1q19 earnings presentation - amazon s3...presentation, financial data is presented in accordance to...

1Q19 Earnings Presentation

The following material presents the results for the first quarter of 2019 (1Q19 – March, April and May 2019). In this

presentation, financial data is presented in accordance to the International Financial Reporting Standards and represents

the Company’s consolidated results in million reais (R$) with comparisons referring to the first quarter of 2018 (1Q18 –

March, April and May 2018; YoY comparison) and to the fourth quarter of 2018 (4Q18 – December, January and February

2019; QoQ comparison), except when otherwise specified.

Results here presented contemplate the results of SLC Alimentos as of the acquisition´s conclusion on December 3rd,

2018.

This presentation contains resumed information which shall not be considered complete. This material is published solely

for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related

financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to

the specific investment objectives, financial situation or particular needs of any recipient. Certain percentages and other

amounts included in this document have been rounded to facilitate its presentation. Thus, numbers presented as total in

some tables may not represent the arithmetic sum of the numbers that precede them and may differ from those presented

in the financial statements. Operational data are not audited, as they consist in measures which are not recognized by

IFRS or other accounting standards. Nor this presentation, neither anything here contained, should create basis for any

contract or commitment.

All information here contained are subject to adjustments and revisions without notice. By creating this presentation,

neither the Company, nor any of it´s affiliated companies, directors, executives or employees assume any obligation to

supply the receiver access to any additional information, update this presentation or any information, or correct any

inaccuracy in any of these information. This presentation does not contain all of the relevant information about the

Company.

Disclaimer

2

June-2019• Payment of R$21mm in IOE, R$6mm approved in

Shareholders’ Meeting and R$15mm approved by theBoard of Directors;

May-2019• Top of Mind Prize (RS) for Namorado and União brands,

promoted by Amanhã magazine

• Camil wins three trophies in EMBANEWS Prize 2019 forpackagings. Packagings for Arroz Camil Minuto Caseiro(Design category), Camil and Camil Gourmet product lines(Marketing category) were acknowledged

April-2019• We concluded the 8th debentures issuance (CRA) of

R$600 million, in two series with maturities in 2023 and2025;

• 2nd Share Buyback Program to be used in executivesremuneration plans through the means of stock options;

R$50 million Net Income ( +52.8%)

4.0% Net Margin ( +0.8pp)

1Q19 Financial Highlights

YoY Comparisons

3

Highlights

R$1.2 billion Net Revenue ( +23.2%)

R$942 million Brazil Food Segment ( +34.4%)R$296 million International Food Segment ( -2.8%)

Latest News

and subsequent events

2.2x Net Debt/EBITDA

Quarter highlights includes volumes increase in grains, sugar and canned fish categories

of +37.4%, +11.4% and +40.6% YoY, respectively.

R$287 million Gross Profit ( +8.9%)

23.2% Gross Margin ( -3.0pp)

R$83 million EBITDA ( +1.2%)

6.7% EBITDA Margin ( -1.5pp)

4

Main Indicators

Camil reaches Net Revenue of R$1.2 billion (+23.2% YoY) in the quarter

1 SLC Alimentos´ Results consolidated as of the conclusion of the acquisition (December 3, 2018).

2 Information on International Volume exclude La Loma, Argentinian subsidiary with 100% of Camil´s participation sold in 2Q18.

Source: Company

Highlights 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs

Closing Date 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18

Net Revenues 1,004.4 1,332.0 1,237.1 23.2% -7.1%

Food Products Brasil 700.4 987.6 941.5 34.4% -4.7%

Food Products International 304.0 344.4 295.6 -2.8% -14.2%

Gross Profit 263.3 322.4 286.8 8.9% -11.0%

Gross Margin (%) 26.2% 24.2% 23.2% -3.0pp -1.0pp

EBITDA 82.0 115.2 83.0 1.2% -28.0%

EBITDA Margin (%) 8.2% 8.6% 6.7% -1.5pp -1.9pp

Net Income 32.6 100.3 49.8 52.8% -50.3%

Net Margin (%) 3.2% 7.5% 4.0% 0.8pp -3.5pp

Capex 26.5 295.3 29.9 12.8% -89.9%

Operational Highlights - Volume (in thousand ton)

Volume - Brazil

Grains 153.3 221.2 210.6 37.4% -4.8%

Rice 136.1 197.7 187.2 37.6% -5.3%

Beans 17.2 23.5 23.3 35.7% -0.5%

Sugar 123.4 135.2 137.5 11.4% 1.7%

Canned Fish 5.0 12.0 7.0 40.6% -41.1%

Volume - International 125.9 170.6 110.6 -12.1% -35.2%

Uruguay 86.0 131.0 69.4 -19.3% -47.0%

Chile 20.4 18.6 20.5 0.5% 10.2%

Peru 19.5 21.0 20.7 6.2% -1.4%

5

Operational Highlights

1Q19 Volume and Revenue Breakdown (%)

Growth of 14.3% in the quarterly consolidated volume YoY, driven by the growth in volumes of all categories in Brazil,

partially impacted by international volume reduction in the period

+14.3% YoY

Canned Fish 7k+40.6% YoY- 41.1% QoQ

Sugar 138k+11.4% YoY+1.7% QoQ

Beans 23k+35.7% YoY-0.5% QoQ

Rice 187k+37.6% YoY-5.3% QoQ

0

100.000

200.000

300.000

400.000

500.000

600.000

1T14 2T14 3T14 4T14 1T15 2T15 3T15 4T15 1T16 2T16 3T16 4T16 1T17 2T17 3T17 4T17 1T18 2T18 3T18Arroz Brasil Feijão Açúcar Pescados Internacional

0

100.000

200.000

300.000

400.000

500.000

600.000


0

100.000

200.000

300.000

400.000

500.000

600.000


0

100.000

200.000

300.000

400.000

500.000

600.000


0

100.000

200.000

300.000

400.000

500.000

600.000

1T14 2T14 3T14 4T14 1T15 2T15 3T15 4T15 1T16 2T16 3T16 4T16 1T17 2T17 3T17 4T17 1T18 2T18 3T18Arroz Brasil Feijão Açúcar Pescados InternacionalInternational 110.6k

-12.1% YoY-35.2% QoQ

1Q19 Sales Volumes (‘000 ton)

Volume Net Revenue

-13.6% QoQ

Source: Company

Source: Company Source: Company Source: Company

1Q19

Quarterly Volume Evolution (k ton)

Highlights 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs

Volumes ('000 ton) 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18

Volumes - Brazil

Grains 153.3 221.2 210.6 37.4% -4.8%

Rice 136.1 197.7 187.2 37.6% -5.3%

Beans 17.2 23.5 23.3 35.7% -0.5%

Sugar 123.4 135.2 137.5 11.4% 1.7%

Canned Fish 5.0 12.0 7.0 40.6% -41.1%

Volumes - International 125.9 170.6 110.6 -12.1% -35.2%

Uruguay 86.0 131.0 69.4 -19.3% -47.0%

Chile 20.4 18.6 20.5 0.5% 10.2%

Peru 19.5 21.0 20.7 6.2% -1.4%

6

Brazil Food Segment | Rice

Sales Volume: 187.2 thousand tons

+37.6 % YoY

-5.3% QoQ

Average raw material price¹: R$41.77/bag

+16.4% YoY

-4.21% QoQ

Gross Price Camil: R$2.41/kg

+6.0% YoY

-2.2% QoQ

Source: Company Source: Esalq Senar¹, Company

We highlight increase in volumes in 1Q19 (YoY)

Rice – Camil’s Volume and Net Prices Rice – Market Prices vs. Camil’s Gross Prices

Rice – Product PortfolioRice – Quarterly Highlights

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

Source: Company

Sales volume loss in SLC Alimentos after the incorporation

Increase in Market competitiveness and struggle to transfer costincreases to prices

Mai

nst

ream

Val

ue

pri

cin

gb

ran

ds

7

Brazil Food Segment | Beans

Source: Company Source: Agrolink, Company


Beans - Camil’s Volume and Net Prices Beans - Market Prices vs. Camil’s Gross Prices

Beans– Product Portfolio

¹Source: Agrolink; beans indicator Sc 60kgSource: Company

Sales volume: 23.3 thousand tons

+35.6% YoY

-0.5% QoQ

Average raw material price: R$256.40/bag

+161.7% YoY

+34.2% QoQ

Gross price Camil : R$5.06/kg

+54.1% YoY

+9.5% QoQ

Positive performance with adjusted pricing strategy, ensuringprofitability and consistency of results

Beans – Quarterly Highlights

Mai

nst

ream

Val

ue

Pri

cin

gB

ran

ds

8

Brazil Food Segment | Sugar

Source: Company Source: Esalq-Senar; Company


Sugar - Camil’s Volume and Net Prices Sugar - Market Prices vs. Camil’s Gross Prices

Sugar – Product PortfolioSugar – Quarterly Highlights

Source: Company

¹Source: CEPEA; Cristal Sugar indicator Esalq-SP 50kg.

Parceria União & AmyrisAdoçante Natural

P&

D


+11.4% YoY

+1.7% QoQ

Average raw material price¹: R$68.49/bag

+28.0% YoY

-0.2% QoQ

Gross price Camil: R$1.98/kg

+1.4% YoY

-2.0% QoQ

Sales increase in União refined sugar and value pricing brands

Increase in Market competitiveness and struggle to transfer costincreases to prices

Mai

nst

ream

Val

ue

Pri

cin

gB

ran

ds

9

Brazil Food Segment | Canned Fish

Source: Company


Canned Fish - Camil’s Volume and Net Prices Canned Fish - Camil’s Gross Prices

Canned Fish – Product PortfolioCanned Fish – Quarterly Highlights

Source: Company

Sales volume: 7 thousand tons

+40.6% YoY

-41.1% QoQ

Gross price Camil: R$20.52/kg

-4.9% YoY

+1.1% QoQ

Sales increase in Coqueiro and value pricing brand Pescador

Supply: continued struggle in local sardines fishing and improvementin local tuna fishing

Source: Company

Mai

nst

ream

Val

ue

Pri

cin

gB

ran

ds

10

International Food Segment

Chile

Uruguay

Peru

Source: Company

Source: Company

International Operational Performance – Quarterly Evolution (‘000 ton)

We highlight volumes increase in Chile, sales recovery in Peru and volumes reduction in Uruguay

International - Main Considerations

By CountryBy Segment


• -19.3% YoY

• -47.0% QoQ

Gross price in R$: 1,95

• +6.5% YoY

• +7.8% QoQ


+0.5% YoY

+10.2% QoQ

Gross price in R$: 5,76

• -0.7% YoY

• +8.3% QoQ

Good

profitability

preservation

Gross Price in CLP/ton:

• +90.3% YoY

• +107.0% QoQ


+6.2% YoY

-1.4% QoQ

Gross price in R$: 4.90

• +13.7% YoY

• +4.3% QoQ

Gross price in SOL/ton:

• +1.9% YoY

• +0.0% QoQ

Sales recovery

Gross price in US$/ton:

• -5.5% YoY

• +4.2% QoQ

Production

decrease

Domestic

Market

Domestic

Market

Export Market

International – Breakdown 1Q19 (%)

SG&A

11

Financial Highlights

Cost of sales and services

R$950.3 million (+28.2% YoY) 76.8% of Net Revenue

SLC Alimentos incorporation;

Sales increase in all categories in Brazil;

Increase in raw material costs;

Partially offset by fall in International segment driven by volume decreasein.Uruguay.

Gross Margin of 23.2% (-3.0pp): reflects the struggle of transfering rawmaterial cost increase to prices.

R$238,5 million (+17.5% YoY)

19,3% of Net Revenue

Growth of SG&A Brazil (+23.5% YoY):

Increase in freights and sales comissions (+ volume);

SLC Alimentos incorporation;

Reduction in consultancies (cost decrease) and rentals (IFRS 16 impact).

Growth in International SG&A (+2.4% YoY):

Currency Effect (R$4.0 million);

Increase in sales force in Peru;

SG&A reduction in Uruguay.

EBITDA Margin of 6.7% (-1.6pp): reflects the struggle of transfering raw material cost increase to prices and increase in SG&A

1Q18 1Q19 1Q19 vs 1Q18 1Q19 1Q19 vs 1Q18 1Q19 1Q19 vsClosing Date 31-may-18 31-may-19 1Q18 31-may-18 31-may-19 1Q18 31-may-18 31-may-19 1Q18Net Revenues 700.4 941.5 34.4% 304.0 295.6 -2.8% 1,004.4 1,237.1 23.2%

(-) SG&A Expenses (522.9) (739.3) 41.4% (218.2) (211.0) -3.3% (741.1) (950.3) 28.2%Gross Profit 177.5 202.2 13.9% 85.8 84.6 -1.4% 263.3 286.8 8.9%

(-) SG&A (145.1) (179.2) 23.5% (57.9) (59.3) 2.4% (203.0) (238.5) 17.5%(+/-) Other operating income

(expenses) and Equity

(Earnings)/Losses in Uncons. Subs.

(1.1) 0.7 -160.8% (1.9) 0.3 -115.8% (3.0) 1.0 -133.3%

EBIT 31.3 23.7 -24.3% 26.0 25.6 -1.5% 57.3 49.3 -14.0%(+/-) Finacial Result (8.8) (10.1) 14.6% (3.2) (0.7) -78.1% (12.0) (10.8) -10.0%

(-) Debt Interest Expense (34.2) (44.9) 31.3% (8.4) (5.7) -32.1% (42.6) (50.6) 18.8%(+) Interest Income 25.4 34.8 37.1% 5.2 5.0 -3.8% 30.6 39.8 30.1%

Pre-Tax Income 22.5 13.6 -39.5% 22.8 24.9 9.2% 45.3 38.5 -15.0%Total Income Taxes (5.9) 17.1 -389.4% (6.8) (5.8) -14.7% (12.7) 11.3 -189.0%Net Income 16.6 30.7 84.9% 16.0 19.1 19.4% 32.6 49.8 52.8%(=) EBITDA 47.4 45.7 -3.6% 34.6 37.3 7.8% 82.0 83.0 1.2%MarginsGross Margin 25.3% 21.5% -3.9pp 28.2% 28.6% 0.4pp 26.2% 23.2% -3.0ppEBITDA Margin 6.8% 4.9% -1.9pp 11.4% 12.6% 1.2pp 8.2% 6.7% -1.5ppNet Margin 2.4% 3.3% 0.9pp 5.3% 6.5% 1.2pp 3.2% 4.0% 0.8pp

Food Products Brazil Food Products International ConsolidatedResult Statements

Debt (in R$mn) 1Q18 4Q18 1Q19 1Q19 vs 1Q19 vs

Closing Date 31-may-18 28-Feb-19 31-may-19 1Q18 4Q18

Total Debt 1,362.4 1,429.0 2,022.7 48.5% 41.5%

Loans and financing 383.5 448.9 445.1 16.1% -0.8%Debentures 978.9 980.1 1,577.6 61.2% 61.0%Short Term 229.7 514.1 539.2 134.7% 4.9%Long Term 1,132.7 914.7 1,483.6 31.0% 62.2%

Currency breakdownR$ 1,033.1 1,170.5 1,744.5 68.9% 49.0%USD 113.9 142.2 168.9 48.3% 18.8%CLP 23.3 7.2 7.8 -66.5% 8.3%PEN 115.4 109.1 101.5 -12.0% -7.0%

LeverageGross Debt 1,362.4 1,429.0 2,022.7 48.5% 41.5%

Cash and Cash Equivalents +

financial applications758.3 396.7 965.7 27.4% 143.4%

Net Debt 604.1 1,032.3 1,057.0 75.0% 2.4%Net Debt/EBITDA LTM 1.2x 2.1x 2.2x 0.9x 0.0x

Net financial expenses of -R$10.8 million(vs. -10.0% YoY)

Increase in expenses with interest over loans and financingand expenses with derivatives totaling R$8.7 million;

Descrease in expenses with exchange and monetary ratevariation of R$10.2 million

12

Financial Result and Debt

Source: Company

Net Financial Result

Debt (R$mm)

Source: Company

Debt Amortization Schedule (R$mm)

Liability Management: Debt cost reduction

13

Quarterly Profitability Evolution (in R$mn)

Quarterly Margin Evolution (%)

Source: Company

Source: Company

1T19 marked by reduction in gross margin (23.2%, -3.0pp YoY) and EBITDA margin (6.7%, -1.5pp YoY),

with increase in net margin (4.0%, +0.8pp YoY)

Profitability Evolution: Net Income, EBITDA and Margins

Luciano Quartiero

Chief Executive Officer

Flavio Vargas

Chief Financial and Investor Relations Officer

Investor Relations

Phones:

+55 11 3039-9238

+55 11 3039-9237

E-mail: [email protected]

1q19 earnings presentation - amazon s3...presentation, financial data is presented in accordance to...

Documents