Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — FY2021 Earnings Presentation
45 slides from Sligro Food's earnings presentation, Feb 3, 2022
Slide 1: 2021 annual figures
2021 annual figures 3 February 2022
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2021 annual figures Rob van der Sluijs • Developments in the Netherlands Koen Slippens • Developments in Belgium Koen Slippens • Developments in the Group Koen Slippens • Outlook Koen Slippens 2
Slide 3: Abridged statement of profit or loss
Abridged statement of profit or loss x € million 2021 2020 x € million Netherlands Belgium Group Revenue 1,898 100.0% 1,946 100.0% Revenue 2021 1,730 168 1,898 Cost of sales (1,400) -73.7% (1,478) -76.0% Revenue 2020 1,777 169 1,946 Gross profit 498 26.3% 468 24.0% Total decrease (47) (1) (48) Growt
Slide 4: COVID-19 impact on revenue in the Netherlands
COVID-19 impact on revenue in the Netherlands Cash‐and‐carry outlets in the Netherlands Weekly development in revenue (x € million) 2021 2020 2019 Delivery service in the Netherlands Weekly development in revenue (x € million) 2021 2020 2019 4
Slide 5: COVID-19 impact on revenue in Belgium
COVID-19 impact on revenue in Belgium Cash‐and‐carry outlets & delivery service in Belgium Weekly development in revenue (x € million) 2021 2020 2019 5
Slide 6: Gross profit
Gross profit Netherlands Belgium Group x € million • Drop in tobacco revenue pushed up margin by approx. 0.4%. 2021 Revenue 1,730 168 1,898 • Takeover of operating responsibility for Smeding led to an Cost of sales (1,274) (126) (1,400) increase in margin of approx. 0.3% (albeit that it also comes G
Slide 7: Other operating income
Other operating income x € million 2021 2020 • Book profit of €4 million on the sale of Van Hoeckel Rental income 1 1 premises, Ter Apel and land in Nieuwegein. Book result on sale of property, plant and equipment 4 2 • One‐off income of €2 million following settlement of several Other non-recurring
Slide 8: Operating costs
Operating costs Employees: x € million 2021 2020 • Use of the NOW wage subsidy scheme1 in the Netherlands €27 million (2020: €22 million). Operating costs Employee expenses 226 230 • Use of the TWO wage subsidy scheme2 in Belgium €2 million (2020: €4 million). Premises costs 29 31 Selling costs 10 1
Slide 9: Depreciation, amortisation and impairment
Depreciation, amortisation and impairment x € million 2021 2020 • Investment limitations in response to COVID‐19 resulted in a Depreciation and impairment of property, plant and decrease in depreciation charges. equipment and right-of-use assets Land and buildings 16 18 • Start of amortisation of ne
Slide 10: Financial income and expenses and income tax
Financial income and expenses and income tax 2021 2020 x € million Financial income and expenses: Financial income and costs • Interest and expenses were down €2 million, mainly due to Finance costs on leases (4) (4) Finance costs on other financial liabilities (3) (5) the reduced debt position; Oth
Slide 11: Abridged statement of cash flows
Abridged statement of cash flows x € million 2021 2020 x € million 2021 2020 Net cash flow from business operations 71 97 Purchase of intangible assets (23) (27) Interest paid (2) (5) Purchase of property, plant and equipment (21) (45) Dividends received from participations 5 4 Proceeds from disposa
Slide 12: Financing
Financing x € million Dec-2021 Jun-2021 Dec-2020 • We stayed within original financing covenants thanks to Borrowings interventions in expenses and investments and by not Long-term 160 160 160 paying dividend at the end of December: Short-term 1 18 Total 161 160 178 Net interest‐bearing debts/EBITDA
Slide 13: Net profit and earnings per share
Net profit and earnings per share x € million 2021 2020 • No dividend for 2020 and 2021 because of the dividend ban Net profit 20 (70) attached to using the NOW wage subsidy scheme. Earnings per share 0.45 (1.59) • Ever since COVID‐19 hit, protecting the financial position has been our priority. We
Slide 14: Segment results
Segment results Netherlands Belgium Group x € million 2021 2020 2021 2020 2021 2020 Revenue 1,730 1,777 168 169 1,898 1,946 Gross profit as % of revenue 26.4 24.0 24.9 24.5 26.3 24.0 Gross operating result (EBITDA) 110 78 (1) (3) 109 75 Operating result before amortisation (EBITA) 58 18 (9) (11) 49
Slide 15: Developments in the Netherlands
Developments in the Netherlands
Slide 16: General economic developments in the Netherlands
General economic developments in the Netherlands Consumer confidence (Source: CBS) 30.0 • Strong recovery of consumer confidence in the first half of 20.0 2021. 10.0 0.0 • Consumer confidence fell over the second half of the year -10.0 because of the rise of the Delta and Omicron variants and -20.0
Slide 17: Food Service market development in the Netherlands
Food Service market development in the Netherlands Total Food & Drink revenue in 2021 • 2020 figures from FoodService Instituut Nederland (FSIN) included a high (Including VAT, excluding non-food and supplies to hospitality) level of uncertainty due to the COVID‐19 impact and limited insight into +2
Slide 18: Developments in the Netherlands
Developments in the Netherlands • 2021 was all about COVID‐19, our focus was fully on day‐to‐day operations. • The year started with inventories at a minimum level and a reduced pool of flexible workers and transport providers. • Thanks to relief under the NOW wage subsidy scheme, we were able to ke
Slide 19: Delivery service customer satisfaction
Delivery service customer satisfaction • The year was marked by the COVID‐19 pandemic, with a strong focus on our customers and operations as the market reopened. • We made the most of the possibilities within the restrictions imposed, maximum respect for the effort by our teams! • We persevered wit
Slide 20: Cash-and-carry customer satisfaction
Cash-and-carry customer satisfaction • Upward trend in revenue at cash‐and‐carry outlets continued in 2021. • In 2021, our cash‐and‐carry outlets ceased to serve non‐cardholders. • Fewer days in 2021: 365 in 2021 versus 369 (366 + 3) in 2020. • Lower tobacco revenue due to, among other factors, new
Slide 21: Network of cash-and-carry outlets
Network of cash-and-carry outlets Achieved in 2021 • Downsizing of Rotterdam‐Zuid cash‐and‐carry outlet. • Downsizing and refurbishment of Heerlen cash‐and‐carry outlet. • ENTRÉE Brasserie changed to ENTRÉE (11 branches). Scheduled for 2022 • Refurbishment and downsizing: Alkmaar, Arnhem and Haarlem
Slide 22: Returns in the delivery segment
Returns in the delivery segment • Focus on day‐to‐day operations. On‐time and comprehensive services to our customers were our priority. • Due to the globally disrupted supply chain at reopening, additional interventions were needed to keep services at the required level. • Thorough evaluation, agre
Slide 23: Network of delivery service sites
Network of delivery service sites Achieved in 2021 • Changes to SmitVis Veghel in connection with the integration of Océan Marée. • Changes to the delivery service at Nieuwegein for the relocation of cross dock distribution centre. • Sale of former Van Hoeckel site that was no longer in use. • Chang
Slide 24: Plan for 2022 – Netherlands (1/2)
Plan for 2022 – Netherlands (1/2) • Reaping, growth, and returns: ‐ Stable operational performance; ‐ Capitalising on benefits of Heineken integration; ‐ Getting existing customers to buy more; ‐ Accelerating the conversion to the 3.0 format. • Intense customer focus: ‐ Improving the omnichannel pro
Slide 25: Plan for 2022 – Netherlands (2/2)
Plan for 2022 – Netherlands (2/2) • Uniform working method: ‐ SAP in Belgium; ‐ Reducing complexity and costs by phasing out old systems; ‐ Migrating SmitVis and Bouter to proprietary ERP application; ‐ Small‐scale mechanisation for efficiency in the supply chain. • People and organisation: ‐ Improv
Slide 26: Developments in Belgium
Developments in Belgium
Slide 27: General economic developments in Belgium
General economic developments in Belgium Consumer confidence (Source: National Bank of Belgium) 30.0 • In Belgium, consumer confidence showed stronger recovery 20.0 than in the Netherlands over the first half of 2021. It also 10.0 declined less rapidly over the second half of the year. The 0.0 trend
Slide 28: Food Service market development in Belgium
Food Service market development in Belgium Food Service market in 2021 +24.9% • In Belgium, we use information from Foodservice Alliance. Out-of-home channels € 13,718 m • The definition used to determine the scope of the food service market in Belgium is different to that in the Netherlands and so
Slide 29: Developments in Belgium (1/2)
Developments in Belgium (1/2) • Major impact of COVID‐19, especially at JAVA, which has historically always been big in healthcare and catering. • Impact of COVID‐19 on the delivery operation at Sligro‐ISPC, but also strong and sustainable underlying growth in cash‐and‐carry segment. • Satisfied wit
Slide 30: Developments in Belgium (2/2)
Developments in Belgium (2/2) • Excel in customer satisfaction in the delivery segment: ‐ At JAVA, hard work has gone into the new set‐up of account and relationship management with positive initial response from the market; ‐ At JAVA, the Van Hoeckel and Culivers concepts were adapted to Belgian st
Slide 31: Plan for 2022 - Belgium (1/2)
Plan for 2022 - Belgium (1/2) • Reaping, growth, and returns: ‐ Focus on market share growth: JAVA is positioning itself as the number one specialist in the healthcare market that can deliver a full product range; Sligro‐ISPC is perfectly suited to serve larger, professional parties, but also re
Slide 32: Plan for 2022 – Belgium (2/2)
Plan for 2022 – Belgium (2/2) • Digital ambition: ‐ To commission the online platform for the Group; ‐ To start using various digital tools at our own discretion as and when the market is deemed ready for it. • Uniform working method: ‐ SAP go‐live; ‐ Accelerated thanks to SAP, tie in with Group sta
Slide 33: Developments in the Group
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Slide 34: SAP launch
SAP launch • Go‐live of new ERP landscape postponed to 2022: ‐ Complexity of integral upgrading of IT infrastructure; ‐ Restrictions in making progress due to lockdown. • The new product master data environment did go live. This was the second major step in this project after the web environment wen
Slide 35: People and organisation
People and organisation • Progress was made on all four pillars of our People Strategy: ‐ People & Teams: New learning and performance cycle; Introduction process evaluated and revamped; Trainee programme to be internationalised because of its success. ‐ Leadership: Leadership profiles devel
Slide 36: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) • The increasing interest in sustainability fits Sligro Food Group perfectly. • Despite our on‐par position compared to our competitors, the intention is to step up our focus on CSR based on our stakeholders’ requirements and, above all, based on our intrinsic m
Slide 37: Outlook
Outlook
Slide 38: Outlook
Outlook Market conditions • The first few months of 2022 will be dominated by the reopening: ‐ Easing of COVID‐19 restrictions may lead to demand picking up; ‐ Quick scale up required in short time frame. • Sharp cost inflation expected: ‐ Disruptions in global supply chains, material and labour sho
Slide 39: Slide 39
Slide 40: Consolidated statement of financial position
Consolidated statement of financial position x € million 2021 2020 x € million 2021 2020 Assets Liabilities Goodwill 125 125 Paid-up and called-up capital 3 3 Other intangible assets 146 149 Share premium 31 31 Property, plant and equipment 282 299 Other reserves (4) (5) Right-of-use assets 211 216
Slide 41: H1 versus H2
H1 versus H2 x € million 2021-H1 2021-H2 Year Revenue 788 100.0% 1,110 100.0% 1,898 100.0% Cost of sales (599) -76.0% (801) -72.2% (1,400) -73.7% Gross profit 189 24.0% 309 27.8% 498 26.3% Other operating income 4 0.5% 3 0.2% 7 0.3% Total operating costs excluding depreciation, (158) -20.1% (238) -2
Slide 42: Segment cash flows
Segment cash flows Netherlands Belgium Group x € million 2021 2020 2021 2020 2021 2020 Net cash flow from business operations 71 97 0 (2) 71 95 Interest received (paid) (2) (5) (0) (2) (5) Dividends received from participations 5 4 5 4 Income tax paid (1) 5 0 (1) 5 Net cash flow from operating activ
Slide 43: Revenue development per quarter
Revenue development per quarter Revenue Full year Q1 Q2 Q3 Q4 x € million 2021 2020 change 2021 2020 change 2021 2020 change 2021 2020 change 2021 2020 change Revenue excl. tobacco on a comparable basi 1,683 1,637 2.8% 276 450 -38.7% 399 325 22.7% 503 479 4.9% 506 383 31.9% Tobacco revenue on a comp
Slide 44: EBITDA for ratio calculation
EBITDA for ratio calculation • EBITDA reported from 2019 including IFRS 16. • Financing based on net debt/EBITDA ratio excluding IFRS 16. • Excluding IFRS 16 paints a better picture of the cash position. 44
Slide 45: Claim Jumbo Coop
Claim Jumbo Coop • On 13 March 2020, Sligro learnt of a writ of summons issued by the Jumbo & Coop consortium, resulting from the transaction concerning the sale of EMTÉ in 2018. • The consortium alleges that in the context of this transaction, an incorrect picture had been painted of EMTÉ’s histori