Almarai Company · TADAWUL:2280
Almarai — Q3 2017 Earnings Presentation
22 slides from Almarai's earnings presentation, 2017
Slide 1: Almarai Company Interim results – 3rd Quarter 2017
Almarai Company Interim results – 3rd 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: Profitable growth continues amid challenging macro backdrop
Profitable growth continues amid challenging macro backdrop o KSA food market transitioning from double to single digit growth - population growth rate continues to fall - ongoing squeeze on consumer incomes o Almarai is responding to these challenges by seeking to optimise current capabilities and
Slide 4: Delivered on Key Focus Areas
Delivered on Key Focus Areas On track for Delivered Cost saving and CAPEX Key projects positive positive rationalization program including revenue EBIT program reduction is alfalfa growth in results for continue to in line with importation poultry and poultry deliver on the revised targets are key d
Slide 5: Solid YTD profit results underpinned by turnaround of Poultry
Solid YTD profit results underpinned by turnaround of Poultry SAR in B Group Turnover down 2.9% to 2.0 Group Operating Profit 2.0 SAR 10.5 billion Up 5.4% Group Operating Income up 5.4% to SAR 2.0 billion Solid results in Dairy and GCC 1.9 1.9 market Weakness in Egypt, Export and GCC Juice market co
Slide 6: Highlights for 2017 YTD
Highlights for 2017 YTD Net Sales Operating Income Profit Attributable to Shareholders 2017 2017 2017 SAR 10.5 Billion SAR 2.0 Billion SAR 1.7 Billion (2.9%) 2016 2013 2016 +5.4% 2016 +12.4% +3.6% SAR SAR 10.811.2 B Billion SAR 1.9 Billion SAR 1.6 B Operating Cash Flow Investing Cash Flow Free Cash
Slide 7: Sales Analysis by Product YTD
Sales Analysis by Product YTD 10,517 Total Net Sales YTD 2017 vs 2016 (313) %of Net Sales (2.9%) Net Sales Dairy & Juice Bakery Poultry Others By Segment 7,985 1,340 1,072 119 YTD 2017 vs 2016 (370) (37) 108 (14) %of Net Sales (76%) (13%) 10% (1%) (4.4%) (2.7%) +11.2% (10.6%) Net Sales Fresh Dairy L
Slide 8: Sales Analysis by Country YTD
Sales Analysis by Country YTD Total Net Sales 10,517 YTD 2016 vs 2017 (313) % of Net Sales (2.9%) Net Sales KSA Other GCC Countries Other Countries By Region 6,987 2,681 849 YTD 2016 vs 2017 133 (114) (332) % of Net Sales 66% 26% 8% +1.9% (4.1%) (28.1%) Net Sales by Country KSA UAE Oman Qatar Kuwait
Slide 9: Statement of Profit and Loss
Statement of Profit and Loss 3rd Quarter YTD 3rd Quarter SAR million 2016 2017 Change 2016 2017 Change Net Sales 3,530 100.0% 3,373 100.0% (4.5%) 10,830 100.0% 10,517 100.0% (2.9%) Cost of sales (2,045) (57.9%) (1,857) (55.1%) (9.2%) (6,696) (61.8%) (6,268) (59.6%) (6.4%) Gross Profit 1,485 42.1% 1,
Slide 10: P&L By Segment
P&L By Segment Almarai SAR Million Dairy & Juice Bakery Poultry Other Activities Consolidated Q3 YTD 2017 Net Sales 7,985 1,340 1,072 119 10,517 Depreciation and Amortisation (903) (165) (228) (122) (1,418) Profit Attributable to Shareholders 1,551 221 (42) (60) 1,669 Percent to Net Sales of Profit
Slide 11: Dairy & Juice
Dairy & Juice 1,800 o Laban and Zabadi have continued to grow however 1,700 1,722 1,600 fresh milk growth has stabilized 1,500 o Long life Dairy and Food has continued to performed 1,551 1,400 strongly despite GCC economic condition SAR in Q3 YTD 16 Q3 YTD 17 o Egypt devaluation impact accounts for
Slide 12: Bakery
Bakery 300 o Revenue growth has continued to declined due to GCC 250 economic conditions 200 246 221 o Product revamp for key categories is underway 150 o Margin improvement supported by SAR in Q3 YTD 16 Q3 YTD 17 Million • Manufacturing efficiencies (mainly Hail plant) Profit Attributable to Shareh
Slide 13: Poultry
Poultry 0 (42) Poultry segment was EBIT positive for the third (100) quarter in a row (200) (252) (300) o Market situation remains stable, for both frozen and SAR in Q3 YTD 16 Q3 YTD 17 fresh poultry Million Profit Attributable to Shareholders o Revenue growth is driven by strong volume growth o Pou
Slide 14: Others
Others 0 o Infant Nutrition losses are in line with existing (50) (60) business plan. (100) (104) o Expansion of Alfalfa operations in both South and (150) North America remains on track. SAR in Q3 YTD 16 Q3 YTD 17 • Arable operations remain on track to comply with 1st Million Profit Attributable to
Slide 15: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 4,574 84 (3,831) Loans Issues / Payments / Charges (717) 622 (71) 660 CAPEX / Biological Assets Dividend Others Operating Cash Flow Cash at 30 Cash at 30 Sept 2016 + SAR 38 Million Sept 2017 Almarai Company 2017 Q3 Earnings Presentation 15
Slide 16: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2017 versus 2016 800 Q3 = 0.4% Q2 = 2.4% 700 674 667 658 664 # # 595 655 600 629 530 539 500 476 484 489 450 SAR Million 433 425 430 428 Q1 = 13.7% 398 400 380 369 373 343 349 328 306 309 * 300 274 # 284 286 255 249 234 235 242 289 200 100 0 # IFRS revaluation adju
Slide 17: Net Debt
Net Debt 14,000 350% 3.1x 3.0x 12,000 2.8x 2.9x 300% 2.8x 2.7x 2.7x 2.7x 10,000 2.2x 250% 8,000 200% SAR Million 6,000 150% 98% 101% 4,000 74% 75% 75% 74% 81% 81% 80% 100% 2,000 50% 4,606 6,653 8,237 8,053 8,762 9,344 10,889 10,883 11,451 0 0% 2010 2011 2012 2013 2014 2015 2016 2016 Last 12 Months S
Slide 18: Debt Profile
Debt Profile 3,000.0 Debt Maturity by Age and Type 2,500.0 Islamic Bonds Islamic Govt / Semi Govt Inst. Bonds 2,000.0 Banks 4 Banks SAR Million 32% 1,500.0 7 Govt / 57% 1,000.0 Semi Govt Inst. 1 500.0 11% 0.0 <1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr Almarai Company 2017 Q3 Earnings Presentation 18
Slide 19: EBIT and EBITDA margins continue their upward trend…
EBIT and EBITDA margins continue their upward trend… Net Sales, EBITDA and EBIT Evolution CAGR 2010 – 2017: 11.0% (w/o impact of acquisitions 7.3%) 27.9% 27.2% 25.6% 25.9% 24.2% 25.3% 24.4% 23.9% 24.2% 14,339 14,699 14,025 21.1% 13,795 19.1% 12,606 18.6% Net Sales 16.9% 11,219 17.3% 17.5% 16.4% SAR
Slide 20: Investing Cash Flows continue the downward trend in line with revised 5year Business Plan
Investing Cash Flows continue the downward trend in line with revised 5year Business Plan CAPEX spend for the 3rd Quarter Year to Date 2017 was SAR 2.2 Billion. • Manufacturing and Farming spent CAPEX of SAR ~1.2 Billion for various capacity expansion projects. • Sales Depot, Poultry and Logistics
Slide 21: Key Share Data
Key Share Data 450% Key Statistics for Almarai (5 October 2017) 400% Share Price (SAR) 71.23 Current P/E Ratio (ttm) 27.17 350% Earnings Per Share (SAR) (ttm) 2.62 Savola Market Cap (SAR Million) 56,984 300% 25% Shares Outstanding (Million) 800 35% 250% Dividend Indicated Gross Yield 1.27% HHPrince
Slide 22: 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” QR Code for Almarai IR App. www.almarai.com Thank you