interim results year to date ended 30 september 2015 · 2020-05-07 · interim results – year to...
TRANSCRIPT
Interim results – Year to date ended 30 September 2015
Solid performance paving the way for strategic execution
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 liability for, the accuracy or completeness of, or any errors or omissions in, to any information contained herein.
In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected.
This presentation is strictly not to be distributed without the explicit consent of Almarai Company management under any circumstances.
Almarai Company 2015 Q3 Earnings Presentation 2
Business Highlights
Highlights – YTD Q3, 2015
2015 Q3 Earnings Presentation
2013
SAR 11.2 B +12.4%
Financial Highlights
Other Highlights
EBITDA 2015
SAR 2.5 B
2014
SAR 2.2 B +12.6%
Sales Revenue 2015
SAR 10.2 B
2014
SAR 9.3 B +10.1%
Employees 2015
41 K
2014
37 k +9.5%
Net Income 2015
SAR 1.4 B
2014
SAR 1.2 B +14.9%
Capital Expenditure 2015
SAR 2.7 B
2014
SAR 2.1 B +30.7%
Operating Cash Flow 2015
SAR 3.3 B 2014
SAR 2.2 B +46.2%
4 Almarai Company
Sales Highlights
Growth % driven by Fresh Dairy, Poultry & Juice – 9 Months
2015 Q3 Earnings Presentation 6 Almarai Company
-
2,000
4,000
6,000
8,000
10,000
12,000
Sept - 14 Sept - 15
Revenue in SAR Million
9 , 275
1 0, 210
42%
13%
14%
12%
10%
8%
42%
14%
12%
11%
10%
9%
1% 2%
Growth
2015 v 2014
% of Total
Growth
Fresh Dairy
( YoY +11% )
408 44%
Poultry
( YoY +28% )
203 22%
Fruit Juice
( YoY +16% )
202 22%
Long Life
( YoY +11% )
94 10%
Bakery
( YoY 1% )
13 1%
Cheese & Butter
( YoY -2% )
(28) -3%
Other Sales
( YoY 35% )
44 5%
Total
( YoY +10% )
936 100%
Sales Analysis by Country – 9 Months
2015 Q3 Earnings Presentation 7 Almarai Company
-
2,000
4,000
6,000
8 ,000
10,000
12,000
Sept - 14 Sept - 15
Revenue in SAR Million
9 , 275
1 0, 210
65%
9%
5%
5%
5%5%
2%2%2%
64%
9%
7%
5%5%
5%2%
2% 1%
Growth
2015 v 2014
% of Total
Growth
KSA
( YoY +9% )
525 56%
Egypt
( YoY +46% )
210 22%
UAE
( YoY +14% )
120 13%
Qatar
( YoY +15% )
64 7%
Kuwait
( YoY +7% )
29 3%
Oman
( YoY +4% )
18 2%
Bahrain
( Yoy +9% )
18 2%
Jordan
( YoY -7% )
(16) -2%
Others
( YoY -19% )
(33) -4%
Total
( YoY +10% )
936 100%
Financial Performance
1st Quarter
Strong pipeline of innovation continues in 2015
Almarai Company
2nd Quarter
3rd Quarter
2015 Q3 Earnings Presentation 9
% to Sales =
3,459
3,945
YTD Q3, 2014 YTD Q3, 2015
in million SAR
Gross Profit
YTD Q3 2015 Results
Operating Performance
2015 Q3 Earnings Presentation 10 Almarai Company
1,474
1,690
YTD Q3, 2014 YTD Q3, 2015
in million SAR
Operating Income
1,246
1,432
YTD Q3, 2014 YTD Q3, 2015
in million SAR
Net Income
Gross Profit of 3,945 million SAR (39% of
sales) increased 14% over same period last
year (37% of sales), which is mainly driven
by:
• solid sales growth from poultry, juice
expansion and core dairy business
• Lower production costs
• Better product mix
Operating Income of 1,690 million SAR (17% of sales) is up by 15% from last year (16% of sales), driven by: • improved poultry performance • better operational efficiencies in bakery business • core dairy operations S&D Expenses of 1,941 million SAR (19% of sales) are 14% higher than last year due to route expansion and higher investment in brand and trade support for infant nutrition, Beyti and key GCC markets. G&A Expenses of 314 million SAR (3% of sales) are 12% higher than last year and are in line with general growth rate of volume expansion.
Net Income at 1,432 million SAR is 15%
higher than last year mainly driven by higher
sales growth in nearly all product segments
and improved operational performance.
Shares of results of associates and other
income are lower than last year due to the
one off impairment loss recognized in Q2.
Financing costs of 196 million SAR are 2%
higher than last year as the higher debt
profile is offset via better funding rate
management. This was partly offset by lower
exchange gain compared to last year.
37.3% 38.6% 15.9% 16.5% 13.4% 14.0%
3822
1 6 0
35
1 , 246
1 , 432
YTD 30 Sept 2014 Dairy Bakery Poultry Other YTD 30 Sept 2015
YTD Q3 2015 Results
Net Income by segment: Net income increasing by 15% as a result of continued strong performance
2015 Q3 Earnings Presentation
Net Income at 1,432 million SAR is 186 million SAR higher than 1,246 million SAR income last year mainly due to
better performance of poultry compared with last year. This improvement in profitability was aided by improved
performance in bakery despite having lower capacity due to the Jeddah fire incident and better Dairy performance.
Lastly, higher investment in infant nutrition business has resulted in further losses for the Other segment.
11 Almarai Company
Net Income %
Basic EPS (SAR) 2.03 2.34
13.4% 14.0%
Statement of Income
2015 Q3 Earnings Presentation 12 Almarai Company
SAR million 2015 2014 Change 2015 2014 Change
Sales 3,524 3,269 7.8% 10,210 9,275 10.1%
Cost of sales (2,077) (1,959) 6.0% (6,266) (5,816) 7.7%
Gross Profit 1,447 1,311 10.4% 3,945 3,459 14.1%
Selling and Distribution Expenses (690) (591) 16.8% (1,941) (1,705) 13.9%
General and Administration Expenses (84) (75) 11.4% (314) (280) 12.2%
Operating Income 673 645 4.3% 1,690 1,474 14.6%
Share of Results of Associates (0) (6) (97.0%) (35) (8) 323.5%
Other (Expense) / Income (3) (19) (85.7%) (97) (10) 873.8%
Funding Costs (62) (68) (8.6%) (196) (192) 2.0%
Exchange and Currency Gains/(Losses) 9 17 (43.4%) 22 40 (45.6%)
Income from Main Operations 617 569 8.6% 1,384 1,305 6.1%
Zakat and Foreign IncomeTax (19) (23) (17.0%) (55) (46) 19.7%
Income before Non Controlling Interest 599 546 9.6% 1,329 1,259 5.6%
Non Controlling Interest (3) (7) (48.0%) 103 (12) n.a
Net Income 595 539 10.3% 1,432 1,246 14.9%
Earnings Per Share (Basic) 0.98 0.88 2.34 2.03
3rd Quarter YTD 3rd Quarter
Segment Reporting
2015 Q3 Earnings Presentation 13 Almarai Company
S A R M il l ion Dairy & Juice B akery P oult ryOt her
A ct ivi t ies
A lm arai
Consolidat ed
Q3 Y TD 201 5
Sales 8,010 1,151 938 530 10,629
Third Party Sales 7,979 1,151 938 142 10,210
Depreciation (752) (123) (209) (63) (1,148)
Net Income 1,581 124 (165) (108) 1,432
Total Assets 16,672 1,895 5,310 2,543 26,420
Return on Sales 19.8% 10.8% (17.6%) (76.5%) 14.0%
Growth versus YTD Q3, 2014
- Third Party Sales 9.7% 1.1% 27.6% 13.7% 10.1%
- Net Income 2.5% 22.1% (49.3%) 47.3% 14.9%
Q3 201 5
Sales 2,770 400 315 294 3,778
Third Party Sales 2,757 400 315 52 3,524
Depreciation (258) (44) (74) (23) (398)
Net Income 626 53 (49) (35) 595
Return on Sales 22.7% 13.3% (15.6%) (67.3%) 16.9%
Growth versus Q3, 2014
- Third Party Sales 5.9% 9.2% 15.1% 96.6% 7.8%
- Net Income (3.0%) 30.7% (44.8%) (39.1%) 10.3%
Investments & Cash Flows
Cash Flow Bridge – Rolling 12 Months
2015 Q3 Earnings Presentation 15 Almarai Company
1 , 1 15
4, 235
1 , 1 40 (3, 622)
(59 8)
(1 81) 2, 088
Cash at 30
Sept 2014
Operating Cash
Flow
Capex /
Biological AssetsDividend
Others
Cash at 30
Sept 2015SAR 973 m
Loans Issues
/ Payments /
Charges
Capex spend in line with the 5 year plan capex guidance
Capex spend for the three quarters of 2015 was 2.7 B SAR which is inline with our annual capex run rate of
~4B SAR.
• Manufacturing and Farming spent Capex of ~1.3 B SAR for various capacity expansion projects.
• Replacement and other capex including IDJ and US land development, accounted for another ~0.6 B SAR.
• Poultry capex spend for the year reached ~ 0.4 B SAR.
• Sales depot and logistics expansion accounted for ~0.4 B SAR.
2015 Q3 Earnings Presentation 16 Almarai Company
Net Debt…absolute value is growing but moving within well defined measures
2015 Q3 Earnings Presentation 17 Almarai Company
3,869 4,606 6,653 8,237 8,053 8,762 9,275
72% 74%
98% 101%
75% 75% 76%
2.3x 2.2x
2.8x
3.1x 3.0x
2.8x 2.8x
0%
50%
100%
150%
200%
250%
300%
350%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2009 2010 2011 2012 2013 2014 Last 12
Months
Net Debt Net Debt / Equity Ratio Net Debt / EBITDA
SA
R m
illi
on
Deferred maturity profile of debt, along with
diversification of funding source………
2015 Q3 Earnings Presentation
Absolute Value Percentage
18 Almarai Company
0.0
0.5
1.0
1.5
2.0
2.5
<1yr 1-2 yr 2-3yr 3-4 yr 4-5yr >5yr
SA
R B
illi
on
Debt Maturity by Age and Type
Islamic Bonds
Govt / Semi Govt Inst.
Banks
6
53%
1
12%
4
35%
6 6 6
2 1 1
2
2
4
2
4
6
8
10
Y2013 Y2014 Q3, 2015
Banks Govt / Semi Govt Inst. Islamic Bonds
6 2% 6 1 %53%
1 5% 1 5%
1 2%
23% 24%35%
20%
40%
60%
80%
100%
Y2013 Y2014 Q3, 2015
Banks Govt / Semi Govt Inst. Islamic Bonds
Trend charts
Quarterly Performance – Net Income
2015 Q3 Earnings Presentation 20 Almarai Company
162 19
7
234
235
242
255
274
306
235 28
7 34
3
349
380
398
433
530
294
363 4
25
430
450
47
6 53
9 59
5
219
249
284
286
369
373 4
28
0
100
200
300
400
500
600
SA
R M
illi
on
2015 versus 2014
Q1 = 12.0%
*
Q 2 = 22.4%
Q 3 = 10.3%
EBIT and EBITDA margins are starting to improve……
Revenue, EBITDA and EBIT Evolution
2015 Q3 Earnings Presentation 21 Almarai Company
5,869
6,931
7,951
9,883
11,219
12,60613,54121.8%
21.1%
19.1%
16.9%16.0%
15.5% 16.0%
26.7% 27.2%
25.6%
24.2% 24.4%23.5% 24.0%
2009 2010 2011 2012 2013 2014 Last 12 Months
SA
R M
illio
n
Revenues
EBIT % to Revenues
EBITDA % to Revenues
CAGR 2009 – 2015: 15.7% (w/o impact of acquisitions 11.0%)
Key Share Data
2015 Q3 Earnings Presentation 22 Almarai Company
Share Price (SAR) 84.25
Current P/E Ratio (ttm) 28.39
Earnings Per Share (SAR) (ttm) 2.98
Market Cap (M SAR) 50,682
Shares Outstanding (M) 600
Dividend Indicated Gross Yield 1.18%
Key Statistics for Almarai (30 Sept 2015)
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