BELUGA GROUP Aug August 2019 1H2019 EARNINGS PRESENTATION
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BELUGA GROUP 1H2019 financial highlights total volume is stable Sales grew 8% and reached + 19,4% volume of import 31 bln. Rubles* + 22,6% export volume of vodka Beluga Net Revenue increased Operating profit by 14% to increased by 23% to 21,5 bln. 1,7 bln. Rubles Rubles EBITDA grew 41% and reached 2,7 bln. Rubles Financial and Operational highlights EPS increased by 22% and 10% growth of Net Income to 452 mln. Rubles achieved 29 Rubles 3 * - incl. excise taxes, net of VAT
Consolidated Revenue and Gross Profit Revenue breakdown by segments Total Net Revenue Total Gross Profit RUB bn* RUB bn RUB bn +11% +14% +5% Revenue growth by 15,4 14% in 1H2019 13,9 21,5 8,4 8 18,8 mainly due to growth Alcohol of Winelab retail chain and import operations 1H2018 1H2019 +51% Gross Profit grew 5% 6,5 1H2018 1H2019 1H2018 1H2019 mainly due to Retail changes in 4,3 revenue/gross profit composition: share Consolidated Revenue split * of Winelab’s 1H2019 operations in the 1H2018 total revenue/gross Food 1H2018 1H2019 Alcohol Food Alcohol profit is growing -5% 12% 15% Food 3,1 3,2 26% 20% Retail Retail 62% 65% 1H2018 1H2019 4 Sources: Company data * - including intersegment
Consolidated EBITDA and Net Profit G&A and distribution expenses Consolidated EBITDA RUB bn RUB bn EBITDA grew by 41% due +41% to: G&A distribution 2,7 double-digit growth of import operations; 1,9 improvements in operating efficiency as a result of ongoing positive effect from the efficiency -2% improvement; IFRS 16 implementation 4,97 4,85 effect: if apply comparable with previous period IAS 17, EBITDA 1H2018 1H2019 growth was 15% +3% Operating Profit and Net Income 1,61 1,56 RUB bn G&A expenses increased only by 3% - less than 1H2018 1H2019 Net Income Operating Profit revenue growth mostly +23% due to improvements in operating efficiency. 1,7 +10% 1,4 2% year-on year decrease in distribution expenses 0,45 0,41 due to the optimization of trade-marketing policy. 1H2018 1H2019 1H2018 1H2019 5 Sources: Company data
Segment EBITDA* EBITDA breakdown by segments RUB bn Food Retail Alcohol Alcohol segment +23% -42% EBITDA grew due to 2,32 0,48 improvements in 1,88 0,20 operating efficiency and effect from IFRS 16 0,11 implementation. 1H2018 1H2019 1H2018 1H2019 1H2018 1H2019 -0,09 Since 1H2018 the Company has EBITDA split reported 3 EBITDA margin by segments segments: Alcohol, % 1H2019 Retail, Food. Alcohol Food 15% 6% EBITDA margin in Retail segment is 17% Retail higher than the 7% average in the retail sector in 4% Russia 77% Alcohol Retail Food 6 Sources: Company data * - including intersegment
Debt Profile overview Debt statistics summary RUB mln 31 Dec’18 30 Jun’19 Decrease in cost of borrowing from 9.0% p.a. in 2018 to Debt 12,886 16,084 8.96% p.a. in 1H2019 Cash and cash equivalents 1,083 812 All short-term debt was refinanced in July 2019 through issuance of 5 bln., 5 years bond Net Debt 11,803 15,272 Share of unsecured loans is stable (93%) EBITDA (LTM) 4,251 5,033 Net Debt / EBITDA 2.8x 3.0x Interest coverage 1 2.1x 2.3x Debt evolution Debt breakdown by maturity and type RUB bn As of 30 Jun, 2019 16,1 14,1 12,9 Secured debt Unsecured debt Less than 1 year 7% 11,5 24% 29% 13,4 2-5 years 12,4 RUB RUB 16.1 bn 37% 16.1 bn 56% 4,6 Bonds 0,7 0,5 30 Jun'18 31 Dec'18 30 Jun'19 47% 1-2 years Short-term debt Long-term debt 7 Sources: Company data Notes: 1) EBITDA over net finance cost
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