Agthia Group · ADX:AGTHIA
Agthia — Q1 2023 Earnings Presentation
33 slides from Agthia's earnings presentation, May 10, 2023
Slide 1: Investor Presentation Q1'23 results
Investor Presentation Q1’23 results 10 May 2023
Slide 2: Disclaimer
02 Analyst and Investor Call Disclaimer Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial condition, results of operations and business of the Group. These statements can be identified by the fact that they do
Slide 3: Agenda
03 Analyst and Investor Call Agenda 1 2 3 Strategic Segmental Key financials update performance 4 5 Guidance Appendix
Slide 4: Recap: Our strategic vision to become a regional F&B leader by 2025
04 Analyst and Investor Call Recap: Our strategic vision to become a regional F&B leader by 2025 From… To… UAE centric Footprint MENAP & beyond Becoming a Commoditized portfolio Value-add F&B brands regional F&B Stable financial performance Strong shareholder returns leader by 2025 Local organizatio
Slide 5: Progress on strategic vision – Q1'23
05 Analyst and Investor Call Progress on strategic vision – Q1’23 Delivering Growth Driving Efficiency Expanding Capabilities • Reported revenue growth +12% YoY; • Focus on productivity enhancement: • Accelerating innovation: new gifting 6% from volume1 & 6% from pricing ranges and product and packa
Slide 6: Key Financials
Key Financials
Slide 7: Q1'23 headlines: Strong and profitable growth across the quarter
07 Analyst and Investor Call Q1’23 headlines: Strong and profitable growth across the quarter 188 97 1,182 +7% +19% 91 +12% 1,053 158 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 +4.5% LFL growth -44bps Δmargin +89bps Δmargin after covering incremental interest of AED 20MN (-168bps margin impact) AED MN AED
Slide 8: …amidst a challenging backdrop
08 Analyst and Investor Call …amidst a challenging backdrop Average 3M 0.5% 5.0% 30.0 LIBOR 24.3 + AED 16.0 +20MN 55 MN 4.5 additional commodity costs Q1'22 Q1'23 Q1'22 Q1'23 Average EGP vs USD FX rate Net Interest cost (AED MN) Devaluation impact vs last year Revenue AED 112MN EBITDA AED 20MN Group
Slide 9: Strong topline growth driven by increased diversification and optimized mix
09 Analyst and Investor Call Strong topline growth driven by increased diversification and optimized mix Q1 2023 revenue growth +12% YoY, with 6% from volume1 and 6% from pricing; +23% pre devaluation Group Revenue (AED MN) 1,182 48 (43) 31 14 1,053 78 after absorbing Inorganic EGP devaluation of gr
Slide 10: EBITDA growth ahead of revenue driven by Snacking & Water segments
10 Analyst and Investor Call EBITDA growth ahead of revenue driven by Snacking & Water segments Q1 2023 EBITDA growth +19% YoY, +32% pre devaluation Group EBITDA (AED MN) 188 158 (1) 11 (5) (6) 11 21 Inorganic growth1 Q1'22 Snacking Water & Food AgriBusiness Snacking Protein & Frozen Others* Q1'23 a
Slide 11: Net profit growth despite higher interest rate environment
11 Analyst and Investor Call Net profit growth despite higher interest rate environment Q1 2023 net profit growth +7% YoY, +19% pre devaluation Group Net profit1 (AED MN) (5) (1) 14 11 (25) 97 91 12 Inorganic growth3 Q1'22 Snacking Water & Food AgriBusiness Snacking Protein & Frozen Interest cost &
Slide 12: Robust balance sheet with low leverage
12 Analyst and Investor Call Robust balance sheet with low leverage Net debt / EBITDA Interest coverage1 1.9x Down from FY’22 of 2.3x 7.7x Up from FY’22 of 7.2x Liquidity2 AED 2.2BN Dividend yield3 4.0% FY’22 DPS = AED 0.1652 1Interest coverage = EBITDA / (interest expense net of interest income) 2L
Slide 13: Segmental performance
Segmental performance
Slide 14: Diversified growing portfolio in large growing scalable markets
14 Analyst and Investor Call Diversified growing portfolio in large growing scalable markets 50% 9% 25% 22% 24% 27% 15% 49% 12%12% 6% 6% 21% 32% 15% Protein & Snacking* Water & Agribusiness Frozen* Food UAE Other Arab Countries Protein & Frozen -14% Water & Food *Protein & Frozen LFL is pre devaluat
Slide 15: Snacking: strong growth in dates and contribution from Auf
15 Analyst and Investor Call Snacking: strong growth in dates and contribution from Auf Revenue 380 • LFL growth of 15% including Auf 88 • Dates: strong growth across key export markets (India, Indonesia, Malaysia, Brazil), and market share gains from innovative products +50% +56% • Confectionery: s
Slide 16: Protein: improved margin despite revenue decline on FX headwinds
16 Analyst and Investor Call Protein: improved margin despite revenue decline on FX headwinds Revenue • -14% YoY after absorbing FX devaluation 295 impact of AED 112MN 253 • +24% YoY excluding FX devaluation -14% • Egypt: strong brand equity and effective 44 39 tiering; double digit sales growth in
Slide 17: Water & Food: positive growth with improved profitability
17 Analyst and Investor Call Water & Food: positive growth with improved profitability on cost optimization and SKU premiumization Revenue 252 • +6% YoY on positive growth across 43 international channels (KSA +26%, +6% Kuwait +19%) slightly offset by volume 238 phasing in UAE water from shift in +3
Slide 18: Agri: resilient performance despite significant commodity inflation
18 Analyst and Investor Call Agri: resilient performance despite significant commodity inflation Revenue 298 • +12% YoY on strong volume and value 48 flat 47 growth in Flour and strong pricing in Feed +12% 266 EBITDA • Margin compression on unfavourable mix and higher raw material cost (+AED 27mn ad
Slide 19: Guidance
Guidance
Slide 20: Reconfirming FY'23 Guidance
20 Analyst and Investor Call Reconfirming FY’23 Guidance +10 to 12% +40 to 60bps +30 to 50bps • Current FX rates for USD / EGP 30.7 • Current FX rates for USD / EGP 30.7 • 100% of Group profit including minorities • No further acquisition • No further acquisition • Current FX rates for USD / EGP 30.
Slide 21: A forward looking company
21 Analyst and Investor Call 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
Slide 22: For The Better
ForThe Better « Cy a> @ 3 2 PD oy
Slide 23: Appendix
ForThe Better * JA0UI Joi yo
Slide 24: Historical dividend trend
24 Analyst and Investor Call Historical dividend trend 32% 35% 44% 43% 66% 85%1 58% 55% 51% 53% Dividend Payout % 0.165 0.165 0.165 0.150 0.150 0.150 0.150 0.125 Dividends per Share 0.0825 0.0825 (AED) 2015 2016 2017 2018 2019 2020 2021 H1 2022 H2 2022* 2022* 1Normalized EPS for 2020 *H2’2022 approv
Slide 25: A balanced mix of growing brands
25 Analyst and Investor Call A balanced mix of growing brands 21% of sales 25% of sales 22% of sales 32% of sales Category Agribusiness Protein & Water & Food Snacking Frozen Veg. Assets Key markets Staple Discretionary
Slide 26: Strong leadership team with track record of value creation
26 Analyst and Investor Call Strong leadership team with track record of value creation Group Functions Business Unit Functions Alan Sherif Ramy Vandy Dos Mujtaba Abdulla Mubarak Ahmad Ahmad Declan Smith Elfaham Merdan Santos Hussain Al Marzooqi Al Mansoori Yahya Sallakh Bennett Chief Executive Chie
Slide 27: Investing in growth: Protein expansion in KSA
27 Analyst and Investor Call Investing in growth: Protein expansion in KSA Project overview ▪ Location: Jeddah, KSA ▪ Category: Protein ▪ Capex c. AED 84MN (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
Slide 28: 5-year digital roadmap with clear priorities
28 Analyst and Investor Call 5-year digital roadmap with clear priorities Priority #1 Priority #2 • Seamless omnichannel experience with optimised • Integrated business planning and cross-domain online and in-store execution collaboration • Strongest e-commerce brand through digital • Resilient oper
Slide 29: Our Sustainability Agenda: adopting a "4 P" approach
29 Analyst and Investor Call Our Sustainability Agenda: adopting a “4 P” approach Packaging Processes • Target packaging material reduction of 3,000 tons • 2.43% reduction in water usage ratio (Q1’23 vs Q1’22) • +3x PLA YoY volume growth in Q1’23 • 4.9% reduction in water usage for Water BU (Q1’23 v
Slide 30: Summary Profit & Loss Statement
30 Analyst and Investor Call Summary Profit & Loss Statement AED'000 Q1’23 Q1’22 YoY Revenue 1,182,357 1,053,140 12% Cost of sales -844,880 -744,875 13% Gross profit 337,477 308,265 9.5% Selling and distribution expenses -133,837 -128,608 4% General and administrative expenses -86,486 -81,462 6% Res
Slide 31: Summary Balance Sheet Statement
31 Analyst and Investor Call Summary Balance Sheet Statement AED'000 Q1’23 Q1’22 Property, plant and equipment 1,407,355 1,469,793 Intangible assets & Goodwill 2,416,600 2,078,998 Others 100,471 127,314 Total non-current assets 3,924,426 3,676,105 Inventories 768,633 664,528 Trade and other receivab
Slide 32: Summary Cash Flow Statement
32 Analyst and Investor Call Summary Cash Flow Statement AED'000 Q1’23 Q1’22 YoY Profit before tax & zakat expenses 107,370 98,351 9% Adjustments for: Depreciation & Amortization 58,235 56,228 4% Provisions & Allowances 6,122 6,286 -3% Others 22,483 3,083 629% Change in: Inventories 77,107 43,598 77
Slide 33: Thank you
For The Better + JAoUI Joi yo May 2023 iis