2Q18 Earnings Presentation 1 Highlights 2Q18 Financial Highlights - - PowerPoint PPT Presentation

▶
2q18 earnings presentation
SMART_READER_LITE
LIVE PREVIEW

2Q18 Earnings Presentation 1 Highlights 2Q18 Financial Highlights - - PowerPoint PPT Presentation

Mar 17, 2024 31 likes •154 views

2Q18 Earnings Presentation 1 Highlights 2Q18 Financial Highlights Latest News Comparisons refer to 2Q17 and subsequent events R$1.1 billion Net Revenue ( -1.4%) September-2018 R$801 million Brazil Food Segment ( -1.7%) Celebration

slide-1
SLIDE 1

1

2Q18 Earnings Presentation

slide-2
SLIDE 2

R$79 million Net Profit ( +96.3%)

6.9% Net Margin ( +3.4pp)

2Q18 Financial Highlights

Comparisons refer to 2Q17

2

Highlights

R$1.1 billion Net Revenue ( -1.4%)

R$801 million Brazil Food Segment ( -1.7%) R$345 million International Food Segment ( -0.8%)

Latest News

and subsequent events

¹Excludes the effect of La Loma´s sale registered in Other Operating Revenues

September-2018

  • Celebration of our IPO´s 1 year anniversary
  • Top Company in the Food & Beverages Small Cap category

by the Institutional Investor magazine

August-2018

  • IOE Payment of R$20mn, or approx. R$0,05 per share
  • Sale of argentinian subsidiary La Loma for US$5,5mn
  • Market Maker Service Agreement
  • Camil and União recognized as best brands in Rice, Beans

and Sugar categories by Datafolha

  • Super Varejo Magazine included Camil in the Top 5 of

2018 ranking

  • Camil ranked in 118th position by Valor 1000 Award
  • Launch of Arroz Camil Minuto Caseiro (Minute Made

Rice)

1.8x Net Debt/EBITDA R$316 million Gross Profit ( +12.0%)

27.6% Gross Margin ( +3.3pp)

R$135 million EBITDA ( +17.9%)

11.7% EBITDA Margin ( +1.9pp)

R$119 million EBITDA¹ ( +4.5%)

10.4% EBITDA Margin ( +0.6pp)

R$68 million Net Profit¹ ( +68.7%)

5.9% Net Margin ( +2.5pp)

Excluding the non-recurring effect of La Loma’s sale:

slide-3
SLIDE 3

3

2Q18 Operating Performance

Sequential volume growth in all our categories

Source: Company

Historical Operating Performance (‘000 ton) 2Q18 Operational Highlights (‘000 ton) 2Q18 Volume and Revenue Breakdown (%)

Source: Company

100,000 200,000 300,000 400,000 500,000 600,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

Rice - Brazil Beans Sugar Fish International

Volume Net Revenue

Highlights 2Q17 1Q18 2Q18 2Q18 vs 2Q18 vs Closing Date 31-ago-18 31-may-18 31-ago-18 2Q17 1Q18 Volume - Brazil Grains 175.3 153.3 182.2 3.9% 18.9% Rice 155.8 136.1 162.7 4.4% 19.6% Beans 19.5 17.2 19.5

  • 0.1%

13.2% Sugar 138.5 123.4 132.2

  • 4.5%

7.2% Canned Fish 6.2 5.0 8.1 31.5% 62.2% Volume - International 203.7 128.8 151.6

  • 25.6%

17.7% Uruguay 158.1 86.0 104.0

  • 34.2%

21.0% Chile 19.4 20.4 19.9 2.8%

  • 2.4%

Peru 23.1 19.5 20.9

  • 9.8%

6.9% Argentina 3.1 2.9 6.8 120.6% 136.3%

Rice - Brazil 34% Beans 4% Sugar 28% Fish 2% International 32% Rice - Brazil 30% Beans 5% Sugar 20% Fish 11% International 34%

slide-4
SLIDE 4

4

Brazil Food Segment | Rice

Sales Volume: 162.7 thousand tons

  • +19.6% QoQ
  • +4.4% YoY

Average raw material price: R$41.70/bag¹

  • +16.3% QoQ
  • +4.6 YoY

Gross price Camil: R$2.49/kg

  • +9.8% QoQ
  • +4.4% YoY

QoQ and YoY recovery in volumes Regained competitiveness on the value pricing brands segment

Source: Company Source: Esalq Senar, Company

Sequential and annual volumes recovery, with an increase on value pricing brands volumes

Rice – Camil’s Volume and Net Prices Rice – Market Prices vs. Camil’s Gross Prices Rice – Product Portfolio Rice – Quarterly Highlights

¹Source: CEPEA; Rice indicator Esalq/Senar-RS 50kg

Mainstream Value Pricing Brands

Source: Company

2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 2.80 34.0 36.0 38.0 40.0 42.0 44.0 46.0 48.0 50.0 52.0 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Camil (R$/kg) Esalq Senar (RS/50kg) Brazil - Rice Price Gross Prices 144,294 128,372 136,080 162,717 2.04 2.04 1.97 2.20

  • 0.50

1.00 1.50 2.00 2.50 100,000 120,000 140,000 160,000 180,000 200,000 3Q17 4Q17 1Q18 2Q18 Volume (k ton) Net Prices (R$/kg)

145,938 159,448 155,798 162,717 1.85 2.34 2.11 2.20

1 0 0 ,0 1 2 0 ,0 1 4 0 ,0 1 6 0 ,0 1 8 0 ,0 2 0 0 ,0

2Q15 2Q16 2Q17 2Q18

QoQ YoY

slide-5
SLIDE 5

Mainstream Value Pricing Brands

5

Brazil Food Segment | Beans

Sales volume: 19,5 thousand tons

  • +13.2% QoQ
  • 0.1% YoY

Average raw material price: R$101.80/bag¹

  • +3.9% QoQ
  • 38.6% YoY

Gross price Camil : R$3.35/kg

  • +2.2% QoQ
  • 25.6% YoY

Sequential volume increase Increase on Camil’s brand sales

Source: Company Source: Agrolink, Company

Sequential volumes recovery, with an increase on Camil’s brand volume

Beans - Camil’s Volume and Net Prices Beans - Market Prices vs. Camil’s Gross Prices Beans– Product Portfolio Beans – Quarterly Highlights

¹Source: Agrolink; Carioca beans index 60kg/bag.

Source: Company

16,066 16,413 17,194 19,462 3.24 2.92 3.05 2.78

1.50 1.70 1.90 2.10 2.30 2.50 2.70 2.90 3.10 3.30 10,000 20,000 30,000 3Q17 4Q17 1Q18 2Q18 Volume (k ton) Net Prices (R$/kg)

18,896 19,783 19,482 19,462 3.14 6.72 3.90 2.78

1 0 , 0 0 3 0 , 0 0

2Q15 2Q16 2Q17 2Q18

YoY QoQ

2.50 3.50 4.50 5.50 6.50 7.50 8.50 50 100 150 200 250 300 350 400 450 500 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Camil (R$/kg) Agrolink (RS/60kg) Brazil - Beans Price Camill - Gross Price

slide-6
SLIDE 6

6

Brazil Food Segment | Sugar

Sales volume : 132.2 thousand tons

  • +7.2% QoQ
  • 4.5% YoY

Average raw material price : R$54.80/saca¹

  • +2.4% QoQ
  • 35.9% YoY

Gross price Camil: R$2.10/kg

  • +7.9% QoQ
  • 7.8% YoY

Increase on União’s brand sales Value pricing brands volume decrease

Source: Esalq Senar Source: Esalq Senar, Company

Sequential volumes recovery, with an increase on União’s brand volume

Sugar - Camil’s Volume and Net Prices Sugar - Market Prices vs. Camil’s Gross Prices Sugar – Product Portfolio Sugar – Quarterly Highlights

Source: Company

¹Source: CEPEA; cristal sugar index Esalq-SP 50kg.

Mainstream Value Pricing Brands

132,321 118,028 123,457 132,244 1.84 1.81 1.66 1.83

  • 0.50

1.00 1.50 2.00 2.50

100,000 150,000 200,000

3Q17 4Q17 1Q18 2Q18 Volume (k ton) Net Prices (R$/kg)

152,786 141,996 138,469 132,244 1.51 2.20 1.97 1.83

1 0 0 ,0 1 2 0 ,0 1 4 0 ,0 1 6 0 ,0 1 8 0 ,0 2 0 0 ,0

2Q15 2Q16 2Q17 2Q18

QoQ YoY

1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Camil (R$/kg) Esalq CEPEA SP (RS/50kg) Brazil - Sugar Price Camill - Gross Price

slide-7
SLIDE 7

Sales volume : 8.1 thousand tons

  • +62.2% QoQ
  • +31.5% YoY

Gross price Camil: R$20.19/kg

  • 6.5% QoQ
  • +6.2% YoY

Increase on Coqueiro’s brand sales Products pricing adjustments, regaining competitiveness

7

Brazil Food Segment | Canned Fish

Source: Company Source: Company

Sequential and annual volumes recovery, with an increase on Coqueiro’s brand volume

Canned Fish - Camil’s Volume and Net Prices Canned Fish - Camil’s Gross Prices Canned Fish – Product Portfolio Canned Fish – Quarterly Highlights

Source: Company

Mainstream Value Pricing Brands

10,925 11,394 5,009 8,125 14.43 15.01 15.73 15.59

  • 2.00

4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 3Q17 4Q17 1Q18 2Q18 Volume (k ton) Net Prices (R$/kg) 6,415 8,299 6,180 8,125 12.93 14.53 14.76 15.59

2 0 , 0 0

2Q15 2Q16 2Q17 2Q18 QoQ YoY

15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Camill - Gross Price

slide-8
SLIDE 8

8

International Food Segment

Chile Uruguay

Local Market Local Market Export Market

Peru

Sales volume: 86.0 thousand tons

  • +21.0% QoQ
  • 34.2% YoY

Gross Price in BRL: 2.01

  • +9.6% QoQ
  • +28.0% YoY

Source: Company Source: Company

International Operational Performance – Quarterly Evolution (‘000 ton)

International – Breakdown 2Q18 (%)

Sequential volume recovery, with growth in BRL prices due to exchange rate depreciation

International - Main Considerations Gross Price in US$/ton:

  • 0.5% QoQ
  • +7.6% YoY

Sales volume : 20.4 thousand tons

  • 2.4% QoQ

+2.8% YoY Gross Price in BRL: 5.92

  • +2.1% QoQ
  • +22.4% YoY

Gross Price in CLP/ton:

  • 2.8% QoQ
  • +1.5% YoY

Sales Volume: 19.5 thousand tons +6.9% QoQ

  • 9.8% YoY

Gross Price in BRL: 4.67

  • +8.4% QoQ
  • +20.1% YoY

Gross Price in SOL/ton:

  • 2.2% QoQ
  • +1.3% YoY

Volume Net Revenue Sales Delay Impact Profitability Increase Political Instability

Uruguay 69% Chile 13% Peru 14% Argentina 4% Uruguay 50% Chile 25% Peru 21% Argentina 4%

50,000 100,000 150,000 200,000 250,000 1Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q171Q182Q18 Uruguay Chile Peru Argentina

slide-9
SLIDE 9

R$226.9 million (+12.8% YoY) 19.8% of Net Revenue Increase on freight expenses; Increase on export expenses; FX depreciation; Growth of personnel expenses;

9

Costs and Expenses

R$829.5 million (-5.7% YoY) 38.6% decrease

  • f

beans¹ average price; 35.9% decrease of sugar² average price; Reduction of international sales volume. Cost of Sales and Services SG&A

¹Source: Agrolink; Carioca beans index 60kg/bag. ²Source: CEPEA; Cristal Sugar Index Esalq-SP 50kg.

Source: Company

Operational Expenses (% of Net Revenue) Statements (in R$ millions) 2T17 1T18 2T18 2T18 vs 2T18 vs Closing Date 31-ago-17 31-mai-18 31-ago-18 2T17 1T18 Net Revenues 1,161.8 1,004.4 1,145.6

  • 1.4%

14.1% (-) Cost of Sales and Services (879.6) (741.1) (829.5)

  • 5.7%

11.9% Gross Profit 282.2 263.3 316.1 12.0% 20.1% (-) Selling Expenses (142.1) (134.1) (153.4) 8.0% 14.4% (-) G&A Expenses (59.0) (68.9) (73.5) 24.6% 6.7% (+/-) Equity (Earnings)/Losses in Uncons. Subs 0.4 (0.9) 0.7 75.0%

  • 177.8%

Other Operating Income 10.2 (2.1) 19.1 87.3% n.a. EBIT 91.7 57.3 109.0 18.9% 90.2% (+/-) Finacial Result (26.0) (12.0) (6.1)

  • 76.5%
  • 49.2%

Pre-Tax Income 65.7 45.3 102.9 56.6% 127.2% (-) Total Income Taxes (25.4) (12.7) (23.8)

  • 6.3%

87.4% Net Income 40.3 32.6 79.1 96.3% 142.6% EBITDA Reconciliation Net Income 40.3 32.6 79.1 96.3% 142.6% (-) Net Finacial Result 26.0 12.0 6.1

  • 76.5%
  • 49.2%

(+) Income Taxes 25.4 12.7 23.8

  • 6.3%

87.4% (+) Depreciation and Amortization 22.5 24.7 25.6 13.8% 3.6% (=) EBITDA 114.2 82.0 134.6 17.9% 64.1% Margins Gross Margin 24.3% 26.2% 27.6% 3.3pp 1.4pp EBITDA Margin 9.8% 8.2% 11.7% 1.9pp 3.6pp Net Margin 3.5% 3.2% 6.9% 3.4pp 3.7pp

15.6% 16.9% 20.5% 18.1% 11.2% 12.4% 10.7% 13.4% 5.0% 5.3% 5.8% 6.2% 0% 5% 10% 15% 20% 25% 3Q17 4Q17 1Q18 2Q18 Operating Expenses Selling Expenses G&A Expenses

slide-10
SLIDE 10

10

Profitability Evolution: Net Income, EBITDA and Margins

Despite facing a challenging beginning of 2018, we are confident that this year will signalize a new period for Camil in terms of volume growth and results.

Quarterly Profitability Evolution (in R$mn) Quarterly Margin Evolution (%)

Source: Company Source: Company

28.3% 25.2% 21.6% 23.3% 25.6% 24.2% 22.2% 20.6% 24.3% 24.2% 24.4% 25.0% 25.9% 27.7% 23.0% 22.2% 24.3% 24.3% 24.7% 25.5% 26.2% 27.6% 12.4% 10.4% 9.2% 10.1% 11.2% 10.2% 9.6% 8.2% 10.7% 10.3% 9.5% 9.6% 11.1% 13.9% 11.4% 7.8% 10.4% 9.8% 11.1% 10.7% 8.2% 11.7% 5.3% 3.0% 3.0% 2.7% 4.3% 3.7% 2.3% 1.1% 3.5% 3.2% 2.4% 1.6% 4.5% 5.0% 5.3% 1.6% 5.0% 3.5% 6.2% 6.9% 3.2% 6.9% 0% 5% 10% 15% 20% 25% 30% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Gross Margin EBITDA Margin Net Margin 12.4% 10.4% 9.2% 10.1% 11.2% 10.2% 9.6% 8.2% 10.7% 10.3% 9.5% 9.6% 11.1% 13.9% 11.4% 7.8% 10.4% 9.8% 11.1% 10.7% 8.2% 11.7% 5.3% 3.0% 3.0% 2.7% 4.3% 3.7% 2.3% 1.1% 3.5% 3.2% 2.4% 1.6% 4.5% 5.0% 5.3% 1.6% 5.0% 3.5% 6.2% 6.9% 3.2% 6.9% R$0 R$20 R$40 R$60 R$80 R$100 R$120 R$140 R$160 R$180 R$200 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 EBITDA Net Income EBITDA Margin Net Margin

slide-11
SLIDE 11

Net Financial Expenses-R$6mn (-76.5% YoY)

Decrease in total debt Decrease in average interest rate Decrease in debt cost Positive result with derivatives 11

Financial Result and Debt

Source: Company

Net Financial Result

Liability Management: Decrease in debt cost and amortization schedule

Debt (R$mn)

Source: Company

Debt Amortization Schedule (R$mn)

5.3% 3.0%3.0%2.7% 4.3%3.7% 2.3% 1.1% 3.5%3.2%2.4% 1.6% 4.5%5.0%5.3% 1.6% 5.0% 3.5% 6.2%6.9% 3.2% 6.9% R$0 R$10 R$20 R$30 R$40 R$50 R$60 1Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q171Q182Q18 Net Financial Result Net Margin

Debt (in R$mn) 2Q17 1Q18 2Q18 2Q18 vs 2Q18 vs Closing Date 31-ago-18 31-may-18 31-ago-18 2Q17 1Q18 Total Debt 1,636.1 1,362.4 1,491.2

  • 8.9%

9.5% Loans and financing 506.7 383.5 512.8 1.2% 33.7% Debentures 1,129.4 978.9 978.4

  • 13.4%
  • 0.1%

Short Term 471.8 229.7 365.0

  • 22.6%

58.9% Long Term 1,164.6 1,132.7 1,129.0

  • 3.1%
  • 0.3%

Currency breakdown R$ 1,233.0 1,043.8 1,025.9

  • 16.8%
  • 1.7%

USD 216.0 142.8 259.9 20.3% 82.0% CLP 57.6 56.0 62.8 9.0% 12.1% PEN 129.5 119.8 142.6 10.1% 19.0% ARS

  • 10.5
  • Leverage

Gross Debt 1,636.1 1,362.4 1,491.2

  • 8.9%

9.5% Cash and Cash Equivalents + financial applications 421.2 758.3 666.1 58.1%

  • 12.2%

Net Debt 1,215 604.1 825.1

  • 32.1%

36.6% Net Debt/EBITDA LTM 2.5x 1.2x 1.8x

  • 0.7x

0.6x

229.8 275.7 477.8 367.7 11.6 362.2 513.4 416.0 190.1 9.5 R$0 R$100 R$200 R$300 R$400 R$500 R$600 ago-19 ago-20 ago-21 ago-22 Após ago-22 31-may-18 31-ago-18

slide-12
SLIDE 12

Luciano Quartiero CEO Flavio Vargas Chief Financial and IR Officer Investor Relations Phones: +55 11 3039-9238 +55 11 3039-9237 E-mail: ri@camil.com.br