Savola Group · TADAWUL:2050
Savola — Q3 2019 Earnings Presentation
20 slides from Savola's earnings presentation, 2019
Slide 1: Earnings Presentation Q3 2019
Earnings Presentation Q3 2019 www.savola.com 1
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about
Slide 3: Snapshot Q3 2019
SNAPSHOT Q3 2019 • Q3 2019 Revenue of SAR 5.3 bn (Q3 2018: SAR 5.2 bn) GROUP • Q3 2019 Net Income of SAR 221.8 mn (Q3 2018: Net Loss of SAR 50.7 mn) • Q3 2019 Revenue of SAR 2.7 bn (Q3 2018: SAR 2.6 bn) RETAIL • Q3 2019 Net loss of SAR 19.1 mn (Q3 2018: Net Loss of SAR 198.3 mn) • Q3 2019 Revenue of
Slide 4: Group – Consolidated Financial Highlights
GROUP – CONSILIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 SNAPSHOT 2% 2% 5% -2% -2% -2% 2% -2% 16,468 16,748 Sales 5,108 5,388 6,148 6,024 5,212 5,336 14% 14% 17% -2% 9% -2% 16% -2% 2,907 3,313 Gross Profit 909 1,065 1,067 1,163 932 1,084 17.8
Slide 5: Group – Consolidated Financial Highlights
GROUP – CONSILIDATED FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 83% 83% 105% +105% 52% -2% 106% +106% 1,892 EBITDA 505 664 724 437 1,034 246 351 4.8% 9.4% 7.1% 11.0% 6.7% 13.6% 6.3% 11.3% -22% -2% 338 Net Income 141 222 110 6 6 (51) (84) 0.1% 2.3% 1
Slide 6: Group – Revenue Mix, Net Debt & Capex
GROUP – REVENUE MIX, NET DEBT & CAPEX SAR in millions Revenue by Business Revenue by Geography YTD-18 YTD-19 YTD-18 YTD-19 6% 6% 9% 2% 9% 5% 10% 41% 9% 45% 9% 49% 51% 73% 76% Food Processing Retail Food Services Frozen Food KSA Egypt Central Asia Others Net Debt and Net Debt to Liquid Assets (%)* CA
Slide 7: Implications of Exceptional Items
SAR in millions Note: Numbers are rounded YTD 2018 reported EBITDA 1,034 YTD-18 YTD 2019 reported EBITDA 1,892 Store Closure & 18 Project Write-off Adjusted EBITDA IFRS16 Rent Reversal YTD-19 (519) YTD 2019 Adjusted EBITDA 1,391 IMPLICATIONS OF EXCEPTIONAL ITEMS YTD 2018 6 reported NI Gain on Sale o
Slide 8: Panda Retail Company Q3 2019
PANDA RETAIL COMPANY Q3 2019 8
Slide 9: Retail - Highlights
RETAIL - HIGHLIGHTS • Retail performance improved significantly over last year Key Highlights • Turnaround initiatives have started to materialize, with top-line growth (absolute and on a like-for-like basis) as management continues to focus on strategy implementation • Store count remained flat dur
Slide 10: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 5% 5% 12% -2% 1% -2% 4% -2% 8,251 8,671 Sales 2,377 2,671 3,229 3,253 2,645 2,747 9% 9% 11% -2% 3% -2% 13% -2% 1,645 1,792 Gross Profit 500 557 603 624 542 612 21.0% 20.8% 18.7% 19.2% 20.5% 22.3% 1
Slide 11: Retail – Financial Highlights
RETAIL – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 432 135 231 66 EBITDA* 30 49 53 (26) (74) (62) (87) Q1-19 Q2-19 (224) Q3-19 YTD-19 Adjusted Adjusted Adjusted Adjusted EBITDA EBITDA EBITDA EBITDA Net loss* (19) (48) (65) (133) (119) (331) (246) (
Slide 12: Retail – Number of Stores by Quarter
RETAIL – NUMBER OF STORES BY QUARTER SAR in millions Super Hyper 153 1 66 145 62 (9) (4) Dec Additions Closures YTD Dec Additions Closures YTD 2018 2019 2018 2019 Total Dec-18 Sep-19 Selling Area 219 1 Selling Area 689,633 m2 646,581 m2 207 (13) Dec Additions Closures YTD 2018 2019 12
Slide 13: Savola Foods Company Q3 2019
SAVOLA FOODS COMPANY Q3 2019 13
Slide 14: Foods - Highlights
FOODS - HIGHLIGHTS • Food performance improved over last year, despite pressure on volumes and top-line Key Highlights • Performance is mainly driven by recovery in profitability of the sugar segment • Volume has declined by 2.9% to 2,475 KMT in YTD Sep 2019, driven primarily by a Volume reduction i
Slide 15: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 -6% -2% -13% -2% -5% -2% -8% -2% Sales 2,572 2,408 2,692 2,350 2,311 2,185 7,575 6,943 11% -2% -1% -2% 8% -2% 6% -2% Gross Profit 331 367 385 382 295 318 1,010 1,066 12.9% 15.2% 14.3% 16.2% 12.7% 14
Slide 16: Foods – Financial Highlights
FOODS – FINANCIAL HIGHLIGHTS Margin SAR in millions Q1-18 Q1-19 Q2-18 Q2-19 Q3-18 Q3-19 YTD-18 YTD-19 36% -2% 2% -2% 20% -2% 17% -2% EBITDA 207 212 215 167 503 589 152 140 5.9% 8.6% 7.9% 9.2% 6.0% 7.6% 6.6% 8.5% -51% -2% 155% Net Income 112 135 253 65 75 99 8 (44) 0.3% 4.7% 5.0% 2.8% 3.4% 1.3% 3.6%
Slide 17: Foods – Oil Segment Analysis
FOODS – OIL SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-18 YTD-19 YTD-18 YTD-19 -3% -3% -13% -13.4% 1,203 5,139 1,165 Morocco 5% 5% Morocco YoY +8% 4% 6% 4% YoY -2% 3% 4,447 Sudan 9% 8% Sudan YoY -18% 12% 6% YoY -8% 4% Algeria 9% 11% Algeria YoY +20% 11% 12% YoY +20% Turkey Turkey
Slide 18: Foods – Sugar Segment Analysis
FOODS – SUGAR SEGMENT ANALYSIS SAR in millions Volume (MT ‘000) Revenues YTD-18 YTD-19 YTD-18 YTD-19 -2% -2% 0% 0.0% 1,093 1,963 1,964 1,068 Egypt Egypt YoY 0% 14% 16% 16% YoY 0% 15% KSA KSA YoY -3% YoY 0% 86% 85% 84% 84% Note: Sugar volumes and revenues include only the contribution from our consol
Slide 19: Financial Summary
FINANCIAL SUMMARY 19
Slide 20: Financials – YTD Sep 2019
FINANCIALS – YTD SEP 2019 (all figures are in SAR millions) Segment Wise Financials YTD 2019 YTD 2018 Revenue Gross Profit EBIT Net Income EBITDA Revenue Gross Profit EBIT Net Income EBITDA Food* Oil-Mature Markets 3,486 613 214 125 278 4,243 618 227 71 278 Oil-Start-up Markets** 961 105 55 34 65 89