Almarai Company · TADAWUL:2280
Almarai — Q1 2016 Earnings Presentation
19 slides from Almarai's earnings presentation, 2016
Slide 1: Almarai Company Interim results – Quarter ended 31 March 2016
Almarai Company Interim results – Quarter ended 31 March 2016 Almarai Annual Report 2015 - Digital
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
Sa CncloJl Almarai ee ee Business Highlights
Slide 4: Highlights – Q1, 2016
Highlights – Q1, 2016 Net Sales EBITDA Net Income 2016 2016 2016 SAR 3.5 B SAR 0.7 B SAR 0.3 B 2015 2015 2015 SAR 3.0 2013 B +13.6% SAR 0.6 B +8.0% SAR 0.3 B +0.7% SAR 11.2 B +12.4% Operating Cash Flow Capital Expenditure Free Cash Flow 2016 2016 2016 SAR 0.4 B SAR 1.3 B -1.0 B 2015 -58.7% SAR 0.9 B
Slide 5: Innovation pipeline for Q1, 2016
Innovation pipeline for Q1, 2016 Almarai Company 2016 Q1 Earnings Presentation 5
Slide 6: Sales Highlights
Sa incl ol Almarai ee a Sales Highlights
Slide 7: Sales Analysis by Segment by Product
Sales Analysis by Segment by Product Total 3,450 Net Sales (+413) +13.6% Dairy & Juice Bakery Poultry Others Net Sales 2,642 (77%) 455 (13%) 330 (10%) 23 (1%) By Segment (+ 288) (+100) (+21) (+4) +12.2% +28.0% +6.8% +20.9% Net Sales Fresh Dairy Long-Life Dairy Fruit Juice Cheese & Butter Bakery Poul
Slide 8: Sales Analysis by Region by Country
Sales Analysis by Region by Country Total 3,450 Net Sales (+413) +13.6% Net KSA Other GCC Countries Other Countries Sales 2,196 (64%) 927 (27%) 328 (9%) By Region (+259) (+115) (+39) +13.3% +14.2% +13.5% Net Sales KSA UAE Oman Qatar Kuwait Bahrain Egypt Jordan Others 2,196 (64%) 352 (10%) 172 (5%) 1
Slide 9: Statement of Income
Statement of Income 1st Quarter SAR million 2015 2016 Change Sales 3,037 3,450 13.6% Cost of sales (1,927) (2,226) 15.5% Gross Profit 1,110 1,224 10.2% Selling and Distribution Expenses (623) (697) 11.9% General and Administration Expenses (109) (124) 13.1% Operating Income 378 403 6.6% Share of Res
Slide 10: Operating Performance
Q1 2016 Results Operating Performance Gross Profit Operating Income Net Income in million SAR in million SAR in million SAR % to Sales 36.6% 35.5% 12.4% 11.7% 10.1% 8.9% 1,224 403 309 378 306 1,110 +114 +25 +3 Q1, 2015 Q1, 2016 Q1, 2015 Q1, 2016 Q1, 2015 Q1, 2016 Almarai Company 2016 Q1 Earnings Pre
Slide 11: Net Income by segment
Q1 2016 Results Net Income by segment: Net Income % 10.1% 8.9% Basic EPS (SAR) 0.49 0.50 36 43 306 1 10 309 -0.4% +184.3% -68.9% +25.2% SAR Million Q1, 2015 Dairy Bakery Poultry Other Q1, 2016 Almarai Company 2016 Q1 Earnings Presentation 11
Slide 12: Segment Reporting
Segment Reporting Other Almarai SAR Million Dairy & Juice Bakery Poultry Activities Consolidated Q1 2016 Net Sales 2,642 455 330 23 3,450 Depreciation (271) (42) (83) (22) (418) Net Income 386 56 (104) (29) 309 Net Income % to Net Sales 14.6% 12.3% (31.6%) (123.9%) 8.9% Total Assets 16,574 2,274 5,5
Slide 13: Cash Flow Bridge – Rolling 12 Months
Cash Flow Bridge – Rolling 12 Months 1,719 (4,858) 4,375 Loans Issues / Payments / Charges (599) Capex / Biological (300) 1,069 732 Assets Dividend Others Operating Cash Flow Cash at 31 Cash at 31 Mar 2015 SAR 337 M Mar 2016 Almarai Company 2016 Q1 Earnings Presentation 13
Slide 14: Sales growth was funded by continued investment in key categories
Sales growth was funded by continued investment in key categories Capex spend for the 1st quarter of 2016 was 1.3 B SAR which is in line with our annual capex run rate. • Manufacturing and Farming spent Capex of ~0.8 B SAR for various capacity expansion projects. • Replacement and other capex incl
Slide 15: Net Debt
Net Debt 12,000 350% 3.1x 2.9x 3.0x 2.8x 300% 10,000 2.8x 2.7x 2.3x 2.2x 250% 8,000 SAR million 200% 6,000 150% 4,000 98% 101% 75% 82% 100% 72% 74% 69% 74% 2,000 50% 3,869 4,606 6,653 8,237 8,053 8,762 9,344 10,496 0 0% 2009 2010 2011 2012 2013 2014 2015 Last 12 Months Net Debt Net Debt / Equity Rat
Slide 16: Quarterly Performance – Net Income
Quarterly Performance – Net Income 2016 versus 2015 600 500 400 Q1 = 0.7% * SAR Million 300 595 539 530 484 476 450 433 430 428 425 398 200 380 373 369 309 363 349 343 306 287 286 284 274 255 249 242 235 234 100 197 0 * Capital gain of SAR 47m in 2012 Almarai Company 2016 Q1 Earnings Presentation 16
Slide 17: EBIT and EBITDA margins are starting to improve
EBIT and EBITDA margins are starting to improve…… Revenue, EBITDA and EBIT Evolution CAGR 2009 – 2016: 14.7% (w/o impact of acquisitions 10.7%) 26.7% 27.2% 25.6% 14,208 24.2% 24.4% 24.2% 23.8% 23.9% 21.8% 21.1% 13,795 19.1% 12,606 11,219 SAR Million Revenues 16.9% 16.0% 15.8% 16.4% 16.1% EBIT % to R
Slide 18: Key Share Data
Key Share Data Key Statistics for Almarai (31 March 2016) Share Price (SAR) 69.78 Current P/E Ratio (ttm) 21.61 Earnings Per Share (SAR) (ttm) 3.19 Market Cap (M SAR) 41,334 Shares Outstanding (M) 600 Dividend Indicated Gross Yield 1.66% Almarai Company 2016 Q1 Earnings Presentation 18
Slide 19: Thank you
* Middle East i les r Relations Society ‘ WARDS ‘ cCEBRA RO Thank you