February 17th, 2020
MUTANDIS FY 2019 RESULTS February 17 th , 2020 DISCLAIMER Certain - - PowerPoint PPT Presentation
MUTANDIS FY 2019 RESULTS February 17 th , 2020 DISCLAIMER Certain - - PowerPoint PPT Presentation
MUTANDIS FY 2019 RESULTS February 17 th , 2020 DISCLAIMER Certain information included in this document has been prepared by the company, and has not been verified or audited by independant sources. This presentation contains also forecasts
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DISCLAIMER
Certain information included in this document has been prepared by the company, and has not been verified or audited by independant sources. This presentation contains also forecasts based on opinions and present assumptions related to future events. These forecasts reflect projections and financial estimates based on assumptions, considerations related to projects, objectives, and also based on expectations related to events, transactions, future products and services, and also based on assumptions in terms of future performances and synergies. All statements contained in this presentation are not guarantees of future performance. They are based on the Group’s current expectations and projections about future events and are subject to inherent risks and uncertainties related to Mutandis, its subsidiaries and investments, the development of Mutandis businesses and subsidiaries, the industry trends, the economic environment or the growth of Mutandis key markets and to the competition and the applicable regulation. Thus, the achievement of these events may differ from our present expectations, and therefore can significantly affect the expected results. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Certain totals in the tables included in this document may not add due to rounding.
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- MR. ADIL DOUIRI
MUTANDIS’ FOUNDER & CEO
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AGENDA
1 | Key Messages 2 | 2019 Consolidated financial results 3 | 2020 Outlook 4 | 2020 Calendar
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KEY MESSAGES
Higher sales and a good cost control Strong growth in detergents, thanks to our own brands; Still increasing the higher margin products and markets with a stable total volume. Unfortunately adverse exchange rates conditions (weak euro); Significantly better margins in the bottles and caps business, partially offset by sligtly lower volumes due to fading 2018 boycott effects; Very strong growth for fruit juices in the domestic market, supported by higher marketing spend.
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KEY FACTS
Market share gains and new countries
Magix becomes LEADER in the « hand washing and semi- automatic machine » category
JOSIANE enters the Saudi market Maxis’ Maison launches its new perfume: Vanilla Flowers Marrakech juices continues to expand in Africa
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KEY FACTS
Market share gains and new countries
- Testing Marine in supermarkets in Morocco
- First skinless boneless samples to the USA
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2020 CONSOLIDATED FINANCIAL RESULTS
2
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FINANCIAL KEY MESSAGES (1/2)
2019 : Solid growth on all metrics
RECORD REVENUES
- Steady growth, in line with guidance ;
- Mostly thanks to detergents and fruit juices.
RECORD EBITDA
- Slightly better than guidance ;
- Marginally higher margins combined with higher revenues ;
- Stable fixed costs.
STRONG GROWTH IN RECURRING NET INCOME
- Higher amortization offset by lower cost of debt.
SIMILAR INCREASE IN NET INCOME
- Non recurring items are -11 MMAD.
REVENUES: MAD 1 462 MILLION +6.9% /2018 EBITDA : MAD 228 MILLION +11.7%/2018* RECURRING NI** : MAD 93 MILLION +21.1%/2018* NI : MAD 82 MILLION +16.7%/2018*
* PRO FORMA IFRS 16 ** RECURRING NET INCOME : NET INCOME EXCLUDING NON RECURRING ITEMS
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FINANCIAL KEY MESSAGES (2/2)
2019: Higher cash flows and still underleveraged balance sheet
STABLE NET BANK DEBT
- Lower need for working capital ;
- Offset by higher capital expenditures.
BANK NET DEBT / TOTAL CAPITAL : 20% vs 19% in 2018* PROPOSED DIVIDEND
- First year at mad 8.5/ share after 4 years at mad 7.5
PROPOSED DIVIDEND : 8,5 MAD / share +13%/2018 CASH FLOW FROM OPERATIONS
- Higher net income and depreciation ;
- Partially offset by higher tax disbursements.
CASH FLOW FROM OPERATIONS : 151 MMAD +20%/2018* * PRO FORMA IFRS 16
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FINANCIAL SNAPSHOT
2018 2019
Guidance 2019
1,368 +6% à 8% 1,462 +6.9% 204 228
Guidance 2019
2018 2019 ~+10% 11.7% 77 93 2018 2019
Guidance 2019
+15% à 25% 21.0% 125 151 2018 2019 20.8%
FINANCIAL INDICATORS
2019 in line with our guidance
EBITDA CAPEX
Revenues EBITDA Recurring net income Cash flow from operations
In MAD Millions In MAD Millions In MAD Millions In MAD Millions
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FINANCIAL INDICATORS
Revenues breakdown
3 3 79 9 11
239 235 504 512 567 646 55
2018 2019
66
1,462 1,368
- 4
+6.9% 44.2%
4.5%
35.0% 16.1%
0.2%
Detergents Seafood
- ther
Food bottles Fruit juice
2019 revenues by category Revenues growth
In MAD Millions
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FINANCIAL INDICATORS
EBITDA Breakdown
EBITDA growth 3
16 9 4
7 44 53 69 65 97 112
- 10
2019
- 10
2018
Detergents Seafood Food bottles
204
Fruit juice
- 4
228
+11,7%
Other
In MAD Millions
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RESULTS BY CATEGORY
Detergents
In MAD Millions
Strong growth thanks to enlarged distribution (route to market), to the shift to the 1 kg format (from the 10 kg big bag) and to steady liquid sales ; Offset by higher marketing spend to introduce the 1 kg format and by investments in our distribution to launch Marrakech juices and increase our geographic reach.
Key facts
MMAD 2018 2019 % Revenues 567.1 645.8 +13.9% EBITDA 96.4 112.4 +16.0%
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Seafood products
Continuing the shift to higher margins products/countries ; First skinless boneless shipments to Saudi Arabia and to the USA ; Adverse exchange rates due to weaker Euro ; Improved manufacturing efficiency and energy costs ; Organization restructuring leading to lower overhead costs.
Key facts
MMAD 2018 2019 % Revenues 503.7 512.3 +1.7% EBITDA 69.0 64.9
- 6.0%
RESULTS BY CATEGORY
In MAD Millions
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Food bottles
Lower bottled water volumes dur to fading 2018 boycott effects (boycott affected non-partner brands) ; Significantly higher margins due to better contract negociations / sales mix = strong EBITDA growth .
Key facts
MMAD 2018 2019 % Revenues 239.1 235.0
- 1.7%
EBITDA 44.4 53.4 +20.1%
RESULTS BY CATEGORY
In MAD Millions
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Fruit juices
Own brands up +33% in the domestic market ; Slight contraction in margins (mostly factory issues) ; Doubling EBITDA albeit from a low base.
Key facts
MMAD 2018 2019 % Revenues 55.0 65.7 +19.4% EBITDA 3.0 6.9 N/A
RESULTS BY CATEGORY
In MAD Millions
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FINANCIAL INDICATORS
Cash flow and net debt
129
ND 2018
- 61
- 73
- 237
CFO* CAPEX Dividend
- 241
ND 2019
2.0%
Cash flow Net debt
- 237
Dec 2018
- 241
Dec 2019
2.0% 19.1% 19.6%
Gearing
ND : Net debt CFO.* : Cash flow from operations ajusted by the cash impact of IFRS 16
In MAD Millions In MAD Millions
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FINANCIAL INDICATORS
CAPEX
59 73
Dec 2018 Dec 2019
23.0%
CAPEX Marketing
7 9 18 23
Dec 2018 Dec 2019
Opex Amortization 24 31 29.7%
In MAD Millions In MAD Millions
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2020 OUTLOOK
3
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2020 OUTLOOK
- Revenues: +6% to +7%, all categories
contributing : New category in detergents; National launch of Marine in Morocco (after 2019 test) ; Further growth in fruit juices. EBITDA: ~+8% : favourable operating leverage on fixed costs ; Expected Capex : ~ 80 mad million including the first investments for our future categories.
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2020 OUTLOOK
Outlook
MAD MILLION 2019 2020 Revenues 1,462 MMAD +6% to +7% EBITDA 228 MMAD ~ +8% Recurring Net Income 93 MMAD +10% to +13%
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2020/2021 OUTLOOK
Products launches/Territories
- Skinless Boneless 1st time in the USA
- Machine powder launch
- Sardine fish paste launch
- Marine national launch
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2020 CALENDAR
4
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14
- FY 2019 results
Feb. 17
- Analysts conference
Feb.
- General Meeting
02 Apr.
- Q1 2020 financial KPI
04 May. 28 Aug.
- Q2 2020 financial KPI
Nov.
- H1 2020 financial results and analysts conference
05
- Q3 2020 financial KPI
Nov. 07 sept.
2020 CALENDAR
Key dates