Ulker Biskuvi Sanayi A.s. · BIST:ULKER
Ulker Biskuvi Sanayi A.s — Ülker Bisküvi — Q4 2023 Earnings Presentation
30 slides from Ulker Biskuvi Sanayi A.s's earnings presentation, Aug 1, 2024
Slide 1: Ülker Bisküvi 4Q23 Earnings
ÜLKER BİSKÜVİ 4Q23 EARNINGS 1
Slide 2: Agenda
Quarterly Operational Sustainability 01 Update 02 Performance 03 Update Financial Inflation 04 Performance 05 Accounting 06 Outlook 2
Slide 3: Quarterly Update
Quarterly Update 3
Slide 4: 35% market share with continued share improvements
• 35% market share with • Robust top-line growth Beyond Hazelnut project continued share • Successful cost management improvements Beyond Cocoa journey • Strong free cash flow • Significant brand investment generation Success in global indexes • Record bottom line performance • Strong volume growth
Slide 5: Operational Performance
Operational 02 Performance 5
Slide 6: Cultural Transformation towards End-to-End Excellence
It is a Cultural Transformation towards «End-to-End» Excellence Eliminate silos and barriers Transform to «One-Team with Winning Culture» Phase-4 Phase-3 Non stop Phase-2 2 – 3 years Global Benchmark &Continuous Phase-1 2 – 3 years End-to-End Excellence improvement 8 – 12 months Roll – out inside Fa
Slide 7: Deployment of Winning Culture and lean transformation
Deployment of Winning Culture. Layers & Spans optimizations. Lean transformation. Consolidate our sales operations. Establish Remove silos in organization. Implement High-Performance- learning organizations. R&D Academy, Mnf Academy, SC Work System and Culture Academy, etc.. Optimization and Synergy
Slide 8: Significant improvement in number of layers
Number of Layers Span of Control Significant Continious improvement in improvement in span of number of layers control 7 4 4 6 A more agile and simplified Too many organizational layers eliminated Our strategy is to become a cost leader in organization has been set up with the in order to increase p
Slide 9: FY23 revenue and EBITDA growth by region
Turkey Central Asia +75,0% +22,6% FY23 Revenue Growth FY23 Revenue Growth +105,4% +13,9% EBITDA Growth EBITDA Growth Turkey Exports Middle East +46,0% 13,4% North Africa FY23 Revenue Growth FY23 Revenue Growth +106,9% 4,1% EBITDA Growth EBITDA Growth FY23 +33,6% Revenue Growth +64,4% EBITDA Growth 9
Slide 10: Balanced Geographic Revenue Mix
Balanced Geographic Revenue Mix Net Revenue By Division TRY47Bn NA; 3% CA; 4% EXPORT; 13% ME; 14% TRY30B TRY47 TRY16B Billion Domestic International 65% 35% DOMESTIC; 65% Pre-Inflation accounting numbers 10
Slide 11: Market shares and categories by region
TÜRKİYE MIDDLE EAST NORTH AFRICA CENTRAL ASIA Chocolate Biscuit Biscuit Biscuit Chocolate Cake %35 %25 %16 %16 11
Slide 12: Domestic and International revenue contribution
13,5 % 6,8 % 11 % Domestic International Total 12 Revenue contribution is calculated over snacking revenue
Slide 13: Sustainability Update
Sustainability 03 Update 13
Slide 14: Our Planet, Employees, Value Chain, Community goals
OUR PLANET VALUE CHAIN MAIN GOALS: MAIN GOALS: Implementing pioneering practices in the transition to net zero and circular Focusing on local agriculture, local development and farmers’ prosperity and production models, guided by our waste-free corporate culture promoting regenerative and sustainabl
Slide 15: Decarbonization Roadmap and 2050 net zero target
Developing our "Decarbonization Roadmap" for our 2050 net zero target set in Science Based Targets Initiative. Initiating an ESG (Environmental & Social & Governance) program for our suppliers. Enhancing the Beyond Cocoa program in compliance with the 2025 EUDR regulation, ensuring 100% deforestatio
Slide 16: Beyond Cocoa Journey
Beyond Cocoa Journey COLLABORATIONS • No Deforestation Verification w/ Earthworm Foundation, enabled us to verify there has been no deforestation in the cooperatives from which we source cocoa since 2016. • Agroforestry projects with Agro-map 15th Stars of the Year Beyond Cocoa - Happiness: As part
Slide 17: Financial Performance
Financial 04 Performance 17
Slide 18: Q4 volume, revenue, profit, EBITDA and net debt
Total Volume (Kton X000) Total Revenue (Mtl) Gross Profit (Mtl) 87% 35,9% 3% 64% 31,5% 186 14.828 5.316 181 9.018 2.841 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 EBITDA (Mtl) Net Income (Mtl) Net Debt / EBITDA (x) 93% 23,9% 94% 20,3% 3.542 2,26 1.910 1,56 1.834 983 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Pre-
Slide 19: FY revenue, gross profit, EBITDA, net income
Total Revenue (Mtl) Gross Profit (Mtl) EBITDA (Mtl) Net Income (Mtl) 34,1% 22,3% 19,4% 46.861 29,8% 2.570 15.970 10.469 28.197 8.409 5.467 -353 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 • Snacking revenue was up by • Gross profit expanded by • Thanks to the impact of gross • Net income improve
Slide 20: Snacking Sales Volume and Value
Snacking Sales Volume (Ktons) Snacking Sales Value (Mtl) 594 603 27.005 44.929 50 53 3.468 222 224 1.988 22.136 323 326 12.895 19.324 12.123 FY'22 FY'23 FY'22 FY'23 Biscuit Chocolate Cake Biscuit Chocolate Cake -Total snacking sales volume increased by 1.4% in 2023 supported with -Total snacking rev
Slide 21: Domestic and International results
DOMESTIC Total Revenue Gross Profit EBITDA 75% 31,2% 21,6% 110% 18,4% 105% 26,0% 30.599 9.546 6.609 17.482 4.540 3.218 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 INTERNATIONAL Total Revenue Gross Profit EBITDA 18,9% 21,9% 52% 39,5% 66% 36,1% 72% 16.262 10.715 2.249 3.859 3.868 6.424 FY'22 FY'23 FY'22 FY'23
Slide 22: Central Asia, Middle East, North Africa EBITDA contribution
North Africa (HIFOOD) Middle East (FMC-IMC-UI MENA) Central Asia (HAMLE) 24,5 23,9 23,1 18,0 16,7 22,7 22,6 15,5 16,8 14,8 15,4 14,2 20,7 14,5 14,1 11,5 18,3 9,2 9,8 9,3 6,7 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Current Total EBITDA
Slide 23: Net Debt/EBITDA, maturities and working capital
(*)Covenant Based Net Debt/Ebitda (X) Maturity Breakdown of Financial Liabilities as of December’23 2,30 1,58 82% Long Term Short Term Dec-22 Dec-23 18% Average Working Capital Days & Net Working Capital Highlights 97 Days 86 Days 82 ~69% of the net position is closed. Further hedges are 71 82 56 69
Slide 24: Inflation Accounting
Inflation 05 Accounting 24
Slide 25: Pre-inflation vs inflation accounting results
Pre-Inflation Accounting Revenue Gross Profit EBITDA TRY 15,9bn TRY 10,5bn TRY 46,8bn 89,9% YoY 91,5% YoY 66,2% YoY 34,1% Margin 22,3% Margin Per-Inflation Accounting Revenue Gross Profit EBITDA TRY 16,2bn TRY 10,6bn TRY 55,8bn 42,8% YoY 58,1% YoY 7,4% YoY 29,0% Margin 19,0% Margin 25
Slide 26: Net income bridge pre to post IAS 29
8.975 (8.769) 1.533 (4.223) 4.475 (823) (358) 4.223 3.413 Net Income Pre IAS Revenue Cost of Sales OpEx Investment Activities Financing Activities Monetary Gain & Tax Net Income Aft. IAS 29 Adj. (net) (net) Loss 29 Adj. 26
Slide 27: Outlook
06 Outlook 27
Slide 28: Guidance vs actual
Net EBITDA Sales Margin GUIDANCE 42.5BNTL 19.75% ACTUAL 46.8BNTL 22,30% 28
Slide 29: Inflationary challenges vs actions
01 INFLATIONARY CHALLENGES VS. ACTIONS Inflation moderating and should act as tailwind for input-costs 02 PRICE VS. VOLUME Volume to rebound, albeit a slower recovery as pricing moderates 03 INVESTMENT IN BRAND AND INNOVATION Creating value by offering customers new consumption experiences and choic
Slide 30: Thank You
Thank You 30