Almarai Company · TADAWUL:2280
Almarai — Q1 2017 Earnings Presentation
19 slides from Almarai's earnings presentation, April 2017
Slide 1: Almarai Company Interim results – 1st Quarter 2017
Almarai Company Interim results – 1st Quarter 2017
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assume no responsibility or lia
Slide 3: Business Highlights
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Slide 4: Main events Q1, 2017
Main events Q1,2017 Securing 52% of the company's First Reporting of Alfalfa IFRS requirements 7 new Products Q1 Q1 launches EAGM approved Appointment of the distribution Vice-Chairman of SAR 720.0 million Almarai Company 2017 Q1 Earnings Presentation 4
Slide 5: Highlights – Q1, 2017
Highlights – Q1, 2017 Net Sales Operating Income Profit Attributable to Shareholders 2017 2017 2017 SAR 3.4 Billion SAR 0.4 Billion SAR 0.3 Billion +0.3% +13.2% 2016 +13.7% 2016 2016 SAR 3.4 Billion SAR 0.4 Billion SAR 0.3 B 2013 SAR 11.2 B +12.4% Operating Cash Flow Investing Cash Flow Free Cash Fl
Slide 6: Innovation Pipeline for Q1, 2017
Innovation Pipeline for Q1, 2017 Almarai Company 2017 Q1 Earnings Presentation 6
Slide 7: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total 3,384 Net Sales (+10) +0.3% Dairy & Juice Bakery Poultry Others Net Sales 2,494 (74%) 469 (14%) 356 (10%) 64 (2%) By Segment (-83) (+17) (+35) (+41) -3.2% +3.7% +11.1% +174.5% Net Sales Fresh Dairy Long-Life Dairy Fruit Juice Cheese&Butter Bakery Poultry Ot
Slide 8: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total 3,384 Net Sales (+10) +0.3% Net KSA Other GCC Countries Other Countries Sales 2,252 (67%) 915 (27%) 217 (6%) By Region (+102) (+19) (-111) +4.7% +2.1% -33.8% Net Sales KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 2,252 (67%) 336 (10%) 173 (5%) 172 (
Slide 9: Operating Performance
1st Quarter 2017 Results Operating Performance Gross Profit Operating Income Profit Attributable to Shareholders % to Sales 33.4% 34.8% 1.4 pp 11.0% 12.4% 1.4 pp 8.6% 9.7% 1.1 pp SAR Million 1,177 1,128 SAR Million 421 SAR Million 328 372 289 +49 +49 +40 (+4.4%) (+13.2%) (+13.7%) Q1, 2016 Q1, 2017 Q
Slide 10: Statement of Profit and Loss
Statement of Profit and Loss 1st Quarter SAR Million 2016 2017 Change Net Sales 3,374 100.0% 3,384 100.0% 0.3% Cost of sales (2,246) (66.6%) (2,206) (65.2%) (1.8%) Gross Profit 1,128 33.4% 1,177 34.8% 4.4% Selling and Distribution Expenses (621) (18.4%) (607) (17.9%) (2.3%) General and Administratio
Slide 11: Segment Reporting
Segment Reporting Other Almarai SAR Million Dairy & Juice Bakery Poultry Activities Consolidated Q1 2017 Net Sales 2,494 469 356 64 3,384 Depreciation and Amortisation (295) (50) (77) (31) (453) Profit Attributable to Shareholders 343 67 (29) (53) 328 Percent to Net Sales of Profit 13.8% 14.2% (8.2%
Slide 12: Profit Attributable to Shareholders by Segment
1st Quarter 2017 Results Profit Attributable to Shareholders by Segment: Basic EPS* (SAR) 0.34 0.38 350 75 (4) 328 300 289 (43) 11 SAR Million 250 200 150 100 Q1, 2016 Dairy & Juice Bakery Poultry Other Q1, 2017 Net Sales Growth -3.2% 3.7% 11.1% 174.5% 0.3% Profit Attributable to Shareholders -11.1%
Slide 13: Almarai continues 5 Year Plan CAPEX Investment
Almarai continues 5 Year Plan CAPEX Investment CAPEX spend for the 1st quarter of 2017 was SAR 0.8 Billion. • Manufacturing, Farming and Replacement spent CAPEX of SAR ~0.5 Billion for various capacity expansion projects. • Sales depot, Poultry and Logistics expansion accounted for SAR ~0.2 Billio
Slide 14: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 211 (4,503) 4,728 Loans Issues / Payments / Charges (688) 822 49 620 CAPEX / Biological Operating Cash Flow Assets Dividend Others Cash at 31 Cash at 30 March 2016 (SAR 202 Million) March 2017 Almarai Company 2017 Q1 Earnings Presentation 14
Slide 15: Net Debt
Net Debt 12,000 350% 3.1x 3.0x 2.9x 2.8x 2.8x 300% 10,000 2.7x 2.7x 2.7x 2.2x 250% 8,000 200% 6,000 SAR Million 150% 4,000 98% 101% 81% 81% 86% 100% 74% 75% 75% 74% 2,000 50% 4,606 6,653 8,237 8,053 8,762 9,344 10,889 10,883 11,316 0 0% 2010 2011 2012 2013 2014 2015 2016 2016 Last 12 Months SOCPA IF
Slide 16: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2017 versus 2016 700 655 629 595 600 530 539 489 500 476 484 450 Q1 = 13.7% 433 430 425 428 398 400 380 369 373 349 363 SAR Million 343 328 306 309 * 300 287 286 274 # 284 255 289 249 234 235 242 200 100 0 # IFRS revaluation adjustments * Capital gain of SAR 47m in
Slide 17: EBIT and EBITDA margins are starting to improve
EBIT and EBITDA margins are starting to improve…… Net Sales, EBITDA and EBIT Evolution CAGR 2010 – 2017: 12.3% (w/o impact of acquisitions 8.1%) 27.2% 25.6% 26.3% 25.3% 25.9% 24.2% 24.4% 23.9% 24.2% 14,348 14,339 14,699 21.1% 13,795 19.1% 12,606 17.8% Net Sales 16.9% 11,219 17.3% 17.5% 16.4% SAR Mil
Slide 18: Key Share Data
Key Share Data Key Statistics for Almarai (6 April 2017) Share Price (SAR) 70.57 Current P/E Ratio (ttm) 27.58 Earnings Per Share (SAR) (ttm) 2.56 Market Cap (SAR Million) 56,456 Shares Outstanding (Million) 800 Dividend Indicated Gross Yield 1.28% Almarai Company 2017 Q1 Earnings Presentation 18
Slide 19: Thank you
For Investor Relations matters please contact: [email protected] “We will encourage our major corporations to expand across borders and take their rightful place in global markets” expand across borders QR Code for Almarai IR App. and take their rightful place in global markets. Thank y