35 slides from Gr. Sarantis's investor presentation, 2024
Slide 1: Sarantis Group Investors Presentation
Sarantis Group Investors Presentation
Slide 2: Forward-looking statement
Forward-looking statement This document contains certain “forward-looking” statements. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances, which could affect materially the expected results, because current expectatio
Slide 3: With you today
With you today Giannis Bouras Christos Varsos Group CEO Group CFO 3 Sarantis Group Investors Presentation
Slide 4: Setting the base for sustainable organic growth
Setting the base for sustainable organic growth Giannis Bouras, CEO
Slide 5: A long history of 60 years
A long history of 60 years 2015 Milestone acquisitions: 1964 Establishment of 1994 New production facilities Polipak, Ergopack, Stella GR. SARANTIS S.A. 2000 in Athens 2024 Pack Expansion in Eastern Investments in Europe infrastructure New exclusive strategic agreements Intense Acquisition Listed on
Slide 6: Our Story
Our Story Sustainable Growth Value Creation Consistency in performance Efficiency and focus 6 Sarantis Group Investors Presentation
Slide 7: Well-placed for Sustainable Growth
Well-placed for 7 Sustainable Growth Net Sales €740m Net Sales €660m EBITDA €100m 2X EBITDA to €120m Net Sales €482.2m EBITDA €61.6m EBIT 77€m 2X EBIT to 95€m Net Sales €445.1m EBIT €47.1m EBITDA €45.5m from 2023 EBIT €32.2m 2022 2023 2026 2028 www.companyname.com © 2016 Startup theme. All Rights Re
Slide 8: We care for the future the same way we care about the present
We care for the future the same way we care about the present OUR COMPETITIVE ADVANTAGE OUR SCOPE ▪ We design for the CEE region with deep local ▪ CEE and selected international markets consumer understanding on beauty ▪ We are the revitalisers of local “jewel” brands ▪ Home Care solutions ▪ We inve
Slide 9: Strategic priorities for Level Up Growth
Strategic priorities for Level Up Growth Strong Growth Consistent base business growth with acquisitions coming on top Our Mission “We uplift the mood of Simplification and Efficiency consumers with beautiful simplicity that makes Unlock value and release energy everyday life better, being in the or
Slide 10: Growth drivers
Growth drivers Sarantis Group Growth Drivers Beauty & Personal Home Care Strategic Skin Care Care Solutions Partnerships Acquisitions in key priority categories maximizing incremental value 10 Sarantis Group Investors Presentation
Slide 11: Consistent base business growth with acquisitions coming on top
Consistent base business growth with acquisitions coming on top Beauty & Skin Home Care Strategic Personal Care Acquisitions Care Solutions Partnerships Disproportionate Core Profit Significant Complementary growth driver Market leverage acquisitions on growth Generator top 11 Sarantis Group Investo
Slide 12: Simplification and efficiency – projects on track
Simplification and efficiency – projects on track Release value and energy in the organisation Already brought results ▪ Portfolio Optimisation (-40% of SKUs) ▪ Stock management – cash release ▪ New Polipak plan in full operation ▪ Innovation - Fewer and bigger initiatives ▪ More value through Reven
Slide 13: Stella Pack S.A.: Building on our leading positions
Stella Pack S.A.: Building on our leading positions ▪ A leading Polish consumer household products player, with strong brands ▪ 25 years of successful presence in the home care solutions categories ▪ Reinforcement of Sarantis Group's leading position in the Polish market with further enrichment of a
Slide 14: Delivering strong performance
Delivering strong performance Christos Varsos, Group Chief Financial Officer
Slide 15: A promising start for the year
A promising start for the year Q1 24 Reported Net Sales Q1 24 Organic Net Sales (excl. Stella) € 141.6m € 121.9m + 29.7% + 11.6% Reported EBITDA EBITDA (excl. Stella Pack) € 18.6m € 16.2m + 50.1% + 30.7% EBITDA margin 13.1% +179bps EBITDA margin 13.3% +200bps Reported EBIT EBIT (excl. Stella Pack) €
Slide 16: Our base year, 2023, a year of record Net Sales and Profitability
Our base year, 2023, a year of record Net Sales and Profitability* Amounts In € m FY 2023 FY 2022 Δ% (unless otherwise stated) Net Sales 482.2 445.1 8.3% Gross Profit 182.3 151.8 20.1% Gross Profit margin 37.8% 34.1% EBITDA 61.6 45.5 35.3% EBITDA margin 12.8% 10.2% EBIT 47.1 32.2 45.9% EBIT margin 9
Slide 17: Solid performance across our categories
Solid performance across our categories NET SALES EBIT EBIT % FY 2023 y-o-y y-o-y y-o-y Beauty, Skin € 48.2m* € 5.4m* 11.2%* & Sun Care + 32.0% + 14.0% - 177bps Personal € 102.8m € 13.2m 12.8% Care + 17.2% + 54.9% + 312bps Home Care €164.1m €22.4m 13.6% Solutions + 4.7% + 87.4% + 602bps € 30.7m -€ 0
Slide 18: Balanced performance across our BUs
Balanced performance across our 8 BUs NET SALES EBIT EBIT% FY 2023 y-o-y y-o-y y-o-y € 156.0m* € 16.6m* 10.6%* Greece + 174bps + 3.7% + 24.0% € 110.4m € 6.2m 5.6% Poland + 2.9% + 88.2% + 256bps € 79.1m € 11.7m 14.8% Romania + 444bps + 14.7% + 63.8% Czech & € 41.1m € 4.9m 11.9% Slovakia + 25.2% + 52.
Slide 19: Delivering Strong Shareholder Value
Delivering Strong Shareholder Value 5-Years Plan
Slide 20: Stella Pack – integration started, synergies in 2024
Stella Pack – integration started, synergies in 2024 FY 2024 (€m) Net Sales 81.1 Gross Profit 21.1 Gross Profit margin 26.0% EBIT 7.3 EBIT margin 9.0% Depreciation 3.2 EBITDA 10.5 EBITDA margin 13.0% Synergies Estimation 2024 expected synergies c. €1.5m 2025 expected synergies c. €2.0m 14 20 Saranti
Slide 21: Disproportional growth on Beauty & Skin care
Disproportional growth on Beauty & Skin care CAGR Net Sales (€m) 2023 2024* 2025 2026 2027 2028 2023-2028 Own brands 349.6 454.3 481.7 509.0 537.7 568.7 10.2% Beauty & Skin Care 48.2 57.2 70.0 77.7 87.1 99.7 15.7% Personal Care 102.8 108.1 112.7 120.1 127.8 134.9 5.6% Home Care 198.7 288.9 299.1 311
Slide 22: Doubling the EBITDA Organically in the next 5 years
Doubling the EBITDA Organically in the next 5 years (€m) 2023 2024* 2025 2026 2027 2028 Net Sales 482.2 595.2 627.9 662.5 698.9 737.4 %YoY 23.5% 5.5% 5.5% 5.5% 5.5% Gross Margin 182.0 225.1 239.3 254.5 270.6 287.6 % on NS 37.8% 37.8% 38.1% 38.4% 38.7% 39.0% A&P 28.6 33.9 37.2 40.6 41.5 42.4 % on NS
Slide 23: Investing for our future - Capex
Investing for our future - Capex Capex 2024 2025 2026 2027 2028 Oinofyta DC* € 7.0m € 18.0m Digital* € 5.0m € 4.0m € 3.0m transformation Stella € 3.0m € 6.0m € 5.0m € 2.0m € 2.0m Rest of Group € 5.0m € 5.0m € 4.0m € 6.0m € 6.0m Total € 20.0m € 33.0m € 12.0m € 8.0m € 8.0m €81.0 million investment pla
Slide 24: A business with Strong Free Cash Flow generation
A business with Strong Free Cash Flow generation € million 2023 2024 2025 2026 2027 2028 EBITDA 61.6 80.2 90.3 100.5 110.3 120.2 Tax 9.6 10.2 11.5 13.3 14.9 16.5 Working capital change (7.2) 14.1 0.8 (0.6) 0.4 2.2 Capex 7.3 20.0 33.0 12.0 8.0 8.0 Estee Lauder Sale Receivable 20.6 20.6 FCF 51.9 35.9
Slide 25: Enhancing shareholders’ value
Enhancing shareholders’ value Dividends from Dividends paid 2023 profit since 2014 €15m > €100m 38.2% payout Buy-backs Buy-back Since 2014 program c.€40m In place 25 Sarantis Sarantis Group Group Investors 2023 Half Presentation year Results
Slide 26: Accelerating our ESG agenda
Accelerating our ESG agenda
Slide 27: Integrating ESG into our Business
Integrating ESG into our Business Engaging with our Double materiality Target setting stakeholders assessment by the end of 2024 already completed 27 Sarantis Group Investors Presentation
Slide 28: Investing in a more sustainable future
Investing in a more sustainable future Energy Consumption from Scope 1 GHG emissions Scope 2 GHG emissions Energy Intensity** Renewable Resources* (in tCO2e) (in tCO2e) market-based Period 2021-2023 Period 2021-2023 Period 2022-2023 Period 2021-2023 +65% -14% -7.4% -15.4% *Renewable energy sources u
Slide 29: Focusing on green growth and competitiveness
Focusing on green growth and competitiveness new refillable AVA Sanitas / FINO clean beauty flex&strong garbage 18% less plastic – more brand Clinea than 70 tons of plastic 100% recyclable bags capsule 100% recycled plastic reduction per year (2020-2023) Noxzema men roll-on: Bioten STR8 deo spray re
Slide 30: Raising Corporate Governance Standards
Raising Corporate Governance Standards New Board of Directors * Executive Directors ✓ Four (4) Executive Directors * Kyriakos Sarantis, Chairman of the Board ✓ Six (6) Non-Executive Directors Giannis Bouras, CEO ✓ 30% of the members are women Christos Varsos, Group CFO ✓ Four (4) Independent Non-Exe
Slide 31: Board Committees
Board Committees Audit Committee Michalis Imellos, Independent Non-Executive Director – Chairman Konstantinos Rozakeas, Non-Executive Director – Member Angeliki Samara, Independent Non-Executive Director - Member Remuneration and Nominations Committee Marianna Politopoulou, Independent Non-Executive
Slide 32: Clear Remuneration Policy
Clear Remuneration Policy Clear Remuneration Policy for executives aiming to: ✓ align Management interests with the shareholders’ long term value creation ✓ retain and attract the right teams ✓ enhance their incentives and commitment Long-term incentive scheme established: ✓ Running in three-year pe
Slide 33: Aligning management’s with shareholders’ interests
Aligning management’s with shareholders’ interests ✓ Addition of a Long-Τerm (5-year) Incentive Plan for the period 01.01.2024 – 31.12.2028 ✓ Applicable to the Management Team o Group CEO o Group Chief Financial Officer o Group Chief Human Resources Officer o Group Chief Marketing Officer o Group Ch
Slide 34: Why Sarantis has a strong Investment Case
Why Sarantis has a strong Investment Case ▪ Sustainable organic growth engine 01 ▪ Leading presence in all geographies ▪ Strong brand portfolio in the right categories ▪ Strong supply chain footprint with continuous investment plan 2X EBITDA in 5 years ▪ 02 ▪ Consistent dividend ~ 38% payout in rece
Slide 35: Q & A
Q&A For further information on Sarantis Group please visit our website at https://sarantisgroup.com/ or contact our Investor Relations team: Eleni Moustakidou Investor Relations Manager emoustakidou@sarantisgroup.com +30 210 6173065