Sligro Food Group N.v. · EURONEXT:SLIGR
Sligro Food — H1 2023 Earnings Presentation
36 slides from Sligro Food's earnings presentation, Jul 20, 2023
Slide 1: 2023 half-year figures
2023 half-year figures 20 July 2023
Slide 2: Agenda
Agenda • Welcome Koen Slippens • 2023 half-year 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 1 x € million H1-2023 H1-2022 x € million Netherlands Belgium Group Revenue 1,403 100.0% 1,129 100.0% Revenue H1-2023 1,187 216 1,403 Cost of sales (1,032) -73.5% (825) -73.1% Revenue H1-2022 1,026 103 1,129 Gross profit 371 26.5% 304 26.9% Total increase 161 113
Slide 4: Gross profit
Gross profit 1 x € million Netherlands Belgium 2 Group Gross profit margin is 26.5% (a 0.4% drop). H1-2023 Revenue 1,187 216 1,403 Cost of sales (867) (165) (1,032) Consolidation of Sligro-M pushed gross profit down by Gross profit 320 51 371 approx. 0.1%. Gross profit as % of revenue 27.0 23.7
Slide 5: Other operating income
Other operating income 1 x € million H1-2023 H1-2022 2023: €1 million book profit on sale of vacant property. Rental income 1 0 Book result on sale of property, plant and 2022: €16 million untaxed book profit on sale of stake in equipment 1 0 Smeding. Other non-recurring results 0 17 Total 2 17
Slide 6: Operating costs
Operating costs 1 Operating costs as a percentage of revenue unchanged at 22.7%. x € million H1-2023 H1-2022 Operating costs Employee expenses 188 149 Sligro-M consolidation impact of 0.5%, resulting in underlying Premises costs 21 16 drop in costs of 0.5% compared to 2022. Selling costs 8 8 Log
Slide 7: Depreciation, amortisation and impairment
Depreciation, amortisation and impairment 1 x € million H1-2023 H1-2022 Depreciation and amortisation charges up €11 million. Depreciation and impairment of property, plant and equipment and right-of-use assets Land and buildings 8 8 Amortisation and depreciation charges at Sligro-M totalled Mac
Slide 8: Operational EBIT
Operational EBIT 1 Netherlands Belgium 2 Group x € million H1-2023 H1-2022 H1-2023 H1-2022 H1-2023 H1-2022 EBIT reported 19 31 (15) (6) 4 25 -/- Book profits on asset sales 1 16 0 0 1 16 -/- Metro start-up costs and losses 0 0 (8) 0 (8) 0 -/- One-off recovery costs and write-downs in Antwerp (4) 0 (
Slide 9: Financial income and expenses and income tax
Financial income and expenses and income tax 1 x € million H1-2023 H1-2022 Interest expenses up €3 million due to: Financial income and expenses - increased debt position following the acquisition of Metro Finance costs on leases Finance costs on other financial liabilities (3) (4) (2) (1) sites;
Slide 10: Abridged statement of cash flows
Abridged statement of cash flows 1 x € million H1-2023 H1-2022 x € million H1-2023 H1-2022 Net cash flow from business operations 81 35 Purchase of intangible assets (12) (14) Interest paid (4) (1) Purchase of property, plant and equipment (27) (16) Dividends received from participations 4 6 Sale of
Slide 11: Financing
Financing 1 x € million Jun-2023 Dec-2022 Jun-2022 Refinancing process completed in April 2023. Loans Long-term borrowings 40 110 110 €30 million repayment made on USPP loan. Current portion of long-term borrowings 0 30 30 Short-term borrowings 164 55 10 Committed €260 million credit facility ag
Slide 12: Net profit and earnings per share
Net profit and earnings per share 1 x € million H1-2023 H1-2022 Interim dividend of €0.30 per share paid in October. Net profit (loss) 1 23 Earnings per share (x €) 0.01 0.53 Interim dividend based on: Interim dividend per share proposed (x €) 0.30 0.30 - forecast for 2023; - strong financial po
Slide 13: Developments in the Netherlands
Developments in the Netherlands
Slide 14: General economic developments in the Netherlands
General economic developments in the Netherlands Consumer confidence Recovery in the first half of 2023 from a historically low level Impact of international developments Consumers less pessimistic about the economic climate While buying interest remains strong in our markets, consumers are
Slide 15: Developments in the Netherlands
Developments in the Netherlands After slow revenue development through to April, a significant turnaround came in May when the weather changed and we turned our commercial focus to acquisition and traffic. Improvement in operating results: - Revenue growth on the back of acquisition of new custo
Slide 16: Developments in the Netherlands
Developments in the Netherlands Our approach to long-term strategic initiatives is unchanged, work on some components to start later due to revised prioritisation: - Full focus on run and operational excellence - Programme launched to tighten our cost base in light of all the macroeconomic developme
Slide 17: Developments in the Netherlands
Developments in the Netherlands Sligro Food Group Transport – first electric vehicles in our fleet taken into use. Maastricht delivery service supports Belgian operations. New customer growth driven by Heineken partnership, upsell and our relatively good performance. Communication and digita
Slide 18: Developments in the Netherlands
Developments in the Netherlands The focus lies on greater uniformity in product ranges, with possibilities for local entrepreneurship using different item modules. Massive progress made in the standardisation and embedding of our retail format policy in NL and BE, to be completed in the second h
Slide 19: Developments in the Netherlands
Developments in the Netherlands Close tracking of price and cost inflation, we negotiate tough while staying constructive. Various optimisations in operations by harnessing digital tools and data: - Postcode optimisation - Minimum drop height Actions launched to reduce our cost level permanent
Slide 20: Developments in Belgium
‘Heerlijke gerechten beginnen bij JAVA verse groenten’ YOUR BEST SOLUTION Developments in Belgium
Slide 21: General economic developments in Belgium
General economic developments in Belgium Consumer confidence: - Stable after rise in late 2022. Unemployment rate: - Labour market continues to be tight, albeit that the level of unemployment is classed as ‘normal’ in terms of the figures in the long-term forecast. 21
Slide 22: Developments in Belgium
Developments in Belgium Developments Sharp organic revenue growth in both the delivery and cash-and-carry segment: - Sligro-ISPC saw delivery revenue rise despite disruptions in the delivery operation in Antwerp - At JAVA Foodservice, we saw the effect of the new sales and account management appro
Slide 23: Acquisition of Metro Belgium
Acquisition of Metro Belgium Following the acquisition of the 9 Metro stores Nationwide network and synergies: - From 3 to 12 cash-and-carry outlets Middelkerke Antwerp North - Nationwide coverage Antwerp South St. Katelijne-Waver - Basis to seize economies of scale Ghent Rotselaar Hasselt Wevelge
Slide 24: Acquisition of Metro Belgium
Acquisition of Metro Belgium Approval Transaction notifiable to the Belgian Competition Authority (BCA), which issued its final and unconditional approval on 3 April 2023. Appeal filed by one of the parties involved in the transaction. Appeal dismissed by the Antwerp Court of Appeal on 30 March
Slide 25: Acquisition of Metro Belgium
Acquisition of Metro Belgium Development over the first half of the year: - Further development of product range, from 80% to 95% right - Inventory levels and availability are good - Optimisation of price levels and price/promotions based on specific preferences are progressing smoothly - Customer
Slide 26: Acquisition of Metro Belgium
Acquisition of Metro Belgium Retail format situation Clear view of the differences and similarities between the Sligro-ISPC and Welcome formats Customers are embracing Sligro and already calling us Sligro-M Both retail formats will continue as Sligro and Sligro-M sister formats with lots of si
Slide 27: Developments in the Group
Developments in the Group
Slide 28: New ERP landscape
New ERP landscape After the SAP go-live in November 2022: - Cash-and-carry operation is running smoothly - Problems are concentrated in the Antwerp delivery operation - Focus on stabilisation, operational calm and performance - Combination currently still insufficiently stable for further roll-out
Slide 29: Sustainability
Sustainability Our initiatives are laid out in a clear roadmap with specific and measurable long- term and short-term KPIs for each key topic: - People - Planet - Product range The reduction in carbon emissions will come from: - conversion to 3.0; - the use of electric goods vehicles; - the expa
Slide 30: Outlook
Outlook
Slide 31: Outlook
Outlook Market conditions Stabilising economic indicators: - Status quo in consumer confidence, jobs and inflation - Inflation affects consumers but out-of-the-home spending has not dropped - Market is growing on the back of rising prices; volumes are under pressure Sligro Food Group Limited vol
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Slide 33: Statement of financial position
Statement of financial position 1 x € million Jun-2023 Dec-2022 x € million Jun-2023 Dec-2022 Assets Liabilities Goodwill 130 125 Paid-up and called-up capital 3 3 Other intangible assets 171 144 Share premium 31 31 Property, plant and equipment 294 281 Other reserves (2) (4) Right-of-use assets 235
Slide 34: Segment figures
Segment figures 1 Netherlands Belgium 2 Group x € million H1-2023 H1-2022 H1-2023 H1-2022 H1-2023 H1-2022 Revenue 1,187 1,026 216 103 1,403 1,129 Organic revenue growth as % 15.7 42.8 36.8 48.8 17.6 43.3 Gross profit as % of revenue 27.0 27.3 23.7 23.5 26.5 26.9 Gross operating result (EBITDA) 62 67
Slide 35: Segment cash flows
Segment cash flows 1 Netherlands Belgium 2 Group x € million H1-2023 H1-2022 H1-2023 H1-2022 H1-2023 H1-2022 Net cash flow from business operations 84 41 (3) (6) 81 35 Interest received and paid (4) (1) 0 0 (4) (1) Dividends received from participations 4 6 0 0 4 6 Income tax paid (4) (3) (1) (1) (5
Slide 36: EBITDA for ratio calculation
EBITDA for ratio calculation 1 EBITDA reported from 2019 including IFRS 16. Financing based on net debt/EBITDA ratio not including IFRS 16. Not including IFRS 16 paints a better picture of the cash position. 116 87 1 Not audited. 36