Agthia Group · ADX:AGTHIA
Agthia — Agthia Group PJSC — 9M 2020 Earnings Presentation
20 slides from Agthia's earnings presentation, Nov 2, 2020
Slide 1: Agthia Group PJSC 9M 2020 Analyst & Investor Earnings Call
Agthia Group PJSC 9M 2020 Analyst & Investor Earnings Call 2 Nov 2020 1
Slide 2: Disclaimer – Forward Looking Statements
DISCLAIMER – FORWARD LOOKING STATEMENTS 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: CEO Brief: First 100 days journey as Agthia's CEO
CEO BRIEF First 100 days journey as Agthia’s CEO ❑ Capability of the organization ❑ Mergers & Acquisitions ❑ Digitalization ❑ Distressed businesses 3
Slide 4: 9M 2020 Operational Highlights
9M 2020 | OPERATIONAL HIGHLIGHTS ❑ COVID-19: Agthia’s Resilience and Agility • Protect topline • Ensure product availability • Strategically reset the fundamentals of the business with a focus on future growth ❑ Managerial / BoD changes: Diverse, Proficient and in support of our growth agenda • Elec
Slide 5: 9M 2020 Operational Highlights (Con't)
9M 2020 | OPERATIONAL HIGHLIGHTS (CON’T) ❑ Deep-dive assessment of our books: One-time hit across 4 key areas necessary to improve earnings quality • Mutually agreeing to end the license with Capri-Sun partners post excise tax implementation resulted in a one-time AED 9.5 million full impairment of
Slide 6: 9M 2020 Financial Highlights
9M 2020 | FINANCIAL HIGHLIGHTS Revenues (AED MN) 9M 2020 1,582 Revenues +2.2% • Sustainable leadership position across key 9M 2019 1,548 categories • Growth driven by continuous increase in 5- EBITDA (AED MN) gallon, food categories and flour 9M 2020 112 7% (622)bps 9M 2019 13% Profitability 205 • U
Slide 7: Agthia Market Shares
AGTHIA MARKET SHARES1 Sustainable leadership across key categories Volume market share Dec 2019 MAT 2020 Agthia’s Current Rank UAE- BW 29.1% 29.3% 1 KSA – Jeddah - BW 9.5% 10.2% 4 Kuwait - BW 3.5% 3.6% 7 Flour (B2C) 32.1% 32.9% 1 Feed 44.0% 44.0% 1 Capri Sun 8.9% 10.1% 4 Yoplait- Kids 73.5% 70.7% 1
Slide 8: Group Sales Performance
GROUP SALES PERFORMANCE Categories Geographies Channels + 5-gallons HOD + UAE: 5 gallons, TP /FV, Trading + Retail (Modern & + Food items, Bakery & Flour Traditional Trade) + Agri + Egypt + E-commerce (+5x y/y) + Kuwait + CSD (Municipality) - Bottled Water - Beverages - UAE: Bottled Water & Feed - R
Slide 9: Water & Beverage | Growth by Category
WATER & BEVERAGE | GROWTH BY CATEGORY Volume1 by category (MN) UAE - WATER • HOD: higher demand from homes and retail channels overcompensating drop in corporates channel • BW: lower volume on restrained tourism and reduced 78 84 demand from the food service channel 58 61 KSA 10 15 7 4 2 2 1 2 • Sig
Slide 10: Water | Dive into UAE Bottled Water
WATER | DIVE INTO UAE BOTTLED WATER Retail channel analysis Volume share % Value share % YTD share % Total Agthia Volume share YTD’19 YTD’20 Al Ain Total Agthia 29.8% 30.4% Comp 2 Comp 1 Comp 1 17.4% 14.1% Comp 3 Comp 2 13.8% 17.2% Bayan Comp 3 9.1% 8.8% Alpin MAT'19 MAT'20 MAT'19 MAT'20 • Defensive
Slide 11: Food | Growth by Category
FOOD | GROWTH BY CATEGORY Volume1 by category (MN) Trading items • Key driver of category sales on increased at-home consumption and e-commerce orders 28 TP/FV 22 21 • Egypt: boosted demand for consumer products 16 2 2 3 3 1 0 • UAE: increased at-home consumption + partnering with local authorities
Slide 12: Agri | Growth by Category
AGRI | GROWTH BY CATEGORY Volume1 by category (MN) Flour • Strong domestic volumes with expanded retail penetration • Expansion in exports (including an order to World Food Program) 588 550 • Wheat trading 342 344 246 206 Animal Feed Flour Animal Feed Total Agri • Favourable mix 19% -1% 7% • Lower v
Slide 13: Financial Performance
dan jis] bas ygojilo Committed to healthier living Finandal Performance
Slide 14: Segmental Divisions
SEGMENTAL DIVISIONS Group Revenues – AED 1.58 BN y/y growth by category 38% Feed AED 356 MN 23% W&B AED 606 MN 21% 38% Flour AED 362 MN 23% 2% Food AED 258 MN 16% W&B Food Flour Feed Group -4% -12% CBD -1% ABD +7% 14
Slide 15: Gross Profit Margin
GROSS PROFIT MARGIN Quarterly Gross Profit Margin % Consumer GPM • Water margin year-to-date went up by 110bps despite lower sales specifically to the food service channel (down 36% vs last year, equivalent to AED Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 38 million lost sales) 41.6% • Beverages mar
Slide 16: Group Net Profit
GROUP NET PROFIT Group net profits (AED M) 117 -92% 10 113 -18% 92 Excluding the one-offs, normalized group net profit would come in at AED 92 million, down 18% y/y in 88 88 parallel with lower bottled water volume sales in 104 UAE (food service) & KSA and beverages sales which were countered by enh
Slide 17: Top Line Reconciliation
TOP LINE RECONCILIATION Group revenues (AED M) +90 +39 +12 -54 1,582 -40 1,548 -15 9M 2019 WFP flour Grain trading Organic UAE Bottled Lower KSA Lower 9M 2020 order growth* Water volume Beverage volume COVID-19 Excise tax impact impact 17
Slide 18: Bottom Line Reconciliation
BOTTOM LINE RECONCILIATION Group net profits (AED M) 117 -26 -17 -16 -5 -82 31 -12 10 15 6 9M 2019 UAE Bottled Lower KSA Beverage Turkey Tax One-off Better Agri Enhanced Cost Others 9M 2020 Water Sales sales (post incentive adjustments profits Food profits optimization excise tax) initiatives 18
Slide 19: Bottom Line Normalization
BOTTOM LINE NORMALIZATION Normalized Group net profits (AED M) 92 7.7 9.5 7.2 58.1 10 Reported 9M Bad Debt Net inventory Capri Sun CSD Normalized 9M 2020 provisions Provisions impairment accounting 2020 adjustment 19
Slide 20: Q&A Agthia Group PJSC
Q&A Agthia Group PJSC 9M 2020 Analyst & Investor Earnings Call 20