Obour Land For Food Industries · EGX:OLFI
Obour Land For Food Industries — Investor Presentation (March 2020)
20 slides from Obour Land For Food Industries's investor presentation, March 2020
Slide 1: Obour Land For Food Industries Investor Presentation
Obour Land For Food Industries Investor Presentation March 2020
Slide 2: Table of Contents
Table of Contents I. Overview of the Market II. Obour Land Strategy & Expansion Plans III. FY2019 Financial Performance 2
Slide 3: Disclaimer
Disclaimer This presentation and any materials distributed in connection with this presentation are not directed or intended for distribution to or use by, any person or entity that is a citizen or resident located in any locality, state, country or other jurisdiction where such distribution, public
Slide 4: I. Overview of the Market
«eres Ru Overview of the Market
Slide 5: Carton Pack White Cheese Market
Carton Pack White Cheese Market Carton pack white cheese market has been historically growing exponentially in the past two decades since the introduction of Tetra Pak packages in the beginning of the 1990s, competing with plastic tubs & loose white cheese. The white cheese market started to shift t
Slide 6: Milk & Juice Markets
Milk & Juice Markets Milk Juice Similar to the white cheese story, loose milk is dominating around 50% of The Juice market is a very fragmented market and the competition is fierce. the total milk market while packaged milk amounts to the other half. We There are over 50 juice manufacturers produce
Slide 7: II. Obour Land Strategy & Expansion Plans
II. Obour Land Strategy & Expansion Plans
Slide 8: White Cheese Strategy
White Cheese Strategy Obour Land’s management is focusing on preserving the company’s leading place as the largest white cheese producer in Egypt and to keep the gap between Obour Land and other competitors. The management believes that diversifying the company’s product portfolio and expanding in n
Slide 9: Milk & Juice Strategy
Milk & Juice Strategy The company’s strategy in penetrating a new market is to achieve the utmost customer satisfaction by providing a product with the highest quality levels consistently. Obour Land aims to acquire a decent market share based on customer preferences rather than discounted prices th
Slide 10: Processed Cheese
Processed Cheese The company started the production of Processed Cheese in March 2018 and had plans also to introduce a Mozzarella Cheese product. However, after monitoring and testing both markets the management decided to cancel the Mozzarella project and sell the production line to have more room
Slide 11: Dairy Farming
Dairy Farming ▪ In mid 2017, Obour Land has decided to venture into dairy farming on the back of the multiple synergies to be gained from vertical integration that will compensate for the shortage and high costs of raw milk that represents a major feed component in UHT milk production. The farm is e
Slide 12: III. Financial Results FY2019
III. Financial Results FY2019
Slide 13: Key Investment Highlights
Key Investment Highlights 1 High Quality Product Mix 2 Supply Chain and Sales Network 3 Financial Performance 4 Revenues & COGS Build-Up 5 Financial Statements 13
Slide 14: High Quality Product Mix
1 High Quality Product Mix Product Portfolio Synopsis Product Portfolio Brand 80g Feta 125g Feta 125g Olive 125g Istanbully 250gm 500gm 125gm 1 Kg 80gm 1 Liter Plastic 250ml Carton Pack1 Carton Carton Carton Carton Carton Milk 250g Feta 250g Olive 250g Tub Juice Istanbully Pack Pack Pack Pack Pack &
Slide 15: Supply Chain and Sales Network
2 Supply Chain and Sales Network Sales Breakdown by Channel Robust Distribution Platform Beheira Kafr El Sheikh Dakahlia North Sinai ▪ Obour Land’s 0.14% 0.45% 0.18% 0.18% Menoufia Sharkia Qalyubia distribution network is 5% 2% 2% 3% 2% Suez helping the company to control its products 26% 27% 29% 31
Slide 16: Financial Performance
3 Financial Performance Net Revenues1 (EGP mn) Gross Profit2, Margin (EGP mn, %) EBITDA, Margin (EGP mn, %) ▪ In 2019, Obourland achieved an 8% increase in revenues backed by a 2% increase in ▲22% ▲32% ▲33% sales volumes and a 6% increase in cheese prices. The increase in volumes came despite tough
Slide 17: Revenue & COGS Build-up
4 Revenue & COGS Build-up White Cheese Gross Revenue Build- Up Carton Pack Plastic Tubs Total ▲5% -9% ▲5% 120.0 4.1 100.4 102.7 120 103 105 93.2 94.2 3.4 97 97 83.4 100.0 3.0 100 87 80.0 2.5 2.32 80 Volume 60.0 (ktpa) 60 40.0 40 20.0 20 - - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016
Slide 18: COGS Build-up
COGS Build-up COGS Breakdown (EGP mn) Cost of Sales Breakdown (EGP mn)1 Raw Materials Breakdown (EGP mn) ▪ Raw materials costs represent the biggest portion of COGS, 813 852 1,211 1,400 1,537 contributing ~59% to sales in 2019 with SMP & Milk Protein 2,025 9% 85 7% 74 8% 119 15% 15% Concentrate cont
Slide 19: Financial Statements – Income Statement
5 Financial Statements – Income Statement EGP 2015 2016 2017 2018 2019 Revenues 1,169,837,613 1,450,122,574 2,066,074,976 2,390,168,867 2,587,659,102 Cost of sales1 -985,062,271 -1,087,501,189 -1,579,642,506 -1,854,824,403 -2,025,193,054 Gross Profit 184,775,342 362,621,385 486,432,470 535,344,464 5
Slide 20: Balance Sheet
Balance Sheet EGP 2015 2016 2017 2018 2019 Fixed Assets 182,527,661 190,384,367 418,181,377 461,803,762 667,419,033 Projects Under Construction 34,865,836 197,456,530 68,266,998 65,172,326 32,784,363 Intangible Assets - - 1,533,896 18,164,597 2,217,190 Deferred Tax Assets - 5,306,928 Total Non-Curre
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