slide 3: Highlights for F22
HIGHLIGHTS FOR F22 • Group AGRI real revenue growth +14.7%, market share growth from our B2B strategy • Excl PEG, Group RETAIL real revenue growth +1.5% outperforming struggling building sector and strong recovery in convenience • Group fuel liters outperforming sector trends, gaining market share,
Slide 4: F22 - Recurring Headline Earnings ('RHE')
F22 - RECURRING HEADLINE EARNINGS (‘RHE’) RHE HIGHLIGHTS ➢ Strong GP growth at 12.8% margin ➢ LFL Expense management +12.2% ➢ Interest received +48.9% ▪ higher average debtors book, higher interest rates ➢ Interest paid +46.8% ▪ Higher average debt levels ▪ PEG acquisition debt (3 months) ▪ Banks +3
Slide 5: F22 - Cash Flow
F22 - CASH FLOW KEY CASHFLOW DRIVERS: ➢ Strong cash generation from operating activities ➢ Effective working capital management, real growth and inflation impacted ➢ net working capital cycle +6 days ➢ Inventory growth < revenue growth ➢ Debtors healthy ➢ TFC properties disposal proceeds ➢ PEG acqui
Slide 6: Margin contribution and operating statistics
MARGIN CONTRIBUTION Fuel General retail 16% Transactions 34% 30% 33,3 million 20% 54,3% growth Agri Convenience retail 85 service stations in TFC Group network HERE’S AN IDEA DC COST TO SERVE OF OUR 4,96% SIZE TODAY 3,47% 7,401 Employment Active cost efficiency suppliers Employees improved by 6,752
Slide 7: Operational statistics: grain, fuel and products
Record 369,084 tonnes of wheat received at Agrimark Grain storage 3 facilities first methane gas-driven tractors in Africa 900,000+ Pallets FARMERS, FAMILIES, FRIENDS AND THE FUR-FAMILY 2,500+ 369,7 million braai grids Litres of fuel Dog food 6,7 million kg Cat food Cement unit sales 12% above pre-
Slide 8: ESG Impact
BEE LEVEL 4 24,48% 76,6% ownership R14,1 billion in Kaap Agri procurement spend with B-BBEE 55,6% accredited suppliers black ownership in TFC KAAP AGRI TRUST ESG KAAP AGRI ACADEMY R4,2 million IMPACT R9,3m to employees & communities invested in Academy in 2022 programs R1,2 million in interest-free
Slide 9: The Fuel Company: Fuelling Growth
69,8 million PEG litres fuel contributed Jul - to TFC Sep Petrol 31,7 million 2022 Diesel 38,1 million Total TFC Fuel: 240,7 million litres Employees in TFC 4,703 Pies THE FUEL COMPANY: FUELLING GROWTH 3,8 million 10 electric vehicle charging stations Litres of Coca-Cola 2,6 million Coffees 874,500
Slide 10: Highlights for F23 Q1
HIGHLIGHTS FOR F23 Q1 • Group statutory revenue growth 73.8% (LFL 17.8%) • Inflation 26.0% (12.5% excluding fuel). • Transaction growth 193.6% (6.3% excl PEG) • Group fuel litre growth 82.9% (3.2% excl. PEG) • LFL expense growth 2.5% (-1.8% excl. Loadshedding costs) • RHE growth 30.9%, RHEPS 19.8% (
Slide 11: F23 Q1 Trading Update - Group Agri & Retail Channel
F23 Q1 TRADING UPDATE - GROUP AGRI & RETAIL CHANNEL ➢ Excl PEG ! ➢ Retail +7.5%: slower Q1, flattening inflation: Up: FMCG 23.0%, Pets 9.1%, Paint 1.4%, pool & garden +1.8%, irrigation +10.8%, outdoor +23.6%, Deli +41.6% Down: Build. materials 10.4%, Hardware 2.2% ➢ Agri +7.2%: slower Q1, continued
Slide 12: F23 Q1 Trading Update - Agrimark Grain Division
F23 Q1 TRADING UPDATE - AGRIMARK GRAIN DIVISION ➢ Normalized wheat harvest for 2022/23 season ▪ record years in 2020/21 & 2021/22 ➢ Canola tonnage – similar to PY ➢ Wheat prices positive for farmers, will cover high input costs ➢ Agrimark Grain expectation F23 earnings aligned to prior years of simi
Slide 13: F23 Q1 Trading Update - Cost of Loadshedding
F23 Q1 TRADING UPDATE - COST OF LOADSHEDDING ➢ Loadshedding trend - F23 YTD exceeding all prior years within Q1 ➢ Direct cost impact of fuel, maintenance, generator rentals ➢ PEG costs included from July 22 ➢ Lost revenue unquantifiable ➢ Driving up costs, driving up capital expenditure and driving
Slide 14: F23 Q1 - Recurring Headline Earnings ('RHE')
F23 Q1 - RECURRING HEADLINE EARNINGS (‘RHE’) ➢ GP growth supported by PEG ➢ GP growth < turnover growth ▪ YOY fuel price inflation impact ➢ Expense growth driven by: ▪ LFL expenses +2.5% ▪ PEG ▪ TFC and Agrimark non-LFL ▪ TFC rentals (ex-TFC props) ▪ Loadshedding ➢ Interest received: rate and debtor
Slide 15: Outlook
OUTLOOK Agriculture ➢ Fruit sector expectations stable – yields down, logistics & cost much better ➢ Wine grape harvest expected to be lower, prices stable to better (Peru & Chile issues) ➢ Lower/normal wheat, barley and canola harvest currently in storage ➢ Weather – moving to El Nino ➢ High input
Slide 16: Thank You
KAAP & AGRI