Agthia Group · ADX:AGTHIA
Agthia — 9M 2024 Earnings Presentation
45 slides from Agthia's earnings presentation, November 2024
Slide 1: Investor Presentation 9M'24 Results
Investor Presentation 9M’24 Results November 2024
Slide 2: Disclaimer
Disclaimer Agthia Group PJSC and its management may make 7. expected financial results; 8. sensitivity to changes in 4. various events which could disrupt operations, certain statements that constitute “forward-looking product prices; 9. sensitivity to key input prices; 10. including natural events
Slide 3: Agenda
Agenda 01 Strategic Update 04 Guidance 02 Key Financials 05 Q&A 03 Segment Performance 3
Slide 4: Recap: Our strategic vision to become a regional F&B leader by 2025
Recap: Our strategic vision to become a regional F&B leader by 2025 From… To… UAE centric Footprint MENA+ & beyond Commoditized portfolio Value-add F&B brands Becoming a regional F&B Stable financial performance Strong shareholder returns leader by 2025 Local organization mindset Consumer-centric &
Slide 5: 9M 2024: Progress on strategic vision – to date
9M 2024: Progress on strategic vision – to date Delivering Growth Driving Efficiency Expanding Capabilities • Reported revenue growth +10.3% YoY; • Focus on productivity enhancement: • Strengthened leadership team: Appointed 8.5% from volume & 1.8% from pricing AED 92MN in 9M’24 CGO • Investing in i
Slide 6: Key Financials
Y Key Financials agthia @ a)2.ci
Slide 7: 9M'24: Strong Growth and Significant Profitability Improvement
9M’24: Strong Growth and Significant Profitability Improvement Strong revenue growth… … outpaced by EBITDA and net profit growth AED MN AED MN AED MN +10.3% +15.5% +24.0% 3,608 537 255 3,271 465 206 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 +11.5%, assuming an average USD / EGP EBITDA margin 14.9% Net pro
Slide 8: Significant step up in EPS and improved Working Capital
Significant step up in EPS and improved Working Capital EPS Optimization of WC1 Cash Conversion Cycle AED WC as % of Sales CCC days +25.5% -296bps 72 45 0.282 DSO 84 86 10.4% 0.225 7.4% DIH 97 103 DPO -109 -144 9M'23 9M'24 9M'23 9M'24 9M’23 9M’24 1 WC is calculated based on the closing numbers for t
Slide 9: Strong cash generation ability
Strong cash generation ability Impact of change in NWC1 on FCF CAPEX2 FCF NWC as of eop, AED MN AED MN AED MN +21.4% -327 -39% 119 -376 829 713 98 430 -49 454 407 358 FY'22 9M'23 FY'23 9M'24 9M'23 9M'24 9M'23 9M'24 1 WC is calculated based on the closing numbers for the period divided by annualized
Slide 10: Robust balance sheet with low leverage
Robust balance sheet with low leverage Net debt / EBITDA1 Interest coverage2 1.4x FY Dec’23 - 1.3x 7.9x FY Dec’23 – 7.6x High borrowing capacity Avg Dividend yield3 2.0bn FY Dec’23 – 1.8bn 3.5% FY’23 DPS = AED 0.235 1 Net debt as on 30 Sep 2024 divided by 9M’24 LTM EBITDA 2 EBITDA for 9M’24 divided
Slide 11: Strong topline growth across all segments
Strong topline growth across all segments 9M’24 revenue growth +10.3% YoY, with 8.5% from volume and 1.8% from pricing; +18.4% excluding EGP devaluation impact Group Revenue (AED MN) after absorbing EGP after absorbing EGP including AED 120MN devaluation of devaluation of AED one-off wheat AED 112MN
Slide 12: EBITDA growth ahead of revenue
EBITDA growth ahead of revenue 9M’24 EBITDA growth +15.5% YoY, +27.8% pre devaluation Group EBITDA (AED MN) after absorbing after absorbing after absorbing EGP devaluation EGP devaluation Dairy assets write- of AED 31MN of AED 26MN off of AED 10MN 1 Others include digital and capability investments
Slide 13: Solid net profit growth despite continued macroeconomic headwind
Solid net profit growth despite continued macroeconomic headwind 9M’24 reported net profit growth +24.0% YoY, +40.2% pre devaluation Group net profit1 (AED MN) after absorbing after absorbing after absorbing EGP devaluation EGP devaluation Dairy assets write- of AED 18MN of AED 15MN off of AED 10MN
Slide 14: Segmental performance
Segmental performance
Slide 15: Diversified growing portfolio in large scalable markets
Diversified growing portfolio in large scalable markets Diversified revenue by geography... …and segments 7% 26% 22% 25% 54% 23% 29% 14% UAE Other Arab Countries Protein & Frozen Water & Food GCC excl. UAE RoW Snacking Agri Business *9M’24 sales, excluding one-off wheat trading in Q1’24 15
Slide 16: Snacking: Strong growth in dates and coffee
Snacking: Strong growth in dates and coffee Revenue, AED MN EBITDA1, AED MN Key highlights EBITDA margin 17.7% (+163 bps) Revenue • Strong revenue mainly led by coffee and dates’ +14.2% +25.8% notable performance during the period. o Abu Auf continued to deliver strong growth, gaining 997 177 both v
Slide 17: Protein & Frozen: Strong focus on profitability protection
Protein & Frozen: Strong focus on profitability protection Revenue, AED MN EBITDA1, AED MN Key highlights EBITDA margin 12.4% (+137bps) Revenue • Revenue +1.1% YoY and +21.0% YoY excluding EGP +1.1% devaluation impact. +13.6% o In Egypt, robust pricing and favorable mix, amidst 766 774 the challengi
Slide 18: Water & Food: Consistent revenue growth, with EBITDA surpassing
Water & Food: Consistent revenue growth, with EBITDA surpassing driven by step up in efficiency Revenue, AED MN EBITDA1, AED MN Key highlights EBITDA margin 15.7% (+114bps) Revenue • +5.8% YoY on positive growth across local (UAE +5.8% +14.1% water +9.6%) and international channels (Oman +9.4%, Kuwa
Slide 19: Agri-Business: Strong volumes in Flour and Feed
Agri-Business: Strong volumes in Flour and Feed Revenue, AED MN EBITDA1, AED MN Key highlights EBITDA margin 16.1% (+255bps) Revenue +18.3% +40.5% • +18.3% YoY reported growth • Revenue +4.6% YoY excluding the one-off trading on strong volume growth in Feed 1,033 167 • Animal feed +8.2% YoY, driven
Slide 20: Egypt: Turning into a competitive advantage
Egypt: Turning into a competitive advantage Strong revenue growth and profitability improvement Revenue, AED MN EBITDA (AED MN) & EBITDA margin (%) “Export Hub” strategy +10.6% 15.0% +454bps 19.6% AED 73.2 MN exports from Egypt in 9M’24 +43.9% 683 134 618 • 33.4% EGP revenue growth • FY’24: Focus on
Slide 21: Over AED 123MN in revenue generated from strategic product innovation
9M’24: Over AED 123MN in revenue generated from strategic product innovation Snacking Protein & Frozen Veg Dates: new organic date Jordan: launched new range of range, chocolate-coated chicken strip products under Nabil nuts brand for both local and export Abu Auf: instant coffee jars markets, as we
Slide 22: FY'24 outlook
FY’24 outlook
Slide 23: FY'24 guidance
FY’24 guidance1 Revenue growth EBITDA margin improvement Net profit margin improvement* +10% to 12% +40 to 60 bps +30 to 50 bps Assumptions • FY average FX rate of up to USD / EGP 40 • FY average FX rate of up to USD / EGP 40 • 100% of Group profit including minorities (20% devaluation) (20% devalua
Slide 24: A forward-looking company
A forward-looking company Market leading position across key categories and geographies Growing portfolio of consumer-centric brands in large, scalable markets Growth-oriented mindset focused on leveraging synergies, innovation and digitization Attractive economics with clear strategy for continued
Slide 25: Q&A
Q&A
Slide 26: Appendix
/ — Appendix || // a ate.
Slide 27: Q3'24 Group headlines
Q3’24 Group headlines Revenue growth… … outpaced by EBITDA Decent profitability expansion AED MN AED MN AED MN +1.1% +5.7% +6.0% 1,082 61 65 1,070 155 146 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 +12.4% excluding EGP devaluation EBITDA margin 14.3% Net profit margin 6.0% +66bps +26bps 1Net profit includi
Slide 28: Q3'24 Segment performance
Q3’24 Segment performance Snacking Protein & Frozen Revenue, AED MN EBITDA, AED MN Revenue, AED MN EBITDA, AED MN +2.5% y-o-y -20.5% y-o-y, EBITDA margin -308bps -10.3% y-o-y -1.1% y-o-y, EBITDA margin +106bps 272 279 37 268 240 30 27 27 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Water & Food A
Slide 29: Agthia is on track to achieve 2025 external guidance
Agthia is on track to achieve 2025 external guidance Robust revenue growth EBITDA Margin improvement Net profit margin growth Significant improvement of RoIC1 to AED 6 BN 15.5-16.5% to 8.5-10.0% to 9-10% in FY 2025 in FY 2025 in FY 2025 in FY 2025 2023 Results: ahead of top end of guidance ranges wi
Slide 30: Investing in growth: Protein expansion in KSA
Investing in growth: Protein expansion in KSA Project overview ▪ Location: Jeddah, KSA ▪ Category: Protein ▪ Capex c. AED 90MN (Phase 1) ▪ Available land 9,436 sqm; Built-up area 6,600 sqm ▪ Capacity ≈ 6,500- 8,700 tons/annum ▪ ≈ 50 SKUs Rationale ▪ Strengthen footprint in KSA ▪ Strong local demand;
Slide 31: Snacking: Innovation led growth in dates and healthy snacks
Snacking: Innovation led growth in dates and healthy snacks, combined with excellent execution and agility in Abu Auf Innovations drive market share growth Agility and execution excellence in Auf Innovation Strong results in 9M’24 • Launched new Date Crown organic date range, chocolate-coated • AED
Slide 32: Protein & Frozen: Expanding capabilities and gain on innovations
Protein & Frozen: Expanding capabilities and gain on innovations Nabil: Portfolio premiumization Atyab: Marketing activation New investment updates Nabil launched actively promoted new premium Effective coordination between on-ground KSA: New Protein facility in Jeddah officially line category that
Slide 33: Water: Broad-based strong performance with improved business fundamentals
Water: Broad-based strong performance with improved business fundamentals Delivering our water strategy across GCC & Turkey Winning with communications Al Ain bottled water retaining its market leadership position Continue to strengthen brand loyalty through: Notable profitability growth • Al Ain Wa
Slide 34: Agri-Business: Grow together with our customers
Agri-Business: Grow together with our customers Growth and innovation Focus on brand equity building Flour: Grand Mills: 2 new products: Shandar and Asad • Building customer loyalty flour, to meet the needs of our • Branding distribution vehicles customers • Enhance brand recall Agrivita: New Dairy
Slide 35: 5-year digital roadmap with clear priorities
5-year digital roadmap with clear priorities Priority #1 Priority #2 Best customer / consumer experience Empowered employees in a collaborative environment • Seamless omnichannel experience with optimized • Integrated business planning and cross-domain online and in-store execution collaboration • S
Slide 36: Progress on digital agenda
Progress on digital agenda Key achievements in 9M’24 Accelerate digital transformation by Adopting AI Launch of new B2B Customer Portal, We signed a Memorandum of Understanding (MoU) with Microsoft UAE which further streamlines how our The MoU focusses on: HORECA customers can order our products • R
Slide 37: Agthia Sustainability Strategy Pillars
Agthia Sustainability Strategy Pillars Environmental Integrity Scaling Health and Wellness • 9.7% reduction in CO2 emissions 9M’24 vs 9M’23 • Continued growth in our Water Sustainable Portfolio: • RECAPP Sponsorship: 826 tons CO2 reduced; 667 tons collected. • 23% growth in Plant based water bottles
Slide 38: Board of Directors
Board of Directors Chairman / Vice Chairman Board Member Khalifa Sultan Salmeen Khamis Mohamed Svet Ms. Mariam Maurizio Gil Adotevi Ms. Caitlin Ms. Sharmila Al Suwaidi Alameri Buharoon Al Varadzhakov Ahmed Patarnello Nguyen Murat Chairman Vice Chairman Shamsi Al Remeithi Head of Digital Advisor & Bo
Slide 39: Strong leadership team with track record of value creation
Strong leadership team with track record of value creation Group Functions Business Units Hala Alan Sherif Ramy Vandy Dos Rafik Abdulla Mahammad Mubarak Ahmad Declan Nizar Hobeiche Smith Elfaham Merdan Santos Lawendy Al Marzooqi Amro Al Mansoori Yahya Bennett Kayali Katounas Chief Executive Chief Fi
Slide 40: Summary Profit & Loss Statement
Summary Profit & Loss Statement AED'000 FY’23 FY'22 YoY Revenue 4,561,210 4,067,394 12% Cost of sales -3,200,212 -2,909,812 10% Gross profit 1,360,998 1,157,582 18% Selling and distribution expenses -577,499 -507,956 14% General and administrative expenses -352,081 -345,825 2% Research and developme
Slide 41: Summary Profit & Loss Statement
Summary Profit & Loss Statement AED'000 9M’24 9M’23 YoY Revenue 3,607,555 3,270,964 10.3% Cost of sales -2,527,720 -2,307,991 -9.5% Gross profit 1,079,835 962,973 12.1% Selling and distribution expenses -458,979 -425,332 -7.9% General and administrative expenses -283,648 -263,307 -7.7% Research and
Slide 42: Summary Balance Sheet Statement
Summary Balance Sheet Statement AED'000 9M'24 FY’23 FY’22 Property, plant and equipment 1,409,261 1,460,821 1,446,027 Intangible assets & Goodwill 2,398,364 2,408,106 2,421,885 Others 131,975 128,038 104,521 Total non-current assets 3,939,600 3,996,965 3,972,433 Inventories 966,993 926,834 847,275 T
Slide 43: Summary Cash Flow Statement
Summary Cash Flow Statement AED'000 FY’23 FY’22 YoY Profit before tax & zakat expenses 382,186 301,325 26.8% Adjustments for: Depreciation & Amortization 228,585 231,383 -1.2% Provisions & Allowances 26,724 29,372 -9.0% Others 72,950 43,068 69.4% Change in: Inventories -83,565 -122,760 -31.9% Trade
Slide 44: Summary Cash Flow Statement
Summary Cash Flow Statement AED'000 9M'24 9M'23 YoY Profit for the period 254,935 205,556 24.0% Adjustments for: Depreciation & Amortization 167,359 171,436 -2.4% Provisions & Allowances 35,018 14,962 134.0% Others 109,255 96,891 12.8% Cash generated from operating activities before changes in worki
Slide 45: Thank you
Thank you 7 November 2024