Eurocash S.A. · GPW:EUR
Eurocash — H1 2022 Earnings Presentation
25 slides from Eurocash's earnings presentation, Aug 29, 2022
Slide 1: Eurocash Group Q2 & HY 2022 Financial Results
Eurocash Group Q2 & HY 2022 Financial Results | August 29, 2022
Slide 2: Executive summary 1H2022
Executive summary 1H2022 The historically highest EBITDA in the first half of the year: dynamic increase to over 400m, with Q2 contributing 256m at +100% growth Wholesale - increasing number of transactions and the shopping cart value in small formats Sales +14% y/y • an increase in the EBITDA margi
Slide 3: Macro & market
01. Macro & market “enura | Przedsigbiorcy
Slide 4: Macro environment
Macro environment Polish GDP growth Inflation 11.3 % % 7.6 8.5 5.5 5.3 13.9 2.6 -0.6 13.4 -1.1 -2.1 9.7 -8.9 8.7 7.7 7.7 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 6.9 6.7 6.4 5.4 6.5 4.5 Retail sales growth in Poland – 3.2 3.6 3.8 4.6 food, beverages and tobacco 2.8 4.7 3.0 4.7 2.8 4.5 2.7 3
Slide 5: Market data
Market data Food market growth in H1 2022 by distribution channels, including small-format stores % % 1H21 1H22 18,9 13,6 9,5 10,5 6,5 6,7 6,6 2,2 1,6 1,2 0,6 -0,2 -0,1 -1,2 -2,7 Discounters Supermarkets Hypermarkets +2500 m2 Small format -5,5 301 - 2500 m2 Specialized&others Convenience 40-100 m2 S
Slide 6: Market data
Market data Transactions and an average basket in grocery and alcohol stores 0-500 m2 0 8 6 23,2 4 22,0 21,5 21,5 2 20,9 20,4 20,3 20,8 20,4 20,7 20,3 20,5 19,4 19,8 19,1 19,2 0 18,7 18,8 Growing value of the basket 8 along with the seasonally 6 high number of transactions 4 648 659 647 649 2 609 58
Slide 7: Market data
Market data Double-digit sales growth y/y in 2Q2022 (stores 0-500 m2) 15,0% 13,4% 12,3% 10,2% 10,3% 8,1% 8,4% 7,3% 6,5% 4,9% 4,6% -1,2% 0,6% SALES total -0,2% TOTAL FOOD (all food without tobacco) -7,1% TOTAL DRUG (all other categories + tobacco) -9,4% -5,8% -6,5% I 21 II 21 III 21 IV 21 V 21 VI 21
Slide 8: Wholesale segment
G&D EUROCASH | S82 ooc2re0° Praedsigbiorcy 02. Wholesale segment & &
Slide 9: Wholesale
Wholesale Sales evolution in 1H2022 y/y mln zł +14% Sales evolution by formats in 1H2022 y/y mln zł 41 504 10 351 9 042 434 325 1H21 1H22 10 348 EBITDA and EBITDA margin evolution of in 1H2022 y/y 9 043 3,45% mln zł 4 3,18% 400 300 2 357,5 288,2 200 0 100 1H21 Eurocash Eurocash Eurocash Food service
Slide 10: Wholesale
Wholesale Chain of franchise stores organized by the Eurocash Group 14 337 14 288 January June 2022 2022 8 720 8 618 Number of users (ths) % sales done via 5 617 5 670 Eurocash.pl 1Q22 2Q22 Progressive digitization of wholesale through the Stable number of partner and franchise stores constant incre
Slide 11: Retail segment
11 03. Retail segment “enura | Przedsigbiorcy
Slide 12: Retail
Retail Sales evolution in 1H2022 y/y mln zł +20% Sales evolution by formats in 1H2022 y/y mln zł 3 601 316 3 008 39 1H21 1H22 141 97 3 601 EBITDA and EBITDA margin evolution of in 1H2022 y/y 3,92% mln zł 4 150 -0,18% 2 100 3 008 141,1 0 74,6 50 -2 0 1H21 Delikatesy Supermarkets Inmedio Arhelan 1H22
Slide 13: Retail segment
Retail segment 2Q 2022 Main KPIs of Delikatesy Centrum stores 14,9% 2 200 14,2% 2 164 15 14 2 000 1 927 13 1 800 12 1 600 11 1 395 10 1 400 8,3% 9 1 200 8 1 000 939 7 6 800 687 5 600 4 465 481 485 400 345 357 3 224 2 200 108 1 0 0 Own Partnership Franchised No of stores (at the end of Q) Sales per s
Slide 14: Projects segment
14 G&D EUROCASH | S82 ooc2re0° Praedsigbiorcy 04. Projects segment & &
Slide 15: Projects
Projects • Sales 1H22: +38% yoy to PLN 190 m • Sales 2Q22: +32% yoy to PLN 92 m • Delivery coverage +40% yoy • Sales 1H22: +57% yoy to PLN 122 m • Sales 2Q22: +53% yoy to PLN 68.8 m Frisco delivery coverage (# households in ’000) • LFL 2Q22: +18,6% City 2Q22 2Q21 % growth • 140 profitable stores War
Slide 16: Projects
Projects Sales evolution in 1H2022 y/y mln zł +41% Sales evolution by formats in 1H2022 y/y mln zł 5,7 349,2 247,0 52,1 1H21 1H22 44,4 349,2 Evolution of EBITDA in 1H2022 y/y mln zł 247,0 1,0 0 -22,4 0,5 -33,9 -20 1H21 Duży Ben Frisco Other 1H22 0,0 -40 1H21 1H22 EBITDA encumbered with the costs of
Slide 17: Consolidated financial results
05. Consolidated financial results 17
Slide 18: Consolidated financial results
Consolidated financial results Sales evolution in 1H2022 y/y (sales of products) mln zł +16% Sales evolution by formats in 1H2022 y/y mln zł 14 301 12 297 102 593 1H21 1H22 Evolution of EBITDA in 1H2022 y/y 1 309 2,8% mln zł 3 600 14 301 2 1,6% 400 1 80 407 200 203 0 0 12 297 1H21 1H22 Adjusted EBIT
Slide 19: Consolidated financial results
Consolidated financial results Increase in financial expenses Cash conversion cycle mln zł in days 23 21 22 20 20 22 19 19 19 17 22 20 19 22 2021 1Q22 2Q22 17 19 18 18 18 19 financial expenses 127,4 48,7 65,3 -19 -18 -22 -24 -22 -23 -22 -21 financial income 28,6 7,4 13,0 -25 -26 Receivables Inventor
Slide 20: Consolidated financial results
Consolidated financial results Net debt/EBITDA (IFRS16) Net debt /EBITDA (after IFRS16) mln zł 1 200 mln zł 2.57 2.30 2.35 3.84 1.94 4.01 000 3.66 3.57 3.73 2.05 3.45 1.90 3.35 3.5800 3.0 2.5600 1 016 932 926 2.0 3 111 3 028 858 400 2 902 2 928 725 2 676 2 625 686 1.5 478 404 354 361 365 395 1.0200
Slide 21: 2Q2022
06. 2Q2022 21
Slide 22: Consolidated financial results – 2Q22
Consolidated financial results – 2Q22 Sales evolution in 2Q2022 y/y (sales of products) 2Q22 +20% mln zł Sales evolution by segments in 2Q2022 y/y mln zł 7 805 6 517 53 410 2Q21 2Q22 826 Evolution of EBITDA in 2Q2022 y/y 7 805 10 3,3% mln zł 6 517 1,3% 5 256,3 166,7 2Q21 Wholesale Retail Projects 2Q
Slide 23: Wholesale – 2Q22
Wholesale – 2Q22 Sales evolution in 2Q2022 y/y mln zł +17% Sales evolution by formats in 2Q 2022 y/y mln zł 4 858 5 684 29 353 2Q21 2Q22 258 Evolution of EBITDA in 2Q 2022 y/y 187 5 684 mln zł 3,51% 3,67% 4 300 4 858 200 2 170,5 208,6 100 0 0 2Q21 2Q22 2Q21 Eurocash Eurocash Eurocash Food service 2Q
Slide 24: Retail - 2Q22
Retail - 2Q22 Sales evolution in 2Q2022 y/y mln zł +27% Sales evolution by formats in 2Q 2022 y/y mln zł 174 1 940 1 530 26 112 2Q21 2Q22 97 1 940 Evolution of EBITDA in 2Q2022 y/y 6 4,60% mln zł 100 4 2 89,3 50 1 530 0 38,8 0 -2 -41,3 -2,70% 2Q21 Delikatesy Supermarkets Inmedio Arhelan 2Q22 Centrum
Slide 25: Projects - 2Q22
Projects - 2Q22 Sales evolution in 2Q2022 y/y mln zł +41% Sales evolution by formats in 2Q2022 y/y mln zł 180,8 3,8 128,3 22,7 2Q21 2Q22 26,0 EBITDA evolution in 2Q 2022 y/y mln zł 180,8 1,0 0 -11,5 0,5 -15,9 -10 128,3 0,0 -20 2Q21 2Q22 2Q21 Duży Ben Frisco Others 2Q22 Frisco and Duży Ben expansion