Compañía de Distribución Integral Logista S A : Presentación de resultados
10/28/2020 | 02:20pm EST
2020 Results
28 October 2020
Disclaimer
This document has been prepared by Compañía de Distribución Integral Logista Holdings, S. A. ("Logista Holdings" or "the Company") for information purposes, and does not constitute an offer of purchase, sale or
exchange, neither an invitation for an offer of purchase, sale or exchange of shares of the Company, or any advice or recommendation with respect to such shares.
This document contains certain statements that constitute or may constitute forward looking statements about the Company, including financial projections and estimates and their underlying assumptions, which are not guarantee of future performance or results, and are subject to risks, uncertainties and other important factors beyond the control of Logista Holdings that could cause final performance or results materially different from those expressed in these statements. These risks and uncertainties include those discussed or identified in the documents filed by Logista Holdings with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator.
Analysts and investors are cautioned not to place any reliance on such forward looking statements, which reflect knowledge and information available as of the date of this document. The Company does not undertake to update or revise publicly these forward looking statements in case unforeseen changes or events occur which could affect these statements, even if these changes or events make clear that the statements shall not be realized.
Finally, it should be noted that this document may contain information which has not been audited and may contain summarized information. This information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Logista Holdings.
2
Index:
Results Highlights
Business Review
Financial Review
Final Remarks & Outlook
2020 at a glance
Robust results, challenging environment due to COVID-19
Ensuring
distribution
o Revenues +4.0%
o Economic Sales +0.7%
Cost
MANAGING
New needs,
o EBIT +1.0%
COVID-19
management
o Adj. EBIT -1.9%
IMPACTS
new services
o Net Profit -4.5%
Protecting our people
4
Managing COVID-19 impacts: Ensuring distribution
A different playing field
Most
Lockdowns
activities
and human
E-commerce
Business
declared
mobility
boom
Intelligence
essential
restrictions
Omni-channel
Opportunity to
Service of
ordering,
Proximity retail
provide a high-
growing
flexibility in
gaining SoM
quality
importance for
operations, key
distribution
our clients
to operate
5
Managing COVID-19 impacts: New needs, new services
Supporting our clients
Tobacco
Convenience
Pharma
Nacex
Building up security stocks close to points of sale
Widening product portfolios accessible to end-consumers during lockdowns
Direct-to-patientclinical trials
Home delivery - chronic disease treatments
Contactless delivery
Lockers and dropping points Nacex.shop
Books
Home delivery of the on-demand printing purchases
6
Managing COVID-19 impacts: Protecting our people
Increased focus on health & safety
• Ensuring health and wellbeing, preventing
Employees,
contagion
collaborators, their
families, our
•
Smart working policy implemented
communities
•
Maintaining activity during pandemic
7
Managing COVID-19 impacts: Cost management
Facing a new reality
Health and safety: new
protocols, extra expenses
Optimization program to offset
the current environment
Restructuring of severely
damaged activities
Network/transport routes
reorganization
Digitalisation, from a solid base
8
Delivering on our goal
Four building blocks
High quality added-value
service
Expanding business base
Our goal:
Sustainable long term
value creation
Efficiency improvement
Robust cash flow profile
9
Business Review
Business Review
Robust results, challenging environment due to COVID-19
262(7)
(14)16257
Adj.EBIT
Inventories'
COVID-19
Regular
Adj. EBIT
FY 2019
valuation
impact
operations
FY 2020
differential
All data in M€, unless otherwise stated
11
Business Review
Iberia
Estimated
+0.6%
COVID-19 impact:
-11M€
3,176
+0.7%
(0.4)%
585
120
Revenues
Ec. Sales
Adj. EBIT
ECONOMIC SALES
Tobacco &
Transport:
Other
related:
businesses:
+0.6%
+2.9%
+0.1%
Total operating costs:
(0.9)%
All data in M€, unless otherwise stated
o Tobacco distribution:
Volumes* down 3.8%, affected by cross-border/ inbound tourism sales drop
No relevant impact of inventories' valuation
Convenience distribution:
Wider portfolio, points-of-sale open during lockdowns, average ticket sale up
New clients in petrol station channel
Transport:
Long distance and Parcel impacted by general economy
EBITDA growth, IFRS 16 impact (comparable down 0.9%)
Lower capex and higher interest received off-set increased restructuring and normalised taxes o Temporary WC effect
21
Dividend Policy
Flexibility to reflect activity performance
o Despite a challenging FY2020, the Board intends to propose distributing the same total dividends as in FY2019
Dividend proposal FY2020 of 156M€
o Total dividend proposal will represent 99.7% pay out over FY2020 Net Income
22
Dividend Policy
Pay out consistently above 90% of Net Profit
Total dividends paid since IPO: c. 820M€
149M€
139M€
119M€
98M€
156M€ 156M€
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
PAY OUT RATIO
>90%
>90%
>90%
>95%
>95%
>99%
23
Share Price performance
120
110
100
90
80
70
60
LOGISTA
IBEX
IBEX MEDIUM CAP
IBEX TOP DIVIDEND
LOGISTA
IBEX
IBEX MEDIUM CAP
IBEX TOP DIVIDEND
-18.3%
-27.3%
-17.0%
-31.8%
o Logista's performance in line with mid-cap companies in Spain, outperforming IBEX Top dividend and IBEX35
Significant impact from COVID-19
24
Financial Review: Conclusions
Shareholders'
remuneration via
dividend
Robust Economic Cash Flow profile
Highly resilient business model
25
Closing remarks and outlook
2020 improvements in ESG agenda
A-List CDP
42% women
FTSE4Good
on Board of
4th year
constituent
directors
Manifesto for a
Supporting
Smart working
local initiatives,
sustainable
policy
post-COVID
reconstruction
implementation
recovery
27
2020 a positive year in a challenging environment
Ensuring
distribution
o Revenues +4.0%
o Economic Sales +0.7%
Cost
MANAGING
o EBIT +1.0%
New needs,
COVID-19
o Adj. EBIT -1.9%
management
IMPACTS
new services
o Net Profit -4.5%
Protecting our people
o Solid set of results under extremely adverse circumstances
Successful business model: customer centric, flexible, asset-light
28
Outlook 2021
Adj. EBIT expected to grow mid-single digit
Solid performance since COVID-19 crisis started suggests a mid-single digit Adjusted EBIT growth rate in FY2021
o However, the uncertainties regarding the impact on the economy of our main markets and measures to face it may negatively impact the activity
o The outlook will be reviewed quarterly
o The dividend will be a priority in any scenario
29
Appendix
Tobacco Volumes Evolution
Relatively good volume performance across geographies
Million units
% Y-o-Y Change
1 Oct. 2019 - 30
1 Oct. 2018 - 30
1 Oct. 2017 - 30
1 Oct. 2019 - 30
1 Oct. 2018 - 30
Sept. 2020
Sept. 2019
Sept. 2018
Sept. 2020
Sept. 2019
TOTAL
Cigarettes
143,469
151,106
155,821
(5.1)%
(3.0)%
RYO/MYO
27,309
23,218
21,106
+17.6%
+10.0%
Cigars
3,855
4,017
4,028
(4.0)%
(0.3)%
SPAIN
Cigarettes
41,675
44,484
44,247
-6.3%
+0.5%
RYO/MYO
7,779
7,068
6,443
+10.1%
+9.7%
Cigars
1,765
1,876
1,929
(5.9)%
(2.7)%
PORTUGAL
Cigarettes
2,479
2,473
2,351
+0.2%
+5.2%
RYO/MYO
119
105
104
+13.4%
+1.0%
Cigars
FRANCE
Cigarettes
36,719
38,926
41,637
(5.7)%
(6.5)%
RYO/MYO
8,755
8,000
8,468
9.4%
(5.5)%
Cigars
1,196
1,236
1,246
(3.3)%
(0.8)%
ITALY
Cigarettes
62,595
65,222
67,587
(4.0)%
(3.5)%
RYO/MYO
10,655
8,045
6,091
+32.4%
+32.1%
Cigars
894
905
854
(1.2)%
+6.0%
31
Revenues Evolution
By segment and activity
M€
2020
2019
%
Iberia
3,176
3,157
+0.6%
Tobacco & Related
2,774
2,754
+0.7%
Transport Services
385
386
(0.1)%
Other Businesses
163
152
+7.0%
Adjustments
(147)
(134)
(9.2)%
France
4,256
4,069
+4.9%
Tobacco & Related
4,111
3,892
+5.6%
Other Businesses
154
187
(17.9)%
Adjustments
(9)
(9)
+2.4%
Italy
3,167
2,962
+6.9%
Tobacco & Related
3,167
2,962
+6.9%
Corporate & Others
(39)
(40)
+1.9%
Total Revenues
10,559
10,148
+4.0%
32
Economic Sales Evolution
By segment and activity
M€
2020
2019
%
Iberia
585
582
+0.7%
Tobacco & Related
286
278
+2.9%
Transport Services
272
270
+0.6%
Other Businesses
87
86
+0.1%
Adjustments
(59)
(53)
(11.1)%
France
264
278
(5.0)%
Tobacco & Related
230
233
(1.3)%
Other Businesses
41
52
(21.5)%
Adjustments
(7)
(7)
+6.8%
Italy
304
286
+6.3%
Tobacco & Related
304
286
+6.3%
Corporate & Others
3
4
(9.5)%
Total Economic Sales
1,157
1,149
+0.7%
33
Adjusted EBIT Evolution
By segment
M€
2020
2019
%
Iberia
120
120
-0.4%
France
62
74
(16.7)%
Italy
91
81
+11.9%
Corporate & Others
(15)
(14)
(13.1)%
Total Adjusted EBIT
257
262
(1.9)%
34
Income Statement
M€
2020
2019
%
Revenues
10,559
10,148
4.0%
Economic Sales
1,157
1,149
0.7%
(-) Operating Costs of Logistic Networks
(750)
(736)
(1.9)%
(-) Sales and Marketing Operating Expenses
(66)
(69)
5.3%
(-) Research and G&A Operating Expenses
(85)
(82)
(3.0)%
Total Operating Costs
(900)
(887)
(1.4)%
Adjusted EBIT
257
262
(1.9)%
Margin %
22.2%
22.8%
(60) p.b.
(-) Restructuring Cost
(12)
(11)
(2.0)%
(-) Amort. of Assets Logista France
(52)
(52)
0.0%
(-) Net Loss on Disposal and Impairments
13
4.8
162.4%
(-) Equity Method and Others
1
1.2
(29.6)%
Operating Profit
206
204.3
1.0%
(+) Financial Income
17
15.0
15.2%
(-) Financial Expenses
(5)
(2.2)
(125.4)%
Profit Before Taxes
219
217.1
0.7%
(-) Corporation Tax
(61)
(52.3)
(16.7)%
Effective Tax Rate
27.9%
24.1%
(380) p.b.
(+/-) Other Income / (Expenses)
0
0.0
n.r.
(-) Minority Interests
(0)
(0.1)
(199.3)%
Net Profit
157
164.6
(4.5)%
35
Balance Sheet
M€
2020
2019
PP&E and other Fixed Assets
373
229
Net Long Term Financial Assets
19
18
Net Goodwill
921
921
Other Intangible Assets
408
457
Deferred Tax Assets
19
19
Net Inventory
1,294
1,283
Net Receivables
1,986
1,946
Cash & Cash Equivalents
2,827
2,211
Total Assets
7,847
7,084
Group Equity
514
519
Minority interests
2
2
Non Current Liabilities
168
44
Deferred Tax Liabilities
254
265
Short Term Financial Debt
77
38
Short Term Provisions
13
12
Trade and Other Payables
6,819
6,205
Total Liabilities
7,847
7,084
36
Alternative Performance Measures (1/6)
oEconomic Sales: equals Gross Profit and is used without distinction by the Management to refer to the figure resulting of subtracting Procurements to the Revenue figure
Management believes that gross profit is a meaningful measure of the fee revenue we generate from performing our distribution services and provides a useful comparative measure to investors to assess our financial performance on an on-going basis
M€
2020
2019
Revenue
10,559
10,148
Procurements
(9,402)
(8,999)
Gross Profit
1,157
1,149
37
Alternative Performance Measures (2/6)
o Adjusted Operating Profit (Adjusted EBIT): This item is calculated, fundamentally, discounting from the Operating Profit those costs that are not directly related to the revenue obtained by the Group in each period, facilitating the performance of Group's the operating costs and margins
The Adjusted Operating Profit (Adjusted EBIT) is the main indicator used by the Group's Management to analyse and measure the progress of the business
M€
2019
2019
Adjusted Operating Profit
257
262
(-) Restructuring Costs
(12)
(11)
(-) Amortization of Assets Logista
(52)
(52)
France
(+/-) Net Loss of Disposals and
12
5
Impairment of Non-Current Assets
(+/-) Share of Results of Companies
1
1
and Other
Profit from Operations
206
204
38
Alternative Performance Measures (3/6)
o Adjusted Operating Profit margin over Economic Sales: calculated as Adjusted Operating Profit divided by Economic Sales (or indistinctly, Gross Profit)
This ratio is the main indicator used by the Group's Managements to analyse and measure the performance of the profitability obtained by the Group's typical activity in a period
M€
2020
2019
%
Economic Sales
1,157
1,149
0.7%
Adjusted Operating Profit
257
262
(1.9)%
Margin over Economic Sales
22.2%
22.8%
(60) b.p.
39
Alternative Performance Measures (4/6)
oOperating costs: this term is composed of logistics networks costs, commercial expenses, research expenses and head offices expenses that are directly related to the revenue obtained by the Group in each period
It is the main figure used by the Group's Management to analyse and measure the performance of the costs structure. It does not include restructuring costs and amortization of assets derived from the Logista France acquisition, as they are not directly related to the revenues obtained by the Group in each period
Reconciliation with Annual Accounts:
M€
2020
2019
Logistics network costs
807
799
Commercial expenses
66
70
Research expenses
3
3
Head office expenses
88
79
(-) Restructuring costs
(12)
(11)
(-) Amortization of Assets Logista France
(52)
(52)
Operating Costs or Expenses in
890
887
management accounts
40
Alternative Performance Measures (5/6)
oNon-recurringexpenses: refers to those expenses that, although they might occur in more than one period, do not have a continuity in time (as opposed to operating expenses) and only affect the accounts in a specific moment
This magnitude helps the Group's Management to analyse and measure the performance of the Group's activity in each period
oRecurring operating expenses: this term refers to those expenses occurring continuously and sustaining the Group's activity. They are estimated from the total operating costs less the non-recurring costs defined in the previous point
This magnitude helps the Group's Management to analyse and measure the performance of efficiency in the activities carried out by the Group
41
Alternative Performance Measures (6/6)
oRestructuring costs: are the costs incurred by the Group to increase the operating, administrative or commercial efficiency in our company, including the costs related to the reorganization, dismissals and closures or transfers of warehouses or other facilities
oNon-recurringresults: refers to the results of the year that do not have a continuity during the year and affect the accounts in a specific moment. It is included in the Operating Profit
Compañía de Distribución Integral Logista Holdings SA published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 19:19:02 UTC
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