Colruyt Group N.v. · EURONEXT:COLR
Colruyt — H1 2023/24 Earnings Presentation
51 slides from Colruyt's earnings presentation, Dec 13, 2023
Slide 1: Half-Year Results 2023/24
Half-Year Results 2023/24 Financial Year ending 31 March 2024 Analyst meeting 13/12/2023 1
Slide 2: Disclaimer
Disclaimer Risks relating to forecasts Statements by Colruyt Group included in this presentation, along with references to this presentation in other written or verbal statements of the group which refer to future expectations with regard to activities, events and strategic developments of Colruyt G
Slide 3: Table of contents
Table of contents 1. Key figures 2. Business update & highlights 3. Cash flow & net financial debt 4. Outlook 5. Financial calendar
Slide 4: 1. Key figures
1. Key figures The key figures are based on the consolidated income statement, in which both DATS 24 NV and Dreamland NV are presented as discontinued operations.
Slide 5: Headlines
Headlines • Challenging and uncertain macro-economic context and competitive Belgian retail market. • Revenue increase of 16,0% mainly due to: ‒ food inflation; ‒ increased combined market share of 32,1% (Colruyt Lowest Prices, Okay and Spar) in Belgium; ‒ full consolidation of Newpharma. • Normalis
Slide 6: One-off effects
One-off effects • Positive one-off effect of EUR 689 million as a result of the sale of Parkwind to JERA by Virya Energy. Related to the sale there is an additional positive one-off effect of EUR 19 million due to ceased depreciations on Parkwind assets. Both presented in the ‘share in the result of
Slide 7: Key figures
Key figures Consolidated Consolidated Consolidated nme , mraterene | | income statement | | °vaterent a% A% 7 eer 2003/a8. H1 2023/24 tn oom 3 excl. one-off effects 2 excl, one-off effects! af Revenue 5.482 5.482 4,725 16,0% 16,0% Gross profit 1.617 1.617 1.323 22,2% 22,2% % of revenue 29,5% 29,5% 2
Slide 8: Other key figures
Other key figures (*) Combined market share in Belgium of Colruyt Lowest Prices, Okay and Spar. 8
Slide 9: EBIT evolution (M€)
EBIT evolution (M€) 2,3 % of 4,5 % of revenue revenue -43 +22 bp -93 +1 +293 -20 +52 bp -18 bp +17 bp +246 +148 bp +108 EBIT Gross profit Services and Employee Other operating Depreciation EBIT H1 2022/23 miscellaneous goods benefit expenses income and impairment H1 2023/24 and expenses 9
Slide 10: EBIT evolution (M€)
EBIT evolution (M€) 2,3 % of 4,5 % of revenue revenue -43 +22 bp -93 +1 +293 -20 +52 bp -18 bp +17 bp +246 +148 bp +108 EBIT Gross profit Services and Employee Other operating Depreciation EBIT H1 2022/23 miscellaneous goods benefit expenses income and impairment H1 2023/24 and expenses 10
Slide 11: Revenue evolution
Revenue evolution • Consolidated revenue (+16,0%) positively impacted by food M€ 5.482 inflation, the increase of the market share in Belgium and the full M€ 4.725 consolidation of Newpharma. +16,0% • Excluding Newpharma: consolidated revenue increased by 13,5%. • Strategy consistency. • Expansion &
Slide 12: Gross margin
Gross margin • Gross profit increases mainly due to higher revenue and due to an 29,5% 28,0% increase in gross margin. +148 bp • Increase in gross margin mainly due to the normalisation of the balance between sales price inflation and cost price inflation after cost price inflation has been higher t
Slide 13: Net operating expenses
Net operating expenses • Increased focus on processes, cost control and efficiency. • Long-term strategy continued: pursuing investments in sustainability and efficiency, digital transition and innovation, employees and high-quality house-brand products. -43 2,3 % of 4,5 % of revenue revenue +22 bp
Slide 14: Net operating expenses
Net operating expenses Services and miscellaneous goods % of revenue 21,8% 21,3% Services and miscellaneous goods: M€ -43 or +12,5% 0,3% 0,4% • Full consolidation of Newpharma. • Impacted by inflation on various operating expenses (e.g. transport expenses). 16,0% • Partly compensated by lower energy
Slide 15: Net operating expenses
Net operating expenses Employee benefit expenses % of revenue 21,8% 21,3% 0,3% 0,4% -52 bp 16,0% 15,5% Employee benefit expenses: M€ -93 or +12,3% • Automatic wage indexation in Belgium. 7,3% 7,1% • FTE increase: +682 in H2 2022/23 and -323 in H1 2023/24. -1,7% -1,6% − Almost 300 FTE’s as a result o
Slide 16: EBIT evolution (M€)
EBIT evolution (M€) • Increase in depreciations of M€ -11 (to M€ -189) mainly due to the full consolidation of Newpharma and the continuous investments in stores, production and distribution centres and transformation programmes. • Increase in impairment charges of M€ -10 (to M€ -14) mainly due to i
Slide 17: Net result evolution (M€)
Net result evolution (M€) 1,9 % of 16,4 % of revenue revenue -37 +728 -11 -62 bp -20 bp +1329 bp +138 +897 -10 -21 bp +221 bp +89 Net result Result from EBIT Net financial result Share in result of Income tax expense Net result H1 2022/23 discontinued associates & H1 2023/24 17 operations joint vent
Slide 18: Net result evolution (M€)
Net result evolution (M€) 1,9 % of 16,4 % of revenue revenue -37 +728 -11 -62 bp -20 bp +1329 bp +138 +897 -10 -21 bp +221 bp +89 Net result Result from EBIT Net financial result Share in result of Income tax expense Net result H1 2022/23 discontinued associates & H1 2023/24 18 operations joint vent
Slide 19: Result from discontinued operations
Result from discontinued operations H1 2023/24 H1 2022/23 Net result DATS 24 7 20 Net result Dreamland -14 -12 Capital gain sale DATS 24 8 Impairment Dreamland -3 Result from discontinued operations -2 8 DATS 24 Dreamland • Net result of 2 months in H1 2023/24 and • Net result of 6 months, both in H
Slide 20: Net result evolution (M€)
Net result evolution (M€) Effective tax rate of 24,4%. Increase in finance costs as a result of increasing interest rates. 1,9 % of 16,4 % of revenue revenue -37 +728 -11 -62 bp -20 bp +1329 bp +138 +897 -10 -21 bp +221 bp +89 Net result Result from EBIT Net financial result Share in result of Incom
Slide 21: Net result evolution (M€)
Net result evolution (M€) 1,9 % of 16,4 % of revenue revenue -37 +728 -11 -62 bp -20 bp +1329 bp +138 +897 -10 -21 bp +221 bp +89 Net result Result from EBIT Net financial result Share in result of Income tax expense Net result H1 2022/23 discontinued associates & H1 2023/24 21 operations joint vent
Slide 22: Share in result of associates and joint ventures (M€)
Share in result of associates and joint ventures (M€) 0 +20 +722 +19 -6 +689 H1 2022/23 Virya Energy Other H1 2023/24 22
Slide 23: 2. Business update & highlights
2. Business update & highlights
Slide 24: Group revenue by segment
87,5% of group revenue EUR 4.799 million 12,2% of group revenue EUR 669 million 0,3% of group revenue EUR 14 million In the disclosure of operating segments in the notes to the condensed consolidated interim financial statements, Dreamland NV and DATS 24 NV are still included, respectively in the se
Slide 25: Group revenue by segment
87,5% Accounted for as discontinued of group revenue operations in H1 2023/24 (H1 2022/23 also restated). As of October 2023 Dreamland EUR 4.799 million will be accounted for through the equity method. 12,2% of group revenue EUR 669 million 0,3% of group revenue EUR 14 million In the disclosure of o
Slide 26: Food Retail
Food Retail (+13,5% = M€ 4.481) Number of Revenue Highlights stores • Revenue increase mainly due to food inflation. +14,3% +4 = 260 • Winner of GfK in Summer 2023. = M€ 3.543 • 50th birthday of Colruyt Lowest Prices. • Best Store Chain in category ‘Convenience’ of ‘Best Retailer of the Year’ + No.
Slide 27: Food Retail
Food Retail • In September 2023, Colruyt Group reached an agreement with Match NV and Profi NV, subsidiaries of the group Louis Delhaize NV ("Louis Delhaize"), to acquire 28 Match and 29 Smatch stores in Belgium. • This transaction is subject to approval by the Belgian Competition Authority (BCA). T
Slide 28: Non-Food Retail
All major players in their respective markets. Non-Food Retail (+64,1% = M€ 318) Number of Revenue Highlights stores • Challenging market, strengthened by current macro-economic context. -4,4% -4 = 27 • Continuous efforts to improve operational efficiency + actions and restructuring to improve profi
Slide 29: E-commerce
E-commerce Online revenue Online revenue accounted for 8% of retail revenue. Online revenue mainly realised by Collect&Go and Newpharma. Over 300 collection points: Belgium: 232 Luxembourg: 4 France: 100 • Online revenue increased due to the full consolidation of Newpharma. • Collect&Go is market le
Slide 30: Segment – Retail
Segment – Retail(*) (*) In the disclosure of operating segments in the notes to the condensed consolidated interim financial statements, Dreamland NV is still included in the segment ‘Retail’ before being reclassified to discontinued operations. As the Dreamland-transaction has been closed in Octobe
Slide 31: Innovation
Innovation • Smart Technics, Colruyt Group's innovation hub, focuses on automation and digitalisation throughout the supply chain; from the introduction of robotics in distribution centres to the integration of technologies in the stores. • Colruyt Group is taking steps towards creating the store of
Slide 32: Sustainability
Sustainability Colruyt Group is a reference point for sustainable entrepreneurship and a source of inspiration for conscious consumption. Colruyt Group works towards this objective step by step, through a wide array of initiatives and partnerships. • The Eco-Score is gaining momentum. More and more
Slide 33: Group revenue by segment
87,5% of group revenue EUR 4.799 million 12,2% of group revenue EUR 669 million 0,3% of group revenue EUR 14 million In the disclosure of operating segments in the notes to the condensed consolidated interim financial statements, Dreamland NV and DATS 24 NV are still included, respectively in the se
Slide 34: Wholesale and Foodservice
Wholesale and Foodservice Revenue Highlights • Revenue rose as a result of food inflation and the full consolidation of Degrenne Distribution (3 months), partly offset by lower volumes. +13,6% • Close and long-term collaboration with independent entrepreneurs. = M€ 537 • Intention to further expand
Slide 35: Segment – Wholesale & Foodservice
Segment – Wholesale & Foodservice 35
Slide 36: Group revenue by segment
87,5% of group revenue EUR 4.799 million 12,2% of group revenue Including DATS 24 since June 2023. DATS 24 has been accounted for as discontinued operations in EUR 669 million H1 2023/24 (2 months) (H1 2022/23 (6 months) also restated). 0,3% of group revenue EUR 14 million In the disclosure of opera
Slide 37: Segment – Other activities
Segment – Other activities(*) (*) In the disclosure of operating segments in the notes to the condensed consolidated interim financial statements, DATS 24 NV is still included in the segment ‘Other activities’ before being reclassified to discontinued operations. As the DATS 24-transaction has been
Slide 38: Virya Energy
Virya Energy • Colruyt Group has a 59,9% stake in Virya Energy as at 30 September 2023 (accounted for using the equity method). • Value creation in sustainable energy from capture and transformation to consumption. Through its subsidiaries, Virya Energy is present across the full energy value chain
Slide 39: Virya Energy
Virya Energy • Sale of Parkwind to JERA ‒ On 26 July 2023, the sale of Parkwind by Virya Energy to JERA was successfully completed for the final price of approximately EUR 1,6 billion (net of debt and transaction costs) at the level of Virya Energy. ‒ The completion of the sale had led to a one-off
Slide 40: Segment – Corporate / unallocated
Segment – Corporate / unallocated 40
Slide 41: 3. Cash flow & net financial debt
3. Cash flow & net financial debt
Slide 42: Cash flow (M€)
Cash flow (M€) +497 Net cash evolution -197 Investing -206 activities -41 -35 +9 +575 -360 Financing -284 activities +1.056 -39 Operating -2 activities +75 +446 +850 +353 Cash & EBITDA Change Income tax Operating CAPEX Investing Purchase Payment of Financing Effect of Cash & cash equivalents (incl.
Slide 43: Net financial debt (M€)
Net financial debt (M€) Interest-bearing liabilities Non-current (>1 year) Of which IFRS 16 Current (>1 year) Long-term financing due within 1 year Of which IFRS 16 Short-term financing"? Less: Cash and cash equivalents Variance Variance % Sep 2023, Mar 2023 849 878 253 253 236 430 168 172 533 34 87
Slide 44: Capital expenditures, net of capital grants (M€)
Capital expenditures, net of capital grants (M€) Continuation of the CAPEX programme: • H1 2023/24 : M€ 206 (exclusive of right-of-use assets and business combinations) • Expectation FY 2023/24: M€ 440 to M€ 460 • 3-year period from 2023/24 to 2025/26: € 1,5 billion Investments in: • New stores and
Slide 45: Share buybacks (M€)
Share buybacks (M€) Treasury shares purchased: • In H1 2023/24: 1.214.861 shares (M€ 41). • After period-end: 843.914 shares (M€ 33). Status as per 8/12/2023(*) • 8.728.148 treasury shares held by Colruyt Group. • 6,51% of the total number of shares issued (134.077.688). Status as per 13/12/2023: ca
Slide 46: 4. Outlook
4. Outlook G COLRUYTGROUP
Slide 47: Outlook
Outlook 2023/24 result guidance • Colruyt Group expects the operating profit and the net result (i.e. excluding one-off effects, DATS 24 and Dreamland) to increase sharply in the financial year 2023/24 compared with prior financial year (on a comparable basis, in line with the key figures of 2022/23
Slide 48: Outlook
Outlook Strategy consistency • As a retailer and the market leader in Belgium, Colruyt Group continues to actively fulfil its role in society by ensuring that customers receive a qualitative and affordable offering in stores and online. • In doing so, Colruyt Lowest Prices continues to consistently
Slide 49: 5. Financial calendar
5. Financial calendar G COLRUYTGROUP
Slide 50: Financial calendar
Financial calendar 11/05/2024 Start black-out period 11/06/2024 Publication full-year results 2023/24 (17h45 CET) 12/06/2024 Information to financial analysts (14h00 CET) 31/07/2024 at the latest Publication annual report 2022/23 11/09/2024 Start black-out period 25/09/2024 General Meeting of Shareh
Slide 51: Thank you for your attention Questions?
Thank you for your attention Questions? 51