Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Q4 2023 Earnings Presentation
34 slides from Anora Group Oyj's earnings presentation, Feb 14, 2024
Slide 1: Q4 23 Results presentation
Q4 23 Results presentation CEO Jacek Pastuszka CFO Sigmund Toth 14 February 2024
Slide 2: Today's agenda and speakers
Today’s agenda and speakers • Business review • Financial review • Summary • Q&A CEO Jacek Pastuszka CFO Sigmund Toth Q4 23 Results presentation | 14 February 2024 | 2
Slide 3: Comparable EBITDA improved in Q4 due to improved gross margin and tight cost control
Business Review Comparable EBITDA improved in Q4 due to improved gross margin and tight cost control ̶ Impairments weakened operating result and distributable funds Net sales, Comparable EBITDA, Comparable EBITDA EBITDA, EUR million EUR million margin, % EUR million Q4 212.4 (221.6) Q4 28.2 (20.9) Q
Slide 4: Wine
Business Review Wine New own and partner wines and tender wins Q4 Highlights NET SALES (TOTAL), MEUR Partner wines -6% • Net sales decreased by 6.1% to EUR 101.4 million, due to negative impact of 107.9 101.4 the exchange rates, partly compensated by the strong Blossa 23 sales in own wines and the p
Slide 5: Spirits
Business Review Spirits Successful product launches and awards Sweden – Barracuda Caribbean Dark Finland – Helmi Salted Liquorice-Cream liquor, Q4 Highlights NET SALES (TOTAL), MEUR Latitude Smoky Whisky and Artic Italian Citrus Dry Gin +2% Gilde Juleaquavit 2023 won a prestigious silver award • Net
Slide 6: Industrial
Business Review Industrial Q4 Highlights NET SALES (TOTAL), MEUR -23% • External net sales decreased by 18%. 78.7 • In industrial, net sales were negatively 60.6 Internal 33.2 impacted by lower starch, ethanol, feed 23.3 and contract manufacturing sales. • In Vectura, net sales were flat, but Extern
Slide 7: Financial review
Financial review Q4 23 Results presentation | 14 February 2024 | 7
Slide 8: Net sales development
Financial Review Net sales development FY 2023 net sales increased by 3.5% Group net sales, EUR million 2022: 702.7 2023: 727.6 • Q4/23 net sales: 212.4 (221.6) MEUR, down by 4.2% 221.6 212.4 165.7 181.9 182.7 173.0 133.4 159.5 • 2023 net sales: 727.6 (702.7) MEUR, up by 3.5% • Wine growth driven by
Slide 9: In Q4 2023, net sales decreased by 4.2%
Financial Review In Q4 2023, net sales decreased by 4.2% Price increases were initiated as of September Net sales (external), EUR million Net sales (external), EUR million and change per segment • Net sales declined mainly due to currency impacts and decrease in Industrial sales, -4.2% partly offset
Slide 10: FY 2023 net sales growth driven mainly by Globus Wine
Financial Review FY 2023 net sales growth driven mainly by Globus Wine Price increases were initiated as of September Net sales (external), EUR million Net sales (external), EUR million and change per segment • Wine growth driven by Globus Wine acquisition in Denmark as of Q3 2022 +3.5% 3.5% 728 727
Slide 11: Comparable EBITDA improved in Q4 due to improved gross margin and tight cost control
Financial Review Comparable EBITDA improved in Q4 due to improved gross margin and tight cost control Q4/2023 Comparable EBITDA, EUR million and % of net sales • Results from the recent price increases and the 2022: 76.1 (10.8%) 2023: 69.4 (9.5%) announced cost cuts were visible in Q4. 28.2 • Compar
Slide 12: Q4 Group comparable EBITDA was up by 35% from last year
Financial Review Q4 Group comparable EBITDA was up by 35% from last year Comparable EBITDA improved in Q4 due to improved gross margin and strong cost control Comparable EBITDA, EURm and % of net sales Comparable EBITDA, EURm and change per segment • Comparable EBITDA margin 36.3 Q4/23: 13.3 (9.4)%
Slide 13: FY/2023 Group comparable EBITDA was down by 8.9% from last year
Financial Review FY/2023 Group comparable EBITDA was down by 8.9% from last year Decline in profitability due to lost partners in Wine and weaker currencies Comparable EBITDA, EURm and % of net sales • FY/23 Comparable EBITDA margin: 98.3 101.0 -8.9% 9.5 (10.8)%. -8.9% 76.1 80.7 -0.2 1.1 69.4 • The
Slide 14: Non-recurring items in 2023
Financial Review Non-recurring items in 2023 IAC: Items affecting comparability in 2023 IAC: Comparable EBITDA to EBITDA bridge, EURm -1% -7.1 12.3 -1.3 69.4 -0.3 68.7 -4.3 Comparable EBITDA Net gains or losses Cost for closure of Costs related to Inventory fair Other major EBITDA from business and
Slide 15: Barley sourcing
Financial review Barley sourcing In 2023 Anora used 174.0 (184.3) million kilos of grain; Barley price development (EUR/tn)* Q4: 46.3 (47.9) 400 350 300 250 200 221 150 e/tn* 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ANORA’S MONTHLY SOURCING VOLUME
Slide 16: Cash flow
Financial Review Cash flow Operating cash flow improved in 2023 Net cash flow from operations, EUR million 2022: -0.4 2023: 135.3 • Net cash flow from operations improved to EUR 135.3 (-0.4) million in 2023, behind increased sales 100.1 of receivables and lower inventory levels • The receivables sol
Slide 17: Net working capital
Financial Review Net working capital Net working capital was at a level of -11% of net sales at the end of December (LTM) • The Group’s net working capital improved to Net working capital, EUR million and % of net sales, (LTM) EUR -78.0 (63.7) million at the end of December. • Inventories decreased
Slide 18: Net working capital negative at year-end due to sale of receivables and inventory decrease
Financial review Net working capital negative at year-end due to sale of receivables and inventory decrease mainly due to Larsen divestment Inventory EUR 144.2m (-22.6%) EUR million 31 Dec 2023 31 Dec 2022 ASSETS • Inventory down 23% vs. December last year mainly due to Current assets Larsen divesti
Slide 19: Anora's balance sheet is characterised by a high value of intangibles
Financial review Anora's balance sheet is characterised by a high value of intangibles EUR million 31 Dec 2023 31 Dec 2022 Goodwill EUR 304.3m (-2.0%) • Related to various acquisitions (Altia-Arcus merger, Globus ASSETS acquisition) Non-current assets Goodwill 304.3 310.5 Other intangible assets 206
Slide 20: Annual impairment testing impacts
Financial review Annual impairment testing impacts Impairments do not impact the loans, cash flows or Group financial targets Right-of-use assets and fixed assets owned Shares of subsidiaries • Impairments totalling EUR 58.7 million: • Impairments totalling EUR 65.4 million at: • Parent company’s su
Slide 21: Leverage
Financial Review Leverage Net debt impacted by Larsen divestment, M&A and dividend payment Net debt incl. lease liabilities, MEUR and • Net debt decreased to EUR 137.5 million at year-end, Net Debt / Comparable EBITDA (LTM) thanks to strong cash flow from operations and -54% Larsen divestment 315.7
Slide 22: Our long-term financial targets for 2030
Financials | Targets Our long-term financial targets for 2030 Actual Actual Long-term financial targets for 2030 2023 2022 Annual net sales growth 3–5% 3.5% 5.7% including M&A, majority being organic Comparable EBITDA margin 16% 9.5% 10.8% Through focus on margin accretive business and scale benefit
Slide 23: Summary of Q4 2023
Summary of Q4 2023 Net debt and cash Q4 Comparable EBITDA flow developed was up from last year, positively due to the results from recent price Dividend payment Larsen divestment and increases and proposal inventory reduction as announced cost cuts well as continued sales became visible of receivabl
Slide 24: Dividend proposal by Anora's Board of Directors
Dividend proposal by Anora’s Board of Directors • Anora’s Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.22 per share be paid for the financial year 2023. • In its proposal the Board aims to maintain a stable or increasing dividend with a dividend payout ratio of
Slide 25: Outlook 2024
Outlook 2024 MARKET OUTLOOK 2024: In 2024, the volumes in our key markets are expected to be slightly lower than in 2023 due to challenging economic conditions. GUIDANCE 2024: In 2024, Anora’s comparable EBITDA is expected to be EUR 75-85 million (2023: EUR 69.4 million). Q4 23 Results presentation
Slide 26: Q&A
Q&A Q4 23 Results presentation | 14 February 2024 | 26
Slide 27: Thank you!
Our next scheduled event 7 May 2024 | Q1/24 Interim Report Feb THANK YOU!
Slide 28: Appendix
Appendix Q4 23 Results presentation | 14 February 2024 | 28
Slide 29: Q4/FY income statement
Financial Review Q4/FY income statement EUR million Q4 23 Q4 22 2023 2022 Net sales 212.4 221.6 727.6 702.7 Other operating income 1.9 2.3 20.3 10.9 Materials and services -126.3 -134.8 -441.4 -414.3 Employee benefit expenses -27.9 -24.5 -103.8 -93.8 Other operating expenses -37.0 -45.8 -134.1 -137.
Slide 30: Q4 balance sheet
Financial Review Q4 balance sheet EUR million 31 Dec 31 Dec EUR million 31 Dec 31 Dec 2023 2022 2023 2022 EQUITY AND LIABILITIES ASSETS Equity attributable to owners of the parent Non-current assets Share capital 61.5 61.5 Invested unrestricted equity fund 336.8 336.8 Goodwill 304.3 310.5 Legal rese
Slide 31: Anora's top 10 shareholders 31 December 2023
Ownership structure Anora's top 10 shareholders 31 December 2023 Shareholder Shares % of shares ILLUSTRATION OF ANORA’S OWNERSHIP 13,097,481 19.4 Solidium Oy 2,031,240 3.0 Varma Mutual Pension Insurance Company Ilmarinen Mutual Pension Insurance Company 1,290,000 1.9 Rest of the world 1,199,705 1.8
Slide 32: Anora's Executive Management Team
Governance Anora’s Executive Management Team Jacek Pastuszka Janne Halttunen Risto Gaggl Johanna Sundén CEO SVP, Wine SVP, Industrial CHRO Sigmund Toth Kirsi Puntila Mikkel Pilemand CFO SVP, International CGO Joined Anora in October International career Previously, Risto worked as Prior to joining A
Slide 33: Anora's Board of Directors
Governance Anora’s Board of Directors Michael Holm Johansen Jyrki Mäki-Kala Kirsten Ægidius Christer Kjos Florence Rollet Chairperson Vice Chairperson Member Member Member Shareholdings: 80,000 Shareholdings: 13,600 Shareholdings: 6,100 Shareholdings: - Shareholdings: 4,620 Chair of the Human Resour
Slide 34: More information
More information: www.anora.com investor.relations@anora.com Follow us: