Eurocash Group

1Q2023 Financial Results

12.05.2023

1Q2023 - another quarter of improving results

EBITDA for the last 12 months: PLN 582m (pre IFRS 16)

EBITDA 1Q23: PLN 53m, +12,5m y/y (pre IFRS 16) and PLN 165m, +14m y/y (IFRS16)

OCF 1Q23 (pre IFRS16): PLN 3m, +101m r/r. First positive OCF contribution in 1Q since 2016.

Wholesale - varied growth of formats, still above inflation

  • Stable Distribution sales +14%, a weaker quarter relative to inflation and strong base in 2022 for Cash&Carry +5,7%
  • The fastest revenue growth by Eurocash Serwis and Gastronomia, by 28% and 52%
  • Nearly 56% of sales carried out through Eurocash.pl

Sales 1Q23 +18 y/y EBITDA +15m y/y

Retail - a need to adapt to changing consumer behavior and rising cost

  • +10% LfL of Delikatesy Centrum stores
  • PLN 52m EBITDA, flat y/y
  • Investing in prices to better meet consumer needs

Sales 1Q23 +10% y/y

Projects - Duży Ben's expansion and Frisco's growing sales

  • Frisco: sales +12% y/y, to PLN 109m w 1Q23
  • Duży Ben with 338 stores, +54% sales y/y and +16% LfL in 1Q23
  • Improvement of EBITDA to PLN -14 million - increasing the effectiveness of expansion and profitability of DB stores

Sales 1Q23 +25% y/y

EBITDA +1,6m y/y

2

1Q2023 - sixth quarter of sales and EBITDA growth

Nearly +10% EBITDA and a stable EBITDA margin in 1Q2023

Evolution of sales by segment in 1Q2023

m PLN

m PLN

+16%

+9,6%

169

42

841

165

7 548

151

6 496

2,3%

2,2%

1Q22

1Q23

1Q22

Wholesale

Retail

Projects

1Q23

Thanks to cost discipline, only a minor decrease in Ebitda margin despite materialization of several cost increases at the start of the year (minimum wage, energy, rental) -> should be further offset by seasonally higher sales during the year.

Strong Wholesale segment, relatively challenging quarter

for Retail and more effective expansion of Projects

3

High inflation and decline in retail sales

Polish GDP growth

12.2

%

8.5 8.6

%

6.5

5.8

2.7

3.6

2.0

0.2

-0.8

-1.0

-1.8

-7.8

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23f

CPI

21.9

22.9

17.4

17.3

17.0

13.9

16.3

13.4

9.7

10.2

11.0

7.7

8.7

8.4

6.7

5.4

6.6

3.6 3.6

Retail sales growth in Poland -

food, beverages and tobacco

2.7

11.9

2.5

10.5

7.4

7.8

0.6

7.9

1Q21

4.8

5.4

2.4

1.9

0.2

-1.7

-4.6

-4.6

4.5

6.5

3.8

4.6

2.1

1.1

1.8

1.2

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

CPI

CPI - food and non-alcoholic beverages

CPI - tobbacco and and alcoholic beverages

I 22

II 22

III 22 III 22 IV 22

V 22

VI 22 VII 22 VIII 22 IX 22

X 22

XI 22 XII 22

I 23

II 23

III 23

4

Source: GUS

Debt ratios

Net debt/EBITDA (before IFRS16)

m PLN

2.57

2.30

2.35

2.05

1.90

1.94

1.48

1 016

1.17

1.23

932

926

858

725

768

685

573670

719

478

518

585

404

395

354

361

365

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

12M adjusted EBITDA (m PLN) Net debt (m PLN)

Net debt/EBITDA (according to bank convenants)

Net debt/EBITDA (after IFRS16)

m PLN

3.66

3.73

3.84

3.57

3.45

3.35

3.02

2.67 2.68

3 111

3 028

2 902

2 928

2 910

2 676

2 625

2 720

2 766

1 019

1 015

965

904

794

786

810

750

761

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

12M adjusted EBITDA (m PLN) Net debt (m PLN)

Net debt/EBITDA (according to bank convenants)

Strategic goal of net debt/EBITDA (before IFRS16) maintained at the strategic goal below x1.5.

A slight increase in the ratio in 1Q23 is the result of a lower cash level q/q, with minor changes in EBITDA and debt level.

That's the lowest debt level in the recent times for the year opening. Overall reduction y/y of debt and factoring by PLN 582m.

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Eurocash SA published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 05:12:13 UTC.