interim results year to date ended 30 september 2015 · 2020-05-07 · interim results – year to...

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


-

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


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


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


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


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


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.


Net Debt…absolute value is growing but moving within well defined measures


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………


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


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


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


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)

Thank you

interim results year to date ended 30 september 2015 · 2020-05-07 · interim results – year to...

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